Hulu Sale RIPOFF: Iger HIDING Hulu’s Value As Leak Show’s MOST Streaming Revenue NOT From Disney+

the Disney company has been saying that Disney plus is profitable or at least that's what they want you to hear even though that's not what they're actually saying well a new report out of the Wall Street Journal goes over a data leak that reveals that it's actually Hulu you know the streaming service that Disney is trying to underpay Comcast for that's making all of Disney's money in streaming or at least most of it let's talk about that here on that Parkplace hello I am Jonas J Campbell an investigative reporter for that Park Place and here with me is Watcher of the girls Mr Vash Kai Vash thanks for being a friend how you doing today well thank you for having me on there sir I can't say that I watched The Golden Girls to such an extent that I earn a title from it but hey you know I guess strange things have happened maybe we can discuss that over some cheesecake one of these days let's get to this story out of the Wall Street Journal uh leaked Disney data reveals financial and strategy Secrets data Trove sheds light on operations exposes personal data of some staff and customers this from The Wall Street Journal and it appears to be the ENT ire staff of the Wall Street Journal that has worked on this Robert McMillan Brian Whitten uh Robbie Wayan and Caitlyn osto uh here this from September 5th um some background on this data very quickly uh Trove of data from Disney that was leaked online by hackers earlier this summer includes a range of Financial and strategy information that sheds light on the entertainment Giants operations according to files viewed by The Wall Street Journal it also includes personal identifiable information of some staff and customers leak files include granular details about revenue generated by such products as Disney plus and ESPN plus Park pricing offers and Company uh that the company has modeled and what appear to be login credentials for some of Disney's Cloud infrastructure the journal didn't attempt to access any Disney systems yeah I believe that would be the illegal Point here um just a note this says leaked and not hacked um I'm not saying that I can definitively say if it's a hack or a leak but I'm hearing from some sources that this is a leak and not a hack so uh look out if you're the guy that null bulge who uh released this information out in the public if you're the guy that originally gave them information um I'd keep my head down maybe uh seek employment elsewhere we declined to comment on unverified information the Wall Street Journal has P purportedly obtained as a result of a bad actor's illegal activity well I don't know which Bad actors they're talking about but uh but I don't think it was somebody in a Disney production let's see if we can find the data in question here of course there's little interesting nuggets like uh Genie plus making 724 million in pre-tax revenue between October of 2021 and June of 2024 but uh here's the one that I I personally uh love to see the leaked documents also provide fresh insight into Disney's streaming Revenue the company doesn't disclose revenue for individual streaming services within its direct to Consumer business which includes Disney Plus Hulu and ESPN plus some investors have hungered for more granular data you and me both internal spreadsheets suggest that Disney plus generated more than 2.4 billion in Revenue in the March quarter that amounts to about 43% of Revenue that the company reports for its direct consumer entertainment business which also includes Hulu it underscores how significant a re Revenue contributor Hulu is particularly as dis seeks to buy Comcast stake in that streaming service and as the two sides Spar over its value uh Vash do you remember what's going on with Hulu and Comcast oh absolutely I do yes they're trying to determine just how valuable Hulu is in order for the W disant company to buy out Comcast sck in Hulu now obviously there are some uh proceedings by which you know they've gotten third parties and so forth one uh working with Disney has quoted the value to be under the the floor there for the service which is insane uh Comcast obviously has valued it much higher but this right here suggests that what 40% of the the value of Disney's streaming service is generated by predominantly Hulu that's a pretty massive number right there or if I'm getting that figure incorrect please Jonas go ahead and correct me well no you are correct here uh Hulu is a is pro this is something that's been actually pretty well known if you followed this channel or any of the data that we cover on a frequent basis Disney plus does not make money if you look at how often they show up in in the Neilson charts meaning not much at all and the fact that they're not an ad-based streamer and the fact that they are uh subscription driven as opposed to revenue sorry ad Revenue driven uh Disney plus is not making much money for the company 2.4 billion is uh is nothing to sneeze at but considering how much it costs to run this streaming service well they're not quite there when you think about the 200 million a month that they spent when they were premiering a new Star Wars series or a new big budget film on the streaming service or that they were covering up some of their financial losses from their theatrical division by saying oh no let's put this on the Disney Plus Credit Card here and well what is it 50 million that you need 100 million that you need and of course the advertisement for Disney plus there so that that 2.4 billion that's uh that's quite a a large sum of money but if we uh if we look over here at their um financial statements this is uh I want to say their Q3 uh fiscal year 24 earnings report here if you look the DTC streaming businesses direct to Consumer and ESPN plus businesses they separate these out first of all so for the nine months ended uh June 29th uh there's A2 million loss on on Disney plus and Hulu together and uh right here uh for just the singular month it's a $19 million loss right here for Hulu and Disney plus together if Disney plus is only making up 43% of that profitability here uh that says that Hulu is the one that is pulling this number up of course the other slide of hand here uh is that ESPN plus uh had a profit of 66 million in that quarter uh which brings it to the combined 47 million that they were they were outing this on their last earnings call to say that it is technically profitable and this was a big swing right here in the in the profitable Direction so um I don't know if uh some sports rights got moved around I feel like this is probably and and this is this is not illegal when I suggest that this could be a technique in order to put something like this over the line they could have taken something that was not on the ESPN books and uh and shifted over that cost to ESPN or profit to ESPN as long as they assigned it somewhere within the company in order to bring this figure up I think that's what they're doing here when we talk about $2.4 billion dollar that they're uh that they're supposedly making here and we're coming out with 19 million in profit po possibly 47 million with an m in profit right here this is a razor thin margin right here so uh I don't think they are as nearly as healthy as they would like to indicate that they are I wouldn't I wouldn't be surprised to see this move in the other direction in fact because they they are are dealing with such tiny margins I think they need that Direct TV deal to uh end with everyone getting Disney Plus for free so they can say oh no we got a bunch of uh subscribers so maybe it'll keep moving in that direction bash you any comment on this one well well yes absolutely we've noted before on our various channels that they are definitely doing some hanky stuff when it comes comes to moving stuff around here moving stuff around here like the article mentioned before uh you know investors have been looking for much more granular data in order to get a real sense of just how profitable or just how contributory stuff like Disney Plus or Hulu actually is and the fact that Disney hasn't been all that transparent about it suggests to me that well it really isn't a profitable Venture when things are profitable then that's when they go out with the big numbers oh well we got 50% buying to to lightning Lane for example guys or or they you know parse stuff out in order to make those big numbers very much known the fact that they're hiding some stuff and now we have to you know go to leaks in order to find some some information out it's just to me they're hiding the ball maybe that's for a reason uh yeah I I think there is some hiding of the ball here and and I want to go to a different uh financial statement here this from uh the Disney company's uh SEC filings right here talking about Hulu in particular just to reiterate what's going on with Hulu the floor value of Hulu according to the agreement was 27.5 billion Disney has already paid 8.6 billion on that uh on that to uh to try to pay for that onethird stake that is still in play um supposedly that was going to be the end of it and Disney was trying to represent to its shareholders that that was all that they were going to pay whether or not those were the actual words they used they wanted investors and shareholders to leave with the impression that it wasn't going to be much more than that they were like ah yeah we'll pay the rest maybe a little bit more than that probably not much more than that um as part of the arbitration uh the company that being Disney disputes the validity of aspects of nbcu's appraisal and the corresponding process though consequently completion of the appraisal process including the manner of determining any such additional amount payable by the company awaits the resolution of confidential arbitration right here in plain English uh Disney disagrees with how much NBC has valued Hulu at this point right um I I just want to see if I can find the specific language here final Equity fair value will take into account the valuation of a third- party appraiser pursuant to appraisal process resolved by arbitration as such if the third party appraisers Equity fair value determination were equal to or below the guaranteed floor value the company would not be required to pay nbcu any additional amount uh conversely if nbcu's appraisal were deemed to be valued um it would go up uh so right here the company would require would be required to pay nbcu in that case an additional amount of approximately five billion as its share of the difference between the equity fair value and the gutin floor value uh the incremental amount would likewise be between zero and five billion so right here uh they're saying that uh the two original appraisers one put it below 27.5 ion for the entire thing which is ridiculous when you consider that it is what is keeping the streaming business afloat and the other one was uh more than a 10% difference which has triggered this third appraiser to come in here so so when we think about this data leak uh that to me says that uh this is worth everything that Disney could possibly pay for it and and they probably should be ponying up that $5 billion bash what do you have to say here before we wrap this up well before we even knew that Jon I mean how could shareholders perhaps scrutinize a deal like this for Hulu between Comcast and Disney if we didn't actually know that percentage amount see that's that's the that's the thing I think this is why Disney's been trying to hide this a little bit here because obviously when you're talking about paying $8 billion just on the front and then an additional what like $5 billion or so for Hulu I mean how is an investor or a shareholder or even the board for that matter how can they gauge if that's a worthwhile investment without numbers like hey this is how much uh a product like Hulu contributes to our DTC division uh again we shouldn't be having to learn this by leaks but uh no surprise that we did H you know I said that I wasn't going to throw any additional data in here but uh I cannot resist let me find page 45 of this uh right here I'm just going to point out that uh it's it's pretty easy to determine at least by Revenue per user how much more profitable Hulu is versus the rest of the company here uh if if you go by you know there's such a wide range when it comes to Disney Plus in particular because there are Disney plus hot star customers that only make the company about a dollar and and 5 the RPO isn't nearly as high Disney plus hot star a dollar per user Disney plus core which is the rest of uh Disney plus outside of India $722 per user that is a weighted average right here leaving out a uh 30 to 40 uh million subscribers here and then Hulu is 1273 per user and you could argue that's been lowered uh a little bit from where it could be I don't know if this is representing 2third I don't know if this is representing the entir of Hulu right here I would love some clarity on this if I was an investor in the Disney company so right here almost $13 versus 725 sorry I'm going to round that uh more equally here 1275 per user versus 725 per User it's pretty clear to me which one of these is profitable and it's probably uh because it doesn't have the Disney name attached to it in my opinion uh with that being said we want to throw this to our commenters what do you think about this situation uh do you do you now believe me that Hulu is actually the profitable one I've just been screaming it for two years screaming I mean politely saying it over and over again maybe uh let us know your thoughts in the comment section down below like this video If you like this video and don't forget to go check out that pod place over there otherwise known as t3p of course consider subscribing to that Parkplace for all the news that should be fun thanks for watching that Parkplace news for more information 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