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00:00 Speaker A
you talked about the transition that the that the business is making here. And I’m curious what you see as the future of the filmed entertainment business, which as we know, has been really challenged and probably is going to be further challenged as we see more AI generated content. As you look, I mean, because I know you you are invested in many of the other media companies. Do you think they’re all going to be challenged by this transition? How is Disney positioned in that way versus some of its competitors?
00:43 Chris
Yeah, listen, the advent of AI is going to change this businesses in ways that we probably can’t even predict today. Uh and you know, this has a lot of echoes of the uh internet adoption, you know, 25, 30 years ago, and what was that going to do? And it um, so far, Disney has taken the approach that we we need to embrace AI. Uh they signed a deal uh with Open AI to allow users to use Sora, um, and to upload that content. So, it it it I think it’s a wait and see. Um, so far, Disney’s done what they can, which is to produce great content, great IP. Uh Zootopia 2, uh the biggest grossing animation um in history, very popular in China. And that’s what they’re going to continue to do. And the value of that IP, I think has been underscored uh by the battle that we’ve seen for Warner Brother’s Discovery.
01:21 Speaker A
Chris, um, I look at a five-year chart of Disney shares and they’ve gone virtually nowhere in almost four years of that time. Is this stock a value trap? I mean, you know, what what needs to happen for it to break out? And do you think investors should be getting in here, uh, you know, awaiting that sort of breakout?
01:50 Chris
Well, their chart um looks better than a lot of other media companies. Um, you know, the linear uh media uh business has been uh, secularly challenged, secularly challenged. And um, Disney has done a pretty good job of dealing with both of those. I think if you if you step back to the beginning of Bob Iger’s um, CEO ship of this company in 2005, uh the the industry has been turned totally upside down, obviously with the advent of of the big media companies, with YouTube now arguably the biggest media company in the world. And um, and the Disney company has also turned upside down. It was always the premium media company in the in the world with the best uh linear cable network. That was ESPN and and the best studio. Uh those are probably still true, but um, you know, obviously, this the the company has uh pivoted and is now led by experiences. I don’t think the value of experiences is going to go down. It’s probably even more valuable as we go to this world dominated by AI.
02:59 Speaker A
All right, can’t beat um IRL uh in terms of going to a theme park.
03:04 Chris
That’s right.
03:04 Speaker A
Chris, great to see you. Thank you.