Trian Partners Activist Presentation Deck
Confidential-Not for Reproduction or Distribution
Disney's Streaming Strategy: Ready, Fire, Aim?
• We are concerned with how Disney's streaming strategy has evolved under the Board's oversight
• While we believe Disney+ started as a niche DTC extension of Disney's franchise "flywheel," it
has rapidly shifted to the core distribution channel for the majority of Disney's IP, leading Disney
to significantly ramp up investment to drive new subscriber growth at all costs
. However, in our view, management failed to effectively communicate the financial rationale
behind the strategic pivot, as the profitability guidance has not changed while the change in
strategy put significant stress on Disney's balance sheet and cash flow profile
Disney+ Target Guidance - FY 2019 vs. Current
FY 2019
Current
Disney Targets
FY 2024
Subs (mm)
FY 2024
Content Spend
Profitability
Guidance Year
Source Company transcripts, Wall Street Research
60-90
-$2.5bn
FY 2024
230-260
$9bn+
FY 2024
Change
-3x
-4x
No Change
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