NO MERCY NO MALICE

Disney’s $30 Billion Opportunity to Fix Remote Learning

Who is better at capturing and sustaining a child’s attention than Disney?

The biggest unlock of shareholder value from 2005 to 2015 was digital technologies that increased choice — the iPhone bringing the world to your pocket and Amazon’s endless aisle. The greatest accretion of shareholder value from 2015 to 2025 has been / will be recurring revenue bundles that decrease choice — Apple One and Amazon Prime. The biggest mistake marketers make is believing choice is a good thing. It isn’t. Consumers don’t want more choice, but to be more confident in the choices presented.

It took Apple 42 years to get to $1 trillion in value, and then five months to get to $2 trillion despite no increase in earnings and anemic growth. It now trades at 35x earnings vs. an average of 16x over the last 10 years. Much of the recasting of Apple is due to a move to recurring revenue, which now accounts for 22% of top-line. Since launching Amazon Prime, and establishing a monogamous relationship with 82% of US households, Amazon has likely added the value of all other retail…