Disney+ Will Lose Money for Years Before Becoming Top Profit Driver, Mediatech's Bibb Says

The video discusses Disney's dominance in the box office and its strategic positioning in the streaming market. It highlights Disney Plus's pricing strategy and subscriber growth, predicting losses in the short term but profitability in the future. The impact of cable cutting on Disney's revenue is analyzed, with a focus on retransmission fees. Disney's stock is compared to competitors like Comcast and Netflix, emphasizing its transition to a value stock.

What is the expected future of the theatrical movie industry according to the transcript?

• It will become more profitable than ever.

• It will merge with the streaming industry.

• It will not last more than five or ten years as a viable business.

• It will thrive for the next 20 years.

What strategy did Disney use to attract subscribers to Disney Plus?

• Providing exclusive content not available anywhere else.

• Pricing it at an irresistible level.

• Bundling it with other streaming services for free.

• Offering free subscriptions for a year.

How long is Disney Plus expected to lose money before becoming profitable?

• Two years

• Four years

• Ten years

• It is already profitable

What is a significant financial concern for Disney related to cable subscriptions?

• Loss of cable subscribers

• Decrease in advertising revenue

• Loss of retransmission fees

• Increased competition from other cable providers

How does Disney's PE ratio compare to Netflix's according to the transcript?

• Disney's PE is higher than Netflix's.

• Disney's PE is the same as Netflix's.

• Disney's PE is lower than Netflix's.

• Disney does not have a PE ratio.