Here are our ten key questions investors should want answers to from Netflix management on tonight’s Q1 2022 earnings interview (our Q4 2021 questions can be found here). 1. Can an SVOD service reach 500 million subs, let alone 1 billion subs without an advertising tier? Following the news that Disney is launching an ad-supported…
Back in November 2021 (link), we questioned whether Disney’s plan for Disney+ was to be a daily must-watch destination for people of all ages or a modern-day version of the DVD wall focused on young children: “Why Is Disney Still Putting So Much High Profile Content on Linear TV? We simply cannot understand why shows…
The Third Edition of the LightShed Earnings Scorecard is out. This is our attempt to hold companies and analysts accountable for the quality of earnings calls. Sadly, there is little improvement. In this edition, we also started tracking the use of the word “inflation”. Enjoy. Coming/going We added three companies to the Q4 Edition of the LightShed…
Meta is All Alone Meta, led by Co-Founder and CEO Mark Zuckerberg, is fighting a multifront war. Worse yet, they appear to have no allies as they try to reinvigorate growth in their core business, while spending aggressively to create a future where they have more control over their own destiny as an operating system…
Investors have been seeking greater clarity on the key components of AT&T’s pro-forma free cash flow. On Friday, AT&T’s management team made a good faith attempt to increase transparency and did, in fact, fill in many key pieces. We thought it would be additive to provide our own, more detailed, “free cash flow walk” ……
But when you look at the Disney brand, the Disney+ product, we have a very high volume of films on our service, and we don’t believe that the consumer experience would be a particularly good one if we had advertising on Disney+. Disney CFO Christine McCarthy, December 10, 2020 The excitement around the launch of…
Radius Global owns and aggressively acquires the property under wireless towers. Its resulting portfolio of leases generate tower-like revenue escalators. Their acquisition opportunities have been larger and more valuable than we initially anticipated. In addition, Radius’ rent escalators are likely to rise due to the inflationary environment. We expect 30% growth of In-Place Rents in…
We are increasing our Iridium price target to $58 from $54 and believe the company can retire 5% of its share count per year for the foreseeable future, while maintaining net debt leverage at 3x. Iridium grows its recurring service revenue in the high single digits with an unlevered free cash flow margin north of…
Disney has more iconic IP than any media company in the world. That said, we do not envy the current situation facing Disney CEO Bob Chapek. During the Bob Iger era at Disney, Iger was able to acquire an array of IP (Pixar, Marvel & Lucasfilm) that repositioned The Walt Disney Company for long-term success.…
Back in September 2021 (link), we highlighted our growing excitement around Spotify’s advertising business, remembering Spotify Co-Founder Daniel Ek’s LightShed Live comment from May 2020: “When we started Spotify, we thought the ad-supported part would be a lot larger than the subscription part. It’s the funny thing how these platforms play out sometimes. I know…
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