DIS
#So <UNK>, as it relates to virtual MVPDs.
I was listening to your question about Shanghai and I almost forgot the first question.
We have a lot of leverage because of these channels, actually.
I don't think anybody can successfully launch a distribution business without the channels that this Company owns, frankly.
And whether they run them as loss leaders or not, I don't think that really has much of an impact on us.
And I think that generally, new entrants into the marketplace are going to create new opportunities, either because they attract more consumers or they offer an experience to the consumer or a price-to-value relationship that's more attractive than the existing distributors.
I just think it's a good dynamic for us.
I also mentioned earlier navigation.
If a product comes forward that is more robust in terms of user interface, that's great for us.
If our product can be found more readily, used more readily, enjoyed more readily, I think that it will increase consumption.
And that's one of the reasons why it's not always just about price for us, it's about the experience.
As it relates to Shanghai, I don't know ---+ <UNK> and <UNK>, you want to grab this.
It's not something we want to provide specific guidance on at this point.
We have obviously with our film strategy created and will continue to create huge value for the theater owners here in the United States and around the world.
And clearly, with the hand that we've got ---+ Disney and Pixar and Marvel and Star Wars ---+ our discussions in terms of the rates that we get paid or the splits have factored in the films that we release.
But I do not want to get specific about how much more we could get or what the nature of the discussions are.
So I want to emphasize again the investment this Company has made in its motion pictures and the results are evident in terms of the value creation proposition to the theater owners.
In terms of the strategy and the impact that Alan Horn has had, what we set about to do early on was to focus on our core brands and then to acquire others that we thought had similar characteristics.
So we focused on Disney and we worked to strengthen the Disney output, particularly in animation.
We purchased Pixar in part to do that.
And we bought Marvel, because we really believed in that brand in the movie business.
And then obviously, Star Wars.
And Alan's charge is to help manage those brands on the motion picture side and to make sure that as a Studio, we are focused on quality.
And I think the results since he joined us have been stunning.
He is a tremendous movie executive.
He not only knows the business well, but he manages our business extremely well.
And I think the results that we've seen in that business in these last few years are in part the result of what he's brought to the Studio from a experience and from a talent perspective.
So we are very focused on those brands.
We are focused on improving the quality of the product in a relentless way.
We are focused on delivering value, not just to the Disney shareholders, but to the distributors worldwide.
And I think the growth that we've seen in that business these last few years is a result of all of that and we believe that that should continue.
When you look at what we have in the pipeline, whether it's in Marvel films, including Iron Man this summer and Captain America and two more Avengers films and diversifying to Black Panther and Captain Marvel or what you know what we have that I mentioned earlier on the Star Wars front or what's going on in animation from both Pixar and Disney Animation.
We've got a tremendous original film from Pixar this summer called Inside Out and another one called Good Dinosaur later in the year.
First time in a calendar year we've ever released two Pixar films.
And then we got Toy Story IV, Incredibles, and Cars and Finding Dory, which is a sequel to Nemo.
Tremendous hand.
So I think you're going to see over the next 5 years to 10 years ---+ certainly 5 years ---+ a real growth from the Studio because of all that.
<UNK>, I'm not going to give you ---+ we don't break out the individual businesses that make up our cable affiliate revenue.
But I will only reiterate something we've said before.
The launch of the SEC Network was one of the best launches of a new network in cable history.
And we continue to be very, very pleased with its progress and how we ---+ how fans have accepted and embraced this new network around, of course, what is arguably college football's strongest conference.
Well, I actually think, <UNK>, that my ---+ I guess my view about the world in general as it related to those acquisitions wasn't specifically related to what you just cited, but it was I guess more related to looking at a world that was going to expand in terms of its voracious appetite for quality content and brands.
And I thought technology was going to be more friends than faux in terms of offering us opportunities to reach customers, either directly or through third parties.
I also thought technology was going to give us the ability to make better product, whether it was at theme parks or on the filmed entertainment side.
And I thought markets were going to develop that were going to create compelling opportunities for us.
I think China is a great example of that, whether you look at it from a Shanghai perspective or whether you look at it from a movie perspective.
So I just thought the value of high quality intellectual property in the entertainment space was only going to increase because of a variety of different developments in the world.
It was that simple.
And I saw in Marvel and Pixar and Star Wars/Lucas great intellectual property in known and valued brands that were only going to benefit from the changing dynamics in the marketplace.
And they were brands that as a Company, we felt that we would be great stewards of because of the stewardship we'd had of the Disney brand over decades.
All right, thanks, <UNK>.
Thanks, everyone, for joining us today and for accommodating the change in the schedule.
We will be around all day to answer any follow-up questions.
Note that a reconciliation of non-GAAP measures that were referred to on this call to equivalent GAAP measures can be found on our investor relations website.
Let me also remind you that certain statements on this conference call may constitute forward-looking statements under the securities laws.
We make the statements on the basis of our views and assumptions regarding future events and business performance at the time we make them.
We do not undertake any obligation to update these statements.
Forward-looking statements are subject to a number of risks and uncertainties and actual results may differ materially from the results expressed or implied in light of a variety of factors, including factors contained in our annual report on Form 10-K and in our other filings with the Securities and Exchange Commission.
This concludes today's call.
Have a good day, everyone.
