The Thesis
Disney is the king of Intellectual Property (IP). No other company has a library that includes Mickey Mouse, Star Wars, Marvel, Pixar, and ESPN.
The thesis rests on the Parks vs. Streaming transition. The Disney Parks are an unassailable cash cow (the "Moat"). The question is whether Disney+ can become profitable enough to replace the dying Cable TV bundle (ESPN). We believe the "Bundle 2.0" (Disney/Hulu/Max) combined with unparalleled merchandising power makes DIS a long-term winner.
Product Deep Dive: The Kingdom
1. Experiences (Parks & Cruises)
- The Product: Disneyland, Disney World, and the Cruise Line.
- The Moat: You cannot replicate Magic Kingdom. It is a monopoly on childhood nostalgia.
- Pricing Power: Disney consistently raises ticket prices above inflation, and families still pay. It is the ultimate inflation hedge.
2. Streaming (DTC)
- The Product: Disney+, Hulu, ESPN+.
- The Strategy: "The Bundle." By combining Live Sports (ESPN) with General Entertainment (Hulu) and Family IP (Disney), they reduce churn.
- Tech Stack: Leveraging BAMTech (acquired) for best-in-class streaming infrastructure.
3. Content Licensing
- The Product: Movies, Toys, Games.
- The Value: A Star Wars movie isn't just a movie; it's a toy line, a video game, a theme park ride, and a halloween costume. This LTV per character is unmatched.