New Constructs' Trainer Reacts to Disney 2Q Earnings

The video discusses the role of streaming as a loss leader for Disney, emphasizing that it is not meant to be a profitable business on its own. Instead, it serves to funnel consumers into Disney's other offerings, such as parks and merchandising. The discussion highlights Disney's competitive advantages over Netflix, including its brand and ability to monetize content in multiple ways. The return of Bob Iger as CEO is seen as a positive move, with expectations of improved returns on capital and shareholder value. The video also touches on the potential for Disney's share price to increase under Iger's leadership.

What is the primary role of streaming in Disney's business model?

• To focus solely on content creation

• To compete directly with Netflix

• To be the main source of profit

• To act as a loss leader for other profitable ventures

How does Disney's business model differ from Netflix's?

• Disney relies solely on streaming for revenue

• Netflix has multiple revenue streams like Disney

• Disney has diversified revenue streams beyond streaming

• Netflix is more profitable than Disney

What financial trend is highlighted for Netflix in the discussion?

• Netflix has been consistently profitable

• Netflix has a stable cash flow

• Netflix's revenue is primarily from merchandising

• Netflix has lost over 2 billion annually over the last five years

What is Bob Iger's focus upon returning to Disney?

• Focusing on non-core business areas

• Expanding into new cultural themes

• Returning to core business strategies and shareholder value

• Increasing the number of acquisitions

What is a key advantage of Disney's business model according to the discussion?

• Its sole focus on streaming

• Its ability to monetize content in multiple ways

• Its reliance on a single revenue stream

• Its lack of competitive advantages