MacKenzie Green’s Post

🎬 Netflix & The Walt Disney Company are very similar companies at their core:🌟 They are in the #entertainment #business and invest 💲 billions in producing #content. 🔄 But they are very different in the way they manage the intellectual property they produce. 📺 Netflix does it through a single channel, streaming, while Disney through multiple channels: linear TV, cable, streaming, movie theaters, parks, hotels, sports, licensing merchandise... 🚀 #Netflix founded in 1997, basically "invented" the streaming subscription model in 2007. Back then, Netflix was doing 💲1B revenue, today it is at 💲33B (23% CAGR) 🔝 Netflix is a pure player, 100% concentrated on being the leader in its space. 🔸Amazon Prime Video claims to have over 300MM subscribers (but it is basically bundles it free into the Prime "free delivery subscription"). Disney+ has barely 110MM subs. HBO Max is at the 100 million subscriber mark. Apple TV + is estimated to have 25M subs. 🔸Netflix dominates with 260M subscribers, adding 30M in 2023, while generating significant profit and cash flow. 🌐 #Disney is a highly diversified company. 📺 The TV-related business (cable, streaming, & linear, with Disney+, FX, ABC, National Geographic, etc.) is basically the same size as Netflix's business: around $35B. 📡 Licensing of Disney content to other TV channels generates $2.6B in revenue. 📊 Hulu SVOD average monthly revenue per paid subscriber is $12.72 which is not bad considering the 49M subs. Part of this revenue is shared with Disney+ and ESPN since Hulu is selling bundles. 🎥 Movie Theatre Revenue: $3.2B. 🏠 Home Entertainment (Rentals): $1B. 💵 The sum of these businesses generates only $1.5B of operating income, mainly as a result of the losses of the streaming business, since the linear TV business generates close to $4B in operating income. 🏈 Sports (ESPN) is a $17B revenue business that generates $2.5B in operating income but is not growing (-1% versus 2022). 💰 The Disney Experiences division is the "cash cow" of the group that generates $9 billion in operating revenue. Even in this division, the revenue streams are highly diversified: 🎟 Theme park admissions $10.5B in revenue 🏨 Resorts and vacations $8B (hotel occupancy rate = 85%) 🍽 Parks & Experiences food and beverage $8B 🛍 Merchandise licensing and retail $4B 🤝 Both Disney and Netflix have content at the core of their business. Disney has been aggressively acquiring IP via M&A (Pixar, Marvel, LucasFilms, 21st Century FOX) and distribution (Hulu). Netflix, probably due to the fact it is a much younger company, has been a lot more focused on organic growth and on a single distribution channel (direct to consumer streaming). 🔮 My bet is that as Netflix matures, and growth slows down, it will imitate Disney, moving into new areas of business (sports, for example) and into capitalizing their IP in new channels (merchandising, licensing, and maybe even theme parks). 👀 We will wait and see.

🎬 Netflix & The Walt Disney Company are very similar companies at their core:🌟 They are in the #entertainment #business and invest 💲 billions in producing #content. 🔄 But they are very different in the way they manage the intellectual property they produce. 📺 Netflix does it through a single channel, streaming, while Disney through multiple channels: linear TV, cable, streaming, movie theaters, parks, hotels, sports, licensing merchandise... 🚀 #Netflix founded in 1997, basically "invented" the streaming subscription model in 2007. Back then, Netflix was doing 💲1B revenue, today it is at 💲33B (23% CAGR) 🔝 Netflix is a pure player, 100% concentrated on being the leader in its space. 🔸Amazon Prime Video claims to have over 300MM subscribers (but it is basically bundles it free into the Prime "free delivery subscription"). Disney+ has barely 110MM subs. HBO Max is at the 100 million subscriber mark. Apple TV + is estimated to have 25M subs. 🔸Netflix dominates with 260M subscribers, adding 30M in 2023, while generating significant profit and cash flow. 🌐 #Disney is a highly diversified company. 📺 The TV-related business (cable, streaming, & linear, with Disney+, FX, ABC, National Geographic, etc.) is basically the same size as Netflix's business: around $35B. 📡 Licensing of Disney content to other TV channels generates $2.6B in revenue. 📊 Hulu SVOD average monthly revenue per paid subscriber is $12.72 which is not bad considering the 49M subs. Part of this revenue is shared with Disney+ and ESPN since Hulu is selling bundles. 🎥 Movie Theatre Revenue: $3.2B. 🏠 Home Entertainment (Rentals): $1B. 💵 The sum of these businesses generates only $1.5B of operating income, mainly as a result of the losses of the streaming business, since the linear TV business generates close to $4B in operating income. 🏈 Sports (ESPN) is a $17B revenue business that generates $2.5B in operating income but is not growing (-1% versus 2022). 💰 The Disney Experiences division is the "cash cow" of the group that generates $9 billion in operating revenue. Even in this division, the revenue streams are highly diversified: 🎟 Theme park admissions $10.5B in revenue 🏨 Resorts and vacations $8B (hotel occupancy rate = 85%) 🍽 Parks & Experiences food and beverage $8B 🛍 Merchandise licensing and retail $4B 🤝 Both Disney and Netflix have content at the core of their business. Disney has been aggressively acquiring IP via M&A (Pixar, Marvel, LucasFilms, 21st Century FOX) and distribution (Hulu). Netflix, probably due to the fact it is a much younger company, has been a lot more focused on organic growth and on a single distribution channel (direct to consumer streaming). 🔮 My bet is that as Netflix matures, and growth slows down, it will imitate Disney, moving into new areas of business (sports, for example) and into capitalizing their IP in new channels (merchandising, licensing, and maybe even theme parks). 👀 We will wait and see.

🎬 Netflix & The Walt Disney Company are very similar companies at their core:🌟 They are in the #entertainment #business and invest 💲 billions in producing #content. 🔄 But they are very different in the way they manage the intellectual property they produce. 📺 Netflix does it through a single channel, streaming, while Disney through multiple channels: linear TV, cable, streaming, movie theaters, parks, hotels, sports, licensing merchandise... 🚀 #Netflix founded in 1997, basically "invented" the streaming subscription model in 2007. Back then, Netflix was doing 💲1B revenue, today it is at 💲33B (23% CAGR) 🔝 Netflix is a pure player, 100% concentrated on being the leader in its space. 🔸Amazon Prime Video claims to have over 300MM subscribers (but it is basically bundles it free into the Prime "free delivery subscription"). Disney+ has barely 110MM subs. HBO Max is at the 100 million subscriber mark. Apple TV + is estimated to have 25M subs. 🔸Netflix dominates with 260M subscribers, adding 30M in 2023, while generating significant profit and cash flow. 🌐 #Disney is a highly diversified company. 📺 The TV-related business (cable, streaming, & linear, with Disney+, FX, ABC, National Geographic, etc.) is basically the same size as Netflix's business: around $35B. 📡 Licensing of Disney content to other TV channels generates $2.6B in revenue. 📊 Hulu SVOD average monthly revenue per paid subscriber is $12.72 which is not bad considering the 49M subs. Part of this revenue is shared with Disney+ and ESPN since Hulu is selling bundles. 🎥 Movie Theatre Revenue: $3.2B. 🏠 Home Entertainment (Rentals): $1B. 💵 The sum of these businesses generates only $1.5B of operating income, mainly as a result of the losses of the streaming business, since the linear TV business generates close to $4B in operating income. 🏈 Sports (ESPN) is a $17B revenue business that generates $2.5B in operating income but is not growing (-1% versus 2022). 💰 The Disney Experiences division is the "cash cow" of the group that generates $9 billion in operating revenue. Even in this division, the revenue streams are highly diversified: 🎟 Theme park admissions $10.5B in revenue 🏨 Resorts and vacations $8B (hotel occupancy rate = 85%) 🍽 Parks & Experiences food and beverage $8B 🛍 Merchandise licensing and retail $4B 🤝 Both Disney and Netflix have content at the core of their business. Disney has been aggressively acquiring IP via M&A (Pixar, Marvel, LucasFilms, 21st Century FOX) and distribution (Hulu). Netflix, probably due to the fact it is a much younger company, has been a lot more focused on organic growth and on a single distribution channel (direct to consumer streaming). 🔮 My bet is that as Netflix matures, and growth slows down, it will imitate Disney, moving into new areas of business (sports, for example) and into capitalizing their IP in new channels (merchandising, licensing, and maybe even theme parks). 👀 We will wait and see.

🎬 Netflix & The Walt Disney Company are very similar companies at their core:🌟 They are in the #entertainment #business and invest 💲 billions in producing #content. 🔄 But they are very different in the way they manage the intellectual property they produce. 📺 Netflix does it through a single channel, streaming, while Disney through multiple channels: linear TV, cable, streaming, movie theaters, parks, hotels, sports, licensing merchandise... 🚀 #Netflix founded in 1997, basically "invented" the streaming subscription model in 2007. Back then, Netflix was doing 💲1B revenue, today it is at 💲33B (23% CAGR) 🔝 Netflix is a pure player, 100% concentrated on being the leader in its space. 🔸Amazon Prime Video claims to have over 300MM subscribers (but it is basically bundles it free into the Prime "free delivery subscription"). Disney+ has barely 110MM subs. HBO Max is at the 100 million subscriber mark. Apple TV + is estimated to have 25M subs. 🔸Netflix dominates with 260M subscribers, adding 30M in 2023, while generating significant profit and cash flow. 🌐 #Disney is a highly diversified company. 📺 The TV-related business (cable, streaming, & linear, with Disney+, FX, ABC, National Geographic, etc.) is basically the same size as Netflix's business: around $35B. 📡 Licensing of Disney content to other TV channels generates $2.6B in revenue. 📊 Hulu SVOD average monthly revenue per paid subscriber is $12.72 which is not bad considering the 49M subs. Part of this revenue is shared with Disney+ and ESPN since Hulu is selling bundles. 🎥 Movie Theatre Revenue: $3.2B. 🏠 Home Entertainment (Rentals): $1B. 💵 The sum of these businesses generates only $1.5B of operating income, mainly as a result of the losses of the streaming business, since the linear TV business generates close to $4B in operating income. 🏈 Sports (ESPN) is a $17B revenue business that generates $2.5B in operating income but is not growing (-1% versus 2022). 💰 The Disney Experiences division is the "cash cow" of the group that generates $9 billion in operating revenue. Even in this division, the revenue streams are highly diversified: 🎟 Theme park admissions $10.5B in revenue 🏨 Resorts and vacations $8B (hotel occupancy rate = 85%) 🍽 Parks & Experiences food and beverage $8B 🛍 Merchandise licensing and retail $4B 🤝 Both Disney and Netflix have content at the core of their business. Disney has been aggressively acquiring IP via M&A (Pixar, Marvel, LucasFilms, 21st Century FOX) and distribution (Hulu). Netflix, probably due to the fact it is a much younger company, has been a lot more focused on organic growth and on a single distribution channel (direct to consumer streaming). 🔮 My bet is that as Netflix matures, and growth slows down, it will imitate Disney, moving into new areas of business (sports, for example) and into capitalizing their IP in new channels (merchandising, licensing, and maybe even theme parks). 👀 We will wait and see.

🎬 Netflix & The Walt Disney Company are very similar companies at their core:🌟 They are in the #entertainment #business and invest 💲 billions in producing #content. 🔄 But they are very different in the way they manage the intellectual property they produce. 📺 Netflix does it through a single channel, streaming, while Disney through multiple channels: linear TV, cable, streaming, movie theaters, parks, hotels, sports, licensing merchandise... 🚀 #Netflix founded in 1997, basically "invented" the streaming subscription model in 2007. Back then, Netflix was doing 💲1B revenue, today it is at 💲33B (23% CAGR) 🔝 Netflix is a pure player, 100% concentrated on being the leader in its space. 🔸Amazon Prime Video claims to have over 300MM subscribers (but it is basically bundles it free into the Prime "free delivery subscription"). Disney+ has barely 110MM subs. HBO Max is at the 100 million subscriber mark. Apple TV + is estimated to have 25M subs. 🔸Netflix dominates with 260M subscribers, adding 30M in 2023, while generating significant profit and cash flow. 🌐 #Disney is a highly diversified company. 📺 The TV-related business (cable, streaming, & linear, with Disney+, FX, ABC, National Geographic, etc.) is basically the same size as Netflix's business: around $35B. 📡 Licensing of Disney content to other TV channels generates $2.6B in revenue. 📊 Hulu SVOD average monthly revenue per paid subscriber is $12.72 which is not bad considering the 49M subs. Part of this revenue is shared with Disney+ and ESPN since Hulu is selling bundles. 🎥 Movie Theatre Revenue: $3.2B. 🏠 Home Entertainment (Rentals): $1B. 💵 The sum of these businesses generates only $1.5B of operating income, mainly as a result of the losses of the streaming business, since the linear TV business generates close to $4B in operating income. 🏈 Sports (ESPN) is a $17B revenue business that generates $2.5B in operating income but is not growing (-1% versus 2022). 💰 The Disney Experiences division is the "cash cow" of the group that generates $9 billion in operating revenue. Even in this division, the revenue streams are highly diversified: 🎟 Theme park admissions $10.5B in revenue 🏨 Resorts and vacations $8B (hotel occupancy rate = 85%) 🍽 Parks & Experiences food and beverage $8B 🛍 Merchandise licensing and retail $4B 🤝 Both Disney and Netflix have content at the core of their business. Disney has been aggressively acquiring IP via M&A (Pixar, Marvel, LucasFilms, 21st Century FOX) and distribution (Hulu). Netflix, probably due to the fact it is a much younger company, has been a lot more focused on organic growth and on a single distribution channel (direct to consumer streaming). 🔮 My bet is that as Netflix matures, and growth slows down, it will imitate Disney, moving into new areas of business (sports, for example) and into capitalizing their IP in new channels (merchandising, licensing, and maybe even theme parks). 👀 We will wait and see.

🎬 Netflix & The Walt Disney Company are very similar companies at their core:🌟 They are in the #entertainment #business and invest 💲 billions in producing #content. 🔄 But they are very different in the way they manage the intellectual property they produce. 📺 Netflix does it through a single channel, streaming, while Disney through multiple channels: linear TV, cable, streaming, movie theaters, parks, hotels, sports, licensing merchandise... 🚀 #Netflix founded in 1997, basically "invented" the streaming subscription model in 2007. Back then, Netflix was doing 💲1B revenue, today it is at 💲33B (23% CAGR) 🔝 Netflix is a pure player, 100% concentrated on being the leader in its space. 🔸Amazon Prime Video claims to have over 300MM subscribers (but it is basically bundles it free into the Prime "free delivery subscription"). Disney+ has barely 110MM subs. HBO Max is at the 100 million subscriber mark. Apple TV + is estimated to have 25M subs. 🔸Netflix dominates with 260M subscribers, adding 30M in 2023, while generating significant profit and cash flow. 🌐 #Disney is a highly diversified company. 📺 The TV-related business (cable, streaming, & linear, with Disney+, FX, ABC, National Geographic, etc.) is basically the same size as Netflix's business: around $35B. 📡 Licensing of Disney content to other TV channels generates $2.6B in revenue. 📊 Hulu SVOD average monthly revenue per paid subscriber is $12.72 which is not bad considering the 49M subs. Part of this revenue is shared with Disney+ and ESPN since Hulu is selling bundles. 🎥 Movie Theatre Revenue: $3.2B. 🏠 Home Entertainment (Rentals): $1B. 💵 The sum of these businesses generates only $1.5B of operating income, mainly as a result of the losses of the streaming business, since the linear TV business generates close to $4B in operating income. 🏈 Sports (ESPN) is a $17B revenue business that generates $2.5B in operating income but is not growing (-1% versus 2022). 💰 The Disney Experiences division is the "cash cow" of the group that generates $9 billion in operating revenue. Even in this division, the revenue streams are highly diversified: 🎟 Theme park admissions $10.5B in revenue 🏨 Resorts and vacations $8B (hotel occupancy rate = 85%) 🍽 Parks & Experiences food and beverage $8B 🛍 Merchandise licensing and retail $4B 🤝 Both Disney and Netflix have content at the core of their business. Disney has been aggressively acquiring IP via M&A (Pixar, Marvel, LucasFilms, 21st Century FOX) and distribution (Hulu). Netflix, probably due to the fact it is a much younger company, has been a lot more focused on organic growth and on a single distribution channel (direct to consumer streaming). 🔮 My bet is that as Netflix matures, and growth slows down, it will imitate Disney, moving into new areas of business (sports, for example) and into capitalizing their IP in new channels (merchandising, licensing, and maybe even theme parks). 👀 We will wait and see.