As I said, Jim Stewart was here with us at Post 9 to look ahead to Disney uh tomorrow. The most important thing in your mind is what. >> The the numbers on streaming, the sports, and of course the regular streaming thing.This is like to me it's going to be an incredibly re revealing quarter because the first time Disney is all in on streaming. We've got the regular Disney stuff, Disney Plus, Hulu, and then we finally have ESPN going direct to consumer. So that I'd say the profit and revenue will be less rev ...

Disney (DIS) reported mixed fourth quarter results on Thursday as continued declines in its linear TV business offset strength in parks and streaming and investors eye the final stretch of CEO Bob Iger’s turnaround ahead of his planned departure next year. Disney reported revenue of $22.46 billion for the quarter, missing analyst expectations of $22.83 billion and coming in roughly comparable to the year-earlier period. A 6% revenue drop within the company's entertainment division, which includes its stre ...

Financial Data and Key Metrics Changes - The company reported revenue in line with expectations for Q3 2025, with operating income impacted by a Brazilian tax matter, which would have exceeded forecasts otherwise [2][10] - Engagement metrics showed record share TV time in Q3 in both the U.S. and the U.K., indicating healthy engagement levels [2][19] Business Line Data and Key Metrics Changes - The advertising segment is on track to more than double ad revenue this year, with the best ad sales quarter ever recorded [2][10] - The company achieved its highest quarterly view share ever in the U.S. at 8.6% and in the U.K. at 9.4% [19] Market Data and Key Metrics Changes - The company is currently capturing only about 7% of the addressable market in terms of consumer spending, indicating significant growth potential [4] - The Brazilian tax issue is a unique cost of doing business, affecting the financials but not expected to have a material impact going forward [10] Company Strategy and Development Direction - The company aims to continue focusing on profitable growth and reinvesting in its core business while exploring selective M&A opportunities [36][37] - The strategy includes expanding original content and enhancing engagement through interactive features and gaming [42][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the business and the opportunities ahead, emphasizing the importance of competition in driving improvement [2][4] - The company is excited about its upcoming content slate for 2026, which includes returning popular series and new films [22][23] Other Important Information - The company is exploring the integration of high-quality video podcasts through a partnership with Spotify, aiming to broaden its entertainment offerings [24][25] - The company is also focused on enhancing its advertising capabilities and improving fill rates as it scales its ad suite [17][15] Q&A Session Summary Question: Health of the business and future opportunities - Management believes the business is healthy and sees significant opportunities ahead, with a focus on key initiatives and engagement metrics [2][4] Question: Nature of the Brazilian tax expense - The tax is a gross tax on outbound payments, not an income tax, and has been recorded as a component of cost of revenues [7][10] Question: Revenue and operating income growth for 2026 - Full year 2026 guidance will be provided in January, but the company aims to sustain healthy revenue growth and expand margins [11] Question: Advertising revenue growth - The company is on track to more than double ad revenue in 2025, with a strong growth trajectory expected [13][14] Question: Engagement metrics - Total view hours grew faster in Q3 2025 than in the first half, with significant cultural impact from key titles [19][20] Question: Live events impact - Live events like the Canelo Crawford fight have shown to attract mass audiences and positively impact acquisition and retention [29][30] Question: Industry consolidation and competitive landscape - Management views industry consolidation as an opportunity but emphasizes the importance of organic growth and selective M&A [36][37] Question: AI and content creation - The company sees AI as a tool to enhance creativity rather than replace it, focusing on leveraging AI for better storytelling [54][58]

Financial Data and Key Metrics Changes - The company reported revenue in line with expectations for Q3 2025, with operating income impacted by a Brazilian tax matter, which would have exceeded forecasts otherwise [2][10] - Engagement metrics showed record share TV time in Q3 in both the U.S. and the U.K., indicating healthy engagement levels [2][19] - The company is on track to more than double ad revenue this year, reflecting strong growth in the advertising segment [2][13] Business Line Data and Key Metrics Changes - The company achieved its best ad sales quarter ever, with significant growth in programmatic advertising, which is expected to contribute increasingly to revenue [2][13][14] - The live offerings and gaming segments are expanding, with notable events like the Canelo Crawford fight achieving record viewership [3][29] Market Data and Key Metrics Changes - In Q3 2025, total view hours grew faster than in the first half of the year, with the U.S. achieving a view share of 8.6% and the U.K. 9.4% [19][20] - The company continues to see a shift from linear viewing to streaming, which is expected to drive long-term growth [21] Company Strategy and Development Direction - The company sees significant growth potential, estimating it currently captures only about 7% of the addressable market in consumer spending [4] - The focus remains on improving core business areas, including content production and technology, to enhance competitive positioning [4][5] - The company is exploring partnerships and content diversification, including a recent deal with Spotify for video podcasts [24][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the business and the opportunities ahead, despite acknowledging the need for continuous improvement [2][4] - The company is optimistic about its growth trajectory in advertising and content engagement, with plans for a strong slate of releases in 2026 [11][21] Other Important Information - The Brazilian tax issue was clarified as a cost of doing business rather than an income tax, impacting the cost of revenues for Q3 [7][10] - The company is committed to maintaining its strategy of exclusive first-run movies on Netflix, with occasional theatrical releases for select films [26] Q&A Session Summary Question: Health of the business and future opportunities - Management believes the business is healthy and sees significant opportunities ahead, with a focus on key initiatives and engagement metrics [2][4] Question: Nature of the Brazilian tax expense - The tax is a gross tax on outbound payments, not specific to Netflix, and has been recorded as a cost of revenues due to a recent court ruling [7][10] Question: Revenue and operating income growth for 2026 - Full year 2026 guidance will be provided in January, but the company aims to sustain healthy revenue growth and expand margins [11] Question: Advertising growth expectations - The company is excited about doubling ad revenue in 2025 and sees room for further growth, particularly in programmatic advertising [13][14] Question: Engagement and content performance - Total view hours grew in Q3, with significant events driving engagement, and management believes in the importance of a steady slate of content [19][21] Question: M&A and industry consolidation - The company remains focused on organic growth but will evaluate M&A opportunities selectively, emphasizing the importance of building capabilities [36][39] Question: Impact of AI on content creation - Management sees AI as a tool to enhance creativity rather than replace it, with ongoing investments in AI technologies to improve productivity and innovation [52][54]

Core Viewpoint - Netflix is expected to report a solid quarter, with the main question being the strength of the results [1] Summary by Relevant Categories - **Company Performance** - Netflix consistently delivers strong quarterly results, indicating robust operational performance [1]

Core Insights - Roku operates a platform-centric streaming business primarily monetized through digital advertising and content distribution, with a focus on expanding household penetration through streaming devices and smart televisions [1][5] Performance Overview - Roku's shares have appreciated 26.3% year to date, outperforming the Zacks Consumer Discretionary sector's increase of 10.5% and lagging behind the Zacks Broadcast Radio and Television industry's return of 29.1% [2] - The company's platform revenues reached $975.5 million in Q2 2025, marking an 18% year-over-year increase, with a consensus estimate of $1.048 billion for Q3 2025, reflecting a 15.4% growth from the previous year [5][9] Advertising and Revenue Model - Roku's advertising ecosystem benefits from its dual role as a content aggregator and technology provider, with video advertising growth surpassing the broader digital ad market [6] - The company retains about 20% of fees from subscription sharing partnerships, contributing to recurring revenues [7] Engagement and Content Strategy - The Roku Channel has driven significant engagement, with streaming hours reaching 35.4 billion in Q2 2025, up 17.6% year over year, and an estimated 37 billion hours for Q3 2025 [11][12] - Roku has secured exclusive rights to various content, enhancing its offerings and increasing ad inventory [12] Product Innovation - Roku's 2025 roadmap includes new compact streaming sticks and an expanded smart television lineup, along with enhanced software features to broaden its ecosystem [13][14] Valuation Metrics - Roku's price-to-cash flow ratio stands at 35.46X, above the industry average of 34.55X, indicating a premium valuation despite a Value Score of D suggesting limited near-term appeal [15][17]

Core Insights - The company has evolved from a traditional Supply-Side Platform (SSP) to a more diversified business model, focusing on streaming opportunities in Connected TV (CTV) [1][2] - The strategy to enter the streaming business involved acquisitions, including Telaria, SpotX, and SpringServe, rather than organic growth [1] Business Evolution - The traditional SSP model was characterized by connecting numerous websites and demand-side platforms (DSPs), making differentiation challenging [1] - The company recognized the potential in the streaming market and shifted its focus accordingly [1] Strategic Acquisitions - The acquisitions of Telaria, SpotX, and SpringServe were pivotal in transforming the company's offerings and capabilities in the streaming sector [1]

Financial Data and Key Metrics Changes - The company reported revenue of $11.1 million, a $2.1 million or 22% increase year-over-year, with a gross margin of 57% compared to 51% last year, significantly above guidance of 45% to 50% [14] - The net loss for the quarter was $3.5 million, with adjusted EBITDA of negative $2.1 million, compared to a net loss of $3.1 million and adjusted EBITDA of $1.4 million in the prior year quarter [14][15] - Cash and cash equivalents stood at $2 million as of June 30, 2025, with $8.9 million available on a $12.5 million working capital facility [15][16] Business Line Data and Key Metrics Changes - Streaming business delivered 4 billion total minutes viewed, up 38% year-over-year, and 20% sequentially, with total streaming viewers climbing to 214 million, up 24% [17][18] - Subscriber count grew to 1.4 million, an increase of 5% year-over-year and 1% over the prior quarter [18] - The advertising business saw a 57% year-over-year growth driven by new and returning advertisers, despite mixed performance in open market programmatic [19] Market Data and Key Metrics Changes - The company is entering the microseries market, projected to reach $10 billion by February 2027, with a joint venture for MicroCo aimed at becoming a first mover in this rapidly growing market [12][26] - The Cineverse channel has grown more than 4300% since January, indicating strong traction in the market [18] Company Strategy and Development Direction - The company is focusing on expanding its theatrical releasing business and building out its technology product, with significant investments in sales, legal, marketing, and technology [7][14] - The strategy includes leveraging unique assets in streaming, content, technology, and AI to create a competitive advantage in the microseries space [13][26] - The Motion Picture Group is building a strong slate of wide releases, targeting identifiable audiences and creating event viewing experiences [27][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in seeing strong returns from investments made in the current quarter, expecting improved top and bottom line results for the remainder of the fiscal year [7][14] - The company is optimistic about the upcoming releases, including "The Toxic Avenger" and "Air Bud Returns," which are expected to resonate well with audiences [10][11][28] - Management highlighted the importance of engaging with fans and delivering films they want to see, emphasizing a commitment to innovative approaches in distribution and marketing [31][32] Other Important Information - The company has no long-term debt and has reduced outstanding warrants to 700,000, positioning itself favorably for future growth [15][16] - The marketing campaign for "The Toxic Avenger" was noted as a significant success, receiving extensive media coverage and positive fan engagement [30] Q&A Session Summary Question: Why partner with Cineverse for MicroCo? - Management highlighted the unique collection of assets Cineverse has built, making it an attractive partner for entering the microseries market, which is expected to be a $10 billion business [36][41] Question: What is the investment strategy for MicroCo? - The company plans to bootstrap and fund the launch internally with potential for additional equity partners if needed, emphasizing the scalability of the business [45] Question: What progress has been made with MatchPoint technology? - Management reported significant inroads in bringing MatchPoint to market, with a tripled pipeline of potential deals and a focus on targeting larger studios for meaningful revenue [51][52] Question: How is the podcast revenue strategy evolving? - The company is shifting from programmatic sales to direct sales with a dedicated team, already seeing significant deals coming in, indicating a strong belief in future revenue growth from this segment [55][56]

Core Insights - Disney's stock has declined 44% from its all-time highs, reflecting ongoing challenges despite being a leading name in entertainment [1] - Recent fiscal results indicate potential stabilization, with solid performance in the second quarter of 2025 and a successful film release [2] Company Overview - Disney operates in three main segments: entertainment, sports, and experiences, each contributing to its overall business model [4][5] - The entertainment segment includes streaming, film releases, and network TV, while sports focuses on sports-related content, and experiences cover parks and resorts [5] Financial Performance - In the latest quarter, Disney reported a 7% year-over-year increase in total revenue, with operating income more than doubling to $3.1 billion, driven by streaming growth [6] - Streaming subscriptions rose by 2.5 million, with Disney+ now profitable and expanding [6] - Linear networks showed a slight operating profit increase, while the sports segment experienced a decline in operating income [7] Film Success - Disney rebounded from previous production delays due to Hollywood strikes, ending 2024 with the highest-grossing film, Inside Out 2, and other successful releases [9] - In 2025, Disney holds half of the top 10 highest-grossing films domestically, with Lilo and Stitch achieving $279 million in domestic box office sales and over $600 million worldwide [10] - Upcoming releases include sequels and remakes, with a strong reliance on established franchises [11][12] Future Outlook - Disney has several films scheduled for release in 2026 and beyond, including major franchises like Avatar and Frozen, which are expected to perform well at the box office [13] - The company is positioned for a potential comeback, supported by a profitable streaming business and successful film releases, despite recent layoffs [14][15]

Financial Data and Key Metrics Changes - Total company revenue grew 2% year over year, excluding the Super Bowl, reaching $7.2 billion [6][22] - Direct to Consumer (D2C) revenue increased by 9% year over year to $2 billion, with subscription revenue growing 16% [23] - Adjusted OIBDA improved to $688 million, reflecting year-over-year improvements in D2C and filmed entertainment [22][24] - Free cash flow was $123 million, including $108 million in restructuring payments [22] Business Line Data and Key Metrics Changes - D2C OIBDA improved by nearly $180 million year over year, with a loss of $109 million [6][23] - Filmed Entertainment revenue was $627 million, up 4% year over year, with OIBDA of $20 million compared to a loss of $3 million in the previous year [24][25] - TV Media advertising revenue, excluding the Super Bowl, was flat year over year, with OIBDA at $922 million [24] Market Data and Key Metrics Changes - Paramount Plus ended the quarter with 79 million global subscribers, an increase of 11 million year over year [7] - Global watch time per user on Paramount Plus increased by 17% year over year, and churn improved by 130 basis points [7] - CBS's network audience grew 3% in the quarter compared to last year, with a 12% increase without the Super Bowl comparison [17] Company Strategy and Development Direction - The company is focusing on driving profitable growth through a differentiated content strategy, emphasizing fewer but bigger original series [7][10] - Paramount is prioritizing key investments while streamlining non-content expenses in response to macroeconomic uncertainties [6][28] - The company plans to achieve domestic profitability for Paramount Plus in 2025, leveraging improvements in churn and ARPU [26][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance despite macroeconomic uncertainties, noting strong engagement and content-driven growth [6][28] - The company anticipates that supply-demand dynamics in digital advertising will stabilize over time, leading to improved monetization [30][34] - Management highlighted the importance of maintaining strong relationships with affiliates and securing valuable content partnerships [36] Other Important Information - The company is set to premiere several new series and franchise expansions, including new installments of Yellowstone and Dexter [10][11] - Pluto TV achieved its highest consumption ever, with global viewing time up 26% year over year, although monetization has been softer than expected [12] Q&A Session Summary Question: Advertising pressure on Pluto and digital advertising - Management acknowledged the impact of increased supply in digital advertising but expressed confidence that supply-demand dynamics will balance out over time [30][33] Question: Licensing strategy for library content versus original content - Management indicated that content licensing remains a growth area, but the focus will be on using valuable IP to enhance owned and operated assets [39][40] Question: Expectations for linear declines and streaming growth - Management noted that subscriber declines in linear TV are expected to continue, while streaming growth will be driven by subscriber growth, churn improvements, and ARPU [46][48] Question: Importance of Taylor Sheridan and potential acquisitions - Management emphasized the value of the partnership with Taylor Sheridan and the current model as optimal for maximizing value without pursuing acquisitions [52][54] Question: Interest in bundling and joint ventures - Management expressed openness to exploring bundling opportunities and partnerships but emphasized a disciplined approach to ensure value creation [60][62] Question: Current linear trends and guidance for full year OIBDA and free cash flow - Management reiterated that the fundamental drivers of earnings improvement remain in place, despite macroeconomic uncertainties impacting advertising revenue [70][71]