Trian Partners Activist Presentation Deck
Confidential-Not for Reproduction or Distribution
Disney's Current Streaming Strategy is Leading to Inefficiencies
• Disney's DTC segment appears to be less cost efficient than Netflix
NFLX generates +61%
more revenue than
DIS in streaming
+61%
$19.6
$31.5
Revenues ($bn)
NFLX spends +34%
more on programming
& production costs
than DIS
+34%)
$14.2
$19.0
Programming &
Production Costs ($bn)(¹)
NFLX spends -30%
less on "other
expenses" than DIS
-30%
$9.7
$6.8
Other Expenses ($bn) (2)
...and NFLX
EBIT margins are
-4,000bps higher
than DIS
18.2%
(21.9%)
EBIT Margin (2)
+40%
Netflix (LTM Sept-22) Disney (FY 2022)
Source SEC Sings
Note: Netflix cost disclosures include D&A expense (1) Represents Programming and Production Costs for Disney and Cost of Revenues for Netflix (2) Disney DTC segment "Other Expenses calculated as the
sum of reported Other Operating Expenses, Selling General Administrative & Other, and Depreciation & Amortization expenses, adjusted to include allocations of corporate expense based on % of FY 2022
Sales Netflix Other Expenses calculated as the sum of reported Marketing Technology & Development, and General & Administrative expenses EBIT margins calculated as "Revenue less Programming &
Production Costs less Other Expenses.
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