{"id":10879,"date":"2022-08-12T09:19:00","date_gmt":"2022-08-12T06:19:00","guid":{"rendered":"https:\/\/sifterfund.com\/?p=10879"},"modified":"2022-08-12T10:34:12","modified_gmt":"2022-08-12T07:34:12","slug":"the-walt-disney-company-why-did-we-invest-in-disney","status":"publish","type":"post","link":"https:\/\/sifterfund.com\/en\/the-walt-disney-company-why-did-we-invest-in-disney\/","title":{"rendered":"The Walt Disney Company \u2013 Why did we invest in Disney?"},"content":{"rendered":"\n<p class=\"lead-p\">Disney is a company that all of us have interacted with at some point in our lives, but just because you love a company\u2019s products does not mean that you have to love the company as an investment. Here at Sifter, we love both the company and the stock, which raises the question of what makes Disney a good investment.<\/p>\n\n\n\n<p>In short, Disney is one of the strongest media companies in the world. In addition, it can enjoy scale economies and strong customer loyalty, and it has a predictable cash flow from its Disneyland parks.<\/p>\n\n\n\n<p>The company has large competitive advantages from its brand recognition, its close reach to the consumers, and its large and growing media content library. <\/p>\n\n\n\n<p><strong>Sifter Fund invested in The Walt Disney Company in May 2022. <\/strong>This article will explore these points further and explain what Sifter finds attractive about this business.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n<style>.elementor-10884 .elementor-element.elementor-element-378524f .elementor-wrapper{--video-aspect-ratio:1.77777;}<\/style>\t\t<div data-elementor-type=\"section\" data-elementor-id=\"10884\" class=\"elementor elementor-10884 elementor-10881\" data-elementor-post-type=\"elementor_library\">\n\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-58d4b03 elementor-section-full_width ang-section-padding-initial elementor-section-height-default elementor-section-height-default elementor-repeater-item-none elementor-repeater-item-none_hover\" data-id=\"58d4b03\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-389d6c9 elementor-repeater-item-none elementor-repeater-item-none_hover\" data-id=\"389d6c9\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-378524f elementor-repeater-item-none elementor-repeater-item-none_hover elementor-widget elementor-widget-video\" data-id=\"378524f\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;youtube_url&quot;:&quot;https:\\\/\\\/youtu.be\\\/eH4cgQS3FoI&quot;,&quot;lazy_load&quot;:&quot;yes&quot;,&quot;video_type&quot;:&quot;youtube&quot;,&quot;controls&quot;:&quot;yes&quot;}\" data-widget_type=\"video.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-wrapper elementor-open-inline\">\n\t\t\t<div class=\"elementor-video\"><\/div>\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Walt Disney Company: Five different business units<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large graafi\"><a href=\"https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-five-business-units.png\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-five-business-units-1024x576.png\" alt=\"\" class=\"wp-image-10894\" srcset=\"https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-five-business-units-1024x576.png 1024w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-five-business-units-500x281.png 500w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-five-business-units-768x432.png 768w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-five-business-units-1536x864.png 1536w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-five-business-units.png 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption>The Company only reports two main segments currently, but we find it more intuitive to think of Disney as a five-fold business.<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Linear Networks: the largest source of revenue<\/h3>\n\n\n\n<p>The first and the largest source of revenue is the<strong> Linear Networks segment<\/strong>, which is mainly Disney&#8217;s Cable TV business. The most recognizable channel is the kids&#8217; favorite <strong>Disney Channel<\/strong>, which shows various content from the company\u2019s large library of TV shows and movies. <\/p>\n\n\n\n<figure class=\"wp-block-image size-large graafi\"><a href=\"https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-us-cable-channels-by-viewers.png\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-us-cable-channels-by-viewers-1024x576.png\" alt=\"\" class=\"wp-image-10900\" srcset=\"https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-us-cable-channels-by-viewers-1024x576.png 1024w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-us-cable-channels-by-viewers-500x281.png 500w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-us-cable-channels-by-viewers-768x432.png 768w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-us-cable-channels-by-viewers-1536x864.png 1536w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-us-cable-channels-by-viewers.png 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption>Table of US cable channels. Disney owned cable TV channels ABC, ESPN &amp; Disney Channel.<\/figcaption><\/figure>\n\n\n\n<p>The largest and most important asset is the &#8220;American Broadcast Channel&#8221; or <strong>ABC<\/strong> for short. This is the third largest cable TV and broadcasting channel in the states and is known for shows like <em>Grey&#8217;s Anatomy<\/em> and <em>Lost<\/em>. In addition, the sports channel <strong>ESPN<\/strong> is a large and very profitable channel as sports fans are quite happy to pay plenty of money for live sports access.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">How does Disney make money with cable TV Channels?<\/h4>\n\n\n\n<p>The Disney-owned cable TV channels are bundled by third-party providers like <strong>Comcast<\/strong> (Xfinity) and <strong>Verizon<\/strong> and sold as a whole package to consumers. Disney generates an affiliate fee that is dependent on the quality and quantity of programming, and this has consistently risen by 7 percent per year like clockwork. <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>On the other hand, the number of people watching cable TV is as one can imagine steadily going down by a rate of minus 1 to 2 percent per year. <\/p><\/blockquote>\n\n\n\n<p>This means that over time, this source of revenue will eventually decline.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large graafi\"><a href=\"https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-linear-networks-revenue-forecast.png\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-linear-networks-revenue-forecast-1024x576.png\" alt=\"\" class=\"wp-image-10903\" srcset=\"https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-linear-networks-revenue-forecast-1024x576.png 1024w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-linear-networks-revenue-forecast-500x281.png 500w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-linear-networks-revenue-forecast-768x432.png 768w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-linear-networks-revenue-forecast-1536x864.png 1536w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-linear-networks-revenue-forecast.png 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption>The revenue growth of Linear Networks is expected to decline.<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">High hopes for streaming services<\/h3>\n\n\n\n<p>To hedge against this decline and to make the company viable in a future world, Disney launched its own streaming service in 2019 and creatively named it <strong>Disney+<\/strong>. This was initially a wild card that did not have high expectations, but the reception of this was above the company&#8217;s and the market&#8217;s best estimates, and today there are 150 million subscribers to this service alone (12 August, 2022). <\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/sifterfund.com\/wp-content\/uploads\/disneyplus-streaming-service-1024x576.jpg\" alt=\"\" class=\"wp-image-10990\" srcset=\"https:\/\/sifterfund.com\/wp-content\/uploads\/disneyplus-streaming-service-1024x576.jpg 1024w, https:\/\/sifterfund.com\/wp-content\/uploads\/disneyplus-streaming-service-500x281.jpg 500w, https:\/\/sifterfund.com\/wp-content\/uploads\/disneyplus-streaming-service-768x432.jpg 768w, https:\/\/sifterfund.com\/wp-content\/uploads\/disneyplus-streaming-service.jpg 1400w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>Disney launched its own streaming service in 2019. Disney+ reception was above the company&#8217;s and the market&#8217;s best estimates.<\/figcaption><\/figure>\n\n\n\n<p>On top of this, the company has the ad-supported streaming service <strong>Hulu<\/strong> and the sports streaming <strong>ESPN+<\/strong> for a total of 220 million subscribers (12 August, 2022).<\/p>\n\n\n\n<p>The company expects to reach 250 million by 2024 and expects that this segment, which is currently making losses due to high content investments, will reach break-even.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large graafi\"><a href=\"https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-estimated-subscriber-growth-for-each-service.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-estimated-subscriber-growth-for-each-service-1024x576.png\" alt=\"\" class=\"wp-image-10909\" srcset=\"https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-estimated-subscriber-growth-for-each-service-1024x576.png 1024w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-estimated-subscriber-growth-for-each-service-500x281.png 500w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-estimated-subscriber-growth-for-each-service-768x432.png 768w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-estimated-subscriber-growth-for-each-service-1536x864.png 1536w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-estimated-subscriber-growth-for-each-service.png 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption>Disney streaming services and estimated subscriber growth.<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">The backbone of Disney is its studios segment<\/h3>\n\n\n\n<p>The content for these streaming services and cable channels is generated in the <strong>Disney studios segment<\/strong>. This generates revenue from the sales of cinema tickets and from the distribution of Disney content to third-party services. <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>This is the most important asset that this company owns as every other segment benefit from the content created here and can monetize it in different ways. <\/p><\/blockquote>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"386\" src=\"https:\/\/sifterfund.com\/wp-content\/uploads\/disney-studios-1-1024x386.png\" alt=\"\" class=\"wp-image-10996\" srcset=\"https:\/\/sifterfund.com\/wp-content\/uploads\/disney-studios-1-1024x386.png 1024w, https:\/\/sifterfund.com\/wp-content\/uploads\/disney-studios-1-500x189.png 500w, https:\/\/sifterfund.com\/wp-content\/uploads\/disney-studios-1-768x290.png 768w, https:\/\/sifterfund.com\/wp-content\/uploads\/disney-studios-1.png 1400w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>The Disney studios are essentially the trunk of the tree that feeds each of the other branches.<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Disneyland parks provide predictable cashflow<\/h3>\n\n\n\n<p>The fourth branch of this tree is the <strong>parks and experiences business<\/strong> which is mainly defined by the six Disneyland parks that are built in the States, France, China, and Japan. These generate a lot of revenue from the park admission fees, which have been steadily increasing over the last fifty years. Almost as much revenue is obtained from ancillary services like food and lodging.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"658\" src=\"https:\/\/sifterfund.com\/wp-content\/uploads\/disneyland-paris-editorial-satur73-adobestock-1024x658.jpeg\" alt=\"\" class=\"wp-image-10918\" srcset=\"https:\/\/sifterfund.com\/wp-content\/uploads\/disneyland-paris-editorial-satur73-adobestock-1024x658.jpeg 1024w, https:\/\/sifterfund.com\/wp-content\/uploads\/disneyland-paris-editorial-satur73-adobestock-500x321.jpeg 500w, https:\/\/sifterfund.com\/wp-content\/uploads\/disneyland-paris-editorial-satur73-adobestock-768x494.jpeg 768w, https:\/\/sifterfund.com\/wp-content\/uploads\/disneyland-paris-editorial-satur73-adobestock-1536x987.jpeg 1536w, https:\/\/sifterfund.com\/wp-content\/uploads\/disneyland-paris-editorial-satur73-adobestock.jpeg 1680w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>Disneyland parks generate a lot of revenue from the park admission fees. Castle of Sleeping Beauty at Disneyland Paris (Image credit: satur73 &#8211; stock.adobe.com).<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Merchandise sales provide tons of money<\/h3>\n\n\n\n<p>And then finally the company has a <strong>consumer goods section<\/strong> that sells toys and collectibles through Disney-owned stores or through third-party vendors. This segment also obtains revenue from the licensing of Disney-owned intellectual properties to magazines, books, tv, game studios, and others.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large graafi\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"538\" src=\"https:\/\/sifterfund.com\/wp-content\/uploads\/hasbro-the-child-toy-1024x538.jpg\" alt=\"\" class=\"wp-image-10921\" srcset=\"https:\/\/sifterfund.com\/wp-content\/uploads\/hasbro-the-child-toy-1024x538.jpg 1024w, https:\/\/sifterfund.com\/wp-content\/uploads\/hasbro-the-child-toy-500x263.jpg 500w, https:\/\/sifterfund.com\/wp-content\/uploads\/hasbro-the-child-toy-768x403.jpg 768w, https:\/\/sifterfund.com\/wp-content\/uploads\/hasbro-the-child-toy-1536x806.jpg 1536w, https:\/\/sifterfund.com\/wp-content\/uploads\/hasbro-the-child-toy.jpg 1680w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>Grogu (\u2018Baby Yoda\u2019) distributed by <a href=\"https:\/\/shop.hasbro.com\/en-us\/product\/star-wars-the-child-animatronic-edition-with-over-25-sound-and-motion-combinations-the-mandalorian-toy:FD203BA9-5456-4108-853E-DD06D6742EB0\" target=\"_blank\" rel=\"noreferrer noopener\">Hasbro<\/a> was Disney\u2019s most successful toy in 2020<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Media content brings five businesses together<\/h2>\n\n\n\n<p>The thing that brings these five businesses together is the media content, either animated or live-action, that the company produces. Disney has its own organically created studios that have made classics like <em>Lion King<\/em> and <em>Cinderella<\/em>, but the company has also shown that they do not fear making bold acquisitions to obtain quality studios and quality content. <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>The largest acquisitions to date have been Pixar in 2006, Marvel in 2009, Lucasfilm in 2012, and 20th Century Fox in 2019.<\/p><\/blockquote>\n\n\n\n<p>In retrospect, each of these has been outstanding decisions as is evident from the fact that movies produced by these studios have given <strong>Disney 44 places out of the 100 all-time highest-grossing movies worldwide or 13 of the top 20<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large graafi\"><a href=\"https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-top-20-lifetime-gross-movies.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-top-20-lifetime-gross-movies-1024x576.png\" alt=\"\" class=\"wp-image-10912\" srcset=\"https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-top-20-lifetime-gross-movies-1024x576.png 1024w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-top-20-lifetime-gross-movies-500x281.png 500w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-top-20-lifetime-gross-movies-768x432.png 768w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-top-20-lifetime-gross-movies-1536x864.png 1536w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-top-20-lifetime-gross-movies.png 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption>Disney holds 13 places in the top 20 all-time grossing movies. List box office top 20.<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">What makes this company stand out from the perspective of Sifter Fund?<\/h2>\n\n\n\n<p>There are three main factors that made us interested in this business:<\/p>\n\n\n\n<p>Firstly, the <strong>Disney brand<\/strong> <strong>including all the acquired studios is a very strong competitive advantage<\/strong> that is hard to match by any other media company. It doesn&#8217;t even matter how Disney monetizes this asset. Whether it is through streaming, TV, or selling of content to third parties, Disney will always be able to generate a good return on its content library.<\/p>\n\n\n\n<p>Secondly, the <strong>parks provide a stable, predictable, and growing cash flow for the foreseeable future<\/strong>. Disney World in Florida is a massive theme park complex, but it is still overcrowded due to its massive popularity. Disney has been raising prices every year, but this has still not caused a drop in visitor numbers (see the chart below).<\/p>\n\n\n\n<figure class=\"wp-block-image size-large graafi\"><a href=\"https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-disneyworld-florida-attendance-numbers.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-disneyworld-florida-attendance-numbers-1024x576.png\" alt=\"\" class=\"wp-image-10915\" srcset=\"https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-disneyworld-florida-attendance-numbers-1024x576.png 1024w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-disneyworld-florida-attendance-numbers-500x281.png 500w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-disneyworld-florida-attendance-numbers-768x432.png 768w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-disneyworld-florida-attendance-numbers-1536x864.png 1536w, https:\/\/sifterfund.com\/wp-content\/uploads\/the-walt-disney-company-disneyworld-florida-attendance-numbers.png 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption>Disney World Florida visitor number and ASP.<\/figcaption><\/figure>\n\n\n\n<p>Lastly, the <strong>valuation was at the time of investment very attractive<\/strong>. Based on our conservative forecast which includes a decline in the cable TV business, a moderate upside from streaming, and a return to normal conditions for the Disney theme parks we arrived at an earnings yield figure which was more attractive than the portfolio average. <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>For this reason, we lowered the weight of some of the more expensive and risk-prone investments to allocate funds to Disney.<\/p><\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\">But what about the downside?<\/h3>\n\n\n\n<p>Just like the advantages, there are three major negatives, or risk factors, regarding this investment:<\/p>\n\n\n\n<p>Firstly, <strong>the pandemic years of 2020-2021 caused losses<\/strong> for this company\u2019s parks operations as revenue was non-existent but maintenance costs kept running. While we all hope that this never happens again, one can never be sure.<\/p>\n\n\n\n<p>Secondly, <strong>the streaming market is an entirely new business<\/strong> both for Disney and for its competitors. It is not yet entirely clear whether this kind of business can provide sufficient returns on the capital invested, especially now that the streaming market has become more competitive.<\/p>\n\n\n\n<p>And lastly, <strong>the legendary CEO Bob Iger decided to retire in 2020 after leading the company for 15 years<\/strong> and making all the good decisions. He was replaced by another Bob, <strong>Bob Chapek<\/strong>, whose personality and approach to leading the company are drastically different. His first two years as CEO was spent on firefighting duty as the company struggled through the pandemic, so we still don&#8217;t have a good idea of what direction he will take this company &#8211; but we do know that he intends to focus heavily on the streaming business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion \u2013 <strong>Disney is the best in class in this industry<\/strong><\/h2>\n\n\n\n<p>Disney has been around for almost 100 years and by the looks of things, it will still be here for the next 100. <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Media companies can be good investments as they can enjoy scale economies and customer loyalty. <\/p><\/blockquote>\n\n\n\n<p>Disney is the best in class in this industry. While the future of this industry is uncertain, given the technological changes, global political landscape and rapidly shifting consumer preferences, Disney is likely to prosper regardless of the market environment as the assets they own are unmatched by any other. <\/p>\n\n\n\n<p>It all comes down to how the company chooses to monetize and we believe that talented people working at Disney will find a way to create new popular content and the optimal way to sell and distribute it.<\/p>\n\n\n\n<p><strong>Alexander J\u00e4rf<\/strong><br>Analyst<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Disney is one of the strongest media companies in the world. Sifter Fund invested in The Walt Disney Company in May 2022, but why?<\/p>\n","protected":false},"author":10,"featured_media":8073,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10879","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized-fi"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Walt Disney Company \u2013 Why did we invest in Disney? - Sifter Fund<\/title>\n<meta name=\"description\" content=\"Disney is one of the strongest media companies in the world. 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