Disney(US:DIS)2024-11-14 11:46Subscriber Metrics - As of September 28, 2024, Disney+ has approximately 123 million paid subscribers, while Disney+ Hotstar has around 36 million paid subscribers[18]. - Hulu has an estimated 52 million paid subscribers as of September 28, 2024[18]. - The estimated number of unique subscribers for general entertainment channels is approximately 240 million as of September 2024[14]. - The estimated number of unique subscribers for family channels is approximately 200 million as of September 2024[15]. - As of September 28, 2024, ESPN+ has approximately 26 million paid subscribers, generating revenue from subscription fees, pay-per-view fees, and advertising[31]. - The estimated number of subscribers to ESPN branded channels outside the U.S. is approximately 55 million as of September 2024[32]. - The Company operates 10 Star branded sports channels in India, with an estimated 79 million subscribers as of September 2024[33]. - A+E Networks, a 50% equity investment, has approximately 58 million domestic subscribers for each of its channels (A&E, HISTORY, and Lifetime) as of September 2024[16]. Revenue Sources - The majority of Direct-to-Consumer revenue is derived from subscription fees and advertising[17]. - The Linear Networks segment generates significant revenue from affiliate fees and advertising, with programming provided under multi-year licensing agreements[8]. - The Sports segment's significant revenues include affiliate fees, advertising, subscription fees, and other revenue from activities like pay-per-view events[30]. - The significant revenues from the Parks & Experiences segment include theme park admissions, resort and vacation sales, merchandise, food and beverage sales, and licensing royalties[38]. Content Production and Distribution - The Company has released approximately 1,100 full-length live-action films and 100 full-length animated films as of September 28, 2024, with an expectation to release approximately 15 films in fiscal 2025[21]. - The Company plans to produce or commission approximately 215 episodic and film titles in fiscal 2025, with the majority distributed on Linear Networks and/or DTC platforms[27]. - The Company has a significant library of content, including approximately 5,200 live-action film titles and 450 animated film titles[27]. - The Company has various sports programming rights, including NFL, NBA, MLB, and more, which are essential for content production on ESPN networks[30]. Theme Parks and Resorts - As of September 28, 2024, the Walt Disney World Resort has approximately 23,000 rooms across 18 resort hotels and vacation club properties[39]. - Disneyland Resort operates three resort hotels with approximately 2,400 rooms and 180 vacation club units as of September 28, 2024[41]. - The Disney Cruise Line will add two new ships, the Disney Adventure and Disney Destiny, scheduled to begin sailings in the first quarter of fiscal 2026[49]. - The Company plans to add four more new cruise ships between 2027 and 2031, all currently under contract[49]. - Disneyland Paris is undergoing a multi-year expansion, including a new themed area based on Frozen, planned to open in 2026[43]. - The Company has approximately 4,500 vacation club units as of September 28, 2024, including the first phases of The Cabins at Disney's Fort Wilderness Resort, which opened in July 2024[47]. - The Disney Springs complex includes approximately 150 venues and is a significant retail, dining, and entertainment area[40]. - The Company earns royalties on revenues generated by the Tokyo Disney Resort, which is operated by a third-party corporation[46]. Workforce and Employment - The Company employed approximately 233,000 people as of September 28, 2024, with 76% being full-time employees[55]. - The Company’s workforce includes approximately 76% full-time, 16% part-time, and 8% seasonal employees[55]. - The Company has invested in the Disney Aspire program, with over 12,000 employees enrolled and more than 5,000 graduates since its launch in 2018[56]. - The Company is committed to diversity, equity, and inclusion, with initiatives such as the Heroes Work Here program to support U.S. military veterans[56]. Environmental and Regulatory Compliance - The Company has set measurable environmental sustainability goals for 2030, focusing on Scope 1, 2, and 3 emissions, water stewardship, and waste reduction[57]. - The Company is subject to extensive FCC regulations, including licensing requirements for television stations and restrictions on ownership limits[60]. - The Company faces risks related to privacy and data protection laws, which require significant compliance investments and can result in substantial fines[61]. Financial Management and Risk - The Company targets fixed-rate debt as a percentage of its net debt between minimum and maximum percentages to manage interest rate exposure[214]. - The VAR model estimates a maximum potential one-day loss in fair value of $255 million as of September 28, 2024, down from $284 million at September 30, 2023, due to reduced interest rate volatility[215]. - Interest rate sensitive financial instruments have a VAR of $235 million, while currency sensitive instruments have a VAR of $40 million[216]. - The average VAR for fiscal 2024 is $290 million, with the highest VAR recorded at $416 million and the lowest at $235 million[216]. - The Company employs interest rate swaps and various contracts to hedge against foreign currency fluctuations, primarily in euro, Japanese yen, British pound, Chinese yuan, and Canadian dollar[214]. - Commodity derivatives are used to manage volatility in earnings and cash flows arising from commodity price changes, with amounts hedged based on forecasted consumption levels[214]. - The Company does not engage in hedging transactions for speculative purposes, focusing instead on necessary financial instruments to meet its objectives[214]. - The VAR for Asia Theme Parks is considered immaterial as of September 28, 2024, and has been excluded from the VAR calculations[216]. - The Company utilizes a variance/co-variance technique in its VAR model to assess interrelationships between various financial instruments[215]. - The Company maintains hedge coverage for foreign exchange exposures generally for periods not exceeding four years[214]. Strategic Partnerships and Ventures - The Company plans to close a joint venture transaction with Reliance Industries Limited on or about November 14, 2024, combining Star-branded channels and Disney+ Hotstar in India[54].