| Metric [USD Million] | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Entertainment        | N/A     | N/A     | N/A     | **9,524**  **[0001744489-23-000213_fy2023_q4xprxex991.htm:2]**  | **9,981**  **[0001744489-24-000079_fy2024_q1xprxex991.htm:1]**  | **9,796**  **[0001744489-24-000149_fy2024_q2xprxex991.htm:1]**  | **10,580**  **[0001744489-24-000231_fy2024_q3xprxex991.htm:2]**  | **10,829**  **[0001744489-24-000275_fy2024_q4xprxex991.htm:2]**  |
| Sports               | N/A     | N/A     | N/A     | **3,910**  **[0001744489-23-000213_fy2023_q4xprxex991.htm:2]**  | **4,835**  **[0001744489-24-000079_fy2024_q1xprxex991.htm:1]**  | **4,312**  **[0001744489-24-000149_fy2024_q2xprxex991.htm:1]**  | **4,558**  **[0001744489-24-000231_fy2024_q3xprxex991.htm:2]**  | **3,914**  **[0001744489-24-000275_fy2024_q4xprxex991.htm:5]**  |
| Experiences          | N/A     | N/A     | N/A     | **8,160**  **[0001744489-23-000213_fy2023_q4xprxex991.htm:2]**  | **9,132**  **[0001744489-24-000079_fy2024_q1xprxex991.htm:1]**  | **8,393**  **[0001744489-24-000149_fy2024_q2xprxex991.htm:1]**  | **8,386**  **[0001744489-24-000231_fy2024_q3xprxex991.htm:2]**  | **8,240**  **[0001744489-24-000275_fy2024_q4xprxex991.htm:5]**  |
| Eliminations         | N/A     | N/A     | N/A     | N/A     | **(399)**  **[0001744489-24-000079_fy2024_q1xprxex991.htm:1]**  | **(418)**  **[0001744489-24-000149_fy2024_q2xprxex991.htm:1]**  | **(369)**  **[0001744489-24-000231_fy2024_q3xprxex991.htm:2]**  | N/A     |
| DMED                 | **14,776**  **[0001744489-23-000047_fy2023_q1xprxex991.htm:1]**  | **14,039**  **[0001744489-23-000097_fy2023_q2xprxex991.htm:1]**  | **14,004**  **[0001744489-23-000171_dis-20230701.htm:11]**  | N/A     | N/A     | N/A     | N/A     | N/A     |
| DPEP                 | **8,736**  **[0001744489-23-000047_fy2023_q1xprxex991.htm:1]**  | **7,776**  **[0001744489-23-000097_fy2023_q2xprxex991.htm:1]**  | **8,326**  **[0001744489-23-000171_dis-20230701.htm:11]**  | N/A     | N/A     | N/A     | N/A     | N/A     |

0e0590c704918b6b51c5461b8edf00c32557c2d06d3d8c6c901004a74c58f65c

| Metric (Unit) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|---------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Average Monthly Revenue Per Paid Subscriber Disney+ Domestic (USD) | 5.95 **[0001744489-23-000049_dis-20221231.htm:30]** **[0001744489-23-000047_fy2023_q1xprxex991.htm:4]** | 7.14 **[0001744489-23-000097_fy2023_q2xprxex991.htm:4]** **[0001744489-23-000099_dis-20230401.htm:37]** | 7.31 **[0001744489-23-000169_fy2023_q3xprxex991.htm:4]** | 7.50 **[0001744489-23-000213_fy2023_q4xprxex991.htm:4]** | 8.15 **[0001744489-24-000081_dis-20231230.htm:32]** | 8.00 **[0001744489-24-000149_fy2024_q2xprxex991.htm:3]** **[0001744489-24-000152_dis-20240330.htm:39]** | 7.74 **[0001744489-24-000232_dis-20240629.htm:41]** | 7.70 **[0001744489-24-000275_fy2024_q4xprxex991.htm:4]** |
| Average Monthly Revenue Per Paid Subscriber Disney+ International (USD) | 5.62 **[0001744489-23-000047_fy2023_q1xprxex991.htm:4]** | 5.93 **[0001744489-23-000097_fy2023_q2xprxex991.htm:4]** **[0001744489-23-000099_dis-20230401.htm:35]** | 6.01 **[0001744489-23-000169_fy2023_q3xprxex991.htm:4]** | 6.10 **[0001744489-23-000213_fy2023_q4xprxex991.htm:4]** | 5.91 **[0001744489-24-000081_dis-20231230.htm:32]** **[0001744489-24-000079_fy2024_q1xprxex991.htm:3]** | 6.66 **[0001744489-24-000152_dis-20240330.htm:39]** | 6.78 **[0001744489-24-000231_fy2024_q3xprxex991.htm:4]** **[0001744489-24-000232_dis-20240629.htm:41]** | 6.95 **[0001744489-24-000275_fy2024_q4xprxex991.htm:4]** |
| Average Monthly Revenue Per Paid Subscriber Disney+ Hotstar (USD) | 0.74 **[0001744489-23-000049_dis-20221231.htm:30]** **[0001744489-23-000047_fy2023_q1xprxex991.htm:4]** **[0001744489-23-000049_dis-20221231.htm:31]** | 0.59 **[0001744489-23-000097_fy2023_q2xprxex991.htm:4]** **[0001744489-23-000099_dis-20230401.htm:37]** | 0.59 **[0001744489-23-000171_dis-20230701.htm:37]** | 0.70 **[0001744489-23-000213_fy2023_q4xprxex991.htm:4]** | 1.28 **[0001744489-24-000081_dis-20231230.htm:32]** **[0001744489-24-000079_fy2024_q1xprxex991.htm:3]** | 0.70 **[0001744489-24-000149_fy2024_q2xprxex991.htm:3]** | 1.05 **[0001744489-24-000232_dis-20240629.htm:41]** | 0.78 **[0001744489-24-000275_fy2024_q4xprxex991.htm:4]** |
| Average Monthly Revenue Per Paid Subscriber Hulu SVOD Only (USD) | 12.46 **[0001744489-23-000049_dis-20221231.htm:30]** **[0001744489-23-000047_fy2023_q1xprxex991.htm:4]** **[0001744489-23-000049_dis-20221231.htm:31]** | 11.73 **[0001744489-23-000097_fy2023_q2xprxex991.htm:4]** **[0001744489-23-000099_dis-20230401.htm:37]** | 12.39 **[0001744489-23-000171_dis-20230701.htm:39]** **[0001744489-23-000169_fy2023_q3xprxex991.htm:4]** **[0001744489-23-000171_dis-20230701.htm:37]** | 12.11 **[0001744489-23-000213_fy2023_q4xprxex991.htm:4]** | 12.29 **[0001744489-24-000081_dis-20231230.htm:32]** | 11.84 **[0001744489-24-000149_fy2024_q2xprxex991.htm:3]** | 12.73 **[0001744489-24-000232_dis-20240629.htm:42]** | 12.54 **[0001744489-24-000275_fy2024_q4xprxex991.htm:4]** |
| Average Monthly Revenue Per Paid Subscriber Hulu Live TV + SVOD (USD) | 87.90 **[0001744489-23-000049_dis-20221231.htm:30]** | 92.32 **[0001744489-23-000097_fy2023_q2xprxex991.htm:4]** | 91.80 **[0001744489-23-000169_fy2023_q3xprxex991.htm:4]** | 90.08 **[0001744489-23-000213_fy2023_q4xprxex991.htm:4]** | 93.61 **[0001744489-24-000081_dis-20231230.htm:32]** | 95.01 **[0001744489-24-000149_fy2024_q2xprxex991.htm:3]** | 96.11 **[0001744489-24-000232_dis-20240629.htm:42]** **[0001744489-24-000231_fy2024_q3xprxex991.htm:4]** **[0001744489-24-000232_dis-20240629.htm:41]** | 95.82 **[0001744489-24-000275_fy2024_q4xprxex991.htm:4]** |
| Shanghai Disney Resort Loans Provided by Company (USD million) | 940 **[0001744489-23-000049_dis-20221231.htm:13]** | 945 **[0001744489-23-000099_dis-20230401.htm:15]** | 956 **[0001744489-23-000171_dis-20230701.htm:16]** | 978 **[0001744489-24-000081_dis-20231230.htm:14]** | 978 **[0001744489-24-000081_dis-20231230.htm:14]** | 982 **[0001744489-24-000152_dis-20240330.htm:17]** | 993 **[0001744489-24-000232_dis-20240629.htm:18]** | 993 **[0001744489-24-000232_dis-20240629.htm:18]** |
| Shanghai Disney Resort Loans Provided by Shendi (billion yuan) | 8.4 **[0001744489-23-000049_dis-20221231.htm:13]** | 8.5 **[0001744489-23-000099_dis-20230401.htm:15]** | 8.7 **[0001744489-23-000216_dis-20230930.htm:147]** | 8.7 **[0001744489-23-000216_dis-20230930.htm:150]** **[0001744489-23-000216_dis-20230930.htm:147]** | 8.8 **[0001744489-24-000081_dis-20231230.htm:14]** | 8.9 **[0001744489-24-000152_dis-20240330.htm:17]** | 9.0 **[0001744489-24-000232_dis-20240629.htm:18]** | 9.0 **[0001744489-24-000232_dis-20240629.htm:18]** |

6284551311a36eda63257d6ba812d5ca618372441227a8e46fe71e25672fcf45

Current Assets (USD, millions)

Cash and Cash Equivalents (USD, millions)

Accounts Receivable (USD, millions)

Inventory (USD, millions)

Non-Current Assets (USD, millions)

Property, Plant, and Equipment (PP&E) (USD, millions)

Goodwill (USD, millions)

Intangible Assets (USD, millions)

Current Liabilities (USD, millions)

Accounts Payable (USD, millions)

Short-term Debt (USD, millions)

Accrued Expenses (USD, millions)

Non-Current Liabilities (USD, millions)

Long-term Debt (USD, millions)

Lease Liabilities (USD, millions)

Deferred Tax Liabilities (USD, millions)

Shareholders' Equity (USD, millions)

Retained Earnings (USD, millions)

Common Stock (USD, millions)

Additional Paid-in Capital (USD, millions)

a239b44a7dd97f2d70e6c8a0b9f21c0a9a0136bc4e5626f96c5d17b9fa3372ac

48ac6a268d6330bbd87c31d6be41254c65ccd4ead62a243d7aae22407c55591e

| Metric [USD Million] | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Americas             | **18,971**  **[0001744489-23-000049_dis-20221231.htm:9]**  | **17,630**  **[0001744489-23-000099_dis-20230401.htm:11]**  | **17,765**  **[0001744489-23-000171_dis-20230701.htm:12]**  | **31,414**  **[0001744489-23-000216_dis-20230930.htm:144]**  | **18,584**  **[0001744489-24-000081_dis-20231230.htm:10]**  | **17,641**  **[0001744489-24-000152_dis-20240330.htm:11]**  | **18,293**  **[0001744489-24-000232_dis-20240629.htm:12]**  | **18,049**  **[0001744489-24-000276_dis-20240928.htm:134]**  |
| Europe               | **2,640**  **[0001744489-23-000049_dis-20221231.htm:9]**   | **2,191**  **[0001744489-23-000099_dis-20230401.htm:11]**   | **2,336**  **[0001744489-23-000171_dis-20230701.htm:12]**   | **5,475**  **[0001744489-23-000216_dis-20230930.htm:144]**   | **2,610**  **[0001744489-24-000081_dis-20231230.htm:10]**   | **2,281**  **[0001744489-24-000152_dis-20240330.htm:11]**   | **2,572**  **[0001744489-24-000232_dis-20240629.htm:12]**   | **2,679**  **[0001744489-24-000276_dis-20240928.htm:134]**   |
| Asia Pacific         | **1,901**  **[0001744489-23-000049_dis-20221231.htm:9]**   | **1,994**  **[0001744489-23-000099_dis-20230401.htm:11]**   | **2,229**  **[0001744489-23-000171_dis-20230701.htm:12]**   | **3,746**  **[0001744489-23-000216_dis-20230930.htm:144]**   | **2,355**  **[0001744489-24-000081_dis-20231230.htm:10]**   | **2,161**  **[0001744489-24-000152_dis-20240330.htm:11]**   | **2,290**  **[0001744489-24-000232_dis-20240629.htm:12]**   | **1,846**  **[0001744489-24-000276_dis-20240928.htm:134]**   |
| Total Revenue        | **23,512**  **[0001744489-23-000049_dis-20221231.htm:9]**  | **21,815**  **[0001744489-23-000099_dis-20230401.htm:11]**  | **22,330**  **[0001744489-23-000171_dis-20230701.htm:12]**  | **40,635**  **[0001744489-23-000216_dis-20230930.htm:144]**  | **23,549**  **[0001744489-24-000081_dis-20231230.htm:10]**  | **22,083**  **[0001744489-24-000152_dis-20240330.htm:11]**  | **23,155**  **[0001744489-24-000232_dis-20240629.htm:12]**  | **22,574**  **[0001744489-24-000275_fy2024_q4xprxex991.htm:2]**  |

7812a9ea42b4ff89452e95174d482028f38f87ee81df97be9cf1598fb5e3b119

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

653dbd3ec3828ac1965a81f59093163172b841ca841e29b7da528d3f1a87c464

The Walt Disney Company is a global entertainment conglomerate that operates through three main segments: Entertainment, Sports, and Experiences. The company offers a wide range of products and services, including streaming platforms, television channels, theme parks, resorts, and consumer products. Disney generates revenue from subscription fees, advertising, affiliate fees, theatrical distribution, theme park admissions, and merchandise sales, making it a significant player in the entertainment and leisure industries **[0001744489-24-000276_dis-20240928.htm:5]** **[0001744489-24-000276_dis-20240928.htm:115]** **[0001744489-24-000276_dis-20240928.htm:11]** **[0001744489-24-000276_dis-20240928.htm:116]** **[0001744489-24-000276_dis-20240928.htm:117]** **[0001744489-24-000276_dis-20240928.htm:14]** **[0001744489-24-000232_dis-20240629.htm:38]**.

1. **Entertainment** - Offers linear networks and direct-to-consumer services such as Disney+, Hulu, and Disney+ Hotstar, along with content sales and licensing, including theatrical, TV/VOD, and home entertainment distribution.
2. **Experiences** - Operates domestic and international theme parks and resorts, Disney Cruise Line, and consumer products, generating revenue from admissions, vacations, merchandise licensing, and retail sales.
3. **Sports** - Focuses on ESPN-branded television channels and ESPN+ direct-to-consumer service, with additional offerings from Star-branded sports channels in India, earning revenue through affiliate fees, advertising, and subscriptions.

d5301a088b50030d1d6bb7f43159e194fb7b7aad981a2687d12391e5194ba6da

1. Despite focusing on strengthening your core business with high-quality content, how do you plan to balance the need for selective investments in international markets, notably EMEA and APAC, without significantly disrupting cash flow or overall company performance?  **[DIS_3408697_8]** 
2. With the continued decline in linear networks, what specific strategies are you implementing to manage this business over the next several years, and how will you mitigate its impact on Disney's overall financial health?  **[DIS_3408697_9]** 
3. As you prepare to launch ESPN's flagship direct-to-consumer offering in early fall 2025, how will you address potential integration challenges of live sports and betting features to ensure a compelling and personalized customer experience while driving subscriber growth?  **[DIS_3408697_3]** 
4. Given the competitive landscape and the importance of live sports to advertisers, how confident are you in achieving advertising growth stronger than the 3% seen in 2024, especially considering the shift from linear to streaming platforms and your recent investments in ad tech?  **[DIS_3408697_4]** 
5. Considering your guidance for high single-digit adjusted EPS growth in fiscal 2025 and acceleration to double-digit growth in fiscal 2026 and '27, what are the key risks that could hinder these projections, and what measures are you taking to address them?  **[DIS_3408697_1]** 

6d1de7cb73ace3c034513de22fb4e46ccce003f5ff4ad82ac3343ef00fb936f9

Average Monthly Revenue Per Paid Subscriber Disney+ Domestic (USD)

Average Monthly Revenue Per Paid Subscriber Disney+ International (USD)

Average Monthly Revenue Per Paid Subscriber Disney+ Hotstar (USD)

Average Monthly Revenue Per Paid Subscriber Hulu SVOD Only (USD)

Average Monthly Revenue Per Paid Subscriber Hulu Live TV + SVOD (USD)

Shanghai Disney Resort Loans Provided by Company (USD million)

Shanghai Disney Resort Loans Provided by Shendi (billion yuan)

606e8786162de2e4958c7ebbf3e65b9a506a443b0db2d3b24003bf65fa570414

Americas

- Entertainment

- Sports

- Experiences

- Eliminations

United States and Canada

Europe

Asia Pacific

Latin America

Total Revenue

4567387e2c7a0efd1f179c70141cda701880b7d74f4fbc6703229e4305cf04b8

Total Revenue (USD, millions)

Cost of Goods Sold (COGS) (USD, millions)

SG&A (USD, millions)

R&D (USD, millions)

D&A (USD, millions)

Interest Expense (USD, millions)

Operating Income (EBIT) (USD, millions)

Net Income (USD, millions)

EPS - Basic (USD/share)

EPS - Diluted (USD/share)

c5e494feda0d6413dab6589d3f87570eb09f15d62052a656b8e78fe95eb40742

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

Entertainment

- Subscription Fees

- Affiliate Fees

- Advertising

- Merchandise Licensing

- TV/VOD Distribution Licensing

- Theatrical Distribution Licensing

- Home Entertainment

- Other

Sports

Experiences

- Theme Park Admissions

- Retail and Wholesale Sales

- Resort and Vacations

Eliminations

e4e7f2e7715569622173ae6f4e394e8520a6e8d8704c995b1b54849b8cc6cd2d

### Q4 2024 Earnings Call
- **Issued Period**: Q4 2024
- **Guided Period**: FY 2025
- **Guidance**:
  1. **Adjusted EPS Growth**: High single-digit growth in FY 2025, accelerating to double-digit growth in FY 2026 and FY 2027  **[DIS_3408697_1]** .
  2. **Experiences Operating Income (OI)**: 6 to 8% growth for the year, with Q1 negatively impacted by hurricanes and prelaunch costs  **[DIS_3408697_3]** .
  3. **Streaming Business**: Significant growth expected with ESPN tile on Disney+ and ESPN's direct-to-consumer offering in early fall 2025  **[DIS_3408697_1]** .
  4. **Parks and Cruise Ships**: Investments expected to contribute to growth with expansions and new ships  **[DIS_3408697_1]** .
  5. **Subscriber Growth and Pricing**: Growth from a balance of subscriber growth and pricing, slightly tilted towards pricing  **[DIS_3408697_10]** .
  6. **Content Pipeline**: Promising content slate for 2025 expected to drive growth  **[DIS_3408697_1]** .
  7. **India Divestiture**: Anticipated closure of the deal with Reliance  **[DIS_3408697_11]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024 and FY 2025
- **Guidance**:
  1. **Free Cash Flow**: $8 billion for the year  **[DIS_3396968_3]** .
  2. **Parks and Experiences**: Flattish revenue for Q4, with expenses from new cruise ships affecting fiscal 2024 and 2025  **[DIS_3396968_1]** .
  3. **Direct-to-Consumer (DTC) Margins**: Working towards double-digit margins, driven by price increases, bundling, and password sharing efforts  **[DIS_3396968_4]** .
  4. **Experiences Segment**: Flattish revenue in Q4 due to ongoing trends and one-time costs  **[DIS_3396968_2]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024 and FY 2024
- **Guidance**:
  1. **Adjusted EPS Growth**: Raised full-year target to 25%  **[DIS_3386763_0]** .
  2. **Streaming Business Profitability**: Expected profitability in Q4 of fiscal 2024, with further improvements in fiscal 2025  **[DIS_3386763_0]** .
  3. **Disney+ Core ARPU**: Expected continued growth due to price increases  **[DIS_3386763_0]** .
  4. **Entertainment DTC**: Forecasted loss in Q3, with subscriber growth returning in Q4  **[DIS_3386763_0]** .
  5. **Experiences Operating Income**: Robust growth expected for the full year, with Q3 comparable to the prior year  **[DIS_3386763_0]** .
  6. **Free Cash Flow**: Over $8 billion expected for the fiscal year  **[DIS_3386763_0]** .
  7. **Cost Efficiency Initiatives**: Positioned to exceed $7.5 billion annualized target  **[DIS_3386763_0]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024 and FY 2024
- **Guidance**:
  1. **Revenue and Operating Income**: Sequential growth in Q2 2024, with streaming profitability expected in Q4 of fiscal 2024  **[DIS_3372216_6]** .
  2. **Subscriber Growth**: Net additions of 5.5 to 6 million in Q2, with domestic net adds around 7.5 million  **[DIS_3372216_5]** .
  3. **Disney+ Core ARPU**: Expected increase due to price increases  **[DIS_3372216_5]** .
  4. **Cost Savings**: On pace to meet or exceed $7.5 billion annualized cost target by the end of fiscal 2024  **[DIS_3372216_7]** .
  5. **Earnings Per Share**: Full-year fiscal 2024 EPS expected to increase by at least 20% to approximately $4.60  **[DIS_3372216_7]** .
  6. **Free Cash Flow**: About $8 billion expected for the fiscal year  **[DIS_3372216_7]** .

34c401c0a7ac7fe6d44a627271106e16ee545607bb3bcfb628659601e036ca74

| Name                  | Position                                                      | Start Date          | Short Bio                                                                                                                                                                                                 |
|-----------------------|---------------------------------------------------------------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Robert A. Iger        | Chief Executive Officer                                       | November 20, 2022   | Robert A. Iger is the CEO of The Walt Disney Company. He previously served as Executive Chairman and CEO from September 2005 to February 2020, and as Chairman of the Board from 2012 to 2021  **[0001744489-24-000276_dis-20240928.htm:56]** **[0001744489-23-000216_dis-20230930.htm:54]** **[0001744489-24-000064_dis-20230930.htm:14]** .  |
| Hugh F. Johnston       | Senior Executive Vice President and Chief Financial Officer   | December 4, 2023    | Hugh F. Johnston joined Disney as CFO in December 2023. He previously held leadership roles at PepsiCo, including EVP and CFO from 2010 and Vice Chairman from 2015 to November 2023  **[0001744489-23-000216_dis-20230930.htm:55]** **[0001744489-24-000276_dis-20240928.htm:56]** **[0001744489-24-000050_dis-20240116.htm:65]** .          |
| Horacio E. Gutierrez  | Senior Executive Vice President, Chief Legal and Compliance Officer | December 21, 2023   | Horacio E. Gutierrez was appointed as Chief Legal and Compliance Officer in December 2023. He joined Disney as General Counsel in February 2022 and was Chief Compliance Officer from March 2023  **[0001744489-24-000276_dis-20240928.htm:56]** **[0001744489-23-000216_dis-20230930.htm:54]** .   |
| Sonia L. Coleman      | Senior Executive Vice President and Chief Human Resources Officer | April 8, 2023       | Sonia L. Coleman became Chief Human Resources Officer in April 2023. She previously served as SVP, Human Resources at Disney General Entertainment and ESPN from August 2021  **[0001744489-24-000276_dis-20240928.htm:56]** **[0001744489-23-000216_dis-20230930.htm:54]** .                      |
| Kristina K. Schake    | Senior Executive Vice President and Chief Communications Officer | June 29, 2022       | Kristina K. Schake was appointed Chief Communications Officer in June 2022. She previously served as EVP, Global Communications starting in April 2022  **[0001744489-23-000216_dis-20230930.htm:54]** **[0001744489-24-000276_dis-20240928.htm:57]** .                                           |
| Bob Chapek            | Former Chief Executive Officer                                | February 24, 2020   | Bob Chapek served as CEO from February 2020 until November 2022. His contract was extended in July 2022, but he was terminated without cause in November 2022  **[0001744489-24-000064_dis-20230930.htm:71]** **[0001744489-24-000050_dis-20240116.htm:127]** **[0001744489-23-000216_dis-20230930.htm:107]** .                                  |
| James P. Gorman       | Chairman of the Board                                         | January 2, 2025     | James P. Gorman will become Chairman of the Board in January 2025. He joined Disney's Board in 2024 and is the Executive Chairman of Morgan Stanley until December 2024  **[0001744489-24-000262_fy2024_q4xxchairmanannounc.htm:0]** **[0000950157-24-000116_defa14a.htm:51]** **[0001744489-24-000262_fy2024_q4xxchairmanannounc.htm:1]** .                      |
| Kevin A. Lansberry    | Interim Chief Financial Officer                               | July 1, 2023        | Kevin A. Lansberry was appointed Interim CFO in July 2023. He previously served as EVP and CFO of Disney's Parks, Experiences and Products segment from March 2018  **[0001744489-23-000216_dis-20230930.htm:54]** .                                   |
| Carolyn N. Everson    | Director                                                      | 2022                | Carolyn N. Everson has been a Director since 2022. She has extensive experience in marketing solutions and global sales from her roles at Instacart, Meta Platforms, and Microsoft  **[0000950157-24-000116_defa14a.htm:12]** **[0001744489-24-000064_dis-20230930.htm:10]** **[0001744489-24-000071_dis-20240201.htm:33]** **[0001744489-24-000073_dis-20240201.htm:33]** **[0001744489-24-000050_dis-20240116.htm:45]** . |

01ec89f4a525e690ed7cc17c8af73eeba7f0848fbf4b25d01e0884fba44b4861

**Annual guidance for FY 2025:**
- **Adjusted EPS Growth**: High single-digit growth in FY 2025  **[DIS_3408697_1]**  (no prior guidance)  
- **Experiences Operating Income (OI)**: 6 to 8% growth for the year  **[DIS_3408697_3]**  (no prior guidance)  
- **Streaming Business**: Significant growth expected with ESPN tile on Disney+ and ESPN's direct-to-consumer offering  **[DIS_3408697_1]**  (no prior guidance)  
- **Parks and Cruise Ships**: Investments expected to contribute to growth with expansions and new ships  **[DIS_3408697_1]**  (no prior guidance)  
- **Subscriber Growth and Pricing**: Growth from a balance of subscriber growth and pricing, slightly tilted towards pricing  **[DIS_3408697_10]**  (no prior guidance)  
- **Content Pipeline**: Promising content slate for 2025 expected to drive growth  **[DIS_3408697_1]**  (no prior guidance)  
- **India Divestiture**: Anticipated closure of the deal with Reliance  **[DIS_3408697_11]**  (no prior guidance)

No overlapping metrics were found between the Q3 2024 and Q4 2024 issued periods, so none were raised, lowered, or kept the same.

626e2bf62d1177e50dcd1fa3ebc317a280b0f0ec2856fc06e5bf48cd536d4169

| Program Details           | Program 1       |
|---------------------------|-----------------|
| Approval Date             | February 7, 2024  **[0001744489-24-000276_dis-20240928.htm:150]** **[0001744489-24-000276_dis-20240928.htm:58]**  |
| End Date/Duration         | No expiration date  **[0001744489-24-000276_dis-20240928.htm:150]** **[0001744489-24-000276_dis-20240928.htm:58]**  |
| Total additional amount   | 400 million shares  **[0001744489-24-000276_dis-20240928.htm:150]** **[0001744489-24-000276_dis-20240928.htm:58]**  |
| Remaining authorization amount | 372 million shares (as of September 28, 2024)  **[0001744489-24-000276_dis-20240928.htm:150]** **[0001744489-24-000276_dis-20240928.htm:58]**  |
| Details                   | Target of $3 billion in repurchases for fiscal 2024  **[0001744489-24-000232_dis-20240629.htm:21]** **[0001744489-24-000152_dis-20240330.htm:19]** **[0001744489-24-000276_dis-20240928.htm:150]** **[0001744489-24-000081_dis-20231230.htm:15]** **[DIS_3372216_1]** **[0001744489-24-000276_dis-20240928.htm:58]** **[0001744489-24-000152_dis-20240330.htm:70]** **[0001744489-24-000232_dis-20240629.htm:71]**  |

2260aa8d496469dab1740d18a40e6e7bf81f118d532f87d66494091e9b87665d

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP   | 1938  **[0001744489-24-000276_dis-20240928.htm:111]**    | Present  | Current auditor   |

a7b53d28249bf355f01dac4e8807e13695cfc990ef74a7ba477b158ef6bf0576

bc7ddf96d0bbb80e1acec9a1e456f2b5993fe2c4ff2f830ca88a751f5c90a43b

- Total Revenue: $22,574 million (+6% YoY)  **[0001744489-24-000276_dis-20240928.htm:133]** **[0001744489-24-000276_dis-20240928.htm:111]** **[0001744489-23-000216_dis-20230930.htm:121]**   
- Europe Revenue: $2,816 million (**+19% YoY**)  **[0001744489-24-000276_dis-20240928.htm:134]** **[0001744489-23-000216_dis-20230930.htm:144]**   
- Operating Income (EBIT): $3,107 million (**+141% YoY**)  **[0001744489-24-000276_dis-20240928.htm:59]** **[0001744489-24-000276_dis-20240928.htm:111]** **[0001744489-23-000216_dis-20230930.htm:57]** **[0001744489-23-000216_dis-20230930.htm:121]**   
- Net Income: $46 million (**-83% YoY**)  **[0001744489-24-000276_dis-20240928.htm:59]** **[0001744489-24-000276_dis-20240928.htm:111]** **[0001744489-23-000216_dis-20230930.htm:57]** **[0001744489-23-000216_dis-20230930.htm:121]**   
- Diluted EPS: $0.26 (**+73% YoY**)  **[0001744489-24-000276_dis-20240928.htm:59]** **[0001744489-24-000276_dis-20240928.htm:111]** **[0001744489-23-000216_dis-20230930.htm:57]** **[0001744489-23-000216_dis-20230930.htm:121]**   

ebaa940837683f22fd86e707eda14c05be878fd3e54a13e834be23215461b8b1

368b5d5ea51a4699b7725d99ed5568292911bec6d1564819150ddeb91d19e80f

a38368bb29b40642b048953c82d421e162304b139afbae2d3784b08e6f4a12ee

| Year   | Amount Due (in millions) | Debt Type                                                                                     | Interest Rate (%) | % of Total Debt |
|--------|--------------------------|----------------------------------------------------------------------------------------------|-------------------|-----------------|
| 2025   | $6,688 **[0001744489-24-000276_dis-20240928.htm:141]**           | U.S. Dollar Denominated Notes, Foreign Currency Denominated Debt, Asia Theme Parks Borrowings | 4.06, 2.91 **[0001744489-24-000276_dis-20240928.htm:140]** **[0001744489-24-000276_dis-20240928.htm:141]** | 14.6% = (6,688 / 45,815) * 100 **[0001744489-24-000276_dis-20240928.htm:140]** **[0001744489-24-000276_dis-20240928.htm:141]** |
| 2026   | $4,578 **[0001744489-24-000276_dis-20240928.htm:141]**           | U.S. Dollar Denominated Notes, Foreign Currency Denominated Debt                             | 4.06, 2.91 **[0001744489-24-000276_dis-20240928.htm:140]** **[0001744489-24-000276_dis-20240928.htm:141]** | 10.0% = (4,578 / 45,815) * 100 **[0001744489-24-000276_dis-20240928.htm:140]** **[0001744489-24-000276_dis-20240928.htm:141]** |
| 2027   | $2,926 **[0001744489-24-000276_dis-20240928.htm:141]**           | U.S. Dollar Denominated Notes, Foreign Currency Denominated Debt                             | 4.06, 2.91 **[0001744489-24-000276_dis-20240928.htm:140]** **[0001744489-24-000276_dis-20240928.htm:141]** | 6.4% = (2,926 / 45,815) * 100 **[0001744489-24-000276_dis-20240928.htm:140]** **[0001744489-24-000276_dis-20240928.htm:141]** |
| 2028   | $1,599 **[0001744489-24-000276_dis-20240928.htm:141]**           | U.S. Dollar Denominated Notes                                                                | 4.06 **[0001744489-24-000276_dis-20240928.htm:140]** | 3.5% = (1,599 / 45,815) * 100 **[0001744489-24-000276_dis-20240928.htm:140]** **[0001744489-24-000276_dis-20240928.htm:141]** |
| 2029   | $2,195 **[0001744489-24-000276_dis-20240928.htm:141]**           | U.S. Dollar Denominated Notes                                                                | 4.06 **[0001744489-24-000276_dis-20240928.htm:140]** | 4.8% = (2,195 / 45,815) * 100 **[0001744489-24-000276_dis-20240928.htm:140]** **[0001744489-24-000276_dis-20240928.htm:141]** |
| Thereafter | $25,823 **[0001744489-24-000276_dis-20240928.htm:141]**      | U.S. Dollar Denominated Notes, Foreign Currency Denominated Debt, Asia Theme Parks Borrowings | 4.06, 2.91 **[0001744489-24-000276_dis-20240928.htm:140]** **[0001744489-24-000276_dis-20240928.htm:141]** | 56.4% = (25,823 / 45,815) * 100 **[0001744489-24-000276_dis-20240928.htm:140]** **[0001744489-24-000276_dis-20240928.htm:141]** |

d30b453f7bca43b422d0be478f815e723a5c62cba9d5eb2f2a24315cf99fe1bd

1. **DTC Margin Outlook**  
   **Q:** Can you share confidence in achieving strong double-digit margins in DTC by fiscal '26?  
   **A:** We are confident in reaching strong double-digit margins in direct-to-consumer by fiscal '**26** due to significant improvements in our streaming products and continued investments in parks, cruise ships, and consumer products.  **[DIS_3408697_5]**  These investments are multiyear, and we've modeled this growth carefully.  **[DIS_3408697_5]**  While it's early to discuss ARPU for the ESPN flagship, we expect it to contribute positively in '**26** and plan to recoup initial investments relatively quickly.  **[DIS_3408697_5]** 

2. **Advertising Growth Outlook**  
   **Q:** What's the outlook on consolidated advertising growth in coming years?  
   **A:** We expect advertising growth to be at or stronger than the **3%** seen in **2024** as we enter **2025**.  **[DIS_3408697_4]**  Our proprietary ad tech stack enhances our ability to deliver effective ads, particularly in streaming, giving us a competitive advantage.  **[DIS_3408697_4]**  The combination of linear and streaming offerings provides leverage, offering advertisers a broader reach.  **[DIS_3408697_4]**  Linear remains strong due to live content and a differentiated audience.  **[DIS_3408697_4]** 

3. **Streaming Growth Drivers**  
   **Q:** Is streaming growth driven more by subscribers or pricing in 2025?  
   **A:** Streaming growth will come from both subscriber additions and pricing, slightly tilted towards pricing.  **[DIS_3408697_10]**  We'll monitor the market and adjust accordingly but currently expect a balance of both.  **[DIS_3408697_10]**  Moving consumers to our advertiser-supported tier is also key, with **60%** of new U.S. subscribers choosing AVOD, comprising **37%** of total U.S. subs and **30%** globally.  **[DIS_3408697_10]** 

4. **Content Spending Plans**  
   **Q:** How will content spending grow in '25 and beyond?  
   **A:** We have a strong content pipeline and plan selective international investments in EMEA and APAC markets.  **[DIS_3408697_8]**  We've slowed investments until our technology improvements reduce churn, increasing content ROI.  **[DIS_3408697_8]**  These investments won't be enormous, and most content has global applications, reducing the need for extensive local spending.  **[DIS_3408697_8]** 

5. **ESPN Flagship Launch**  
   **Q:** What will the ESPN flagship product offer to fans?  
   **A:** The ESPN flagship will be an enhanced experience with live sports, studio shows, commentary, and features like fully integrated betting.  **[DIS_3408697_3]**  Applying technology allows for an AI-driven personalized SportsCenter and tailored sports experiences.  **[DIS_3408697_3]**  Live sports remain highly attractive to advertisers, and our advanced ad tech will amplify value in an app-based world.  **[DIS_3408697_3]** 

6. **Managing Linear Decline**  
   **Q:** How are you managing the linear network's decline?  
   **A:** We anticipate linear networks to continue declining but have a natural hedge with roughly **175 million** streaming consumers.  **[DIS_3408697_9]**  Whether consumers stay linear or shift to streaming, we're well-positioned to monetize them.  **[DIS_3408697_9]**  Our distribution deals, like the unique agreement with DIRECTV, are bespoke and crafted per partner situation.  **[DIS_3408697_9]** 

7. **India Divestiture Impact**  
   **Q:** What's the impact of divesting assets in India?  
   **A:** We're excited about the deal with Reliance, retaining a high **30%** ownership stake.  **[DIS_3408697_11]**  Reliance will manage the business, and we have included the anticipated closing in our guidance.  **[DIS_3408697_11]**  For detailed financial implications, investors can refer to our Investor Relations team.  **[DIS_3408697_11]** 

8. **Epic Universe Competition**  
   **Q:** How will Universal's Epic Universe affect Disney's parks?  
   **A:** We've modeled the Epic Universe launch into our experiences outlook and expect positive bookings next summer.  **[DIS_3408697_7]**  Historically, new attractions at other parks have been beneficial to us.  **[DIS_3408697_7]**  This is reflected in the guidance we've provided.  **[DIS_3408697_7]** 

9. **Parks Performance Outlook**  
   **Q:** Is domestic park softness behind you, and what about international growth?  
   **A:** We feel the domestic consumer is strengthening, and we expect gradual improvement going forward.  **[DIS_3408697_12]**  Internationally, softness was due to the Olympics in Paris affecting attendance and temporary consumer softness in Shanghai, which we expect to rebound.  **[DIS_3408697_12]** 

10. **Guidance Approach**  
    **Q:** How should we view your approach to guidance?  
    **A:** Our guidance reflects significant investments in DTC and experiences.  **[DIS_3408697_6]**  Providing a multiyear outlook is appropriate due to these multiyear investments.  **[DIS_3408697_6]**  We have confidence in delivering on our guidance and believe it's important to set investor expectations accordingly.  **[DIS_3408697_6]** 

18a750db9aed53448d17385fddb49e5fc3362167164e22f6a5f3cd02e1814d9f

- Disney's streaming business is experiencing strong growth, with a total of **174 million Disney+ core and Hulu subscriptions**, and more than **120 million core Disney+ subscribers** built in five years  **[DIS_3408697_1]** . The introduction of an **ESPN tile on Disney+ on December 4** aims to drive further engagement and strengthen their streaming offering  **[DIS_3408697_5]** **[DIS_3408697_1]** .
- The company is confident in achieving **double-digit margins** in its direct-to-consumer segment by fiscal **2026**  **[DIS_3408697_5]** . This will be driven by subscriber growth, price increases aligned with value, improved engagement and reduced churn through personalization and anti-password sharing initiatives in over **130 countries**, and increased ad monetization  **[DIS_3408697_5]** .
- Disney's Parks and Experiences segment continues to be the gold standard, with plans for significant expansions, including the launch of the **Disney Treasure** next week, growing Disney Cruise Line's fleet to **six ships with seven additional ships currently in development**  **[DIS_3408697_1]** . The company is seeing a **strengthening consumer** in domestic parks and expects international softness to be temporary  **[DIS_3408697_12]** .

ab7cb55a4a7b39ec878b48dc188e8b314a7b48156dfcd00f4dd0e2dcaead7eb7

1. **DTC Margin Timing**  
   **Q:** When will you achieve double-digit DTC margins?  
   **A:** We expect streaming profitability in Q4 and further improvements in fiscal 2025, but won't specify timing for double-digit margins due to competitive reasons.  **[DIS_3386763_2]** 

2. **ESPN Profitability Amid Rising Costs**  
   **Q:** Can you grow ESPN's operating income despite rising sports rights costs?  
   **A:** We are bullish on ESPN's future, confident in our sports rights deals, and expect a smooth transition to digital with multiple consumer touchpoints, enabling continued growth in operating income.  **[DIS_3386763_2]** 

3. **Parks Attendance Outlook**  
   **Q:** What is your attendance outlook post-COVID normalization?  
   **A:** While attendance is normalizing from post-COVID highs, bookings indicate healthy growth, and the Parks business grew **10%** in the quarter, reflecting strong demand.  **[DIS_3386763_2]** 

4. **Succession Planning Goals**  
   **Q:** What are your goals before handing off to the next CEO?  
   **A:** The Board is engaged in the succession process, and I'm confident they'll choose the right person at the right time; I'll participate in a smooth transition.  **[DIS_3386763_5]** 

5. **Advertising Outlook and Password Sharing**  
   **Q:** Thoughts on advertising market and password sharing plans?  
   **A:** Advertising demand is healthy going into the upfronts, with live sports performing well; password sharing crackdown begins globally in September, expected to contribute to subscriber growth.  **[DIS_3386763_3]** 

6. **CapEx Plan and Growth Expectations**  
   **Q:** How much upside do you see over your investment horizon?  
   **A:** We expect excellent returns on our significant Parks investments, given the business's high margins and guest satisfaction, and see lots of opportunities to grow attendance domestically and internationally.  **[DIS_3386763_5]** 

7. **Health of Marvel Pipeline**  
   **Q:** How do you feel about the Marvel content pipeline?  
   **A:** We feel great about the upcoming slate, including balancing sequels with originals, and are focused on quality over volume to reinvigorate the Marvel brand.  **[DIS_3386763_2]** 

8. **Studio Profitability Potential**  
   **Q:** What's the potential for studio profits relative to pre-COVID levels?  
   **A:** We expect the studio business to return to profitability with the upcoming slate and be a healthy, profitable business over time.  **[DIS_3386763_4]** 

9. **Global Sports Rights Importance**  
   **Q:** How important are global sports rights for ESPN's growth?  
   **A:** We're selectively acquiring international rights where possible to plant seeds for ESPN's growth outside the U.S., but currently investing carefully.  **[DIS_3386763_4]** 

10. **Boosting Disney+ Engagement**  
    **Q:** How will you boost Disney+ engagement?  
    **A:** We'll drive engagement with great programming, bundling, recommendation engines, and adding ESPN and Hulu content to Disney+, leading to subscriber satisfaction and lower churn.  **[DIS_3386763_6]** 

11. **Plan for ESPN+ After Flagship Launch**  
    **Q:** What's the plan for ESPN+ once flagship launches?  
    **A:** ESPN+ will remain available as a standalone service, but ESPN flagship subscribers will get all ESPN+ programming included.  **[DIS_3386763_6]** 

12. **Update on Charter Partnership**  
    **Q:** How is the Charter partnership performing, and is it a template?  
    **A:** Early results are positive with added subscribers and good engagement; while it's been successful, each deal is unique and may not serve as a template.  **[DIS_3386763_8]** 

13. **Content Licensing Off-Platform**  
    **Q:** What's your view on licensing content off-platform?  
    **A:** We're already licensing some content to Netflix and are open-minded about selective opportunities but won't significantly increase off-platform licensing.  **[DIS_3386763_8]** 

14. **Balancing Sequels and New IP**  
    **Q:** How will you balance sequels and new IP in your slate?  
    **A:** We'll balance sequels, which have value due to brand recognition, with originals, especially in animation; it's the right approach given market competition.  **[DIS_3386763_7]** 

15. **Opportunities with Fox IP**  
    **Q:** Do you see opportunities to expand Fox IP titles?  
    **A:** We'll continue to look opportunistically at the Fox library, considering films like **Alien**, **Planet of the Apes**, and **Avatar**, but won't lean heavily into it.  **[DIS_3386763_7]** 

c86b03ac5ac29da9e2e4b2c74c48a76b504e92ce5bbcdbbc65b2da040a3edb2e

- **As post-COVID demand normalizes, Disney's Parks and Experiences growth may be slowing**, with pressures from higher wage expenses, pre-opening costs, and potential declines in attendance impacting future quarters.  **[DIS_3386763_1]**
- **Disney+ engagement has been declining**, and while measures are being implemented to boost viewership, there is uncertainty about when technology revamps will yield benefits. **ESPN+ continues to lose subscribers**, signaling challenges in their streaming strategy.  **[DIS_3386763_5]**
- **Disney is reducing output in its Marvel franchise due to concerns about overproduction and quality**, cutting down from four films a year to two or three and reducing TV series, which **could impact future revenue growth**.  **[DIS_3386763_2]**

3a72026dc55562598194b98bd1f2ff5c3eb632e9bdba0c21967add2a41dabf66

- **Disney's ESPN is successfully transitioning to a digital-focused strategy**, integrating an ESPN tile into Disney+ and Hulu by the end of the year, and planning to launch an enhanced stand-alone ESPN streaming service in 2025. This pivot, along with long-term agreements for major sports rights like the NCAA championships and optimism about securing an NBA deal, positions ESPN for long-term growth.  **[DIS_3386763_0]**
- **Disney is focusing on quality over quantity in its studio productions**, particularly with Marvel, reducing the number of TV series from four to two per year and film output from four to a maximum of three per year. With a robust slate of upcoming films including "Planet of the Apes," "Inside Out 2," "Deadpool," "Moana 2," and "Avatar 3," Disney expects to drive profitability and benefit from its strong IP portfolio.  **[DIS_3386763_0]**
- **The Parks and Experiences segment, including the Cruise business, continues to demonstrate strong growth potential**, with high margins over 25% and excellent guest satisfaction scores. Disney is investing in this segment, expecting to achieve excellent returns and capitalize on opportunities to grow attendance both domestically and internationally.  **[DIS_3386763_0]**

d56aef750822a0690ec08e49a3bcef4104abc0119539c5af4b81cac3549cd201

1. **ESPN's Direct-to-Consumer Strategy**  
   **Q:** How will ESPN's DTC plans impact cord-cutting and your business?  
   **A:** We are launching a new sports service that will be **substantially less expensive** than the big cable bundle, aiming to attract sports fans who haven't subscribed to pay TV or have left it. We'll get paid in this joint venture at levels commensurate with the multichannel ecosystem, so if consumers shift from traditional pay TV to our DTC service, our revenues remain intact. While there may be minimal economic impact from cord-cutting, we're well-positioned to withstand challenges due to our content's presence on Hulu and Disney+. We see this as **low risk** and potentially **accretive** by signing up sports fans who've never subscribed to the bundle or may no longer want it.  **[DIS_3372216_8]** **[DIS_3372216_10]** **[DIS_3372216_13]** 

2. **Streaming Profitability Targets**  
   **Q:** How will you achieve double-digit margins in streaming?  
   **A:** Our goal is to build a **good business with attractive margins**. We'll get there by **growing subscribers**, implementing **some pricing**, and gaining leverage from marketing, content, and technology spend. Key drivers include **paid sharing initiatives**, **lower churn through bundling**, and **international growth opportunities**. While we won't specify a time frame, we feel urgency to reach double-digit margins and will operate the business accordingly.  **[DIS_3372216_9]** 

3. **Hulu's Future and Buyout Timing**  
   **Q:** How does Hulu Live fit long-term, and when will you resolve Hulu ownership?  
   **A:** Hulu Live offers a bundle of channels similar to other services, but the **critical part is Hulu itself**. The new sports service may compete with Hulu Live, but not with Hulu, which will benefit from bundling with our sports offerings. Regarding Hulu's ownership, the process will take time to value the business, but we expect to have it **figured out and closed before the end of the year**.  **[DIS_3372216_9]** **[DIS_3372216_11]** 

4. **Capital Expenditure in Parks and Resorts**  
   **Q:** Can you provide timing and location for the over $40 billion in new parks investments?  
   **A:** We're hard at work determining where to place our new investments, and they will benefit **every location**, including our cruise ships where we're building **three more vessels**. While we can't provide specific timing, we're already conceiving and building projects that will start opening in **2025**, with a cadence of additional capacity every year.  **[DIS_3372216_10]** 

5. **Paid Sharing Crackdown Impact**  
   **Q:** Have you sized the number of account borrowers for paid sharing?  
   **A:** We've sized it but won't disclose specific numbers. The opportunity is likely similar to what our **competitor found**. We're taking actions including changes to user agreements and communicating with accounts involved in unpaid sharing. Later this year, account holders can allow additional individuals access for an **additional fee**. This gives us confidence in our **subscriber growth projections**.  **[DIS_3372216_10]** 

839c9b8569d57f0ef5f2708772a561cd087bd5c4f024503d1f0d44898b2dbbdb

- **Disney's studio is refocusing on quality over quantity**, reducing volume and emphasizing strong franchises, leading to a robust lineup of upcoming releases including **"Moana 2"**, **"Deadpool 3"**, **"Planet of the Apes"**, and **"Mufasa"**. CEO Bob Iger expressed confidence in the studio's trajectory.  **[DIS_3372216_11]**
- **Disney plans to invest over $40 billion in new parks and attractions**, representing **70% of its $60 billion CapEx** over the next 10 years, adding capacity across all locations with openings starting in **2025**, and building **three new cruise ships**, indicating significant growth in their experiences business.  **[DIS_3372216_10]**
- **Disney is strategically advancing its sports and streaming businesses**, including the launch of a **stand-alone ESPN streaming service in August 2025**, and forming a **sports joint venture with Fox and Warner Bros. Discovery** to create a sports-centric streaming bundle, aiming to maintain ESPN's leadership position and attractiveness to advertisers and sports leagues. They also target reaching **double-digit margins in streaming**, showing confidence in the profitability of their direct-to-consumer businesses.  **[DIS_3372216_8]** **[DIS_3372216_9]**

5f1415a00b0ef3edb7f3a4a640743f7027a9b05d0547aad5006b0eb89ab212d2

- **Consumer softness in international parks**, particularly in **Shanghai**, may impact growth in the international parks segment.  **[DIS_3408697_12]**
- Competitors are **expanding local content** more aggressively, which could lead to **less engagement** for Disney in local markets due to limited investment in **local language content**.  **[DIS_3408697_10]**
- The company's growth strategy is **tilted towards pricing increases** rather than subscriber growth, which may risk **subscriber churn** as incremental subscriber additions become challenging.  **[DIS_3408697_10]**

2a57a2fa285061d85b82afe51e717a5043d9eda03c2c504b2f4fb93f714a7790

1. **Disney+ Outlook**  
   **Q:** Can Disney+ continue growth and maintain pricing power?  
   **A:** Disney+ is seeing significant success driven by our creative content, with **183 Emmy nominations**.  **[DIS_3396968_2]**  We've broadened the product, adding Hulu, news, sports, and international NBA rights. Price increases have resulted in only **modest churn**, nothing significant.  **[DIS_3396968_2]**  We believe our pricing leverage has increased, and we're bullish about future growth, expecting it to grow nicely in fiscal **2025**.  **[DIS_3396968_2]**  Our password-sharing initiative started in June, with no backlash, and kicks in earnestly in September.  **[DIS_3396968_2]** 

2. **DTC Margin Outlook**  
   **Q:** What's the timing for DTC achieving double-digit margins?  
   **A:** We're making progress toward double-digit margins in our DTC business.  **[DIS_3396968_4]**  Bundling has positively impacted churn, aiding growth.  **[DIS_3396968_4]**  Password sharing efforts are starting, which will also drive growth.  **[DIS_3396968_4]**  We've announced pricing and feel we've earned it in the marketplace, expecting scale benefits.  **[DIS_3396968_4]**  While there's no specific timing update, we were losing **$1 billion a quarter**, and now we're making money.  **[DIS_3396968_4]** 

3. **Theme Parks Demand**  
   **Q:** What's the outlook for theme parks amid demand softening?  
   **A:** In Q3, we had **2% revenue growth**.  **[DIS_3396968_1]**  While there's a slight moderation in demand, it's not significant.  **[DIS_3396968_1]**  Attendance was flat, with per caps up a little.  **[DIS_3396968_1]**  We expect flattish revenue in Q4.  **[DIS_3396968_1]**  The lower-income consumer feels some stress, and high-income consumers are traveling internationally more.  **[DIS_3396968_6]**  We see a continuation of these trends.  **[DIS_3396968_6]**  Investments in cruise ships will affect us a bit in '24 and '25.  **[DIS_3396968_1]**  We're investing to accelerate growth, hence the term **"turbocharge"**.  **[DIS_3396968_9]** 

4. **ESPN Partnerships**  
   **Q:** Any updates on ESPN strategic partner discussions?  
   **A:** We're still having conversations about strategic partnerships for ESPN.  **[DIS_3396968_5]**  We believe there may be opportunities to partner with others, particularly on the content side.  **[DIS_3396968_5]**  Nothing more to add at this time.  **[DIS_3396968_5]** 

5. **Content Spending Balance**  
   **Q:** What's the right balance of investment among sports, TV, movies?  
   **A:** We're investing significantly across sports, scripted TV, and movies due to the value they create, especially for streaming.  **[DIS_3396968_3]**  We've secured long-term sports deals, including NBA, NFL, and college football.  **[DIS_3396968_3]**  Our studio has improved creatively with high-quality IP.  **[DIS_3396968_3]**  Our television business is performing great, with **183 Emmy nominations**.  **[DIS_3396968_3]**  It's a balance that will blend as our streaming platform grows.  **[DIS_3396968_3]** 

6. **Advertising Trends**  
   **Q:** How is advertising demand amid macro pressures?  
   **A:** The ad market is very healthy.  **[DIS_3396968_8]**  Overall advertising grew **8%** for the quarter; ESPN was up **17%**; DTC streaming was up **20%**.  **[DIS_3396968_8]**  Strong performance in financial services, consumer products, services, and technology; auto is softer.  **[DIS_3396968_8]**  Our live sports and successful streaming IP attract advertisers.  **[DIS_3396968_8]**  We've enhanced our advertising capabilities with Disney Streaming, selling audiences effectively.  **[DIS_3396968_8]** 

7. **Content Licensing**  
   **Q:** Are you increasing content licensing to third parties?  
   **A:** Increased sales in Content Sales/Licensing are due to our box office success.  **[DIS_3396968_8]**  No change in our licensing strategy; core IP is not licensed.  **[DIS_3396968_8]**  We'll continue to tactically license nonstrategic content, but it's not a big strategy.  **[DIS_3396968_8]**  Our focus is on producing our own IP and monetizing it.  **[DIS_3396968_8]** 

8. **India Deconsolidation Impact**  
   **Q:** What's the earnings impact once India is deconsolidated?  
   **A:** We'll share the impact when we close the deal.  **[DIS_3396968_9]**  At that time, we'll lay it out clearly so you can model it effectively.  **[DIS_3396968_9]** 

9. **Cruise Ship Costs**  
   **Q:** What are cruise ship preopening costs for Q4 and fiscal '25?  
   **A:** Cruise ship startup costs will be a little over double in **2025** compared to this year.  **[DIS_3396968_4]**  These investments tend to pay back quickly, and we feel positive about them.  **[DIS_3396968_4]** 

10. **Disney+ ARPU Decline**  
    **Q:** Why did domestic Disney+ ARPU slip this quarter?  
    **A:** ARPU decline is due to bundling effects and a shift to the ad-supported tier.  **[DIS_3396968_7]**  Both have a small effect.  **[DIS_3396968_7]**  From a profitability standpoint, we're happy whether users choose ad-supported or ad-free models.  **[DIS_3396968_7]** 

1b066dec53c7b09b420c8418ff7fc08b99d73d59a1f9ed9b2c982c5dc43cfdad

- Disney has a strong upcoming content slate, including movies like **Moana**, **Mufasa**, **Captain America**, **Snow White**, **Thunderbolts**, **Fantastic Four**, **Zootopia**, **Avatar**, **Avengers**, **The Mandalorian**, and **Toy Story**.  **[DIS_3396968_2]**  This robust lineup is expected to drive significant growth in box office revenue and global streaming value.  **[DIS_3396968_2]**
- The company's direct-to-consumer streaming business is improving financially, with efforts to reach **double-digit margins**.  **[DIS_3396968_4]**  Initiatives like bundling, price increases with only modest churn, and a password-sharing crackdown starting in earnest in September are contributing to this progress.  **[DIS_3396968_2]** **[DIS_3396968_4]**
- Disney is experiencing strong advertising growth, with **overall advertising up 8%** in the quarter, **ESPN up 17%**, and **DTC streaming up 20%**.  **[DIS_3396968_8]**  The new NBA deal secures valuable rights, including the finals for **12 years**, supporting ESPN's digital strategy and expected to drive more advertising and distribution revenue moving to digital platforms.  **[DIS_3396968_1]**

8bb2cfb3a7d356bdb29f0540ffda1965bf5a7b8fe92238bdb274ef64de72c19b

- **Softening demand at domestic parks is leading to expected flat revenues in Q4, with trends likely to continue for several quarters, potentially impacting future earnings.** Lower-income consumers are under stress, and high-income consumers are traveling internationally, affecting attendance and per capita spending.  **[DIS_3396968_1]** **[DIS_3396968_6]**
- **Rising costs are a concern, with the company's cost estimate increasing from $5.5 billion to over $7.5 billion.** Additionally, cruise ship startup costs are expected to more than double in fiscal 2025, which may pressure margins and profitability in the near term.  **[DIS_3396968_5]** **[DIS_3396968_4]**
- **Challenges in achieving desired margins in the Direct-to-Consumer segment, with no specific timing provided for reaching double-digit margins.** There are concerns about potential consumer pushback on Disney+ price increases, slipping ARPU due to subscriber mix shifts, and the effectiveness of measures like password-sharing initiatives, which may impact streaming profitability goals.  **[DIS_3396968_2]** **[DIS_3396968_7]** **[DIS_3396968_4]**

6bb1561ef89646c6054eba319f7e7c0caf0a1aee4058d01ecea4cc4ed83dd69e

- **Launch of ESPN's standalone streaming service could accelerate cord-cutting**, potentially cannibalizing traditional pay TV subscribers and impacting revenue from existing distribution partners. Concerns were raised about how offering ESPN direct-to-consumer might lead to a decrease in traditional subscribers who would save money by switching to the streaming option.  **[DIS_3372216_10]**
- **Recent underperformance in theatrical releases led to lower content sales, licensing, and other revenues**, which came in below guidance and prior year figures due to the performance of theatrical titles in the quarter. Additionally, there are no new key theatrical releases in Q2 due to production delays stemming from strikes, which may further impact revenues.  **[DIS_3372216_6]**
- **Hulu Live TV has stopped growing and is being outpaced by competitors** like YouTube TV, which is now twice its size. This raises concerns about Hulu Live's competitiveness and its fit into Disney's long-term strategy, especially with plans for direct-to-consumer ESPN and new sports bundles.  **[DIS_3372216_9]**

67607d43704eebcd9418c87c9caa463d7e9ed68031365f9b448fb609e2c3148f

Walt Disney Co (DIS)

Financials