Jessica Reif Ehrlich

Jessica Reif Ehrlich asked CEO Bob Iger about areas his successor could leverage for long-term business growth, drawing parallels to his past strategic moves. She also inquired about the evolving relationship with the NFL following the recent deal closure, including potential early renewal.

Answer

CEO Bob Iger stated that the company is in much better shape than three years ago, with numerous growth opportunities, particularly in the Experiences business. He emphasized the importance of continuous change and evolution for his successor. Regarding the NFL, Iger expressed satisfaction with the early closure of the deal, highlighting the significant opportunity for ESPN in the upcoming NFL season, but deemed it premature to speculate on the future of ESPN's relationship with the NFL beyond the 2030 opt-out.

Jessica Reif Ehrlich asked CEO Bob Iger about potential areas for his successor to drive long-term business growth, drawing parallels to his past strategic moves, and inquired about the evolving relationship and business with the NFL following the recent deal closure.

Answer

CEO Bob Iger highlighted the company's improved state and growth opportunities, including investments in the experiences business, and emphasized the need for continuous change. Regarding the NFL, he expressed satisfaction with the deal closure, noting the upcoming NFL season and Super Bowl as a huge opportunity for ESPN, particularly for its streaming business, but declined to speculate on future relationship beyond the 2030 opt-out.

Jessica Reif Ehrlich inquired about Disney's potential role in future media M&A, given industry consolidation and breakups, and whether the company foresees stronger competitors emerging. She also sought color on the fiscal 2026 advertising outlook across DTC, linear entertainment, and sports segments.

Answer

CFO Hugh Johnston stated that Disney feels confident with its existing IP portfolio, built through past acquisitions, and does not anticipate making significant M&A moves. He noted that advertising grew 5% last year, with sports being particularly strong and DTC CPMs improving. He expects overall advertising growth in fiscal 2026, despite overlapping political advertising from the prior year.

Jessica Reif Ehrlich asked about the expected business impact of launching the new, large cruise ship in Singapore and questioned the drivers behind the tough guidance for the content segment in the fourth quarter.

Answer

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.

Jessica Reif Ehrlich requested an update on the advertising market, including programmatic trends and sports performance, and asked about the financial structure of the Abu Dhabi park deal, specifically regarding capital investment and ownership.

Answer

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.

Jessica Reif Ehrlich asked about the path to profitability for the new NBA contract given recent ratings and the cost step-up. She also inquired about key Disney+ subscriber drivers, including the password sharing crackdown, total addressable market (TAM), and the strategic importance of news content.

Answer

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.

Jessica Reif Ehrlich inquired about the outlook for consolidated advertising growth in the coming years, given the dynamic between linear challenges and streaming growth. She also asked for details on capital expenditures for the next fiscal year.

Answer

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.

Jessica Reif Ehrlich inquired about the sustainability of video subscriber gains, first-quarter trends, and details on Charter's Silicon Valley initiatives, including immersive content and network capabilities.

Answer

President and CEO Chris Winfrey clarified that the goal for video is to support broadband acquisition and retention, not just net gains, emphasizing its value for customers and the ecosystem. He highlighted unique distribution capabilities with programmers and the challenges of programming costs. Winfrey explained Silicon Valley efforts aim to encourage developers to build for Charter's ubiquitous multi-gig, low-latency network, showcasing immersive experiences like Spectrum Front Row with Apple and the NBA, leveraging local edge compute assets.

Jessica Reif Ehrlich (BofA Securities) asked Chris Winfrey about the sustainability of Charter Communications' video subscriber gains and any insights into Q1 trends. She also inquired about the company's initiatives in Silicon Valley, including their goals and the potential timing of new product releases.

Answer

Chris Winfrey, President and CEO of Charter Communications, clarified that the goal for video is to support broadband acquisition and retention, not merely net gains, acknowledging the ecosystem's challenges despite recent improvements. Regarding Silicon Valley, he explained that the aim is to encourage developers to build products for Charter's ubiquitously deployed, multi-gig network, highlighting assets like 1,000 local data centers and the potential for immersive content like Spectrum Front Row with Apple and the NBA.

Jessica Reif Ehrlich questioned the future evolution of Charter's video product, including personalization, its potential to improve further, and the resulting impact on the broadband attach rate.

Answer

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.

Jessica Reif Ehrlich sought an early assessment of the impact from the Los Angeles fires on passings and subscribers. She also asked about the marketing plans for the new video offerings and for Chris Winfrey to elaborate on the benefits of national scale in competing against global players, following his earlier remarks.

Answer

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.

Jessica Reif Ehrlich from BofA Securities asked about Comcast's long-term asset portfolio strategy, particularly regarding potential structural changes to media assets to unlock value. She also inquired about the specific levers and milestones for Peacock to narrow losses and achieve sustained profitability, given its 44 million subscribers.

Answer

Mike Cavanagh, Co-CEO, stated that separating NBCUniversal from Comcast would not make it stronger, emphasizing value creation through executing current plans, particularly in parks and studios. For media, he highlighted the post-Versant integrated domestic strategy for broadcast and Peacock, aiming for profitability. He identified key levers for Peacock's path to profitability as price increases (citing a successful $3 increase), advertising growth (noting 170 new NBA advertisers and sold-out season), and affiliate deal renewals over several years.

Jessica Reif Ehrlich from BofA Securities inquired about Comcast's asset portfolio strategy over the next 12-24 months, particularly regarding potential structural changes for media assets to unlock value. She also asked about the specific levers Comcast plans to use to narrow Peacock's losses and achieve sustained profitability, given its 44 million subscribers.

Answer

Mike Cavanagh, Co-CEO, stated that separating NBCUniversal from Comcast would not strengthen it, emphasizing value creation through executing current plans for parks, studios, and an integrated domestic media strategy. For Peacock, he highlighted successful price increases, strong advertising growth (including 170 new NBA advertisers), and future revenue build-up from affiliate deal renewals as key levers to drive profitability and narrow losses.

Jessica Reif Ehrlich requested more color on the Orlando theme park market dynamics post-Epic Universe opening and asked Chairman & CEO Brian Roberts to identify Comcast's most underappreciated growth levers.

Answer

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.

Jessica Reif Ehrlich requested more detail on the Orlando theme park market dynamics, including cannibalization and operating leverage, and asked Brian Roberts to identify Comcast's most underappreciated growth levers.

Answer

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.

Jessica Reif Ehrlich asked for updated views on streaming consolidation, the timing of the cable SpinCo, the long-term strategy for Theme Parks with new market expansions, and the financial framework for the new NBA rights deal.

Answer

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.

Jessica Reif Ehrlich asked about Warner Bros. Discovery's strategy for monetizing its extensive content library, particularly within Discovery Global Networks, and the company's current sports portfolio, including plans for a standalone sports streaming app and opportunities to strengthen sports assets.

Answer

CFO Gunnar Wiedenfels detailed the sports strategy, highlighting benefits from the NBA transition and the development of a standalone U.S. sports streaming app, while also discussing plans to revitalize the extensive content library for Discovery Global. CEO David Zaslav clarified the differentiated sports approach for U.S. (HBO Max as a storytelling product) versus international markets (sports as a growth driver for HBO Max). JB Perrette, CEO and President of Global Streaming and Games, confirmed HBO Max's continued access to key Discovery Global content post-separation.

Jessica Reif Ehrlich inquired about Warner Bros. Discovery's strategy for mining its extensive content library, specifically within Discovery Global Networks (Cartoon Network, Discovery, etc.), and sought color on the company's sports portfolio, including the planned standalone sports streaming app, underappreciated assets, and opportunities for strengthening the portfolio.

Answer

Gunnar Wiedenfels, CFO, addressed the sports portfolio, highlighting benefits from the NBA transition and the development of a standalone sports streaming app for the U.S. market. David Zaslav, President and CEO, clarified that HBO Max would focus on storytelling, not rental sports, in the U.S., while international HBO Max would integrate sports. Wiedenfels also discussed monetizing the vast content library for Discovery Global, with Jean-Briac Perrette, CEO and President, Global Streaming and Games, confirming HBO Max's continued access to valuable Discovery Global content.

Jessica Reif Ehrlich asked about the development of future IP franchises beyond Harry Potter and Superman and the potential halo effect across the company. She also asked about underappreciated growth opportunities in the Global Networks segment.

Answer

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.

Jessica Reif Ehrlich inquired about the development of future IP franchises beyond Harry Potter and Superman and their potential halo effect across the company. She also asked about the underappreciated growth opportunities for the challenged Global Networks segment.

Answer

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.

Jessica Reif Ehrlich asked about the levers available to grow direct-to-consumer ARPU given lower-rate wholesale deals, the potential for further streaming industry consolidation, and the company's strategic approach to the advertising upfronts.

Answer

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.

Jessica Reif-Ehrlich asked about the potential impact of industry consolidation on the competitive landscape, whether it presents an opportunity or a threat, and its implications for Netflix's content strategy and differentiation.

Answer

Co-CEO Ted Sarandos addressed the opportunity, stating Netflix is primarily a builder with ample organic growth runway, and M&A is evaluated against a clear framework (big opportunity, strengthens IP/capabilities/strategy, relative to price). He reiterated no interest in owning legacy media networks and a focus on organic growth and share repurchases. Co-CEO Greg Peters addressed the threat, noting that past consolidations haven't fundamentally shifted the competitive landscape. He emphasized that success requires developing diverse capabilities (production, tech, product, acquisition, payments, partnerships) through hard work, not just M&A, and Netflix will continue to evaluate all significant opportunities.

Jessica Reif-Ehrlich asked about the potential impact of industry consolidation on the competitive landscape, whether it's an opportunity or threat for Netflix, and its implications for content strategy and differentiation.

Answer

Co-CEO Ted Sarandos addressed the opportunity, stating Netflix is historically a builder, with plenty of organic growth runway. He emphasized that nothing is 'must-have' for their goals. Netflix focuses on profitable growth and reinvesting organically and through selective M&A, applying a framework: big opportunity, strengthens entertainment/IP/capabilities/strategy, relative to price/opportunity cost. He reiterated no interest in owning legacy media networks and that Netflix will be choosy, focusing on organic growth and returning excess cash to shareholders. Co-CEO Greg Peters addressed the threat, noting Netflix has always faced significant competition and industry consolidation hasn't fundamentally shifted the landscape. He argued that mergers don't change the challenge competitors face in developing diverse capabilities. He concluded that Netflix will evaluate all opportunities within its framework to grow the business.

Jessica Reif Ehrlich of Bank of America Securities asked for Netflix's view on acquiring IP or studio assets as the media landscape consolidates.

Answer

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.

Jessica Reif Ehrlich of BofA Securities asked for Netflix's view on owning IP or studio assets via M&A, given the anticipated wave of media consolidation.

Answer

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.

Jessica Reif Ehrlich of BofA Securities, Inc. asked about Netflix's view on owning IP or studio assets via M&A, given the expected wave of media consolidation.

Answer

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.

Jessica Reif Ehrlich of Bank of America Securities questioned the drivers of subscriber growth and the strategic rationale behind the expansion into live sports and gaming.

Answer

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.

Jessica Reif Ehrlich from Bank of America Securities questioned how the open internet can gain share when walled gardens are growing so rapidly, and asked whether The Trade Desk is taking share from other DSPs or from the walled gardens.

Answer

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.

Jessica Reif Ehrlich asked for details on OpenPath's plans for the coming year, how the Sincera acquisition contributes, and for color on the expense ramp, specifically if Q1's margin compression is indicative of the full year.

Answer

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.

Jessica Reif Ehrlich of Bank of America Securities inquired about the decision to not raise full-year free cash flow guidance despite a strong Q2 beat, and asked about the content strategy for attracting younger, subscription-averse audiences.

Answer

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.

Jessica Reif Ehrlich requested specific metrics or color on user engagement growth by category over the past year and how Spotify views the opportunity to monetize this engagement.

Answer

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.

Jessica Reif Ehrlich from BofA Securities inquired about the drivers of momentum in the advertising business, particularly the role of programmatic channels, and also asked about the company's capital allocation framework and potential for shareholder returns.

Answer

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.

Jessica Reif Ehrlich from Bank of America asked about the impact on churn from recent price increases and the level of user interest indicated by research for a 'super fan' or HiFi audio tier.

Answer

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.

Jessica Reif Ehrlich of BofA Securities questioned the progress and user engagement with Spotify's audiobook offering one year after its launch.

Answer

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.

Jessica Reif Ehrlich asked about the path to profitability for Tubi, seeking details on its key drivers, and also inquired about the company's plans for its strong balance sheet and capital allocation priorities.

Answer

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.

Jessica Reif Ehrlich asked about the approval timeline for its FanDuel option with Flutter, the factors influencing when Fox might exercise it, and the reasons behind Tubi's accelerating revenue growth.

Answer

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.

Jessica Reif Ehrlich asked how the costs of new 'super premium' tiers would be handled, how artists would be compensated, and inquired about the company's strategy for monetizing its video catalog.

Answer

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.