Trian Partners Activist Presentation Deck
Confidential-Not for Reproduction or Distribution
Disney Does Not Leverage its Substantial Scale in Streaming
• Disney is guiding to DTC operating profit "breakeven" in 2024, when the market expects the
business to generate -$29bn of revenue
• We are surprised that Disney's best-in-class IP, franchises, and scale have not led to in-line, if not
superior, unit economics compared with Netflix, which generally lacks high quality, franchise IP
Revenue Operating Profit (1)
Margin): ((21.9%)
$19.6
Disney's DTC Segment ($ in bn)
($4.3)
(14.0%)
$23.9
In FY24, Disney is expected to have ~90% of Netflix's
current LTM revenue... but still lose money
(3.6%)
$28.4
($1.0)
($3.4)
FY 2022A
FY 2023E
Source SEC Sings, FactSet Wall Street estimates as of 1/10/23
Note: (1) Disney Operating Profit and Margin adjusted to include allocations of corporate expense based on % of FY 2022A Sales
FY 2024E
2.7%
$34.0
$0.9
Netflix ($ in bn)
FY 2025E
18.2%
$31.5
$5.7
NETFLIX
LTM Sept-22
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