WEBVTT NOTE recognizability 0.949 NOTE language en-us 00:00:00.020 --> 00:00:00.620 Bob tape 00:00:00.620 --> 00:00:05.200 ...coming into us alive and from disneyland in anaheim california is the 00:00:05.200 --> 00:00:11.850 first live shot out of the disneyland and over a year bob thanks for talking to us this morning. 00:00:11.850 --> 00:00:14.870 It's my pleasure julie. 00:00:14.870 --> 00:00:18.780 So, bob the big question on everyone's mind is when will the disneyland 00:00:18.780 --> 00:00:25.230 parks in southern california open they've been closed for over a year do you have a date. 00:00:25.230 --> 00:00:27.390 Well, we do after a year being 00:00:27.390 --> 00:00:31.360 closed I am absolutely thrilled to say that we're going to be welcoming 00:00:31.360 --> 00:00:36.200 our gas on april thirtieth back to disneyland it's been a long 00:00:36.200 --> 00:00:40.330 long-time since we've been able to create magic for our guest and put our 00:00:40.330 --> 00:00:45.290 cast members back to work and help the associated businesses around the anaheim area 00:00:45.290 --> 00:00:50.660 that greatly depend on disneyland further livelihood so it's going to be 00:00:50.660 --> 00:00:57.630 a great opportunity I think for us to bring that magic back to everybody involved. 00:00:57.630 --> 00:01:02.390 Absolutely bob april thirtieth you hear...it here first...must be busy getting 00:01:02.390 --> 00:01:07.100 ready for that what kind of capacity constraints are you anticipating at that time I know the state of 00:01:07.100 --> 00:01:14.650 california said it could be anywhere between fifteen percent capacity to thirty five percent capacity. 00:01:14.650 --> 00:01:19.430 Well, we take our guidance from the state of california in terms of how many folks that we 00:01:19.430 --> 00:01:24.910 can actually welcome back into the park right now we're starting with what they say is 00:01:24.910 --> 00:01:30.510 fifty percent of fire code which actually we'd would never put 00:01:30.510 --> 00:01:35.300 fire code number of folks in the park because we're very concerned about making sure that 00:01:35.300 --> 00:01:40.080 we not only operate in a responsible way but give everybody a really great experience when 00:01:40.080 --> 00:01:44.450 they're here cell will be able to operate at a point that I think we can maintain that 00:01:44.450 --> 00:01:47.990 guest experience have everyone have a wonderful time operate 00:01:47.990 --> 00:01:52.900 responsibility yet at the same time operate in a way that's going to be a creative for 00:01:52.900 --> 00:01:57.250 our shareholders we had said from the beginning that will open no park unless we can 00:01:57.250 --> 00:02:01.020 do so responsibly and do cell in a way 00:02:01.020 --> 00:02:05.920 that actually make sure that we can cover the variable cost of operating the park and certainly 00:02:05.920 --> 00:02:12.400 disneyland fit set just like walt disney world has and all of our parks around the world? 00:02:12.400 --> 00:02:17.400 Yes, so, you see you mentioned this idea of operating profitability profitably and 00:02:17.400 --> 00:02:25.040 the plan is to be able to open the park even with those capacity constraints at a profitable level. 00:02:25.040 --> 00:02:30.610 Yes,...you know, our hurdle if you will is to make sure that we cover variable cost so that we can make 00:02:30.610 --> 00:02:35.510 a positive contribution and we set out to do that from day one the very 00:02:35.510 --> 00:02:37.600 first-time that we open up a park in a 00:02:37.600 --> 00:02:42.330 post covered world and we've been able to do that successfully around the world and disney land will 00:02:42.330 --> 00:02:50.600 be no exception we've gotten pretty good at operating in a coded world. 00:02:50.600 --> 00:02:54.580 Net bob tells all about the demand you're seeing I mean I know you have the downtown 00:02:54.580 --> 00:02:59.280 disney mall area open down in anaheim where you are now so what kind of demand are you 00:02:59.280 --> 00:03:03.690 seeing there and then also in florida and your other parks around the world is 00:03:03.690 --> 00:03:10.170 more people start to get vaccines and feel comfortable getting out and about. 00:03:10.170 --> 00:03:11.930 You know, we've seen the enthusiasm 00:03:11.930 --> 00:03:16.860 the craving for people to return to our parks around the world as, you know, 00:03:16.860 --> 00:03:20.710 we've been operating at walt disney world now for about nine months 00:03:20.710 --> 00:03:25.710 and there certainly is no shortage of demand I think, you know, 00:03:25.710 --> 00:03:28.300 as people become vaccinated they become a little 00:03:28.300 --> 00:03:32.610 bit more confident in the fact that they can travel and you know, 00:03:32.610 --> 00:03:37.480 stay covert free that is showing up in our intent to 00:03:37.480 --> 00:03:41.870 visit our parks and I think it also...speaks to the fact that our 00:03:41.870 --> 00:03:46.720 ...and consumers trust disney to do the right thing and we certainly proven 00:03:46.720 --> 00:03:52.200 that we can do sell responsibly whether it's, you know, temperature checks 00:03:52.200 --> 00:03:56.550 mass sets folks social distancing improve hygiene 00:03:56.550 --> 00:04:01.740 ...the park so we I think we've been able to prove what you're talking about the nba bubble or 00:04:01.740 --> 00:04:06.740 are a tremendous success that we've had in orlando and all around the world that we can 00:04:06.740 --> 00:04:09.820 do this we can welcome our guests back and responsible way 00:04:09.820 --> 00:04:16.030 ...just thrilled that after an entire year we can bring disneyland back online? 00:04:16.030 --> 00:04:19.700 Now you mention the masks and some of these enforcement around social distancing 00:04:19.700 --> 00:04:23.670 ...people do get more comfortable and maybe much harder to get people to 00:04:23.670 --> 00:04:27.460 keep their masks on and follow those rules how are you going to be able 00:04:27.460 --> 00:04:35.220 to enforce that as people feel more confident behaving the way they used to before kobe. 00:04:35.220 --> 00:04:40.530 We've found that despite, you know, some of the challenges of wearing masks 00:04:40.530 --> 00:04:45.460 h in on a consistent basis inside our parks in our restaurants in our 00:04:45.460 --> 00:04:50.890 in our retail shops that our guests have been very cooperative overall 00:04:50.890 --> 00:04:55.190 you know,...cast members are constantly watching to make sure people do we give them 00:04:55.190 --> 00:05:00.780 ...a gentle nudge when if we see a massive drop below the nose, for example, 00:05:00.780 --> 00:05:05.240 or somebody doesn't have one on and by and large our guests have been extraordinarily 00:05:05.240 --> 00:05:08.180 compliant with our guidelines and 00:05:08.180 --> 00:05:13.820 will continue to ask our guests to wear masks for everyone's health and safety? 00:05:13.820 --> 00:05:18.250 But, the one part of your business...still close right now it is the cruise ship 00:05:18.250 --> 00:05:25.670 division it tell us what's going on when you expect to be able to get those cruises started again. 00:05:25.670 --> 00:05:31.170 Well, we hope that by the fall will be operating our cruise line again, 00:05:31.170 --> 00:05:35.450 under some very rigorous health and safety standards but we anticipate that 00:05:35.450 --> 00:05:39.040 will be getting some positive news from the cdc and the 00:05:39.040 --> 00:05:42.770 upcoming months that will enable us to do that obviously. 00:05:44.750 --> 00:05:49.530 cruise guest as much as anybody have a real pent-up demand 00:05:49.530 --> 00:05:54.440 are forward bookings are very positive and people want to get back to the magic and, 00:05:54.440 --> 00:05:57.140 you know, maybe the ultimate expression of disney 00:05:57.140 --> 00:06:02.360 magic is spending three four five seven days on one of our disney cruise ships 00:06:02.360 --> 00:06:07.300 and being completely immersed in that magic so we're hopeful that by the fall 00:06:07.300 --> 00:06:12.320 ...be back in business on our cruise, cruise lines. 00:06:12.320 --> 00:06:16.340 Interesting I'm sure a lot there depends on...covert numbers 00:06:16.340 --> 00:06:21.080 ...shifting gears over to the streaming business you recently announcer dizzy plaster 00:06:21.080 --> 00:06:25.670 past one hundred million subscribers I thought it was interesting that you noted that 00:06:25.670 --> 00:06:29.990 over half of those people are families that don't have kids so, 00:06:29.990 --> 00:06:34.230 not sort of the traditional core disney demographic what we think of as 00:06:34.230 --> 00:06:39.230 the core dizzy demographic looking ahead where...your next hundred-million come from 00:06:39.230 --> 00:06:45.930 ...being more families without kids are with kids...would be. 00:06:45.930 --> 00:06:50.870 the demand and the appeal for disney pluses really been universal we 00:06:50.870 --> 00:06:55.820 have seen higher numbers than expected of families but we've also seen a real 00:06:55.820 --> 00:07:00.530 surprise in terms of the number of families are households without kids 00:07:00.530 --> 00:07:05.190 necessarily that of subscribe...plus across the world so it's a real 00:07:05.190 --> 00:07:09.790 four quadrant business for us and we think that the future growth going 00:07:09.790 --> 00:07:12.850 to come domestically and internationally 00:07:12.850 --> 00:07:17.100 families with kids and families without kids at the same time so it's really that 00:07:17.100 --> 00:07:22.510 for quadrant appeal across the globe that's driven our success. 00:07:22.510 --> 00:07:26.080 Now internationally recently launched...new star content 00:07:26.080 --> 00:07:31.320 within the dizzy plus app more general content do you think that 00:07:31.320 --> 00:07:34.980 launch with you more to competition with the likes of an hbo 00:07:34.980 --> 00:07:37.760 max as it expands internationally and makes it more of 00:07:37.760 --> 00:07:44.020 a general entertainment play rather than really focusing on that family content. 00:07:44.020 --> 00:07:48.690 ...I would say it's a universal entertainment play, you know, our whole business is steeped in 00:07:48.690 --> 00:07:53.320 our core franchises pixar disney. 00:07:53.320 --> 00:07:55.550 Marvel lucas 00:07:55.550 --> 00:08:00.110 across-the-board and that's certainly our core but when you add-in the 00:08:00.110 --> 00:08:05.060 localize content that makes sense for our star business and international territories plus 00:08:05.060 --> 00:08:09.890 the general entertainment that you've you mentioned it really embellish is our 00:08:09.890 --> 00:08:14.890 service to provide either through a soft bundle as we do in some markets around the 00:08:14.890 --> 00:08:19.280 world or as a six brand tile that star is say, for example, 00:08:19.280 --> 00:08:21.920 in europe gives us the ability to appeal to 00:08:21.920 --> 00:08:26.800 that broad quadrant that for quadrant marketplace that we just mentioned 00:08:26.800 --> 00:08:34.220 to ensure that people really have something to watch no matter what ...there in. 00:08:34.220 --> 00:08:40.980 So, who do you think is your main competition both here in the us and abroad? 00:08:40.980 --> 00:08:43.830 ...you know, when we talk about competition I think, 00:08:43.830 --> 00:08:49.310 you know, disney sort-of stands by itself I thinkwe've got has such broad 00:08:49.310 --> 00:08:52.670 content such deep affinity that we don't 00:08:52.670 --> 00:08:57.580 really frankly we're obviously conscious of competition but at the same 00:08:57.580 --> 00:09:02.340 time we're really proud of what we've got now I think...unique in the marketplace there's no 00:09:02.340 --> 00:09:06.400 one like disney and I think the cadence of the new content that we've 00:09:06.400 --> 00:09:10.810 got because everything is driven by our new content that we're 00:09:10.810 --> 00:09:14.460 putting our service the story-telling the new ideas I 00:09:14.460 --> 00:09:19.340 mean take a look at one division how fresh it's part of the marvel cinematic universe 00:09:19.340 --> 00:09:23.610 but unique it's different and it's something that frankly I think is the 00:09:23.610 --> 00:09:28.360 empty of the rest of the industry so...we're certainly aware of competition we 00:09:28.360 --> 00:09:33.230 don't really dwell on it we spend more time figuring out what our guest once 00:09:33.230 --> 00:09:40.040 and making sure that we deliver the content the story-telling that...gas one around the world? 00:09:40.040 --> 00:09:45.020 but, we couldn't talk about the content on...plus without addressing the fact that you're putting 00:09:45.020 --> 00:09:49.790 first one run it theatrical movies on there such as ryan last dragon 00:09:49.790 --> 00:09:53.010 riot was released into theaters...had a muted 00:09:53.010 --> 00:09:57.600 ...view is about half of theaters were closed at the time it is also available for sale I dizzy 00:09:57.600 --> 00:10:01.790 class for thirty dollars for subscribers can you give us a sense of how many of 00:10:01.790 --> 00:10:06.670 those subscribers decided to opt in and pay that extra amount to watch the movie 00:10:06.670 --> 00:10:10.010 ...also theaters. 00:10:10.010 --> 00:10:14.900 Well, we're not going to share the exact numbers but I will say that we're very pleased with how our 00:10:14.900 --> 00:10:18.480 ...access strategy is played out I think you look at this through 00:10:18.480 --> 00:10:22.220 two different lenses one is through the lens of a sort 00:10:22.220 --> 00:10:27.040 of post-cold world where people are now just becoming comfortable with a real opening 00:10:27.040 --> 00:10:31.510 ...theaters and going into theater watch a movie that's certainly one dynamic 00:10:31.510 --> 00:10:36.440 but much more important and long-lasting dynamic is how has consumer behavior 00:10:36.440 --> 00:10:41.690 changedlike as capitalized by the covert pandemonium in 00:10:41.690 --> 00:10:46.670 terms of people wanting the ability to have the flexibility to watch movies 00:10:46.670 --> 00:10:51.250 wherever they want how they want and when they want and I think that's one of 00:10:51.250 --> 00:10:55.490 the things that are three prong strategy does for us and for our 00:10:55.490 --> 00:10:58.920 guests gives them the ability to watch movies in theaters when they become 00:10:58.920 --> 00:11:01.790 comfortable to do so if they so choose gives 00:11:01.790 --> 00:11:05.670 ...the ability to either choose between watching in the theater or an hour 00:11:05.670 --> 00:11:10.490 ...access on disney plus at the same time or have movies go direct to the service 00:11:10.490 --> 00:11:15.340 cell were about flexibility were about giving consumers the choice so that they can make the 00:11:15.340 --> 00:11:20.060 difference and ultimately how they want to view movies and how they want to 00:11:20.060 --> 00:11:26.870 consume the magic of disney is really going to be up to them and we want to give them those choices? 00:11:26.870 --> 00:11:30.700 ...very interesting to see how things of all ones all the theaters 00:11:30.700 --> 00:11:35.400 are open again just a final question on sports obviously espn plus 00:11:35.400 --> 00:11:39.570 is a huge piece of your portfolio and, you also have 00:11:39.570 --> 00:11:44.430 the espn linear networks give us the update on your nfl negotiations 00:11:44.430 --> 00:11:48.920 obviously a very big one and where you see sports rights in general fitting 00:11:48.920 --> 00:11:56.420 into the digital piece of this to espn plus as well as...networks? 00:11:56.420 --> 00:12:00.640 Well, there's two requirements for us to do deals on rights for sports 00:12:00.640 --> 00:12:05.250 one is going to be that has to be a creative for our shareholders we won't do deals 00:12:05.250 --> 00:12:10.250 ...any price will only do deals that actually makes sense for shareholders but at the 00:12:10.250 --> 00:12:14.080 same time the other requirement is that we are going to 00:12:14.080 --> 00:12:18.810 be very conscious of our ability to have the flexibility to put things on 00:12:18.810 --> 00:12:23.640 espn plus and whatever services come after espn plus 00:12:23.640 --> 00:12:27.890 ...the direct consumer world we have to have the ability to do that we want to be a 00:12:27.890 --> 00:12:32.170 head of the consumer we don't want to be behind the consumer and as a consumer makes 00:12:32.170 --> 00:12:37.160 the decision to evolve from say a linear or more broadcast orientation in terms 00:12:37.160 --> 00:12:40.140 how they consume and they go ahead and move, you know, 00:12:40.140 --> 00:12:42.680 more aggressively towards espn plus 00:12:42.680 --> 00:12:47.340 or direct consumer platforms we want to be able to be there for them sell 00:12:47.340 --> 00:12:52.220 those are the two requirements for us to do deals and we're optimistic that we can get 00:12:52.220 --> 00:12:57.240 rights deals and work with are partners in the sports leagues to go ahead and do that?