CAROLINE:
LIVE FROM NEW YORK AND SAN FRANCISCO.
DISNEY SHARES PROMISES OUT TO 2027. WE SIT DOWN WITH THE C.F.O.:
WE HAVE THE FACEBOOK MARKET SERVICE. CAROLINE:

THRIVE SEEKS TO ACQUIRE A STAKE.
D: DISNEY IS ON TRACK FOR THE
BIGGEST JUMP THIS YEAR, BEATING ANALYSTS' EXPECTATIONS. THEY APPEAR
TOLD US THE NEXT THREE YEARS TELL SEE EARNINGS GROWTH.
IT IS MOVIES ARE GETTING BETTER

BUT THERE ARE AREAS OF WEAKNESS.
WE EARLIER SPOKE TO THE C.F.O. AND DISCUSSED THOSE PARTS. >> AS YOU HAVE SEEN THROUGH
2024 IT MARKED A PIVOT FOR THE

WALT DISNEY COMPANY.
THE CREATIVITY IS VERY MUCH BACK, BACK-TO-BACK BILLION
DOLLAR MOVIES AND TRICK -- TERRIFIC SLATE FOR 2025 AND
THEN 60 EMMYS AND FEEDS THE FLY

WHEEL WILL STREAMING OR
EXPERIENCES INCLUDING PARKS, CONSUMER PRODUCTS AND CRUISE
SHIPS. GIVEN THESE INVESTMENTS WE HAVE
BEEN MAKING AND WE HAVE GOOD FINANCIAL VISIBILITY INTO THE
RETURNS ON THE INVESTMENTS WE

FELT LIKE IT WAS IMPORTANT TO
INFORM INVESTORS NOT JUST ON HOW WE WERE INVESTING BUT WHAT
THEY SHOULD EXPECT AND BE AWARE CONFIDENT WE CAN -- WE ARE
CONFIDENT WE CAN DELIVER.

>> YOU ARE GETTING BETTER AT
BEING PROFITABLE IN STREAMING. IS THIS INDUSTRYWIDE MACRO
LEVEL FACTORS SUPPORTING YOU OR SOMETHING YOU HAVE DONE THE
LAST YEAR THAT CRACKED THE

FORMULA OF STREAMING? >> STREAMING IS VERY MUCH A SCALE
BUSINESS SO AS EVERYONE GAINS MORE SCALE THAT HELPS THE
INDUSTRY OVERALL. FORS IN PARTICULAR, I THINK THE
COMBINATION OF THE TERRIFIC I.P.

WE ARE PUTTING INTO THE SERVICE,
THE PRODUCT IMPROVEMENTS WE ARE MAKING AND INTEND TO MAKE WITH
THE NEW LEADER WE HAVE ON PRODUCT, ADAM SHIFT WHO CAME
FROM YOUTUBE, WE SEE A TERRIFIC

FUTURE WITH STREAMING.
IT IS IMPORTANT TO THINK ABOUT WHAT THOSE ADDITIONAL SUBSCRIBERS
MEAN IN TERMS OF A STREAMING BUSINESS.
MANY WAYS STREAMING HAS THE CHARACTERISTICS OF A SOFTWARE
BUSINESS WHERE THE INCREMENTAL

VALUE IS VERY HIGH BECAUSE THE
INCREMENTAL COST OF THAT ADDITIONAL SUBSCRIBER ARE VERY
LOW. SO AS THE INDUSTRY IS COMING
TOGETHER WE WILL CONTINUE TO ADD SUBSCRIBERS BECAUSE OF THE

VALUE WE WILL BE ABLE TO TAKE
PRICING AS WELL. AND THAT COMBINED WITH GOOD
COST MANAGEMENT WE FEEL VERY OPTIMISTIC PARTICULARLY WHERE STREAMING
IS GOING. WE HAVE SEEN GRADUAL AND
STRENGTHEN FROM QUARTER TO

QUARTER, BUT A POSITIVE IMPACT.
CAROLINE: I’M INTERESTED IN THE FILM
STUDIO AND WHAT BONUS YOU WILL GET FROM THE MOVIES.
HOW IMPORTANT HAVE THE ESPN INVESTMENTS BEEN THERE? 

>> TO TALK ABOUT THAT WE OUGHT
TO DIAL BACK TO WHERE WE WERE.  IT IS IMPORTANT TO
REMEMBER WE HAVE ONLY BEEN IN THE STREAMING BUSINESS FIVE
YEARS. THIS IS A RELATIVELY NASCENT
BUSINESS FOR US.

BUT AS WE THINK OF WHERE WE WERE,
WE WERE VERY MUCH FOCUS -- WHERE WE WERE, WE WERE FOCUSED
ONLY CREATING QUANTITY. AS IS OFTEN THE CASE WHEN YOU
PUSH HARD ON QUANTITY SOMETIMES, 

QUALITY -- QUANTITY EQUALITY IS
NOT WHERE YOU WANT. BOB IGER TALKED ABOUT
RESTORING CREATIVITY AND REDUCING QUANTITY AND FOCUSING
ON RAISING THE BAR ON QUALITY.

WE HAVE BEEN TALKING ABOUT THAT
FOR A YEAR OR YEAR AND A HALF, BUT YOU SAW THAT IN 2024 WITH
INSIDE OUT 2 AND "DEADPOOL" AND WOLVERINE,
BACK-TO-BACK BILLION DOLLAR 

MOVIES AND WE HAD 60 EMMYS.
SO THE FOCUS ON QUALITY IS NOT RANDOM BUT IS A SUSTAINING
IMPACT. AS WE THINK TO THE SLATE IN
2025, WHETHER IT’S "MOANA" OR "LION

KING OR CAPTAIN AMERICA, WE ARE VERY OPTIMISTIC THEY WILL BE BIG HITS. >> YOU TALK ABOUT LIVE TV ALMOST LIKE A HEDGE. YOU WANT TO KEEP THAT PARTICULARLY FOR THE OLDER DEMOGRAPHIC.

BUT I’M INTERESTED IN THE NEED TO SEE THINGS ON ESPN. HOW DO YOU THINK THAT WILL CHANGE YOUR AUDIENCE AND CUSTOMER ATTITUDES TOWARDS BUYING SPORTS? >> THE IMPORTANT THING ABOUT THE ESPN FLAGSHIP, THAT IS WHAT

WE USE ON IT, IT IS NOT JUST ANOTHER DISTRIBUTION CHANNEL. IT IS NOT TAKING ESPN ALONE AS IT EXISTS AND PUTTING IT INTO STREAMING. IT WILL HAVE ALL OF THAT CONTENT, BUT IT WILL BE A TRUE DIGITAL EXPERIENCE IN SO MANY

WAYS. THE ABILITY TO DO E-COMMERCE, TRACK FANTASY, AND SHAPE SOME OF THE ESPN BROADCAST PRODUCTS TO YOUR LOOKING. TO DO ONLINE BETTING. IT IS A MORE INTERACTIVE AND DIGITAL PRODUCT.

I THINK THAT IS WHERE THE BIGGEST SHAPING WILL COME FROM. CONSUMERS WILL CHOOSE TO GO THROUGH CABLE OR INNER DIGITAL NETWORKS. WE ARE THERE FOR EVERYONE EVERYWHERE. THAT IS THE GOAL OF ESPN. WE

WANT TO BE WHERE THE SPORTS FAN WANTS TO BE, BUT WE INTEND TO BRING A LOT OF VALUE IN THAT PRODUCT. CAROLINE: LET’S GET MORE. WHAT IS REALLY INTERESTING HE SAYS DON’T JUDGE US BY OUR TV ARM OR CABLE, BUT ENTERTAINMENT

BROADLY AND HOW THEY PLAY WITH
EACH OTHER. IS THAT THE WAY YOU SEE IT? >> I THINK SO.
THAT IS DISNEY MORE BROADLY, EVERY PART OF THE BUSINESS, SO
YOU LOOK AT THE STUDIO, THAT IS

CONTENT, NOT JUST INTO THE
STUDIO, BUT ACROSS THE INSURANCE AND -- THE NETWORKS AND
EVERYTHING. IT IS THE SAME WITH LINEAR AND
STREAMING, SO YOU HAVE CONTENT THAT FEEDS BOTH THE LINEAR
AND STREAMING, AND YOU HAVE

SPORTS RIGHTS HERE, AND WHEN YOU
HAVE SPORTS RIGHTS YOU HAVE TO BE CAREFUL BECAUSE YOU HAVE THE
LINEAR TV AND DIGITAL RIGHTS. SO IT LOOKS LIKE THEY WANT TO
KEEP EVERYTHING TOGETHER UNDER THE SAME UMBRELLA. ED:
I HAVE AN ESPN QUESTION FOR YOU

BECAUSE WHAT IS SO INTERESTING
BEFORE WE CAME ON AIR, THE 10K HIT AND SHOWED THE ESPN
SUBSCRIBERS DROPPED TO 66 MILLION DOWN FROM 71 MILLION
LAST YEAR.

THEN YOU HAVE THE WARNING THAT
THEY WOULD TAPER OFF IN 2025. DO YOU LOOK FOR THE THREE-YEAR
HORIZON, WHERE WE'RE SHOCKED BY IF JURISDICTION, WE ARE DEFINITELY
GOING TO SEE COST CUTTING

PERSIST. WE ARE SEEING
SUBSCRIBER EROSION AROUND 8% TO 9%.
THE LAUNCH OF THE FLAGSHIP ESPN WILL BE ANOTHER TRIGGER THAT
WILL ACCELERATE COST CUTTING.

BUT THE GUIDANCE THEY ISSUED
WAS STELLAR. INVESTORS LOVE IT. THE BIGGEST OVERHANG OVER THIS
STOCK HAS BEEN THE LACK OF CLARITY AND VISIBILITY.
SO TO GIVE US EARNINGS GROWTH

NOT INTO JUST 2025 BUT LAY OUT THE ROAD MAP TO 2026 AND 2027
HELPS WITH THE CONCERNS OF DIFFERENT PARTS. ED:
IT IS 2024 AND WE ARE STILL TALKING ABOUT -- AND WE ARE
STILL TALKING ABOUT CORD

CUTTING. WHY MORE TECH FIRMS ARE EYEING
A 2025 IPO. BIG INTERVIEW. THIS IS "BLOOMBERG TECHNOLOGY." >> THIS YEAR CERTAIN TECH
COMPANIES HAVE GONE PUBLIC AND

COLLECTIVELY THEY ARE TRADING
WELL HIGHER THAN THE ORIGINAL OFFER PRICES. M&A
AND TALK ABOUT ALL OF IT WHEN WE THINK OF THE GROWTH FOR 2025.
MANY HAVE BEEN WAITING AND

THINKING 2025 POST-ELECTION
WILL BE THE YEAR IPO’S SPRING TO LIFE AND M&A. >> THANK YOU FOR HAVING ME.
THAT’S RIGHT. WE ARE VERY FOCUSED ON IT.
AS YOU SAID THERE WAS SEVEN

TRUE TECH IPO’S LAST YEAR.
AS A CLASS THEY HAVE TRADED VERY WELL.
I THINK THAT WE HAVE BEEN FOCUSED ON WHY ARE SOME
COMPANIES WAITING ON THE SIDELINES.
BUT WHEN WE LOOK AT THE

PIPELINE IN TERMS OF TECHNIQUE
TECHNIQUE I.P. -- TECH IPO’S JUST THE FIRST
HALF THERE ARE AT LEAST SEVEN TECH COMPANIES FOR THAT.
AND IF THEY GO PUBLIC AND

THEY ARE SUCCESSFUL WHICH WHEN
YOU EXPECT THEY WOULD EXPECT A LOT OF COMPANIES ON THE SIDELINES
WILL START TO CAPITALIZE. CAROLINE:
BIGGER AND BIGGER PRIVATE COMPANIES ABLE TO RAISE MORE
AND MORE MONEY AT EXTRAORDINARY

VALUATIONS SO CLEARLY THE MONEY
IS COMING IN FROM THE PRIVATE SIDE. WHY GO PUBLIC? >> THAT IS A GREAT QUESTION AND
THE EXACT QUESTION COMPANIES ARE ASKING THEMSELVES.
GENERALLY WE SEE AT SOME POINT,

REGARDLESS OF WHERE THE PRIVATE
CAPITAL IS AVAILABLE THEY CHOOSE TO GO PUBLIC FOR A
VARIETY OF REASONS. YOU SEE COMPANIES THERE’S A
BRANDING IMPACT. WHETHER THEY ARE AN ENTERPRISE
OR CONSUMER COMPANY, AT THE END OF THE DAY

GOING PUBLIC WILL GIVE THEM
HELP IN TERMS OF ACCESSING MORE CLIENTS AND YOU OFTEN SEE IT
FOR, YEAH, LIQUIDITY AND SHAREHOLDER LIQUIDITY.
AS THEY MATURE IT STARTS TO

MAKE SENSE TO TAP THE PUBLIC.
THE OTHER THING IT GIVES YOU ACCESS TO CURRENCY FOR M&A.
SO THEY THINK OF M&A BEING AN IMPORTANT PART OF THEIR COMPANY.
ED: LET ME JUMP IN ON EMPLOYEE

LIQUIDITY.
THEY HAVE OPTIONS TO DEALS I REPORTED ON RECENTLY
, IN THE DATA BREAK COMPANY THEY MIGHT BUY BACK SHARES
THEMSELVES. HOW BIG A FACTOR IS THAT.
IF YOU CAN USE A TENDER AS AN

OPTION TO KEEP STOCK AND YOU
DON’T NEED CASH WHY -- DON’T NEED CASH WHY GO PUBLIC? >> THAT IS EXACTLY RIGHT.
THE WAY WE THINK YOU WANT TO GIVE COMPANIES LOTS OF
OPTIONS. WE HAVE COMPANIES THAT ARE

WEIGHING WHAT THEY CAN ACCESS IN THE PRIVATE MARKETS AND THAT
IS NOT ALL CREATED EQUALLY. SO THERE IS STRUCTURED EQUITY
AND FINANCE AND MORE STRAIGHTFORWARD EQUITY CAPITAL.
BUT THEY ARE ALL AVAILABLE TO

THEM.
I THINK THAT CREATES A HEALTHY DYNAMIC IN WHICH COMPANIES CAN
MAKE THE BEST CHOICES FOR THEMSELVES AND OPTIMIZE FOR
WHATEVER THE FACTORS ARE MOST IMPORTANT TO THEM WITH
SHAREHOLDERS, BRANDING VALUE OR

WHETHER THAT IS VALUATION OR
OTHER THINGS. SO THE ACCESS OF THOSE MARKETS
IS HELPFUL IN TERMS OF HOW COMPANIES CAN MAKE DECISIONS FOR
THEMSELVES -- CAN MAKE DECISIONS. ED:
2025 WHICH COUNTRY WILL BE THE

HOT PLACE TO DO A LISTING FOR
TECH? >> WHAT I WOULD SAY IS I THINK
THAT THE VAST MAJORITY OF VOLUME OR WHAT I WILL SAY A LOT
OF VOLUME COMES TO THE U.S.

I THINK THAT WILL CONTINUE.
I THINK IT IS HARD TO IMAGINE THAT IS NOT THE CASE.
ALL THAT SAID WE ARE SEEING OTHER COUNTRIES AND EXCHANGES
HAVING INCREDIBLY SUCCESSFUL LISTINGS.
YOU ARE SEEING VERY LARGE

COMPANIES POTENTIALLY CHOOSING
TO LIST OUTSIDE THE U.S. SO THERE’S A GLOBAL INVESTOR
BASE WITH VARIOUS EXCHANGES SO ALL OF THOSE ARE HEALTHY
DYNAMICS SO I THINK YOU WILL

CONTINUE TO SEE THAT. CAROLINE: INTERESTING WHERE PEOPLE CHOOSE
TO LIVE. WHAT ABOUT THE STORY YOU TELL
IN LISTING WHEN IT WAS THE CROP OF COMPANIES AT THE END OF 2023
AND 2024 YOU HAD TO HAVE

ARTIFICIAL INTELLIGENCE.
IS THAT STILL THE CASE? IS IT JURISDICTION? I THINK WE HAVE SEEN A
MASSIVE SHIFT AROUND CONSUMER TECH AND THEY HAVE TO BE
TALKING ABOUT AI.

IT HAS BEEN TRUE FOR THE LAST
YEAR AND A HALF. WHAT WILL BE INTERESTING IS THE
SHIFT THE WAY COMPANIES ARE TALKING ABOUT AI.
ONE THING WE SAW EARLY ON MOST INTERNET COMPANIES WERE TALKING
ABOUT AI MOSTLY IN THE FORM OF

COST SAVINGS.
SO CALL CENTERS AND SERVICE AND HOW TO CREATE A BETTER
CUSTOMER ATTRACTION. THEN WE SAW A SHIFT TO TALK
ABOUT AI FOR ADVERTISING. YOU SAW WITH THE EARNINGS
SEASON THE AD-BASED COMPANIES

DID EXTRAORDINARILY WELL FOR
THE POST PART. A LOT OF WHAT WE’RE HEARING IS
THE AI TECHNOLOGY FOR AD PLACEMENT HAS CONTINUED TO
IMPROVE. ONE OF THE INTERESTING SHIFTS
WE ARE SEEING IS INTERNET AND

CONSUMER TECHNOLOGY COMPANIES TALK ABOUT AI AS IT RELATES TO REAL REVENUE OR
CONSUMER AI CASES. SO ONLINE TRAVEL COMPANIES TALK ABOUT
DISCOVERY AND PLANNING OF TRIPS.

AND AD TECH COMPANIES TALKING
ABOUT TARGETING. SO COMPANIES ARE SAYING CONSUMERS KNOW THEY’RE
INTERACTING WITH AI AND GLAD ABOUT THAT. >> GREAT TO HAVE YOU HERE.
A QUICK NEWS STORY OUT OF

EUROPE, A BOOM IS PREDICTED IN
POWER-HUNGRY DATA CENTERS DRIVING DEMAND FOR TRANSFORMERS
AND GRID TECHNOLOGY. SEEING ORDERS JUMP WITH THE SEARCH IN
AI. THEY TALKED ABOUT THE COMPANY
MAKING THEIR OWN INVESTMENTS.

>> WE ANNOUNCED AN AI
ENGINEERING CHANGING OR SOFTWARE PORTFOLIO.
IT IS ABOUT SIMULATION WHERE WE WERE WEAK AND IT IS ALSO AI AND
HIGH PERFORMANCE COMPUTING. CAROLINE:
WE WILL TALK ABOUT AI MORE.

THE AI DEMAND FROM ASML IS UP SOME
5% AFTER THE COMPANY THAT MAKES THE EQUIPMENT WE ARE SEEING
THEM STILL MANAGING TO PROJECT SALES IN 2030 UP TO $60 BILLION.
REMEMBER HOW HARD THEY HIT THE

MARKET WITH A SIGNIFICANT MISS
IN THE THIRD QUARTER IS MAYBE A REPRIEVE AND A LITTLE ELEMENT OF
CONFIDENCE BACK. COME UP WITH A HEFTY FINE FOR A
COMPANY. ED: TIME TO TALK IN TECH NETFLIX
'SQUID GAMES' SET TO RETURN.

THEY ARE LOOKING TO THE GLOBAL
SUCCESS OF THE FIRST SEASON WHICH WAS THE MOST POPULAR
SHOW IN THEIR HISTORY. THE THIRD AND FINAL SEASON IS
SLATED FOR 2025. AND ONE OF THE LARGEST SERVERS

TO TAMP DOWN ON DATA SENDING IS
DECELERATING. THEY BEAT EXPECTATIONS SAYING
THE BOOM IN DEMAND WILL CONTINUE.
AUSTRALIA IS PLANNING TO ENACT LAWS THAT REQUIRE BIG TECH
FIRMS TO PROTECT CUSTOMERS.

IT WAS UNVEILED LAST NIGHT AND IS
THE LATEST EFFORT BY THEM TO CRACK DOWN ON SOCIAL MEDIA AND
MISINFORMATION. THAT WILL IMPACT META.
ANOTHER THING IS THE FINE OF $141 MILLION BY E.U. REGULATORS.

THEY SAID THEY HAVE POTENTIALLY
BEEN THOUGHT TO BREACH SERVICES. AS A USER I RATHER LIKE THAT I
CAN TELL WHAT THE PROFILE IS OF THE PERSON I’M BUYING OR
SELLING TO BUT THEY WANT ME

TO BE CELEBRATED BECAUSE OF
COMPETITION. >> IT IS THE SAME THING THAT
GOOGLE DOES. THEY RUN THE EXCHANGE AND THEY ARE A
POSSIBLY -- POSSIBLE. THEY SHOW YOU THE RELEVANT ADS
AND ANCILLARY PRODUCTS LIKE

MARKETPLACES AND THE REGULATORS DON’T WANT THAT. -- THE REGULATORS.
THEY WANT MORE OPTIONALITY. I THINK WE’RE PROBABLY GOING TO SEE
MORE FINES BECAUSE THAT IS THE

FOCUS OF THE DIGITAL MARKET IN
THE E.U. I’M NOT SURPRISED THEY HAVE TO
PAY THIS FINE BUT CLEARLY THE REMEDY HERE IS TO OFFER MORE
CHOICE TO THE USERS. ED: RIGHT.

THE ACCUSATION IS THAT META
CAN’T IS PUTTING UNFAIR TRADING PRACTICES ON RIVALS AND THEY
SAY IT WILL APPEAL THIS FINE DECISION.
I GUESS FOR YOU AND OTHER ANALYSTS WILL IT MATERIALLY
IMPACT THE BUSINESS MODEL OR

HAVE ANY IMPACT TO THE BUSINESS?
>> IN THE CASE OF THE DIGITAL MARKETS ACT E.U.
COULD FINE UP TO 10% OF THE COMPANY’S GLOBAL REVENUE SO WE ARE TALKING ABOUT POTENTIALLY A
$10 BILLION FINE IF THIS KEEPS

HAPPENING.
THE MARKETPLACE BUSINESS IS AROUND OR ESTIMATES LESS THAN
$10 BILLION TO THE BLUE APP BUT CLEARLY YOU HAVE THAT RISK THAT
A LOW TO MID SINGLE DIGIT NUMBER IS A SUBSTANTIAL FINE.
SO I THINK THERE IS THAT RISK

THAT THESE COMPANIES HAVE TO
OFFER AN APP CONVERSION. ED: COMING UP BACK TO THE STOP --
TOP STORY IN DISNEY REPORTING A STREAMING SURGE. CAROLINE:
WELCOME BACK TO "BLOOMBERG

TECHNOLOGY. " I AM CAROLINE HYDE IN NEW YORK. ED: I AM ED LUDLOW IN SAN
FRANCISCO. CAROLINE: YOU ARE LOOKING AT BENCHMARKS
OVERALL. WE HAVE BEEN TRADING SIDEWAYS
SINCE A RUN-UP POST ELECTION,

WHEN PEOPLE WANTED TO DIVE BACK
INTO BIG TECH. WE ARE BACK .2%. BITCOIN COMING OFF OF ITS HIGHS.
93,000 ECLIPSE, NOW BACK TO 88,000.
BACK TO THE INDIVIDUAL MOVERS.

DISNEY UP 7% ON THE BACK OF ITS
EARNINGS, DOING WELL. NVIDIA, THE LEADER OF THE PACK
IF YOU ARE LOOKING AT POINTS, UP 1.7%. MORE EARNINGS OUT OF ASIA
SIGNIFYING THE DEMANDS FOR AI

IS STILL THERE.
NVIDIA RISES AHEAD OF THAT. TESLA PULLING BACK FROM ITS
RECENT HIGHS. THE TRUMP TRAIN HAS BEEN THERE
FOR TESLA. ANALYSTS SAYING THEY SHOULD
SELL EQUITY, RAISING THE PRICE

TARGET TO 300, WHICH IS DOWN
FROM WHERE WE ARE. ED: BACK TO DISNEY EARNINGS.
THE CFO TOLD US HE IS OPTIMISTIC ABOUT THE STREAMING
LANDSCAPE IN PARTICULAR. >> WE FEEL OPTIMISTIC AS THE
INDUSTRY IS COMING TOGETHER

THAT WE WILL GET SUBSCRIBERS.
IN ADDITION TO THAT BECAUSE OF THE VALUE WE HAVE BECAUSE OF
THE GREAT PRODUCT WE ARE PUTTING INTO THE SERVICE, WE
WILL BE ABLE TO DEAL WITH PRICING.
GOOD DISCIPLINE WITH THE

BUSINESS.
WE FEEL VERY OPTIMISTIC ABOUT WHERE STREAMING IS GOING FOR US.
ED: LET'S GET A SHAREHOLDER TAKE WITH ROSS GERBER.
THE STREAMING FOCUS IS INTERESTING.
THEY WARNED THAT IN THE FISCAL

FIRST QUARTER IT MIGHT TAPER
OFF A BIT. HAVE YOU EVER SEEN DISNEY SAY,
FOR THE NEXT THREE YEARS WE WILL SEE EARNINGS GROWTH AND
THIS IS HOW WE FEEL ABOUT THE STREAMING SERVICE IN PARTICULAR?
ROSS:

IT IS A MAJOR INFLECTION POINT
FOR DISNEY. IT IS AN INCREDIBLE VALUE FOR
TRADERS. HALF THE VALUE OF NETFLIX.
WITH ALL THE OTHER BUSINESSES IN SPORTS AND EXPERIENCES.
THEIR STREAMING BUSINESS GREW

LIKE CRAZY DURING THE PANDEMIC
BUT THEY WERE SPENDING SO MUCH MONEY THAT IT MADE NO SENSE.
NOW THEY HAVE GOTTEN IT RIGHT. AS THEY MOVE FORWARD WITH
AGGRESSIVE PRICING AND GOOD

CONTENT, PEOPLE ARE NOT
CANCELING DISNEY AND NETFLIX. WHAT WE HAVE SEEN IS WHAT WE
HOPED -- DISNEY AND NETFLIX HAVE COME OUT AS THE WINNER IN
STREAMING. ED: REALLY INTERESTING QUESTION
ABOUT PASSWORD SHARING.

WE GOT THAT WRONG WITH NETFLIX.
IT DID NOT SEEM TO IMPACT NETFLIX NEGATIVELY, NECESSARILY.
DO YOU SEE DISNEY FOLLOWING THE SAME ARC?
HE LEANS ON THE IDEA THEY HAVE

NOT BEEN ADDED VERY LONG AND
THE STREAMING GAME BUT THEY HAVE GROWN QUICKLY. ROSS:
THEY GREW MUCH QUICKER THAN ANYONE WOULD HAVE GUESSED
BECAUSE OF THE PANDEMIC. THEY WERE NOT GOOD AT MANAGING
THE COST SIDE OF THE BUSINESS

AND THEY WERE MAKING TONS OF
CONTENT THEY WERE NOT RELEASING IN THEATERS AND WAS COSTING A
FORTUNE. I WAS WATCHING DEADPOOL LAST
NIGHT, IT GOES IN THE THEATERS

AND MAKES $1 BILLION AND NOW
EVERYONE WANTS TO WATCH THE STREAMER. WE HAVE LION KING 2 COMING IN
DECEMBER. NOT ONLY KEEPING THE PEOPLE
FROM TURNING ON THE STREAMER

BUT ADDING NEW SUBSCRIBERS WHO
WANT TO WATCH THE MOVIE AND NOT HAVE TO PAY ALL THE CART.
CAROLINE: WHAT IS INTERESTING, TRY TO
ARTICULATE THE VISION. TV CABLE IS SHOWING WEAKNESS
BUT IT BASICALLY FEEDS THE

BEAST OF STREAMING.
STOP LOOKING AT IT SEPARATELY. THERE IS THIS ELEMENT GOING
FORWARD THAT THEY HAVE TO CHANGE REVENUE OPERATING PROFIT
IN A DIFFERENT DIRECTION AND SHOW STABILIZATION OR GROWTH
ONCE AGAIN.

THAT CAN BE SAID MORE BROADLY
WHEN THINKING OF A VENUE BACK ON ICE.
THE JOINT VENTURE THEY WERE DOING WITH FOX AND WARNER BROS..
ROSS: PART OF IT IS ESPN HAS THIS
LIMITATION BECAUSE IT IS STILL

TETHERED TO CABLE FOR ANOTHER
YEAR. ONCE THAT IS DONE AND YOU CAN
GET ESPN AS A STANDALONE APP WITH REAL ESPN CONTENT WITHOUT
A CABLE SUBSCRIPTION, THAT WILL OPEN OPPORTUNITIES FOR ESPN.
THE CABLE ISSUE WILL CONTINUE

TO BE ONE FOR SOME TIME.
SOME CABLE COMPANIES GET IT, LIKE SPECTRUM, WHERE THEY HAVE
PIVOTED AND TRY TO CREATE VALUE FOR CABLE SUBSCRIBERS.
MOSTLY YOUNG PEOPLE TODAY DO

NOT EVEN KNOW WHAT CABLE IS.
FEEDING THE BEAST OF STREAMING IS THE APPROPRIATE STRATEGY.
YOUNG PEOPLE TODAY WILL SIGN UP FOR MULTIPLE STREAMERS AND PAY
THE MONEY AND IT IS STILL CHEAPER THAN CABLE FROM THE OLD
DAYS.

NETFLIX AND CABLE HAVE THE
OPPORTUNITY FOR ONE BILLION SUBSCRIBERS TOTAL GLOBALLY THEY
CAN GROW TO. CAROLINE: LET'S LOOK AT THE VALUATION. YOU TALKED ABOUT HOW DISNEY IS
HALF OF NETFLIX.

THEY ARE NEVER GOING TO TRADE
AT A VALUATION IF THEY ARE USING A HEDGE OF EXPERIENCES, OLDER
CONSUMERS WITH CABLE. ROSS: RIGHT. IT IS A MUCH CLUNKIER
CAPITAL-INTENSIVE BUSINESS THAN

NETFLIX.
I AM ALSO TALKING ABOUT PURE MARKET CAP. THE VALUATION -- THE PREMIUM
VALUATION NETFLIX GETS IS DESERVED.
WHAT WE ARE SAYING IS DISNEY IS TRADING AT A DISCOUNT ON ALL
LEVELS IN THE MARKETPLACE TODAY.

IT IS CHEAPER THAN THE S&P PE.
YOU START THINKING THE BUSINESS IS GROWING AT DOUBLE DIGITS,
GOING INTO A FAIRLY DECENT MIDTERM. EXPERIENCE IS A WONDERFUL
BUSINESS.

BECAUSE IT GREW CRAZY IN 2021
AND 2022 AS EVERYONE CAME BACK OUT POST-PANDEMIC AND NOW IT
HAS SLOWED THIS DOES NOT MEAN IT WILL NOT CONTINUE TO GAIN STEAM
IN 2025 AND 2026 WITH NEW

CRUISESHIP LODGES.
OVER TIME THESE CRUISES ARE LIKE GOLD MINES.
DISNEY IS A CASH COW. THEY ARE RETURNING MONEY TO
SHAREHOLDERS. THEY ARE A SHAREHOLDER FRIENDLY
COMPANY.

THE BIG QUESTION IS SUCCESSION
PLANNING. WHEN THEY CLEAR THAT UP DISNEY
HAS A GREAT RUNWAY OVER THE NEXT FIVE YEARS. CAROLINE:
ROSS GERBER, WE THANK YOU. PRIVATE MARKETS.

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