subscribers joining us now on a cnbc exclusive interview is disney's ceo bob chapek. thanks for vug us on your beautiful campus. >> nice to see you glad to have you here. >> i want to start with streaming and the decision the raise prices and also introduce the new ad-supported disney plus at the same prices you're already talking. talk about it. >> we had a great quarter overall, not only streaming but the parking business as well we had a tremendous experience our parks business was extremely strong with a 40% increase people are coming and spending more and they're very happy guests but you're right our streaming business has been really phenomenal. again, amongst many fears, we've added 50 million households, 14.4 of those on disney plus i think we alleviated fears our growth was slowing down. there's a big focus on profitability and we reaffirmed our guidance we're really proud about that. it speaks to the difference of walt disney company. it plays out specifically to your question about the ad tier and pricing. we want to be more accurate, reflecting the value

a spinoff and continued suspension of the dividend he called for a change i spoke to bob chapek about those saturdays and the tv bundle and whether he's worried about an overall decline take a listen. >> we have such great assets, such great networks, such great propositions in the bundle that i think to some extent we're sort of the main factor in terms of how fast that bundle goes where it goes. when you've got espn, which as you know is the 500 pound gorilla in that bundle, we sort of can help determine which way that bundle goes and how fast it goes so we feel like we have some degree of control of that. >> here he's talking about using espn for leverage to determine when they let go of this holding onto the tv bundle and shift gears over to direct to consumer in some ways it seems like what chapek is doing in his priorities align with loeb he talked about profitability. less perhaps about cost cutting but he did say he wanted to return the dividend to shareholders whereas shareholders shouldn't kanyi, what do you think how is this going to play out? >> i think with respect to the

especially since bob chapek understands theme parks. the undercurrent which is never talked about, other than you, frankly, was the ridiculous overpay for fox. and that option putting that behind them. you're the one who first pointed that out, 71 billion sold. you told me that >> no i did tell you that and in retrospect, it looked like even more of a very large -- rupert murdoch, man, to be on the other side of that seven years ago, since that famous august when we sat here talking about espn sublosses and bob iger on the call then had to defend himself and then against us as we discussed what's going on with your business. >> right >> by the way that continued, they are going away. all there was netflix, more or less, when it came to direct to consumer maybe amazon, think about what's happened in the last seven years. nonetheless, it's only accelerated that cord cutting we talked about so often. >> right >> it's still a cash machine for so many of these companies very important for warner brother discovery. >> it is that's how you hav

it has chapek proven with the strategy >> i can't say who, a lot of disparaging of bob chapek.ellent -- >> the florida issue was a debacle -- >> well, it -- nobody is perfect. that -- my kids were upset about that that's when you know when your 4-year-old is not really in that -- >> no. he's happy he caught a baseball at the mets game my 4-year-old loves disney there's no dispute there. >> a lot of 4-year-olds do that's a common perception you have there. >> i understand they have pricing power on disney plus because of my 4-year-old. >> that could be but more importantly n terms of what -- loeb wants to do is kind of shake things up on the board level. if you go over that board, it's an exceptionally good board. we don't know who he thinks should be shaken up. >> i know some of the board members. >> don't you think the people are good mary barra, amy chang joined us, mark parker. always a visionary i'm not -- i don't know -- now some of these, romans very smart. katz, i've always been awe calvin mcdonald. >> recent -- >> how great is it -- >> he's executed really well. >> what

you can catch bob chapek on "tech check" today at 11:00 a.m. melissa. >> interesting, andrew, to see the ad supported model when the ad market is softening the timing is unfortunate in terms of the land grab for ads on the platforms >> i think there are two issues. how do you grow subs people will stop getting sub crazy. people are going after subs is strictly that ad program and that number. maybe the lesson is as david says, we need to get paid. the price is how do you get paid for all of this? >> right >> i'm not sure. i'm not sure what the right answer is in terms of this is the consumer, by the way, stronger these days in terms of the subscriber or the advertiser i think they are attached at the hip. >> chapek, yesterday, said he believe there is is a lot of pricing room is the term he used of not seeing as much turn with the pricing increase there is a tradeoff, of course he sees there is more power to the disney brand and value proposition to extract price increase. >> you think where they are compared to netflix. i'm paying $20 a month

but if i were bob chapek, i am keeping espn, not spitting it off.spn does a lot of things for disney. sports, for one, it does a couple of things that no other form of entertainment does. one is, you: have loyalty. someone is more likely to tune out the next season of "the mandalorian" if they don't like the plot twist or the casting, but they are not likely to stop watching major league baseball or whatever they watch on espn. there is appointment viewing, which still exists in sports because i game is taking place when it takes place and people want to watch. there is a lot of benefit to having espn as part of that portfolio. it is not an accident that every other media company disney competes with has a major sports entity as part of their mix. emily: liana, what do we know about loeb's track record and how likely it is he will be successful here, especially with a company like disney? liana: it is hard to say. there was a vaguely threatening line in the letter where he said there is a talent gap on disney's board and he has good connections and

chapek and the various endeavors that he is making including as he moves to try to recreate disney tocertain extent and perhaps faces some opposition from his own board of directors let's get into it at this point though because loeb in the letter does say a number of important things that he would at least like to see doesn't mean they're going to happen cost cuts. disney's costs are among the highest in the industry, we believe disney significantly under earned relative to its potential and therefore third point is urging the company to embark on a cost-cutting program that addresses both margins and the disposal of what they call excess underperforming assets. loeb continues to push for the company not to reinstate a dividend but, in fact, to use the cash that it is generating, free cash flow to pay down debt and perhaps repurchase shares but to use the cash more towards the growth initiatives that have already been outlined at the company. you can see disney shares beginning to trade quite actively the stock has benefitted over the last three sessions from better than anticipated

chapek after the florida debacle and covid. activist investor to contend with leslie, thank you very much. leslie picker. home builder sentiment falling into negative territory. first time we've seen that since the start of the covid pandemic. the national association of home builders chief economist saying the federal reserve's tighter monetary policy and higher construction costs as well have brought on a housing recession diana olick joins us diana, could this lead to more meaningful price reductions now for homes, which has sort of been the last piece of this that the fed and others have waited to see >> yeah, actually, sara that's what we've all been waiting to see. and in the builder's release this morning they said builders have been lowering prices not only to get more buyers in the door but to slow down cancellations. we've seen cancellation rates for the builders double just since april. and that's according to john burns real estate consulting so by lowering by 5% that's what they said they were doing on average, is

ceo bob chapek will be on at 11:30 a.m. today with more on the results. brian, kids will have to get used to commercials like we used to have to watch and we often watch on this great network. back to you. >> that's where i learned everything one to grow on and nbc i'm just a bill. that yellow booger looking guy that told us to brush our teeth? your ten gallon hat? why do i remember that >> the constitution song. >> time for timer here i don't know what that guy was courtn courtney, thank you very much. they really stuck. that was 75 years ago. >>> nasdaq's recent run means it is out of the longest bear market since 2008. to be fair it is only out of the bear market barely if you measure from the all-time intraday high. it is a nice data point. here is something random but interesting about the markets. we are seeing the nasdaq, according to dow jones, the index posted an average gain of 9% three months later and then 23% one year later look at that following a bear market, nasdaq up more than 20% the dow has also seen gains when it exits a correction. on

we have been listening to bob chapek, the ceo, on their earnings call. let's listen to what he had to say. >> significant subscriber growth on streaming services, which added 16.5 million subscribers in the quarter, including 14.4 million disney+ subscribers, of which 6 million were core disney plus. as of the close of q3, we have 221 million total subscriptions across our streaming offerings. emily: hot star is that service offered mostly in india. what do you make of this ad-supported tier? something we were expecting, netflix is doing it as well. does disney have something on netflix when it comes to an ad- supported model? ross: no, actually, it will be more beneficial for netflix, the ad-supported model. but disney because they have networks and cable channels, you are competing against yourself a little bit from the ads, or spreading the ads on another property. it is a little more complex for them, but it allows consumers to watch content because they sell so many other things to the fans, whether it is the parks or products and such. i don't love

so i think it is a big piece of the puzzle right now bob chapek has said they like the assets they have and has talked about how they are evaluating which content will go where going forward but it is not the first time anyone suggested the idea. >> he had just shaken off a little bit of the doubters here comes the fresh distraction i guess we could call it thank you very much for reporting on this. julia boorstin we'll continue to follow it. coming up china reporting a surprise slowdown in its economy forcing the central bank to unexpectedly cut two key lending rates for the first time since january. what happens next? we'll ask morgan stanley's former asian chairman steven roche. plus, both key gauges of the consumer we'll get the action, story, and trade on walmart and home depot on earnings exchange, back in a moment at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect. millions have made the swit

bob chapek spoking to cnbc about the strategy. >> we thought that this was the perfect time and reallyt of bring up that price value equation so we're more accurate reflecting the value that our guest our consumer viewer gets with disney plus by taking up the price. >> joining us now, ben silverman. ben, good to have you. what do you make of the price hike can they pull it off >> some of the things that were pretty interesting to me were the ad sales element of this disney actually has ad sales infrastructure and we're seeing a lot of the streamers create that component within their service. so if you don't want to pay the higher price, you can watch ads and participate in a different way. also i agree with what the ceo said i think it's unbelievable service and has a lot of content. it has library content, fox's old content, disney's old content and continually refreshing with new content. the genre mix is big because they also have nat geo. >> wall street is applauding the streaming numbers, also the parks business is what drove the quarter. but on streaming, disney total, including

. >> my major concern with disney is he promised over projection the bob did -- bob chapek gave was ambitioustually, you run out of countries to launch in. my biggest concern is what disney will have to do to get those projections. unless they come in next week and say they are changing the projections, but i don't think that's going to be the case. as long as disney has marble fans and star wars fans, it will continue to be a well supported service. you have to increase your total market which means ringing in more hamilton and west side story. in the united states with hulu, that becomes an interesting conversation. globally, we will see what the future of disney plus looks like and that it can -- what it can offer in acquiring subscribers and maintaining them. emily: thank you for breaking all that down. another story we are following, brittney griner 9.5 year prison sentence in russia. president biden is calling it unacceptable. he says the white house will work tirelessly for her release. she was found guilty of drug possession and struggling smuggling after being found with vaped cartri

. >>> and what bob chapek is getting ready to release with disney. >>> and later crypto winner takes no one it's wednesday, august 10th, 2022 you're watching "worldwide exchange" on cnbc. ♪ >>> a very good morning to you i'm wilfred frost in for brian sullivan today it's great to be with you. we did see a third day of declines in a row for the nasdaq and fourth day in a row for the s&p 500. just a slight return to the sense of anything tifbt after a strong bounceback from the low over the prior six weeks or so the nasdaq was the most negative, down 1.2%. as you can see, all three of the major averages expected to open higher only slight gains and reversal of yesterday's theme up half of 1%, the dow the least in the futures market, but still a third of 1%. bond markets, the ten-year yield, around 2.77 today we've seen a range as low at 2.56 the top of the range at 2.77 today, heavily inverted, the 2-year above that yield. energy coming off its worst session in three we've got a little bit of a decline. brent just below $90 for wti crypto was suffering today it's just stabilized, but w

for disney, the most important thing, i don't love bob chapek but he is proving he is a great operator during hard times. the prophet drivers of the business, he has them back in the losses they are driving from disney plus will ultimately turn to gains over time. there is never session at disneyland. -- no recession at disneyland. >> when it comes to streaming, it all comes down to content. disney has a huge library but there has been some concern about how much of the content will continue to appeal to adults. something netflix may be doing a little bit better. how do you think about those two players in a rapidly evolving streaming environment? >> i am having trouble calling myself an adult because -- as an adult, i watched disney plus -- ob want -- obi wan was a great show. anytime they want -- drop something from star wars, i watch it. they have hulu for adult content but they just recently dropped some r-rated movies on disney plus like deadpool. it is really a high-quality set of assets on disney plus and hulu is much more like television so they are appealing to lots of differe

. >> my major concern with disney is the promised over projection that bob chapek gave was ambitious.an average of 10 million subscribers per quarter being added. eventually you run out of , countries to launch in. when you launch in a country customers will sign up. my biggest concern is what disney will have to do to get those projections. unless they come in next week and say they are changing the projections, but i don't think that's going to be the case. as long as disney has marvel fans and star wars fans, it will continue to be a well supported service. you have to increase your total adjustment market which means bringing in more hamilton and west side story. in the united states with hulu, that becomes an interesting conversation. with what goes to hulu and what goes through this eplus -- disney plus. globally, we will see what the future of disney plus looks like and what it can offer in acquiring subscribers and maintaining them. emily: thank you for breaking all that down. appreciate it, director of strategy at parrot analytics. another story we are following, brittney gri

guy: that was the disney ceo bob chapek. that the gains they are making in terms of subscribers.y beat estimates for sales profit and subscriber growth. shares reacting, as you can see, very scooter only -- very strongly. [indiscernible] they are targeting 206 2 million subscribers by 2024. are they going to hit that number, judging by the numbers we just got last night? >> yes, thank you. we had extremely strong numbers last night. what they said that was really reassuring to the whole investment community is that they are continuing to see the subscriber momentum. as far as subscriber targets are concerned for 2024, they did walk that back a little bit. that is because they just let go of cricket streaming rights in india. remember, hot star is a big platform, which brings in almost 35% or 36% of their subscriber base. they walked it back a little bit, but remember the whole narrative now has shifted away from plane subscriber targets to a focus in profit ability. what they showed us in last nights's results is that we have a sustainable profit market here. -- model here. alix:

you maybe of dan loeb reentering the disney stock and calling for some specific actions from bob chapekluding spinning off espn. >> dan loeb is a smart guy he came in and out of the disney stock over the pandemic. i think he made a bundle on that i would suspect, or he wouldn't be back in i think it's a smart move. he bought disney when they were at a cyclical low. i think they have a great runway in front of them to increase their share price. there are arguments for and against, i suppose on the one hand, sports is not as strategically compelling to disney as it once was. espn was the must-have channel in all the channels in the cable bundle, as you were trying to get enhanced carriage terms for abc, disney channel, fx, abc family or free form as it's called now, when you wanted to bring those into a sales process to cable and satellite operators, espn was valuable now that everything is disaggregated from a forced bundle and espn will be sold over the top directly to consumers, that bundling effect that was so strategic to disney is no longer there the reason to owning espn, probably

best performing dow stock after hedge fund manager dan loeb took a stand on the company under bob chapekd the expertise of its board on his proposed change ches whio include suspending espn and we'll have this ahead on three stock lunch. shares of tesla jumping higher after elon musk said the company has produced 3 million vehicles with more than a third coming from the giga company in shanghai shortly here which may be helping the shares climb not only 4% today and they're back to $934. >> thanks very much. >> we have retail earnings dominating the week ahead led by walmart and target, both issuing preliminary announcements and lowering their guidance for the quarter and the rest of the year and both warning of higher costs and inventory. walmart down about 10%, target off about 20 so which has a better plan to navigate inflation and grow profits? here to make their cases, steph wiszink by jefferies and sed rooma says buy target. steph, you go first. why do you think walmart is better position said than the slightly upscale target right now? >> first, thanks for having me and ed, good t

by hiking prices for the streaming services more than expected yesterday we sat down with ceo bob chapekan exclusive interview here on "techcheck." he told us why he's still confident things will grow >> we suspect we believe that we're going to see growth accelerate for domestic subs for disney plus in the next quarter. we believe whether it is international growth, domestic growth, with ads, without ads, across the board we're going to see growth we're pretty bullish. >> he was also bullish about the parks talking about pricing power there too. you know, it is so fascinating we're talking about inflation and pressures on consumers and layoffs and then disney so optimistic about the ability to raise prices, not only on streaming, but also potentially at the parks. >> yeah, the parks one is really interesting to me because the rumbles about the park experience not being quite all the way there anymore are actually pretty loud so i think there is more danger here than disney is letting on they have got to keep the people happy, especially as prices go up and up and up and consumers are sp

i think those are going to be the real hard-core things that chapek has to answer in a couple hours., cynthia is the shalate o content. what is there in the pipe that is going to get people excited to go to the theaters or sign up as subscribers >> it's very much like disney has had this gravity-defying run of successful marvel movies at the box office they're on a really strong run with disney plus on content that is very sticky, very buzzy with the fams it's going to go back to the fundamentals how much in an environment where you are not selling your content in downstream windows as hollywood has for decades, this is a very big experiment in really, really keeping everything in house. how strong is that ecosystem if you have no third party, very few third party checks coming in for your very expensive content? >> we've got to leave it there thank you so much. and s andrew >> fascinating to see what disney posts later today >>> when we come back, details on elon musk selling shares of tesla. and we're going to talk crypto mike novogratz on that winter and whether it will ever thaw.

and i don't know, you know, another season boba fett is worth sticking around chapek. the ceo disney's all about profitability. previous ceo bob iger was all about, you know, getting the numbers low. and i sense a value proposition that complements the park's it complements the movi s, very different directions they're going in right now. and i also got rid of that hbo. i gotta. >> i need more time for football. that's basically what i'm all about now. football. >> i don't. i understand. understand 1, 2, 3, what do you want police department for? >> high i've 6 okay. rob black, there's football. >> well on the niners fan the raiders deserted me. okay. they an item that i have a bad taste in my mouth. after that. >> i hear you on that. i have not heard back in really speak to and it's going up with a pretty well waiting for the oakland department to give us an update on shooting for kyle. and we still continue to push action. what okay with it is costing tailgating its gasoline. outgoing up from 3, 17, 3.90, flies up. 28 per cent beers up 4.6% hot dogs up 5.3%. so go wi

direct-to-consumer, of course, has been the key focus of so many investors, in part due to the fact that bob chapekassic focused on reaching the goal, 260 million. they got average a pretty significant addition to get to that number. this amid st. what has been overall carnage of companies that are focused on the direct-to-consumer business. netflix being the chief one, still losing subs, though talking about our parent company peacock not doing particularly well hopefully i'll be here tomorrow for having said that paramount down 16%, actually one of the better performers, and then we get to warner bros. discovery. you asked pet about it yesterday, take in nearly $2 billion, but what they say is a deep dive of pressure testing, what they found and what they bought the compete hopes to be down to four times by 2023, in terms of four times ebitda that said, we still don't know the answer when it comes to the overall economics of this business had won't like anything like the old cable business, where the margins were amazing. >> cnn, with that billion -- >> yeah. >> i was talking about it yesterday.

wrote a letter to bob chapek and the board. they want to make changes. that they spin off espn.happens with this one. stuart: disney is up on the news. 123 per share, got it. earlier this morning we found out homebuilder confidence dropped to a reading of 49. that was the month of august. more than half of homebuilders believe business conditions are bad. jerry howard is with us. he is the ceo of the national association of homebuilders. he joins us now. is home building sinking? i mean inclined to expect that. i see construction about everywhere i go? >> i think there is still a lot of projects underway. the fact our index has declined for eight straight months, the fact it is now below 50/50 being neutral, means that we are sinking. we're approaching a point where we have to say we're in a home building recession. stuart: that means that there is just not enough homes to go around now, that gets even worse in the future. does that mean those home prices go up the same demand? >> well, certainly means that you're going to have a supply constraint. that would indicate if we don'