Investment Thesis 1: Strategic Brand Portfolio and IP

Disney’s brand portfolio has provided the company with a competitive moat that is difficult to mimic
Disney is the registered owner of 3019 patents and 2287 trademarks
Disney possesses most of their patents in the US (2255) with China coming second (166)
IP is leveraged through their Media Network, Studio Entertainment, Direct-to-Consumer and International Platforms segments
18 brands in media networks, 10 brands in P&E, 14 brands in Studio Entertainment and 3 brands in DTC

Investment Thesis 2: Growth through Streaming

Disney’s three main streaming pillars, Disney+, Hulu, and ESPN+ have been growing steadily YoY producing steady cash flow
Disney projects that Disney+ will reach 123.4 M subscribers, Hulu will reach 115.6 M subscribers, and ESPN+ will reach 12 M subscribers (2024)
Disney’s continued growth in the streaming space will be supported by their recent restructure to focus on their direct-to-consumer business
Disney+ launched in LATAM on November 24th
Q4 20 Disney+ 73.7 M subscribers vs 65.5 M estimate

Investment Thesis 3: Diversified Revenue Streams

Media Networks has provided steady cash flow for Disney over the past three years reaching an all-time high of $28,393 B at the end of 2020
Direct-to-Consumer has experienced the most growth out of any segment reaching $16,967 B at the end of 2020
Parks and Experiences suffered a steep loss from $26,255B to $16,502 due to Covid-19 which is expected to recover in 2021
Revenue from Studio Entertainment loss some ground in 2020 to $9,636 B due to studio delays