Walt Disney Company (the) · NYSE:DIS
Walt Disney Company (the) — The Walt Disney Company — Investor Day (2014)
34 slides from Walt Disney Company (the)'s investor day presentation, 2014
Slide 1: Artie Bulgrin, SVP Global Research + Analytics, ESPN
ARTIE BULGRIN Senior Vice President Global Research +Analytics ESPN New York Mets | New York Jets | New York Knicks
Slide 2: The Line Up
THE line up 1. Multichannel 5. Digital 2. Sports 6. Cross Platform 3. Brand 7. Advertising 4. TV
Slide 3: Multichannel: Above 100M Subs Since 2010
MULTICHANNEL: ABOVE 100M SUBS SINCE 2010 US Multichannel Subs (000) 1. Historic high in 2012 102,000 2. First net loss in 2013: 0.1%- 0.2% 98,600 3. Cord-Cutting is fractional 95,200 91,800 4. Cord-Deferring / Cord-Nevers 88,400 5. Sports strengthens the cord 85,000 2007 2008 2009 2010 2011 2012 201
Slide 4: The Sports Nation
THE SPORTS NATION
Slide 5: Sports Interest Is at an All-Time High
SPORTS INTEREST IS AT AN ALL-TIME HIGH 2013 Total Sports Fans Young 100.0% 88% Male 80.0% Affluent 31% Multicultural Avid 60.0% 40.0% 42% Casual 20.0% Occasional 15% 0% Source: ESPN Sports Poll 2013
Slide 6: Sports TV Audiences Transcend the Fan Base
SPORTS TV AUDIENCES TRANSCEND THE FAN BASE 163M 179M CFB FANS ESPN CFB AUDIENCE Source: ESPN Sports Poll 2013, P12+ Source: Nielsen CFB Regular Season live games, repeats and studio programs (ABC, ESPN, ESPN2, ESPNEWS, ESPNU) P12+
Slide 7: Brand Matters!
ris SportsCenter LSU vs. Massachuse... ESP) ESPN Browse By Channel i . oo The Herd Numbers Never Lie ESPNU ESPNews eSrit ar} ent DISNEY
Slide 8: ESPN Is the Most Well-Known Sports Brand
ESPN IS THE MOST WELL-KNOWN SPORTS BRAND % Familiar with Leading Sports Brands Among All Adults 12+ | Q4’13 88% 83 % 82% 81 % 78 % 74 % 68% Source: ESPN Brand Tracker Q4 2013
Slide 9: ESPN Is an Elite Consumer Brand
ESPN IS AN ELITE CONSUMER BRAND 100 (Energized Differentiation & Relevance) Brand STRENGTH 50 0 0 50 100 STATURE [Knowledge & Esteem] Source: BAV® Consulting: 2013 All Adults
Slide 10: ESPN Is the Favorite TV Network Among Men
ESPN IS THE FAVORITE TV NETWORK AMONG MEN % Men 18+ Naming (Network) As Their Favorite-unaided: September 2013 30% 21% 17% 16% 14% 12% 15% 12% 11% 0% Source: “TV Branding in the Multichannel Universe” (Abt SRBI) September 2013 “Thinking about all of your television viewing, including both the broadc
Slide 11: The Clear Choice for Sports News
THE CLEAR CHOICE FOR SPORTS NEWS Favorite Network for Watching Sports News (Among P12+ with an opinion: 75%) 56% 9X 6% Source: ESPN Sports Poll 2013
Slide 12: The Leading Sports TV Network
THE LEADING SPORTS TV NETWORK
Slide 13: ESPN Is the Most-Watched Sports Network
ESPN IS THE MOST-WATCHED SPORTS NETWORK 2013 Average Minute Household Audience (000) 975 +53 % NON-ESPN NETS 163 638 123 110 96 68 55 23 Source: Nielsen 2013–Total Day Average Audience of 24-hour Sports Networks
Slide 14: ESPN Is the Most-Watched Sports Network
ESPN IS THE MOST-WATCHED SPORTS NETWORK 2013 Average Minute Household Audience (000) ESPN NETS 1379 2.2X 975 NON-ESPN NETS 278 638 163 123 110 96 65 61 68 55 23 Source: Nielsen 2013–Total Day Average Audience of 24-hour Sports Networks
Slide 15: ESPN Is #1 in Days Viewed
ESPN IS #1 IN DAYS VIEWED U.S. HOUSEHOLDS - 4th Quarter 2013 ESPN vs. Other Sports Networks ESPN vs. Top Cable Networks Rank Network Days Viewed Rank Network Days Viewed 1 23 1 23 2 12 2 Fox News 18 3 NFLN 10 3 TBS 17 4 NBA-TV 7 4 Disney Channel 17 5 Fox Sports 1 7 5 USA 16 6 Golf Channel 6 6 Histor
Slide 16: Other ESPN Nets Have Grown Incrementally
OTHER ESPN NETS HAVE GROWN INCREMENTALLY US Average Minute HH Delivery (5-Year Averages) 718,257 832,634 541,257 568,314 1994-98 1999-2003 2004-08 2009-13 Source: Nielsen US HH AA (Calendar Years)
Slide 17: Other ESPN Nets Have Grown Incrementally
OTHER ESPN NETS HAVE GROWN INCREMENTALLY US Average Minute HH Delivery 127% (5-Year Averages) 1,215,553 1,032,862 + 46% + 44% 751,330 623,623 + 15% + 32% ESPN Deportes 718,257 832,634 ESPN Classic 541,257 568,314 ESPNU ESPNEWS ESPN2 ESPN 1994-98 1999-2003 2004-08 2009-13 Source: Nielsen US HH AA (Ca
Slide 18: Sports Takes Precedence for Live Viewing
SPORTS TAKES PRECEDENCE FOR LIVE VIEWING Adults 18-49: September - February 23,000 LIVE hours Sources: Nielsen Media Research; % of A18-49 viewing (Live + 7) that is live- each broadcast season thru first week of February
Slide 19: Sports Takes Precedence for Live Viewing
SPORTS TAKES PRECEDENCE FOR LIVE VIEWING Adults 18-49: September - February 96% LIVE viewing Sources: Nielsen Media Research; % of A18-49 viewing (Live + 7) that is live- each broadcast season thru first week of February
Slide 20: Sports Takes Precedence for Live Viewing
SPORTS TAKES PRECEDENCE FOR LIVE VIEWING Adults 18-49: September - February 4-Net Broadcast Prime (% Viewed Live) 85% 96% LIVE viewing 76% 73% 67% 63% – 24% 58% 43% 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 Sources: Nielsen Media Research; % of A18-49 viewing (Live + 7) that is live- each br
Slide 21: ESPN Digital Led Sports Category in 2013 Across Every Key Metric
ESPN DIGITAL LED SPORTS CATEGORY IN 2013 ACROSS EVERY KEY METRIC 2013 Average Month ๏ 31 percent share of the digital % Minutes Per Rank Share User sports audience 1 31.2 99.4 ๏ Larger than the next three 2 Yahoo Sports-NBC Sports Network 15.2 49.6 competitors combined 3 Bleacher Report-Turner Sport
Slide 22: ESPN Digital Set Sports Category Records in Reach
ESPN DIGITAL SET SPORTS CATEGORY RECORDS IN REACH ๏ ESPN Digital Media Set a Record September 2013 – January 2014 +60M Unique Visitors over 5 Consecutive Months ๏ September 2013 36% All-Time High for Single Month 35% Mobile Online Only 73M Unique Visitors 29% Both Source: ESPN Research & Analytics a
Slide 23: ESPN Digital Media Outdelivers Cable TV Sports Networks
ESPN DIGITAL MEDIA OUTDELIVERS CABLE TV SPORTS NETWORKS Total Day Persons 2+ Average Minute Audience 8/26/13 - 12/29/13 172,660 106,834 79,425 Digital Source: comScore Multi-Platform TV Source: Nielsen, 8/26-12/29/13, Live + Same Day
Slide 24: ESPN Digital Media Outdelivers Cable TV Sports Networks
ESPN DIGITAL MEDIA OUTDELIVERS CABLE TV SPORTS NETWORKS Total Day Persons 2+ Average Minute Audience 8/26/13 - 12/29/13 172,660 ESPN Digital vs. FS1 +38% ESPN Digital vs. NBCSN 106,834 +54% 79,425 Digital Source: comScore Multi-Platform TV Source: Nielsen, 8/26-12/29/13, Live + Same Day
Slide 25: WatchESPN Is Growing
WATCHESPN IS GROWING ESPN’s Mission: “To serve sports fans. Anytime. Anywhere.” Source: Adobe Analytics: Sept ’13-Mar ’14 vs. Sept ’12-Mar ’13; comScore 2013
Slide 26: WatchESPN Is Growing
WATCHESPN IS GROWING ๏ Viewing of ESPN Linear Networks September 2013 – March 2014 (ESPN, ESPN2 & ESPNU) +200% ๏ WatchESPN Engagement Levels Up ๏ Apple TV and Roku have high engagement levels: Roku - 848 minutes per viewer! ๏ Ad starts up +91% ๏ Median age = 29 ๏ Median income = $74,000 Source: Adob
Slide 27: ESPN's Mission: To serve sports fans. Anytime. Anywhere.
ESPN’s Mission: “To serve sports fans. Anytime. Anywhere.” 51
Slide 28: Measurement = Monetization
MEASUREMENT = MONETIZATION “Cross platform measurement… how ESPN is moving the chains” Cross-Platform Measurement's Leap Forwards Nielsen Must Let ESPN Project Continue Under FTC Approval of Arbitron Acquisition “Measurement is the biggest issue that will influence the rate of growth for multi-scree
Slide 29: In the Average Month, ESPN Properties Reach...
In the average MONTH, ESPN properties reach… 191million adults /79%of adults 101million men /86%of men Source: Project Blueprint (comScore/Arbitron) Average May 2013-August 2013 53
Slide 30: ESPN's Average Day Reach Is Significant
ESPN’s Average Day reach is significant Total Unduplicated Reach (Millions) 64 Million Adults (27%) 12,914 Only Radio +46% Only Digital 7,265 36 Million Men (31%) TV+ 44,301 7,187 5,539 +54% 23,535 Adults 18+ Males 18+ Source: Project Blueprint (comScore/Arbitron) Average May 2013-August 2013
Slide 31: More Platforms = More Time = More Audience
MORE PLATFORMS = MORE TIME = MORE AUDIENCE Time Spent with ESPN Media Per Adult User in the Average Month 17:12 Non-TV 11:51 8:20 TV 3:43 5:03 8:52 8:08 TV Only TV+1 (Digital or Radio) TV+2 (Digital & Radio) Source: Project Blueprint May 2013-August 2013 (Avg. Month) based on TV-Digital-Radio Groups
Slide 32: Cross-Platform Makes an Impact
CROSS-PLATFORM MAKES AN IMPACT Ad Awareness Credit Card QSR Insurance 100% 75% 50% 25% 1 2 3 4 platform platforms platforms platforms Source: 2012-2013 ESPNXP Tracker; August ‘12-June ’13; Total Awareness
Slide 33: The Big Finish
THE BIG FINISH 1. MULTICHANNEL subs remain near historic highs 2. The ESPN BRAND has never been stronger 3. ESPN is the clear leader in sports TELEVISION 4. ESPN is growing ACROSS MEDIA platforms 5. ESPN is a premium ADVERTISING environment
Slide 34: Investor Day
INVESTOR DAY