Robert Fishman

Robert Fishman asked for more color on the expected high-teens growth for U.S. iGaming in 2026 and its sustainability in the years ahead.

Answer

CFO Rob Coldrake noted that while the iGaming market grew 26% in 2025 (Flutter's revenue grew 33%), some moderation is expected as states mature. He expressed confidence in continued mid-to-high teens growth, driven by a strong product roadmap and significant remaining penetration opportunity, with current penetration at 6.5% against a 9.5% Investor Day target.

Robert Fishman asked for more details on the expected high-teens growth for US iGaming in 2026 and its sustainability in future years.

Answer

CFO Rob Coldrake confirmed the high-teens iGaming growth expectation for 2026, noting that while growth may moderate from 2025's 26% market growth as states mature, strong growth is expected to continue due to the product roadmap and significant penetration potential (6.5% penetration vs. 9.5% target).

Robert Fishman from MoffettNathanson inquired about the mix of in-house and exclusive content versus third-party games driving FanDuel's iGaming business, and how that mix is expected to evolve.

Answer

CEO Peter Jackson clarified that all current FanDuel content is from third parties, though some is exclusive. He explained that while Flutter has in-house studio capabilities, the immediate priority has been to build the broadest range of content and enhance the platform with features like jackpots and the rewards club. In-house content remains a future opportunity.

Robert Fishman asked about Flutter's confidence in maintaining its number one market position in the U.S., referencing the 'Flutter Edge' concept and the successful launch in North Carolina.

Answer

CEO Peter Jackson expressed high confidence, attributing it to the 'Flutter Edge' strategy, which empowers local teams while leveraging global group strengths. He cited the U.S. casino business, led by experienced international talent, and the successful rollout of Same Game Parlay in Italy as prime examples of this competitive advantage in action.

Robert Fishman asked about Flutter's confidence in maintaining its number one U.S. market position, referencing the 'Flutter Edge' concept.

Answer

CEO Peter Jackson explained that the 'Flutter Edge' empowers local teams while leveraging global strengths. He cited the U.S. casino business, led by a team with global experience, and the rollout of Same Game Parlay in Italy as prime examples of transferring product advantages and expertise across markets to build and maintain leadership positions.

Robert Fishman inquired about the current competitive dynamics in the U.S. and whether the market is becoming more rational. He also asked about the company's U.S. media strategy, particularly the role of the new FanDuel TV channel.

Answer

CEO Peter Jackson described the U.S. market as remaining very competitive but also more rational, with competitors not spending irrationally on poor products. He explained that FanDuel TV, which builds on the legacy TVG network, is a 'bet and watch' platform that helps acquire customers, particularly in racing, and often allows entry into states before sports betting is legalized.

Robert Fishman from MoffettNathanson asked for an assessment of the current U.S. competitive landscape and its rationality, and inquired about the company's media strategy, particularly the role of the new FanDuel TV channel.

Answer

CEO Peter Jackson described the U.S. market as remaining very competitive but also more rational, with Flutter's superior product providing a key advantage. He explained that FanDuel TV, an evolution of the TVG network, serves as a "bet and watch" platform to engage customers, particularly in racing, and helps build brand presence in states even before sports betting is legalized.

Robert Fishman inquired about what aspects of Warner Bros. Discovery's premium content and franchise IP are now being appreciated that were overlooked before the sales process, the difficulty of building new franchises, and the key drivers for streaming profits to roughly triple by 2030, including advertising, pricing, subscriber increases, or more efficient spending.

Answer

CEO David Zaslav explained that the initial focus was on delevering, but significant investment was made in original content and reigniting franchises, hiring a superb creative leadership team. He emphasized the company's storytelling-first approach, taking risks on original films like Sinners and Weapons, alongside franchise development like Minecraft. He highlighted HBO's strength and the global expansion of HBO Max. JB Perrette, CEO and President of Global Streaming and Games, outlined five levers for streaming growth: strengthening content (including Potter from 2027), volume and penetration growth (new European markets, password sharing enforcement from 2026), product enhancements, improved retention, and monetization through pricing and early-stage ad sales growth.

Robert Fishman inquired about what aspects of Warner Bros. Discovery's premium content and franchise IP are now being appreciated that were previously overlooked, the difficulty of building new franchises, and the key drivers for the internal forecast of streaming profits to roughly triple by 2030, including advertising, pricing, subscriber increases, or efficient spending.

Answer

President and CEO David Zaslav explained that the company's focus shifted from delevering to investing in original content and reviving great Warner Bros. franchises, emphasizing a 'storytelling first' approach and a 'creative renaissance.' He cited successes like 'Sinners,' 'Weapons,' 'One Battle After Another,' and the return of 'Minecraft' and 'Batman.' CEO and President of Global Streaming and Games JB Perrette outlined five levers for streaming growth: strengthening content (e.g., 'The Pitt,' 'Potter'), volume and penetration growth (new markets, password sharing enforcement), product enhancements, improved churn and retention, and monetization through subscription pricing and early-stage ad sales growth.

Robert Fishman sought more insight into Warner Bros. Discovery's confidence in gaining global scale with HBO Max ahead of upcoming international launches, how it plans to compete with larger SVOD platforms, and how this will translate into accelerating streaming revenue growth next year. He also asked about content spending and budgets for next year, specifically the balance between investing in new IP versus leaning into existing franchises like DC Comics.

Answer

David Zaslav, CEO, highlighted HBO Max's unique product, combining a vast library with original content and local sports internationally, positioning it as a high-quality, differentiated service. Jean-Briac Perrette, CEO and President of Global Streaming and Games, expressed confidence based on content performance in existing markets and a strong upcoming slate, including Harry Potter, emphasizing quality over quantity. Zaslav also discussed the studio's strategy of using tentpoles, mini-tentpoles, and originals, leveraging known IP like Superman and Harry Potter, alongside new IP, to drive value.

Robert Fishman asked about Warner Bros. Discovery's confidence in achieving global scale for HBO Max, particularly with upcoming international launches, and how its differentiated quality proposition will drive accelerated streaming revenue growth. He also inquired about the company's content spending strategy, balancing investment in new IP versus leveraging existing franchises like DC Comics to maximize value.

Answer

CEO David Zaslav emphasized HBO Max's unique position as a high-quality streaming service, combining a vast library, original content, and local sports/content internationally, which he believes drives growth and economic advantage. JB Perrette, CEO and President of Global Streaming and Games, expressed high confidence in HBO Max's global scaling, citing successful market launches, a strong content slate for 2026/2027, and strategic partnerships, projecting 2026 as a major growth year for subscribers and revenue.

Robert Fishman asked about Warner Bros. Discovery's content licensing strategies, questioning if Warner Bros. and HBO content would be licensed more to third parties and about the approach to sports rights, including potential sublicensing.

Answer

President & CEO David Zaslav explained that WBD is strategically licensing less content than it could to bolster the value and exclusivity of HBO Max, prioritizing long-term asset value over near-term profit. CFO Gunnar Wiedenfels added that for Discovery Global, sports rights are crucial for its standalone future, making sublicensing unlikely. Instead, they are developing a direct-to-consumer sports product.

Robert Fishman inquired about Warner Bros. Discovery's content licensing strategies, asking if the company would license more Warner Bros. and HBO content to third parties and about its approach to sports rights sublicensing.

Answer

President & CEO David Zaslav explained that WBD is strategically licensing less content externally to strengthen HBO Max's exclusive library and drive long-term value. CFO Gunnar Wiedenfels added that this shift has created significant intercompany value on the balance sheet. Regarding sports, Wiedenfels stated that sublicensing is unlikely as they plan to launch a standalone sports streaming product.

Robert Fishman questioned how the strategic shift to higher-quality content affects overall content spending levels and inquired about the company's evolving approach to licensing its library and originals to third-party services versus keeping them exclusive to Max.

Answer

President & CEO David Zaslav explained that core, franchise-building IP like DC and Harry Potter will remain exclusive to build long-term asset value. However, the company sees significant value in licensing other IP to generate revenue and broaden audience reach. CFO Gunnar Wiedenfels added that this strategy does not require a significant step-up in content spend, which will see only moderate increases to support growth.

Robert Fishman asked if the Max streaming service has sufficient programming diversity to compete as a standalone platform and questioned the strategy of moving sports and news content out of the ad-lite tier.

Answer

CEO David Zaslav described Max's offering as unique, combining high-quality original content, a deep library, and meaningful local programming and sports. CEO of Global Streaming and Games JB Perrette affirmed the strength and diversity of the content pipeline through 2027. Perrette explained that WBD is experimenting with various sports and news monetization models globally, such as including it in premium tiers in the U.S. versus offering it as an add-on in Europe.

Robert Fishman asked for clarification on the overall ramp and trajectory for Venue Nation's total portfolio AOI, given the increasing pre-opening costs in 2026, to reach the run rate projected for 2028 and 2029. He also asked about the long-term Venue Nation opportunity, specifically the contribution mix between international and U.S. markets.

Answer

CFO Joe Berchtold explained that pre-opening costs are ramping from $25 million last year to $50 million this year, but he doesn't expect that rate of increase to continue. He noted that it takes 2-3 years for venues to reach full maturity and that the fan count for new venues will contribute to the multi-year potential. He highlighted international markets (Latin America, Europe, Asia) as a huge focus due to underdeveloped arena infrastructure, presenting tremendous opportunities for new builds or renovations to expand local markets and draw more shows.

Robert Fishman sought clarification on the overall ramp and trajectory for Venue Nation's total portfolio AOI, aiming to understand how it will reach the projected run rate in 2028-2029, especially given the ramping pre-opening costs in 2026. He also asked about the long-term Venue Nation opportunity, specifically the expected contribution mix between international and U.S. markets.

Answer

Joe Berchtold, President and CFO, explained that Venue Nation's ramp-up costs, which were $25 million in 2025 and are projected to be $50 million in 2026, will not continue increasing at that rate as the division reaches a steady state. He noted that venues typically achieve full maturity within two to three years of opening or acquisition, and provided fan count and profitability per fan data to aid in modeling the increases. Joe Berchtold also highlighted international markets (Latin America, Europe, Asia) as a significant focus for Venue Nation, citing underdeveloped arena infrastructure compared to the U.S. and tremendous opportunities for new builds and renovations to expand the market.

Robert Fishman asked about the significance of the international fan count surpassing the U.S. for the first time, the expected mix shift, and its contribution to confidence in double-digit AOI growth for 2026. He also inquired about the recent hire of a new global president for Ticketmaster and the anticipated impact on AI transformation and the overall business.

Answer

Michael Rapino, CEO and President, confirmed that international growth will continue to be a significant story for Live Nation across Ticketmaster, sponsorship, venues, and concerts, given untapped market potential. Joe Berchtold, President and CFO, explained that the new global president for Ticketmaster, with a strong technical, engineering, and AI background, will focus on enhancing the platform and leading AI initiatives. This strategic move follows the previous president, Mark, who successfully standardized the global business and will continue as chairman focusing on international expansion.

Robert Fishman asked about the international fan count surpassing the U.S. for the first time, inquiring about the future mix shift and its impact on confidence for double-digit AOI growth in 2026. He also asked about the recent hire of a new global president for Ticketmaster and their expected role in AI transformation.

Answer

CEO and President Michael Rapino confirmed that international business will continue to be a significant growth driver across Ticketmaster, sponsorship, venues, and concerts, given the many underdeveloped markets. He expects this international mix to grow for many years. President and CFO Joe Berchtold explained that the new global president for Ticketmaster, with a strong technical, engineering, and AI background, will focus on leading the charge on AI integration across the platform, from agent-facing tools to enterprise-level applications. The previous head will transition to chairman, focusing on international growth.

Robert Fishman asked about Cinemark's strategy for balancing organic growth, particularly market share gains, with potential M&A opportunities, and requested an update on conversations regarding the Warner Bros. acquisition.

Answer

Melissa Thomas, CFO, outlined a balanced and disciplined approach to capital allocation, investing in new builds, existing theater enhancements, and M&A, targeting high-quality, accretive opportunities that deepen penetration in existing markets. Sean Gamble, President and CEO, stated that the Warner Bros. transaction remains active and fluid. He emphasized Cinemark's focus, alongside Cinema United, on engaging with all parties and regulators to ensure an outcome that supports sustained volume of output, meaningful exclusive theatrical windows, and comprehensive marketing campaigns, which are critical for the industry.

Robert Fishman asked how Cinemark balances investing in organic growth, driven by market share gains, against positioning the company for M&A opportunities in 2026 and beyond. He also requested an update on conversations regarding the potential Warner Bros. acquisition, specifically with Netflix or Paramount Skydance.

Answer

Melissa Thomas, CFO, outlined a balanced and disciplined capital allocation approach, investing in new builds, existing theater enhancements, and M&A when attractive opportunities arise. She stated Cinemark targets high-quality, accretive M&A, preferring to deepen penetration in existing markets. Sean Gamble, President and CEO, noted the Warner Bros. transaction remains active and fluid. Cinemark, through Cinema United, engages with all parties and regulators to advocate for sustained film output, meaningful exclusive theatrical windows, and comprehensive marketing campaigns, which are crucial for industry health and local economies.

Robert Fishman asked about the theatrical release strategies of streaming companies, specifically if Apple plans to increase its output after 'F1' and if Netflix might change its approach. He also inquired about the full-year margin outlook following a strong Q2.

Answer

CEO Sean Gamble called Apple's 'F1' success an "encouraging step" but had no specific updates on their future plans. Regarding Netflix, he stated that based on public commentary, they do not appear to be changing their strategy. CFO Melissa Thomas expressed long-term optimism for margins but cautioned that second-half market share may temper compared to elevated 2024 levels, particularly in Q4, alongside ongoing cost pressures.

Robert Fishman of MoffettNathanson asked for an estimate of box office cannibalization from flexible windows and whether Cinemark would offer economic offsets to studios. He also requested a full-year margin target.

Answer

CEO Sean Gamble stated that quantifying the impact of windowing is complex and part of ongoing discussions with studios to find the right economic balance. CFO Melissa Thomas declined to give a specific margin target but said they expect margins to expand for the full year due to operating leverage from the box office recovery, partially offset by some market share normalization and inflation.

Robert Fishman questioned the advantages of Cinemark's domestic suburban footprint, plans for new screen builds versus closures, and the path to margin improvement in 2025 and beyond.

Answer

CEO Sean Gamble described the suburban footprint as a result of historically strong ROI opportunities but confirmed they are open to expansion and have reactivated their new build pipeline. CFO Melissa Thomas expressed optimism for margin expansion driven by operating leverage from a rebounding box office. However, she noted headwinds from higher film rental rates on blockbusters, wage pressures, and increased maintenance costs, which may temper the pace of improvement.

Robert Fishman inquired about how studios partner with Cinemark to target its loyalty members and asked for details on Cinemark's future capital expenditure plans relative to the industry.

Answer

President and CEO Sean Gamble described deep studio partnerships that include special promotions, screenings, and targeted marketing to their 21 million global loyalty members. CFO Melissa Thomas confirmed that Cinemark's normalized annual CapEx of $200-$250 million was included in a recent industry report and that the company expects its investment levels to continue to over-index peers, potentially reaching that normalized range as soon as 2025.

Robert Fishman asked about the competitive environment and promotional intensity in OSB and prediction markets, along with expectations for the year ahead. He also requested an update on the legislative front and whether prediction markets are influencing states to consider legalizing OSB.

Answer

Jason Robins (Co-Founder and CEO, DraftKings) characterized the competitive environment as 'very rational' from a promotional standpoint in both OSB and prediction markets, noting that promo is less significant in predictions. He confirmed the conservative guidance includes cushion for potential changes. On the legislative front, Mr. Robins reported traction for prediction market legislation and pushback against OSB tax increases. He expressed optimism that the emergence of prediction markets could be a deciding factor in getting 'a state or two done this year' for OSB legalization.

Robert Fishman inquired about the ESPN deal, how it came together, why it makes sense for DraftKings today, and the expected importance of app integration as a future growth driver.

Answer

Jason Robins, Co-founder and CEO of DraftKings, expressed excitement about reuniting with ESPN, highlighting their premier sports brand, large fantasy database/app, numerous channels, and talent. He sees the deal leveraging across product and marketing, helping acquire new customers and engage existing ones through content and potential app integration. He also noted ESPN's aggressive growth trajectory as a positive for co-growth.

Robert Fishman inquired about the ESPN deal, asking how it came together, why it makes sense for DraftKings today, and the expected importance of integration within ESPN's apps as a future growth driver.

Answer

Jason Robins, Co-founder and CEO of DraftKings, expressed excitement about reuniting with ESPN, highlighting their premier sports brand status and extensive presence across sports media, including NBCUniversal and Amazon. He emphasized ESPN's large fantasy database and app, numerous channels, and talent as key assets for leveraging across product and marketing, aiding both new customer acquisition and existing customer engagement through content and potential app integrations. Mr. Robins also noted ESPN's aggressive growth trajectory as a positive for a synergistic partnership.

Robert Fishman of MoffettNathanson LLC inquired about DraftKings' openness to partnering with upcoming sports streaming apps like ESPN's and FOX's, and the opportunity to rework market access deals following Flutter's recent agreement with Boyd.

Answer

Co-Founder & CEO Jason Robins stated that market access deals represent an area of upside, as many early-day agreements are coming up for renegotiation. On streaming apps, he expressed excitement about their launch, noting it will be great for sports viewership and betting, and confirmed DraftKings would explore any partnership that makes sense as opportunities present themselves.

Robert Fishman of MoffettNathanson inquired about DraftKings' openness to partnering with upcoming sports-focused streaming apps like those from ESPN and FOX. He also asked about the opportunity to restructure market access deals, similar to recent industry precedents.

Answer

Co-Founder & CEO Jason Robins confirmed that renegotiating older, long-term market access deals represents a significant upside opportunity. On the topic of streaming services, he stated that DraftKings is watching the launches closely and would certainly explore any partnership that makes strategic sense.

Robert Fishman asked for more detail on the advertising efficiencies being realized from softer market demand and the impact on spending plans. He also inquired about the company's strategy for mitigating future state tax rate increases.

Answer

CEO Jason Robins specified that advertising softness is currently being seen on the digital side, not yet in premium offline sports inventory. To mitigate tax hikes, Robins said the strategy involves educating legislators on how high taxes can push consumers to illegal markets and ultimately result in a weaker, less competitive product for consumers in their state.

Robert Fishman of MoffettNathanson asked about customer penetration levels in older versus newer states and the return on investment from high-profile sponsorship strategies, such as the recent Tyson-Paul Netflix fight.

Answer

CEO Jason Robins explained that while older states like New Jersey have the highest penetration, they are still growing, supported by secular tailwinds from younger demographics. Regarding sponsorships, he characterized the Tyson fight's success as 'lightning in a bottle' and emphasized that the core strategy is to secure deals with a good base-case ROI, rather than relying on rare, massive events.

Robert Fishman inquired about Disney's strategy to better monetize its premium intellectual property (IP) in light of the value ascribed to Warner Bros. Discovery, and asked for clarification on the drivers of SVOD's 13% subscription revenue growth and future trends.

Answer

CEO Bob Iger emphasized the tremendous value of Disney's IP, brands, and franchises, including ESPN, noting the Fox acquisition was ahead of its time and well-priced. He highlighted the long-term value generated by successful films and their impact on Disney+ engagement and parks. CFO Hugh Johnston explained that SVOD revenue growth was driven by pricing, North American and international growth, and successful bundling initiatives.

Robert Fishman asked about the impact of the Warner Bros. Discovery valuation on Disney's strategy to monetize its premium IP, and inquired about the drivers of SVOD's 13% subscription revenue growth, including U.S. vs. international breakdown and future revenue trends.

Answer

CEO Bob Iger emphasized that the Warner Bros. Discovery situation highlights the tremendous value of Disney's IP, brands, franchises, and ESPN, noting the foresight and value of the Fox acquisition. He stated Disney does not need to acquire more IP, focusing on creating its own and leveraging existing stories across interconnected businesses like parks and Disney+. CFO Hugh Johnston explained that SVOD revenue growth was driven by pricing, North American and international growth, and the success of various content bundles.

Robert Fishman inquired about how fully integrating Hulu into Disney+ will accelerate DTC growth, the future of the standalone Hulu app, and if the strong DTC results altered the long-term double-digit margin target.

Answer

CEO Bob Iger explained that combining Hulu and Disney+ will create a superior consumer experience, lower churn, create tech stack efficiencies, and enhance advertising and bundling opportunities. CFO Hugh Johnston reiterated that there is no update to the long-term DTC margin guidance at this time and it will be addressed on the Q4 call.

Robert Fishman asked for more insight into the upcoming theatrical slate's value-generating potential and questioned management's confidence in Marvel's ability to be a significant driver for Disney after shifting its content strategy.

Answer

CEO Robert Iger expressed high confidence in the film slate, citing major upcoming releases like 'Lilo & Stitch' and 'Avatar: Fire and Ash'. He acknowledged that Marvel's previous strategy of producing high-quantity content for streaming led to a loss of focus, but stated the renewed emphasis on quality theatrical releases, like the successful 'Thunderbolts*', will restore the brand's strength and impact.

Robert Fishman inquired whether new 'skinnier bundles' from competitors would alter cord-cutting trends and asked for clarification on Disney's broader sports streaming strategy following the fubo deal and the shutdown of the Venu sports streaming venture.

Answer

CEO Bob Iger stated the goal is to make ESPN accessible on all platforms, including new skinny bundles, which made the Venu project redundant. He detailed that the upcoming ESPN 'flagship' streaming service, launching in the fall, will be a comprehensive, customizable offering with betting and fantasy features, available standalone or bundled with Disney+ and Hulu, leveraging ESPN's 24/7 programming as a key differentiator.

Robert Fishman asked about the priorities for new technology hire Adam Smith and his potential impact on Disney's streaming products. He also questioned the company's confidence in achieving double-digit DTC margins beyond 10% in fiscal 2026 and the future of Hulu Live.

Answer

CEO Robert Iger outlined Adam Smith's priorities, including the ESPN flagship launch, the ESPN tile on Disney+, personalization to improve engagement, password sharing crackdowns, and unifying tech stacks. CFO Hugh Johnston expressed confidence in reaching margin targets through subscriber growth, strategic pricing, product updates to reduce churn, increased ad monetization, and international expansion.

Robert Fishman asked about Netflix's perspective on global versus local sports rights and whether acquired sports rights need to materially accelerate advertising growth.

Answer

Co-CEO Ted Sarandos stated no change in approach, focusing on big live events (sports as a subcomponent) and not big season packages. He views global vs. local like series, varying by cost and audience size. He emphasized that thrilling audiences is the primary goal, with advertising or subscription revenue as the reward. He listed upcoming live events including Jake Paul vs. Tank, NFL Christmas Day games, Skyscraper Live, SAG Awards, WWE, World Baseball Classic (2026), and FIFA Women's World Cup (2027, 2031).

Robert Fishman asked for Netflix's updated perspective on monetizing content in the theatrical window, exclusively or non-exclusively, following the strong theatrical performance of 'K-pop, Demon Hunters'.

Answer

Co-CEO Ted Sarandos affirmed no change in strategy, with Netflix prioritizing exclusive first-run movies for its members. He explained that occasional theatrical releases, like for 'K-pop, Demon Hunters', serve fan engagement, marketing, and qualification purposes. He argued that the film's success was amplified by its initial Netflix release, allowing momentum to build through repeat viewing and social media, reinforcing the existing strategy. He also mentioned future sing-along events for the film.

Robert Fishman of MoffettNathanson asked for updated thoughts on approaching sports rights, given the competitive landscape for properties like F1, UFC, and the NFL.

Answer

Co-CEO Ted Sarandos reiterated that Netflix's sports strategy is unchanged and remains a subcomponent of its broader live strategy. He emphasized a focus on 'ownable, big breakthrough events' that make economic sense, noting that live events have an outsized positive impact on conversation and member acquisition.

Robert Fishman of MoffettNathanson asked for Netflix's updated approach to sports rights, given recent market activity, and where the company draws the line on what can move the needle.

Answer

Co-CEO Ted Sarandos reiterated that Netflix's sports strategy is unchanged and is a subcomponent of its broader live strategy. The focus remains on 'ownable, big breakthrough events' that make economic sense. While live viewing is a small part of total hours, he noted it has an outsized positive impact on conversation and acquisition. He expressed excitement for current properties like WWE and the NFL Christmas Day games and plans to grow live capabilities globally.

Robert Fishman of MoffettNathanson LLC asked for updated thoughts on approaching sports rights given the competitive landscape, and where Netflix draws the line on spending.

Answer

Co-CEO Ted Sarandos stated their strategy is unchanged: focus on 'ownable, big breakthrough events' that make economic sense. He positioned sports as a subcomponent of a broader live strategy that has an outsized positive impact on conversation and acquisition, despite being a small part of total spend.

Robert Fishman of MoffettNathanson asked about Paramount's strategy for balancing content licensing to third parties versus maintaining exclusivity for Paramount+. He also questioned the company's approach to bidding for new sports rights and how it differentiates between 'must-have' and 'nice-to-have' properties.

Answer

Co-CEO Brian Robbins stated that content licensing is a growth business, but the primary strategy is to use the most valuable IP to grow owned assets, potentially licensing on a co-exclusive or second-window basis. Co-CEO Chris McCarthy described the current sports portfolio as robust but said the company remains opportunistic and disciplined, always looking for rights that drive significant audience and scale.

Robert Fishman inquired about Paramount's strategy for balancing content licensing to third parties versus maintaining exclusivity for Paramount+. He also asked for the company's current thinking on bidding for more sports rights and how it differentiates between 'must-have' and 'nice-to-have' properties.

Answer

Co-CEO Brian Robbins stated that while content licensing is a growth business, the primary strategy is to use the most valuable IP to grow Paramount's owned platforms, potentially through co-exclusive or second-window deals. Co-CEO Chris McCarthy added that Paramount has a robust sports portfolio and will remain disciplined and opportunistic, focusing on rights that drive significant audience and scale.

Robert Fishman asked about the sufficiency of Paramount+'s content slate for competing with larger SVOD platforms, progress on potential partnerships, and the company's content spending plans for 2025.

Answer

Co-CEO Chris McCarthy expressed confidence in the current content strategy, citing strong subscriber growth, record engagement, and improved profitability, which puts them on track for domestic Paramount+ profitability in 2025. He noted they are always open to value-driving opportunities but had no news on partnerships. CFO Naveen Chopra stated that total company content spend is expected to be relatively flat in 2025 compared to 2024, with an ongoing remix in favor of streaming.

Robert Fishman asked how Fox is positioned to compete for sports rights against digital bidders like Netflix. He also sought clarification on whether the planned D2C offering would be a sports-only product or if it would also include Fox News content.

Answer

Executive Chair and CEO Lachlan Murdoch emphasized that Fox's broad reach across linear, digital, and its future D2C service is its primary competitive advantage in securing sports rights. He clarified that the D2C package is planned to be a holistic offering that includes the company's full portfolio of content, encompassing both sports and news.

Robert Fishman asked about the long-term growth potential for Tubi as it approaches $1 billion in revenue and requested an update on the 'Venue' sports streaming venture, including Fox's willingness to license content if it doesn't launch.

Answer

Executive Chair and CEO Lachlan Murdoch described Tubi's growth as impressive and sustainable, driven by its large, primarily revenue-share AVOD library and its on-demand nature. Regarding 'Venue,' he stated they are awaiting an appeal of the injunction and reiterated that Fox is in the business of building its own brands, not broadly sublicensing its sports rights.

Robert Fishman asked about expectations for continued affiliate fee growth in fiscal 2025, the potential for further retransmission consent pricing increases, and the strategy for content spending across sports, entertainment, and Tubi.

Answer

Executive Chair and CEO Lachlan Murdoch projected modest continued growth in affiliate fees, with pricing power staying ahead of industry subscriber declines of mid-8%. CFO Steve Tomsic detailed content spend, noting regular amortization increases for sports, continued investment in Tubi, and a rebalancing at Fox Entertainment towards more scripted content compared to the strike-impacted FY24, while still aiming for a 10-15% lower cost per hour versus FY23.

Robert Fishman asked about the expected growth in WWE sponsorship revenue driven by the upcoming Netflix deal and requested a breakdown of cost synergies between UFC and WWE, along with their future trajectory.

Answer

CFO Andrew Schleimer stated that the majority of the guided cost synergies are already reflected in the 2024 outlook, with more details on 2025 to come. President and COO Mark Shapiro and WWE President Nick Khan highlighted the massive global reach of Netflix as a catalyst for creating 360-degree sponsorship packages and driving significant future growth.

Robert Fishman asked if Regal would reconsider its stance on day-and-date releases to work with Netflix, and what box office assumptions underpin its confidence in 2018 EBITDA growth.

Answer

CEO Amy Miles reaffirmed that Regal would not change its stance and will continue to allocate screens to partners who create and market films for a theatrical release. CFO David Ownby explained that their 2018 confidence is based on industry attendance returning to the 2015-2016 trend of ~1.3 billion attendees, combined with Regal's own market share gains from its strategic initiatives.