Disney, Julia Boorstin, Bob Shape discussed on MarketFoolery
Shares of Disney up nearly five percent this morning after the company announced a reorganization that is going to prioritize streaming video. . They're going to have three content groups one for sports one for General Entertainment, , one for movies and. . The ongoing. . Challenge for lack of a better word I. . Think it's fair to say something that'll be interesting to watch is how Disney prioritizes what is the best platform? ? For any given piece of content. . Bob Shape. . The CEO was on CNBC yesterday after the market closed talking with Julia Boorstin and she asked him A great question, , which is essentially Disney's done very well <hes> with those big tent pole movies in the theaters. . Are you changing that strategy? ? Are you she I? Don't ? think she used the word abandoned, , but she may as well have said. . Are. . You. Giving . up on movie theaters in favor of the Disney plus streaming service. . and. . I loved his answer. . He said, , we're GONNA put the customer first. . which which basically means <hes> all options are open. . Yeah. . I really am Blad. . You mentioned that because that my biggest takeaway from that was essentially. . His statement that the customer is ultimately going to guide their strategy I. . Mean It really is I mean that's what it all boils down to your building a business. . You're you're you're basically you're trying to give your customers, , what they want I mean in most cases. . You know you're not going to get out there and just tell your customers what they want and deliver it to you find that customers want then you build around that in. . And I think that's the right way to look at it from this perspective of as well. . I think that the Disney for a long time has really been. . Close to the ultimate direct consumer business right I mean the parks being such a big part of the business I mean that is direct consumer as gets you living in that world for as long as you want to go there. . So I. . Liked this move here i. . like the focus streaming because obviously not some kind of fat I mean, , this is really the new model for distribution. . In so to see that they are. . Reorganizing their business to really focus on that I think makes a lot of sense. . You mentioned something that I think really keys in on the challenges there, , and it's figuring out which platform gets which content in and I. . Think it's a very tough strategy in their case to figure out how to marry Disney plus with ESPN plus with Hulu and whatever else they may come up with because they are three distinct platforms that offer three distinct experiences and I think probably the one thing that you could argue that they're not as focused on yet that they need to focus on is a little content beyond the younger consumer right the kids I mean, that's , Disney an awesome platform for the kids. . Who Lou is getting there I think the fx acquisition. . Was a step in that in that direction, , I think having effects on your platform is a step in that direction I think is as they continue to build out the platform and bring more content for all age groups, , it'll become a little bit more apparent but knowing that they're really gonna be focusing on this delivering the content directly to the consumer I mean cable is dying. . I. . Mean. . It may take a little while but the numbers don't lie I mean ESPN is losing subscribers via cable but that doesn't mean ESPN has to lose subscribers. . They just have to you know get different way instead of instead of dealing with cable, , they're going to be delivering that content directly to consumers. . I. . Think it makes a lot of sense it's going to give them. . More data with which they can measure. . To determine what consumers want and how they wanted delivered whether that's in a kid's TV or adult content whatever it may be fx or sports. . A lot of different ways they can go with it and <hes> and I think it makes a lot of sense.