A wide moat means virtually any child born in the United States today is immediately a future customer of the Walt Disney Corporation. Someone is going to take that kid to visit a Disney theme park. They'll watch Disney movies and shows. They'll want Disney licensed toys.
The most vexing challenge any business faces is creating a value proposition that endures. If something works, competitors always spring up to quickly copy it. Disney is not just a distributor. It will own most of the value chain that runs from production studios to your living room.Any distribution business is destined to be a low margin business. Content distributors are like middleman retailers, where price compression and competition are ever-present. There's no sustainable economic moat. Such businesses are always sandwiched between product creators and customers, and it's a tough balancing act.
Netflix is spending billions on developing new content and has quality shows. What it doesn't have, though, is a magic mouse.
Everyone remembers Disney's Heinz Haber, right? The Nazi medical monster popping victims in decompression chambers during the war? With this latest television ad campaign to brainwash you into accepting dirty nukes, he's your man with 'Our Friend the Atom'.
I wish I'd saved my Disney bandaid for evidence against them; that, and take a photo of the divot of missing skin they took from me. Let's just say it's a good thing German cloning expert Hans Spemann died in 1941.
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Source: CNBC - 🏆 12. / 72 Read more »