Originally Posted by Don Landis
Everyone keeps repeating the same FUD regarding Disney and 3D which is a complete fabricated lie if you listen and understand what the company's strategic roll out plan
is. I can only assume most people love to wander in the FUD rather than try to learn what the truth is. Anyway, I'm tired of trying to fight ignorance on this issue. Enjoy being ignorant!
As for the Netflix 3D category, it is true that they are not doing much right now and have not paid much attention to the selection. When the programming director at Netflix made a statement that Netflix was going to kill the 3D since nobody likes it, the fact is he made that statement right before the genre was rolled out to the ISP's direct. So, it hadn't even seen the light of day. he retracted the statement later when questioned. Regardless of an employee's comment, the company has indeed been focusing on other matters to make the company number 1
player in streaming, to include original programming, and more international operations, two moves that have allowed the company to end it's cash drain and become profitable. I don't feel Netflix will dump 3D, but the genre will not be on their top priority list until they get to see huge numbers of customers asking for it and they see competitors taking subscriber share based on their better 3D offerings.
I also believe that as more and more movies are offered in 3D in the theaters, the studios will eventually loosen up their licensing fees for the 3D version so that companies, like Amazon, and Netflix and even HBO and starz will be able to justify them in the subscription prices. I think what I am seeing in theatrical previews now with those billboards stating available in "Real 3D and Imax 3D" as a sign we are now in an era of the 3D birth boom. As the babies grow up, not only will the Blu Ray 3D be offered sooner, but also these getting licensed for streaming at a decent fee per view or buy and download.
I know more about Disney than you ever will. I bought 1.5 million shares in my hedge fund the day the market opened after 9/11. Sid Richardson, at the time the single largest shareholder, got thrown into a margin call, net meeting Reg T requirements, and his Disney shares started to automatically liquidate $3 a share for each $1 he owed, until he met the minimum equity requirements. I got to pick it up at $14 while this was happening. Afterwards, looking more into the company's financials, decided it was worth more, but dumped it about a year ago. Iger is going to tell you exactly what you want to hear on the earnings call, but you have to do your own research because the numbers don't lie, management does. Yes, they bought Lucasfilm, known for their Star Wars franchise, in 2012 for $4 billion cash & stock, bought Marvel Entertainment, who owns over 5000 comic book characters, in 2009 for $4 billion in cash & stock, bought Pixar, Apple's CGI animation studio, in 2006 for $7.4 billion in cash & stock, bought Playdom, an online social gaming platform, in 2010 for $763 million and Tapulous, a developer of mobile games and apps, for an undisclosed sum, Club Penguin, a kids-oriented social networking site, in 2007 for $700 million. In 2010, they sold Miramax, they've also sold 22 radio stations plus the ABC radio network. In 2008, they agreed to release 10 new animated films from Disney/Pixar between 2008 and 2012. This was a HUGE decrease from 10 live action/animated films plus 2-3 Touchstone titles annually. They signed an agreement with Stephen Spielberg to distribute about 6 films a year through DreamWorks Studios in 2010. They're focusing a lot on their theme parks and resorts. One in Hawaii, opened in 2011, significantly expanded Disney World's Fantasyland, 3 new themed areas, including Toy Story Land, in Hong Kong Disneyland, 2 new cruise ships Dream & Fantasy, Cars Land in Disneyland's California Adventure, and a brand new theme park in Shanghai, set to open in 2016. Comcast's NBCU made A&E network, owned by Disney and Hearst, buy a 15.8% stake in NBCU under a contract that was negotiated in 2012. They're investing a lot less in movies than they used to, and regarding 3D content, that's being slowly fazed out. It started off with a big push from them, but they haven't seen the returns that were expected and they're starting to focus more on 4K content with the movie studios and TV network that they still own. ESPN, a Disney owned network, has already announced that they're shutting down their 3D station that's been available through DIRECTV for years.
So, before calling someone ignorant, you better look in the mirror. It's people like you who make decisions based on misinformation or based off emotion which creates opportunities for people like me. So, the next time you sell a stock at a loss, think about the person on the other side of that trade who made money. Keep believing every word you hear. Do you really think the management of a company is going to talk negative. We have a rule at my fund, whenever we visit a company and talk to the CEO, CFO, etc, we can't make a decision to buy or sell that company within the next 48 hours. They're always going to try and pump you up so you'll make an emotional, irrational decision.
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