Author Topic: DIS - Disney  (Read 73003 times)

DooDiligence

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Re: DIS - Disney
« Reply #250 on: May 18, 2020, 09:40:01 AM »
Is it just me or does that header image of a Mickey flower sculpture look kind of like a COVID cell?

https://thewaltdisneycompany.com/shanghai-disneyland-reopens-its-gates/

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Gregmal

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Re: DIS - Disney
« Reply #251 on: May 22, 2020, 03:05:31 PM »
Was speaking to an analyst the other day and while talking about other names the subject of Disney came up. It seems all but certain that Disney ticket prices upon re-opening(or shortly thereafter) will be astronomical given the pent up demand seen in other places where they've re-opened. Same applies to most likely any other event/experience oriented ticket. I'd imagine this definitely helps short term, but it may also have lasting long term benefits.

Spekulatius

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Re: DIS - Disney
« Reply #252 on: May 22, 2020, 04:07:56 PM »
Was speaking to an analyst the other day and while talking about other names the subject of Disney came up. It seems all but certain that Disney ticket prices upon re-opening(or shortly thereafter) will be astronomical given the pent up demand seen in other places where they've re-opened. Same applies to most likely any other event/experience oriented ticket. I'd imagine this definitely helps short term, but it may also have lasting long term benefits.

Did ticket prices in China go up after reopening? that might be a clue. If they significantly raise ticket prices, I think there is going to be a lot of backlash and brand damage.
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Gregmal

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Re: DIS - Disney
« Reply #253 on: May 22, 2020, 04:39:07 PM »
Was speaking to an analyst the other day and while talking about other names the subject of Disney came up. It seems all but certain that Disney ticket prices upon re-opening(or shortly thereafter) will be astronomical given the pent up demand seen in other places where they've re-opened. Same applies to most likely any other event/experience oriented ticket. I'd imagine this definitely helps short term, but it may also have lasting long term benefits.

Did ticket prices in China go up after reopening? that might be a clue. If they significantly raise ticket prices, I think there is going to be a lot of backlash and brand damage.

My sense, and what seems too be the thought process is that the demand is the feeler. If demand is sky high as it was when China reopened you have a runway to get there. Of course they will be sensitive about how they go about it, but it's most likely going to be a bidding war for rich folks as long as capacity is limited. Same for concerts and other high demand events. Imagine a Yankee ticket right now? The businesses will be sneaky about how they get to higher prices, but the ones Ive looked into all seem to be aware of the supply/demand imbalance. And oh yea, the millions/billions they've just lost while shut down.

https://www.businessinsider.com/disneyland-reopening-shanghai-china-pictures-2020-5
Shanghai sold out on less than a half hour.

bizaro86

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Re: DIS - Disney
« Reply #254 on: May 22, 2020, 06:20:21 PM »
Disney wont raise prices necessarily, but I bet they'll do more exclusive ticketed events and things like that, which are effectively a price increase.

plato1976

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Re: DIS - Disney
« Reply #255 on: May 22, 2020, 06:37:29 PM »
what will espn be worth if it's separated from disney?

Disney wont raise prices necessarily, but I bet they'll do more exclusive ticketed events and things like that, which are effectively a price increase.

Spekulatius

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Re: DIS - Disney
« Reply #256 on: May 22, 2020, 07:47:57 PM »
what will espn be worth if it's separated from disney?

Disney wont raise prices necessarily, but I bet they'll do more exclusive ticketed events and things like that, which are effectively a price increase.

Does ESPN benefit from being within Disney? I donít think so. ESPN itself would be worth only a small multiple. Think MSGN or other cable business. 7x EBITDA maybe.
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bizaro86

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Re: DIS - Disney
« Reply #257 on: May 22, 2020, 08:48:58 PM »
what will espn be worth if it's separated from disney?

Disney wont raise prices necessarily, but I bet they'll do more exclusive ticketed events and things like that, which are effectively a price increase.

Does ESPN benefit from being within Disney? I donít think so. ESPN itself would be worth only a small multiple. Think MSGN or other cable business. 7x EBITDA maybe.

I think Disney benefits from owning ESPN though. I suspect they get better placement and fees for their other cable networks in the bundle as a result of being able to negotiate with ESPN.

Not a huge deal perhaps, and bundle wont last forever. But I also think the ideal state for a cash cow zero growth low multiple business (like espn) is to have a good place to reinvest the cashflow.

Disney is reinvesting espn cashflow into the parks, hotels, and cruise ships at what I believe are high ROIs. That strategy is obviously being affected by covid, but I think disney travel will be durable post recovery (whenever that is).