Investing Club Stock Profile: Disney fires on all cylinders with both business units set-up for continued growth

Published Wed, Feb 16 202212:15 PM ESTUpdated Wed, Feb 16 202212:22 PM EST

No company better fits the definition of a household name than Disney (DIS). With some of the most recognizable intellectual property in the world, and operations spanning from video streaming to cruise ships, theme parks and more, Disney has created an unmatched content flywheel that provides for increased customer engagement and monetization. Bottom line Disney operates in two main segments, Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences and Products (DPEP). Given DMED has benefitted from the combination of demand for at-home entertainment and substantial investments in Disney+ content, and DPEP is highly leveraged to demand for experiential entertainment as we emerge from the Covid pandemic, Disney offers a unique mix of exposure that we believe provides a favorable risk/reward against today's macroeconomic backdrop while a strengthening flywheel based on Disney's best-in-class IP should reward shareholders for years to come. Disney Media and Entertainment Distribution Looking at Disney Media and Entertainment Distribution: That's where we find the results for Linear Networks (traditional cable), still the profit center of the segment, as well as Direct-to-Consumer (DTC) offerings including Disney+, Hulu (the streaming venture majority-owned by Disney) and ESPN+. However, given the shift away from cable and that DTC investments result in losses, subscriber growth is the key metric to watch here. As of fiscal first-quarter of 2022 , Disney reported 129.8 million Disney+ subscribers, 21.3 million ESPN+ subscribers, and 45.3 million total Hulu subscribers. By sheer numbers, Disney+ is clearly the focus. On the most recent earnings call, management reiterated guidance that further Disney+ subscriber growth stands to be weighted to the first half of fiscal 2022. Driving this expectation is international expansion and a robust content slate set to be released later this year. In fact, Disney is planning to have twice as much franchise content on the platform in fiscal 2022 than it di