Jessica Reif Ehrlich • Bank of America Securities

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CEO Jeff Green argued that consumers spend more time with premium open internet content, which offers better brand association and performance. He conceded that optimizing a closed ecosystem is an easier short-term task for walled gardens, but stated The Trade Desk is playing a longer game to fix the open internet's supply chain, which he believes has far greater long-term upside. He compared TTD's mission to what Amazon accomplished in retail.

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Co-Founder and CEO Jeff Green stated that 2025 will be the year OpenPath enters the 'steep part of the S-curve' as major content owners pursue direct integrations. He explained the Sincera acquisition will provide crucial metadata and visibility to make this direct supply chain more effective. CFO Laura Schenkein clarified that while they expect deleverage for the full year, EBITDA margins typically improve as the year progresses, so Q1's margin profile should not be extrapolated linearly.

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President & CEO David Zaslav detailed a strategy to leverage major IP like 'Lord of the Rings' and DC, supported by a four-studio system (DC, Warner, New Line, Animation) to ensure a balanced and profitable film slate. CFO Gunnar Wiedenfels, incoming CEO of Global Networks, expressed confidence in the segment's future, citing its strong team, the inclusion of U.S. sports and Discovery+, and a favorable international free-to-air footprint as key opportunities.

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President & CEO David Zaslav highlighted a strategy to leverage major IP like 'Lord of the Rings' and 'Wonder Woman' through a four-studio approach (DC, Warner, New Line, Animation). CFO Gunnar Wiedenfels, future CEO of Global Networks, noted the segment's potential, citing its unique asset mix including all U.S. sports, Discovery+, and a strong international free-to-air footprint.

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CEO & President, Global Streaming and Games, JB Perrette outlined several ARPU growth levers: growing ad monetization on the ad-lite tier, the 'extra member' feature, the password sharing crackdown, targeted price increases, and sports upsells in Europe. President & CEO David Zaslav added that streaming inventory on Max is in high demand for the upfronts, especially in Europe where the streaming business is now outgrowing linear declines.

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CEO Bob Iger described the new Singapore-based ship as their largest ever (7,000 passengers) and a 'floating ambassador' for the brand in a key growth region, noting initial sailings sold out quickly. CFO Hugh Johnston clarified the tough Q4 content comparison is due to overlapping last year's successful 'Inside Out 2' film.

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CEO Robert Iger clarified the Abu Dhabi deal is a licensing and royalty arrangement, with Disney providing IP and oversight while its partner provides all capital. CFO Hugh Johnston described the ad market as 'healthy,' with ESPN ad revenue up over 20% and overall ad growth expected to exceed prior guidance. He noted strong demand is offsetting supply challenges in the DTC space.

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CEO Bob Iger expressed long-term confidence in the NBA as a growth sport, undeterred by short-term ratings. He stated that subscriber growth hinges on great content combined with strong technology. He also highlighted that news content from ABC News serves as a key differentiator for the Disney+ and Hulu offering. CFO Hugh Johnston added that the NBA contract costs were already factored into their financial guidance.

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CEO Robert Iger stated that linear advertising remains strong, particularly for live sports, and that the integrated approach with streaming offers advertisers a broader reach. CFO Hugh Johnston added that Disney expects 2025 advertising growth to be at or stronger than 2024's 3% rate, driven by its proprietary ad-tech stack which provides a competitive advantage. The question on CapEx was not directly addressed in the response.

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President Michael Cavanagh stated that Epic Universe is driving higher per-capita spending with minimal cannibalization of other Universal parks, and operating leverage should improve. Chairman & CEO Brian Roberts identified the re-energized connectivity business and the post-spin revenue mix shifting toward 70% growth businesses as key underappreciated levers.

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President Michael Cavanagh described the Orlando market as strong, stating that Epic Universe is successfully driving higher per-capita spending with minimal cannibalization of existing parks. Chairman & CEO Brian Roberts highlighted the re-energized connectivity strategy and the post-Versant spin simplification as key underappreciated growth drivers, noting that growth businesses will soon represent ~70% of total revenue.

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Michael Cavanagh, President, stated that Peacock's broad content library makes it a strong element for future partnerships or bundles, but had no news to report. He confirmed the cable SpinCo timing remains on track for year-end. On parks, he reiterated the strategy of investing in a high-growth business where Comcast has a strong position. Regarding the NBA, he positioned it as a key anchor for the ad sales strategy and a driver for monetizing the entire NBCUniversal portfolio.

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CFO Tom Barry explained the Q2 free cash flow beat was partially due to timing and that the company is still assessing the full impact of tax law changes and CapEx savings, with an update planned for the fall. President and Chief Content Officer Scott Greenstein stated that the company targets younger demographics through podcasting with talent like Alex Cooper and Stephen A. Smith, which monetizes well through advertising while they test which content is suitable for subscription. CEO Jennifer Witz added that SiriusXM is now the #1 podcast network for listeners 18+, creating a funnel for the core service.

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Gustav Söderström, Co-President and CPTO, pointed to market share in music, strong growth in video, and the expansion of audiobooks into new markets as evidence of engagement. He reiterated that monetization occurs through three vehicles: conversion to premium (including price raises), advertising, and the emerging 'a la carte' model.

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Co-President and CBO Alex Norström highlighted strong internal tailwinds in the ad business, driven by a unified ad stack that offers advertisers more choice through direct, API, programmatic, and self-serve channels, leading to a significant increase in active advertisers. CFO Christian Luiga addressed capital allocation, stating that the primary focus remains on funding growth opportunities and maintaining a strong balance sheet, especially as the company is early in its profitability journey, but will consider shareholders as excess capacity rises.

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Co-President & CBO Alex Norström confirmed that churn in markets with recent price hikes was low and in line with previous increases. He also stated that as the subscriber base scales, a growing number of users are interested in a super-premium tier, and he is personally excited about the product being developed.

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CEO Daniel Ek expressed excitement about audiobooks, noting the content library has more than doubled. He highlighted strong user adoption, citing that in the U.S., audiobook users are consuming over five additional hours per month on the platform, demonstrating the proposition's value.

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President & CEO Chris Winfrey detailed a strategy focused on enhancing value through streaming app inclusions (like Hulu and ESPN Unlimited) and improving utility via the Zumo platform for unified discovery. He stated the video attach rate has already improved significantly, emphasizing that the primary goal of the video strategy is to drive and retain core Internet and mobile customers.

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President and CEO Chris Winfrey stated that roughly 15,000-16,000 passings in the L.A. area were impacted, which will affect subscriber counts and require rebuilding capital, with specifics to be detailed in the next quarter. On marketing, he described a partnership strategy with programmers to co-market the value of bundled services. Regarding scale, he explained that a larger, national footprint would enhance brand recognition, improve marketing efficiency, allow for more job in-sourcing, and enable greater investment in technologies like AI.

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CFO Spencer Neumann stated that Netflix has historically been a builder rather than a buyer and sees no need to change that playbook. He affirmed the company has no interest in owning legacy media assets and will remain choosy, focusing on organic growth and returning excess cash to shareholders via buybacks.

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CFO Spence Neumann stated that while consolidation of legacy media is likely, it doesn't materially change the competitive landscape for Netflix. He reiterated that Netflix has historically been a 'builder, not a buyer' and sees a long runway for organic growth. He confirmed the company has no interest in owning legacy media networks and will remain choosy, with its primary focus being on organic investment and returning excess cash to shareholders via buybacks.

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CFO Spencer Neumann stated that while consolidation is likely, Netflix has historically been 'more builders than buyers' and sees a large runway for organic growth. He reiterated no interest in owning legacy media networks and said the company will remain choosy, focusing on its organic growth plan and returning excess cash to shareholders.

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Gregory Peters (Co-CEO) and Theodore Sarandos (Co-CEO) emphasized that growth is driven by the entire service portfolio, not single titles, with live events being a small part of acquisition. Sarandos stressed that while live sports are an important expansion, the economics of full-season leagues remain challenging, making deals like WWE and the Women's World Cup more attractive. Peters added that the gaming strategy is showing positive, though small, impacts on retention and is focused on leveraging Netflix IP, with titles like 'Squid Game Unleashed' validating the model.

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CEO Lachlan Murdoch explained that Tubi's 35% revenue growth was driven by an 18% increase in total viewing time, establishing it as a mainstream service. CFO Steve Tomsic addressed the balance sheet, noting the company would complete its $7 billion share buyback authorization, continue organic investments like Tubi and FOX 1, and maintain a very high bar for any non-organic M&A.

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Executive Chair and CEO Lachlan Murdoch explained that exercising the Flutter/FanDuel option requires licensing in 26 states, a process they expect to complete within a year. Regarding Tubi's acceleration, he attributed the growth to a significant improvement in the platform's ad fill rate while successfully holding pricing steady in a competitive market.

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CEO Robert Kyncl explained that for premium tiers, consumers would pay a higher price, which would then be shared with artists based on their existing royalty agreements. Regarding video, he noted that the new Spotify deal facilitates the inclusion of more video content on the platform, viewing it as another format innovation that helps grow the overall revenue pie. He added that the intent is for such offerings to become global over time.

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