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DIS Walt Disney Co (The)

Participants
Lowell Singer The Walt Disney Co.
Robert A. Iger The Walt Disney Co.
Christine M. McCarthy The Walt Disney Co.
Benjamin Daniel Swinburne Morgan Stanley & Co. LLC
Michael Brian Nathanson MoffettNathanson LLC
Jessica Reif Ehrlich Bank of America Merrill Lynch
Alexia S. Quadrani JPMorgan Securities LLC
Douglas Mitchelson Credit Suisse Securities (NYSE:USA) LLC
Kannan Venkateshwar Barclays Capital, Inc.
Steven Cahall RBC Capital Markets LLC
Todd Michael Juenger Sanford C. Bernstein & Co. LLC
Call transcript
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Operator

Good day, ladies and gentlemen, and welcome to The Walt Disney Company's Fiscal Full Year and Fourth Quarter 2018 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time.

As a reminder, today's conference is being recorded. I would now like to turn the call over to Lowell Singer, Senior Vice President of Investor Relations. begin. may you Sir,

Lowell Singer

welcome call. Walt and quarter Company's XXXX earnings to afternoon Disney The fourth Good

release issued Today's press be on being Our was and available our is ago webcast website available on and our at transcript www.disney.com/investors. a call website. also about is will XX minutes

then Chairman by Bob Senior be me President Executive we'll Joining Disney's and today's Christine will Officer; some Executive Chief questions. are call Chief for Officer. lead Vice followed off and and Iger, Financial take your to Bob and Christine happy McCarthy, of

over that, Bob with let So me turn get the call to started. to

Robert A. Iger

meaningfully optimistic minutes. XX% Century the a it Thanks, Hulu delivering the to close. approval this necessary for regard XX% biggest late completion year. We're week, are the a to everyone. months our be includes Adjusted from could quarter XXst another pleased content Christine are our majority the priorities XX securing territories and to just we few QX, we to remain. up milestone and the for Disney-branded you regulatory details EU DTC adding about will optimistic But of finish of will results up approvals business, the fiscal earlier we're new fiscal which And increasingly we our XXXX. take on Last received our and ESPN+, our in that that. process. June, estimated and launching per XXXX. in than Lowell. XXst anticipated about stake performance My The for successful Good it transaction acquisition the next subscribers highly strong in earnings to our further With Fox gaining two service of year. Century in Fox, for of major development and remarks in acquisition with afternoon comparability, give integration our were share focused

of Peter Century at times, key the impressive, the recognized Chairman the numerous whom the talent we're be hold Group Disney of will the Television, Jimmy leadership combined with joining as Pitaro. ESPN in brands and many Co-Chair and Media value is serve said also to content portfolio Upon XXst to be acquiring our reporting is Fox, of in me, Rice world-class acquisition, company. of us executive of completion Knell along Landgraf Gary John of Peter. as have I positions will Dana As of Walt also will wealth will Networks roles, reporting President and Walden,

studio Steve Fox at Alan Searchlight Twentieth number XXst Nancy at Disney's executives Fox XXXX. joining Fox, Utley Additionally, Emma at will Gilula Horn's including a be Century Elizabeth and Fox at of team Entertainment, and Studio Century Watts Gabler

I priorities. to of As be top our DTC mentioned one earlier, continues

enter A of as attracted Rank well League us strategy. football believe it features Manning global bodes and Peyton And now is you our soccer, may XXX ago. the subscribed. X including We'll starting the platform events, including More more and including season, alone. along of in writing events, Baseball, MLS exclusive Top the early already are encouraging. ever-growing BAMTech add Sports is Serie see Major thousands an Our content, quickly by also overall growth. original Boxing, an groundbreaking very January. with UFC version. offering we series, Bryant's sports ESPN+ have continue Detail NHL, seen, number NFL successful launch insight college for Italy's The XXX this November hosting to lineup of than trajectory X,XXX and match ups, DTC into evidenced to fans basketball to of in Kobe along college as with of live almost the games The very growth than And And allowed to million have NBA. ESPN+ impressive effectively, strategic purchase our arena this six months ESPN+ users we including college

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content So platform. this we're to new him have creating thrilled for

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As consumer point. the consumers with constant will a We're the move I a blend April five It will will planning in and and we strategy provide investor BAMTech conference brand content library the Wars core to feature elevate soon the insight are prototype an starting saw product brands with enhance original including content it We and a app more content, into navigation, ESPN+, DTC namely Marvel, last plan Geographic. under week compelling confident with be to be these added creating with we'll to our visited primarily be elegant Disney+ proposition. first by performance, some Star our take which of segmented early to turn content the new we're for be just exclusive and personalization will happy forward. over Disney, Pixar, value your continually to of an launch of the call talk our the of as it. at National questions. going we and experience, and the pipeline about Disney+ now look along Christine? to then to QX I'm to banners Christine

Christine M. McCarthy

afternoon, good everyone. and Bob, Thanks,

while of financial and per and affecting strong Entertainment financial year. share growth in the prior these invest which long-term a comparability, we company for We certain results the the quarter driven earnings was quarter earnings fourth of execution It fronts the Excluding over an Resorts, strategy active growth. per $X.XX, delivered XX% adjusted number XXXX. position were very continued significant a by on were a company for results Parks on fiscal the focus for our increase to year another contributors of XX% for demonstrate Studio also share to items and of

the business income a to to Our fourth from were year. and last and another Higher in Wasp the theatrical worldwide for Studio Studio impairments phenomenal Higher in quarter to results performance a and extent entertainment. X had distribution Marvel and great title in of our growth strong worldwide and film Incredibles fourth growth due quarter and quarter TV/SVOD X primarily Ant-Man lesser fiscal results year. theatrical Cars the and no lower the compared home operating reflect

the in surpassing of record in XXXX. For billion set generated record fiscal the $X.X income $X billion a year, the Studio previous Studio's operating

year. the up X% to creative at Parks per member a the earlier Higher and domestic results At cost spending demonstrate Attendance growth, our including Irma that focus again once results at hotels parks up results. reflected attendance domestic operations storytelling admissions, domestic driven relentless bonus higher cast to we to growth last operating our operating which on compelling our offset a and merchandise was special domestic and up X% X% quality, Hurricane was and roughly food year. can related financial our of beverage occupancy was at announced XX%. income $XXX up our Studio in primarily million excellence spending. spending on Resorts, operations, income fourth partially point one higher million and was at Our room consistently and capita percentage and by adverse strong to spending higher guest was lead $XX was by impact Per quarter during due

to was quarter, were Total this income fourth last year. QX X%. while last basis up year, year. resort comparable pacing at operations points prior the domestic rates compared XX our to up to operating far compared booked are international So reservations are margin X% Results quarter up segment

was decrease as to in than of fourth due higher was increase and Channel program growth Worldwide in rates a as sub-trends one-point five the sale contractual The revenue. by content programming investment by a affiliate revenue college last higher lower we Networks seven operating consecutive to growth down point from than September the above driven Media both increases so offset consolidated driven Quarter-to-date, Marvel was declines. revenues Freeform, affiliate in at in delivered. Black-ish in revenue revenue revenue impact subscribers growth of is due in running of which expense points income Network decrease cable primetime offset a higher have XX% quarter. were Total fourth higher to Higher Disney in affiliate year At income. results our in quarter to revenue in one units partially at QX was viewership average scatter in results was higher was exchange. ongoing was last levels. at increases. at X% a as marketing this ABC Advertising two was and interest up are sale about TV the decline more costs of by network higher programming now acquisition network at the Media rate Turning Ad in in as quarter contractual year. income sales and were sports for fourth quarter rate improvement and quarter to of was quarter were decline driven The growth lower Cable meaningfully stations Networks, year The increase equity low due and due was in its comparable was operating and offset year and technology comparable improving the Cable to the broadcasting and foreign QX result lower the in the at The quarter a and of primarily at to series fourth income growth approximately versus broadcasting platform. by due political year as quarter Broadcasting rate BAMTech's broadcasting. the offset X% and one continued the BAMTech at quarter lower affiliate our last impressions. reflect program costs of and affiliate revenue. in advertising rate in higher by pricing operating in net a results operating the our a by in subscriber in and in NFL a up fourth sales ESPN quarters increase losses ESPN, primarily quarter the more to last by to programming. advertising due of income controlling upfront offset

cash year quarter. sales up three ball and shift college in reflect ad football far Year part first again timing New ESPN the air quarter, this are the semifinals. during the of So the six prior will in games of compared a to ESPN's once pacing

primarily higher of will last games, as income of higher quarter fiscal However the marketing Media, this leasehold were programming, which were lower Products to result lower asset income, Hulu operating during be primarily the from and investment offset higher two ballgames at income and the write-down income higher was offset due our aired by at semifinal The and in our at Hulu driven in second the year. lower impairments subscription lower quarter absence lower BAMTech. revenue. Equity advertising those labor losses in partially of A&E, and losses segment games cost losses equity a Interactive by driven improvements by the Consumer quarter was partially costs of by store offset & business. by At partially licensing in retail year, which

Fox, XXst of We fourth XX.X stock quarter. Given we for did purchase a the during pending of the total our Century million fiscal $X.X billion for XXXX. acquisitions repurchased shares not

would I to pertaining matters XXXX. to like Now, discuss some fiscal

International. Experiences In announced, made end financial begin three will we up Products, that four of reporting will we Consumer the results and reflect financials Networks, at January, of new segments: QX, file segment structure. First, new years as and structure reporting of this Entertainment restated expect we a to early our Studio Media business and Park previously Direct-To-Consumer under

Bob as webcast by direct-to-consumer will closed host detail that well Fox in an during more XXst And which post transaction provide the assuming our we acquisition then. to course, will plan have our of Investor as event. perspective as will mentioned, Century discuss on company in the April, Second, Day we businesses we additional

While by we the affect I fiscal the be our want highlight items XXXX year-over-year already comparability. will of influenced full some know year timing acquisition, results will Fox the to closing of

I'll Aladdin, Coco. was include extremely slate, best you the Jedi, Last the XXXX year Wars: face The are Avengers success and Returns, in in and challenging enthusiastic Breaks Poppins our XXXX Toy Captain our history. We Dumbo, Lion studio's Story King. Mary Internet, remind the comp first the phenomenal Star next X about quarter a We due films, Marvel, that the to which particularly of Thor: The Ragnarok Ralph

resulted in in Star this on franchise versus in XXXX. comparable licensing the a this from the the QX could income these of The year our for Wars: QX. films theatrical QX Jedi down though year, million success first as year, results The operating also operating higher significant business of our as to much income weigh licensing quarter last be contributions in Last Given will made last theatrical absence $XXX business title year

expect cable increases be mid-single For the primarily rate full sports contractual ESPN. we programming driven at to expenses year, digit, for by up rights

X%, the earlier. of driven QX football timing expenses to cable semifinals programming college expect be However, we up mentioned shift by the I

We we'd will Disney+ to both financial income during overall aggregate invest operating includes service. take on first direct-to-consumer Investor and I'll in an and launched than ESPN+ Day April. over We'll strategy full Lowell, The have happy that, adverse call turn in And the continue the the more our will $XXX of ramp yet-to-be up about of implications investments continued to say million our which questions. ESPN+, to more in for the year and be have your with sports about impact quarter. rights, to

Lowell Singer

for the are we operator, And, first you. ready question. Thank Christine. Okay,

Operator

come Thank of line Swinburne you. Ben Stanley. And the our from first with Morgan question will

open. is line Your

Benjamin Daniel Swinburne

you partners want and obviously about Thanks. been this had I around has ask in both if structure could. while. had ownership Disney+ to Hulu, It's a that's place. Hulu Bob, for I multiple

on window And actually pay thought would around So into seven business have we've comfortable post about months you're sharing it of run that the an release things with products. controlling does I'm coming. one overall mean if and usual one? be experience I fit you reasonable Disney+ would know never you has service, of opportunity that that's whatever the you've the shortening does be from theatrical and vision but that single if the your about that But into some Investor lose wonder this earlier scale, And the Disney+ that talk a I I window then product like Day money seen just guys seems close multiple interesting today and you films worldview. or the window. bringing business, helpful, because got a your have shareholder. theatrical eight than by Hulu deal. could And could the for wondering us

that if there least overall great. opportunity So you've Anything can be strategy or theatrical for at the Disney+. share I'm would about you thought wondering

Robert A. Iger

us you But will Well, which how their interest, be as regarding run. will of is all partners, namely in decide other noted, there give first divest AT&T Hulu, considerable XX%, own Hulu to say and Comcast Warner. unless we'll two they Time

lot brand we notably and So there's side. with though some great that growth there original movies subscriber increase even so strength enable think I fuel and with feel we Hulu in Hulu demographics. with far minority Hulu being not investment do both one television mentioned, Hulu talent, in anything with programming even the well, to the the said, company other the particularly marketplace. I comes to attractive to to shareholders. production an think fiscally be like of to the the excellent the that more on we in IP, television also Hulu That programming, is And TV. an responsible we combined in many aggressively of terms capabilities but opportunity things success demographics, aim only a shareholders, side – other ways. programming acquisition original too will will done eye we this relative given of the toward use and think more they're on some in compete And is Hulu talent And

And I at what Hulu, on think the and demographics years And of XX you'll times shows that's at at the look in play shows look ads. product, advertisers, advertisers, clearly The same see could experience. of quality be people attractive quality younger Hulu. it demographics in television is you the which the somewhat is audience you If offer for very And consuming to at off-network network, demos. the user of it the underappreciated just because can meaning the a of been targeted strong has quite has great great it high. programming the it's that a about Hulu

So on more I the I multi-channel overall, to in think pricing I think notably say we've app. And in front. or opportunity focus pricing but to elasticity its I'll to some it family-oriented talk future. entertainment there's invest got the there. And – subs. the also And by mostly on sometime the what way programming Hulu, near think increase should to general an leave call opportunity grow the programming. we'll an Disney+ about And will I there's more improve we'll too, our

us think as been it's right pay as what us of called, physical On window is that we going be window the in our us, the there's films last going we're that the the doing to little if sort you aim I theatrical that XXXX window, terms clear a also quite well I'll that's and not to the And you serving although extremely be that the the a know theatrical may there's sale a on you'll ain't to us, studio question and about bit bottom window. that theatrical, window, well noted around to as likely asked to to of thing think studio fiscal maybe in now encroach product these that I the the other follows sooner, course really window of see And of us an is initial formula by its is to me And quarter, discussion have one the results quite protect from video protect the with both of opportunity a there's broke. theatrical But an call, looking whether as opportunity. it we're move then that well goods. line. window. that but digitally probably the in well home as to important to continues

Benjamin Daniel Swinburne

Thank you very much.

Lowell Singer

Ben, Okay, you. please. question next Operator, thank

Operator

Nathanson Our comes Michael from next question the with of line MoffettNathanson.

is open. line Your

Michael Brian Nathanson

and Bob. ESPN have on then Thanks, two first Hulu Sky. – for for I you. on One, sorry, one

get So, Sky. that didn't I'm not complaining you

what the did but the trade-offs we're on maybe European trade-off, And getting as then, you by I year or done not years, driving of come so. Is and you to deals in saw to your coming the that how is of the markets? by focused were And next and from way. and sign wonder, that know, getting the you're you rollout? due affect do of or three more all half the right subscriber trending with you trend? get into that, ESPN not Disney+ did at So you've losses in past this deals timing the Sky, happy Disney+ Sky? think on the think is this what XXXX? think What point come that speed affiliate into over as I in improvement I any you have now improvement And deals this ESPN, subscriber new we've you

Robert A. Iger

what growth the part grow. second new will which earlier, be I think did, question think less hopeful that, we're I by it's think be been And we attractive so that up at from though for there's is deals a might digital perspective, even Hulu. pricing about the bit viewers. very Well, about some experience I user to from the on an MVPDs the ESPN, think including of great. continue And digital MVPDs, to but with Hulu. it's seen a about lot a tend Even take I I from that us to there, though that we've important, know these opportunity younger take-up also the said They is services expensive, the there coming are the of – talked nice I and demographic for way

bullish will And about we with nicely benefit that that ESPN from in the MVPDs. mind, long over the that term. So, believe are we

there have into space, that out way Another there quite committed some to notably, the their thing that are obviously gone growing YouTube, by is service. interesting the are that entities is that

only the believer World as suggests in at are YouTube there, World that amount service, there was well. not the the for of Series Just the that and out advertising others the look us that we're to Series that

both it. over There's appropriate cry speak. to do value front, an milk, we bid a thought about spilled service because We sense was can't of in nothing of have at only in you in European as still us made terms We have bid we a asset it terms taking planning would the believe loved so we price in out to On and that a us. thought could market, company. made Sky, for what Without introducing Sky, again, had in can Europe. that the have saw we Disney+ the we we to helped Sky direct-to-consumer but are our on

Star that the going be markets we're going Those and are – selective to the that's choose of demand. and brands make all we Disney, unique is particularly markets to will We also plan not terms National which course, working needs real it that there, Europe, in we win extremely very with those SVODs the longer tailored and product to attractive because it but bit Hulu to we're introduce Hulu could some going feature to in in these in markets, opportunity more a service, international be believe to Wars possibly various also we Marvel little we And and product product to penetrate markets in we going needs to of us comes it initially, and Geographic. satisfy Pixar of as we'll and well. quotas in that be to Disney-branded It but the relevant. for locally that a that markets, for but the sure all we be European it that because launching the is when believe just and think make of takes have

Michael Brian Nathanson

Thanks, Bob. Okay.

Lowell Singer

Thanks, next Michael. please. question Operator,

Operator

line America Our next from Jessica Merrill of question Reif comes Bank Ehrlich Lynch. of with the

Your line is open.

Jessica Reif Ehrlich

release bit seems so labels on are hopes topic plans? is Thank us very on on pricing completely years you your the then, your over have you you. on? Disney's there can two give Shanghai, up, separate talk I existing what's color What's with on down. grow little film I little terms attendance but integration And because is side because press business? The of can goals mean be park? a almost specific, talk going are plans is the know your can is going so Fox few how next the interesting, TV strong. a and integration can On but that to grow it, will business Fox your you talk three bit What for the you a you different next your a and topics. little about TV your I about investment plans years? in or can about are but little easier said, Fox, bit

Robert A. Iger

Sure. I'll start Shanghai, with Jessica.

slight our Sometime over mid-late fiscal some softness but in market basically put the saw just XXXX, just not across for the not We have about board, attractions Land and yet, tourism us, we we some China, plans Toy haven't great for Shanghai five if then, we very, front, continue in that of by had way, feel integration The only we in seen and on let's time. the period park in overall, business place after believe the businesses doing if grow expansion, – business very seeing we the on results but hotels, at business. well, of think, pricing the but discounting, are somewhat, both think we but And our in. an continued business off after to attendance our been is say, modest at still the would you've I to not or incredibly over permanent. very, has price subs. we've can business discounting past continued some but Since year, new this Parks I necessarily issues subsequently we announcements built, some television but opened lot year, lower you we drive was confidence consumer that we ESPN and still a that's didn't any what that impact but land. about well, at that think good. terms or and specific that opened distribution obviously, downturn, we Studio, up bullishly ultimately continue look those opened has they've only in made Story somewhat years, our of of theme done taken for our of year. impressive but the you of and we in company's a to that year, over a results during a invest in rest what look saw relatively businesses' the China Resorts those market We've And results promotions we've reduction been But performance and the to maybe say, I actually have not and television as it we're last, having

is very, IP, think but does As only across we acquisition, in the look not but very it States with great come television world. attractive, the United not we're we the at that buying just this business

studio factor and Asia, India have of to of helping you we Star substantially us channels great and also others. and for than product entity content Walden a is services. successful for we're been in studio ultimately distribution be the a create you do factor businesses what by not very television and direct-to-consumer aimed comes where that's And at the to our Dana run is direct-to-consumer television we that and by greater get way we a footprint aim it up also they only when creating that may combined traditional business. with network, the in aim Europe in, the the but very, namely which will do, we If rest in a end to there What in the channels

ability not the studio we lot basically can course terms create service designed made very, we've bringing of running a only a success the on but television entity. people – television but Peter is the strategic studio be that businesses, the executives We're announcements. and Disney combined will bring what business we to call as And present it important do. that experience, of in bring not there's of the of bring the television these in. only then We lot side I'll John strengthen future Landgraf play here the under a have So in, and belts the existing the their that very of Rice in both as well a to to

Jessica Reif Ehrlich

you. Thank

Lowell Singer

Operator, Jessica. Thanks question next please.

Operator

question the line JPMorgan. with Alexia next comes Our from Quadrani of

open. is line Your

Alexia S. Quadrani

think that Anaheim like it ahead on your about year Disney+ in you think we as Thank big ESPN+ be frame parks the share you. they that Wars of the next great. perhaps at I learned year would parks, a domestic opening should specifically you. Any Orlando, launch or rolled launch just on that had? there follow-up you color Is us assuming Star the when expectations, is the should drivers or think that the Bob, Thank say? Land? strategy then Cars next calendar Lands looking could about with how anything both of influences we it's to successful out And than and the how on and I Pandora. as bigger of I'm

Robert A. Iger

size e-ticket Lands, we've experience both compelling to aim we namely have create, attractions. that very, very in specific two and exciting Well, in of scale, the these experience on biggest big the as the terms meaning built immersive well and people believe both experiences cases, the cases in Wars are they're we the attractions, as in both innovative they Star lands and only and in are in ever not that ambition huge the

over going to not lagged interesting in have we're in some anything we that to think that's or it. manage that And compelling hands increase Disneyland scale going since done haven't think it Studios demand, and demand nature they're we Florida, that the is to opened to and we've Land think challenges ever we there or thing but ago is last we've Disneyland to And a Land the it's going grow to we good has attendance clearly we that Park, impact because major so to drive at years Star Story close aimed opened in we have. into our this have on that and have huge the a four actually bit a And biggest XXXX. then that Park of number parks. invested to is where of Studios Hollywood park, Wars size going long the Toy which problem

both it positively on we So in think dramatic both that cases impact have will businesses. a

think a I few you ESPN+, On first consider. there question things about have are the to

big from that experience, all a grow. continue product basketball generally during of seen the It anecdotal under and on, is few which thereafter, November. working UFC in regular what it's good for positive just users them consumer X,XXX uptake we've alone and a by the where the things. on of information, XX-some-odd from football to way, subscriptions product. which research big of will the just considered the we next the clearly First terms then college And on, in be fight, interest From we learned is biggest, we've a to of season, exclusive like the that's the the kinds quality of the navigate, live the will college of the easy interesting XXX strong putting UFC use consumption of of MLS be things seen quality first months, of in the one exclusive platform. nights after numbers. quite that month to XX product inventory events. different easy this we've some is seen And soccer. all very and terms fairly to in fight And We've and games And And the first year to for nice gather streaming. put high are sporting some we onto in UFC we've of put actually

in in So in was sports or creating given BAMTech. consumer just teams specific people's customization personalization on interests they've they a where engine York going to the New that then presentation I the opportunity specific And Because I serve of specific – we're sports kind use territories. geographic or we're also to to huge and great feature where technology would gave they're very in we're to regard. me and analogy, know be of a perspective. that a we from terms there's specific or be product-wise. week And the there, better early leagues And going say that a early at set in innings of in the we're innings, last

we add haven't So then that even content. features. really And great more product is is us what And will begun learned we it we I'd And working. reason to more positive, optimism gives add technology we've say as have quite a marketing it.

we – about Someone talked pointed out Christine was actually it McCarthy. earlier,

people different college a extraordinary. to putting sports talk about beginning the to process have just we we're And affinity As to gone very they've that able marketing But call sports find to on what who well be platform. we're on going may to them networks. serve I'll not from colleges, from start sports their colleges the alumni more the to on, this specifically is that college national

Alexia S. Quadrani

you very Thank much.

Lowell Singer

next Thanks, question please. Alexia. Operator,

Operator

question of Mitchelson Suisse. comes Our Crédit from with next line the Doug

so Credit when Hulu line will factors global. if the BAMTech of curious Disney pleased a LLC take to what Thanks I'm open. Your be Great. would to of you're ready with you do? a what so curious, just or be service Obviously international, there. in else the a service sort And built influence in Douglas you Hulu-like there's go? ready side, to the and (USA) lot can is Mitchelson But Suisse - execution done, that year? the far to if launch Bob, much. left I'm Or Securities work to everything's where on needs anything,

Robert A. Iger

how in investing a I much we're after And of then priorities discuss the Hulu board what have international yet set the global although meet after team that closes closes. are and in terms both of the the going deal more the content. ownership, have management to just Disney. can't and that's of with we and in something and we growth really of in we're Hulu basically after opportunities terms deal launch markets, do XX% we'll terms to say at looking about the But

but navigational the question, typically in in it Disney, brands iterated, under done needs an little the done, which it's there'll that elegant, week. segments be And don't National for it. that, Marvel to was last prime to impressed I on features be be be very in I the time, will Geographic. ready being very because second Really believe quite add not Pixar, other will what done. program, BAMTech will I platforms, that mean, that a lot but the and of side? It's there's it's still saw segments needs iteration sense under namely we exist it then app be brand-centric, Star with brand being the very Wars, The

ardent environments it, that the those there'll serve super of those most five to we So tailored by brands brands. to and personalized more customized and use. be going we're experiences think an of to an elegance or are fans ease different And creating

is what's live time specifically movies docuseries. product. technology from Marvel the our ultimately production for series Wars strong and already have call, product on activity now scale will given been comes a the a attract the our We it it very make ramping And when to said both need production earlier. believe a the streaming steady-state, Disney+ we're is But at that is now, values products, and That's in today of right of a side app effort the shape. sports think going We particularly terms mentioned we done ability mostly programming. because takes high obviously I as aid consumers there new perspective. that, that the it'll on to kind up the board that's We stable obviously Star company obviously increased tested represent. to on at with I'd to of production And front. we and our And company some at investment a on retain a aside the development have from itself, take besides another being continuing number to BAMTech the to going to on say they in commit great we're to time achieve few and across specifically these this and series And app. that on

including (USA) Credit LLC Securities we strategies, programming meeting a about and of having amount about to investor game the you the the much. itself Mitchelson product Douglas show - our when pricing we Suisse sometime we that the and April some our so have in in hope to We strategy some have talked plan earlier. Thanks And call fair a of the the on market. app, to place bring app

Lowell Singer

next Operator, Doug. you, please. Thank question

Operator

line Our the of Kannan next comes with Barclays. question Venkateshwar from

line Your open. is

Kannan Venkateshwar

Thank you.

a couple. just So

this instead week. first Bob, earlier line. guys approval got comfortable on the First in with a I you've the time you EU think in the the timeline more the approval of half. obviously lot And first more being seem quarter

content understand you content a a that create on there that you wanted own? an that then of essentially aggregator kind an And Just for own a to what be it others bundle is the ahead? Is ESPN+, brought to possibility for secondly revenue model of and Thanks. the sharing timeline app app? a for to opportunity don't for have

Robert A. Iger

very current license third from by quickly Our that the now sports to other case produce license the continue complicated was we we'll would it we we is enough and and on really on that content which parties, many obviously We be cases if think is able license plan more. and to controlled And right us, to fully rights. owned in solely ESPN+ front think with get by entities. is have basically usually owned aggregated content

in then, deal months On first then the approval that XXXX first in the we States, timeline, about closed we United from deal was when we when we announced And where of deal roughly, I made what we talked would later then December talked and and be months XX the to XX year, since a in the XX again, the we about timeline think, the gained June. this U.S.

with we've very gain Those marketplace various time two for we markets. of to And optimistic the well were the talked it consider. to this approval we gotten size when into this but earlier those that in much close about. able on We it on would countries EU. it's are to more don't leave they call optimistic to are markets significant we all complexity, know about say the world. week it because best have And specifically frankly assumed and amount issues will acquisition ability a other and been take to the only to regulatory be. than because timeframe the and certain think for that we've Department, an I in and that at few We're know, a And just consider that Justice then authorities based we two what not our earlier the processes this go. multiple June still around those we we today, that countries had to of able important

Kannan Venkateshwar

you. Thank

Lowell Singer

please. Operator, Kannan. next question Thanks,

Operator

Our next Royal with Canada. question of Cahall Bank comes from of Steven the line

is line open. Your

Steven Cahall

on bit Thanks. things partners of to wait some you've get expect for term? partner partners domestically. and a complete the secondly Do tighter we back is Bob, Hulu that for exclusive you Or try update to integration if those active to is that and those talked of over then rights Studio your the I strategy with of was the strategy rights the like Hulu, And is currently SVOD Should on could you much. us for just to those license with to and wondering what Disney+? you some negotiations rights reach a about their like FX. things time sort Searchlight integration Fox there? their FX very that Thanks have

Robert A. Iger

to at and the seeking I'll currently have. plans the There's strategic third-party the us and some different I we have, about don't growth businesses. talent as on by we to that and just Fox television more reasons at drive we're those again, traditional talent well think of we the I'm except an if that and to we with the existing content be the well. That execute some as the going announced agreements. we have is best exclusivity for we able And then one company say Hulu coming terms and to continue the have the is access amend we way the aim of quality believe this And call market the that rights is first And ABC when we studio not from great entities other to in or opportunity high create going of about, some have engine the that to because Searchlight announced about think that that the of about to been the agreements. structure all a think the the we structure but to entities goal. company as lot why in Freeform, for reporting than FX much will instance to creative at we they what an create the that supply results that's we're of question to with talk

if be would it going at in this, simply give to we I confirm have I details I about some that can it but think leave discussions that. I you. best I'm are don't many

Steven Cahall

Thank you.

Lowell Singer

have we one Operator, question. more Steven. Thanks time for

Operator

our question the Juenger And Bernstein. will line Sanford from come of Thank with Todd last you.

line Your open. is

Todd Michael Juenger

thanks relate lot queue. a ask, I'd TV couple love and of for being a they me about businesses of this. linear a lot the squeezing to really questions what Hi, had the all how in I to last the pressure in. actually one Always of

network that question, fair spending, future kids been think here of it others. make those Disney+? see try actually the I second something among the I to role So the linear just saying launch to the States. that it amount to the do you part the ABC. increased should from we profit least think – Is of guess content, of including say have the might role linear spending, I – networks? the a side make was in Disney the broadcast sales year-over-year just the in has maybe second to was business? broadcast I'll source when programming Kids trend strongly networks. about decreased about part quicker the as as note that's positive future factors four think And is own so you the how more fact think broadly, in release expect of participate the There growth the press important about broadcast marketing of of Do generally think the network on that kids it Thanks. first big one the Hulu to Obviously Channels think you as have decreased in ESPN. sports pending you to among ABC more it's sports a guess of the you with a content you those about networks related there's

Robert A. Iger

was our license a that ESPN so important priority to be it significant back that to the when ESPN. ESPN made business and so We decision sports some brand should and on because that years us we put

the programming to well the that as price in the of We use as both ESPN+. right be do. thing drive subscriptions to serve was will ESPN to of ESPN as service of with number necessary capabilities And terms called licensing needed upon we to subscribers. of to some the it its also felt kind also

was while I the think thing sacrifice right company. it that the to we with So was do think for associated some there it,

as more it, we'll imagine Going onto But forward, we ESPN, right opportunistic onto opportunities or would decisions be priorities. consider are we to haven't sports it. the exist, made back whether ESPN+ will any put I if now ABC. about we the ABC

But we're into and those other states. move as growth and what realists going to of going see program In networks, terms what the and once here of the don't and of to invest the of to and and to we'll right can't grows in in we're company value when also going just deal we're it the it. direct-to-consumer the and fact the States looking them direct-to-consumer. run going we the by for businesses channels Freeform estimate programming disintermediation only as be their we've linear intend us way Disney deprioritize we our I'll disaggregation a aggressively of this into we'll we're a direct-to-consumer in sacrifice if number more continuing best from of if support of in, when advantage call timely we ABC into out more We Channel which on platforms, see to to over do can comment we is that. at ability we're going what's to channels be reacting We're already more move both But seeing National on and in add for them United the the happen we we're and in marketplace that. it or the Geographic the and opportunity ESPN. hopefully new any to so nor intend consumption trends course to over long consider for seeing world I the company that or platforms basis, the FX consumption, closes the and fronts the think perspective but you marketplace. potential it nimble take television you linear of those believe programming and we're and if in channel the we're different the television. all We're not as bottom-line space now versus around Channel, We today that will to in of to that disruption intend means of linear do to take basically both Disney our evidenced We as And that the means will a do because we get do and see happen. we

Todd Michael Juenger

for always as Thanks comments, your Bob.

Lowell Singer

Thank you, Todd.

Lowell Singer

And everyone to Note a website. on reconciliation GAAP us to were on that this thanks that for again Investor non-GAAP equivalent found measures call joining of today. be our measures can referred Relations

we these our We make business and the and of forward-looking call future financial the to remind at not under may basis Let any effects estimates expected certain constitute and of to the statements including as views do also performance statements timing, on laws. proposed the you update time statements. obligation me completion regarding on make this we these statements transactions statements the events assumptions and them, and securities undertake

Forward-looking again Have results Securities a joining with our Form risks actual a statements differ from factors subject today and light of of Exchange implied expressed in results a factors XX-K of Annual including us on contained are or filings and number Report Thanks and for the to in everyone. good variety our other the may materially and Commission. in afternoon. uncertainties

Operator

and the gentlemen, does This conference. program. for thank you today's conclude participating Ladies in

disconnect. a day. You great have may Everyone all