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S&P Equity Research Director Tuna Amobi on Disney’s decision to ban junk food ads by 2015.
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-- becoming the first major media network to ban junk food ads from its kids' programming.
And it's got First Lady Michelle Obama's blessing was what she had to say about that earlier today.
-- -- that over the next couple of years.
When our kids tune in to their favorite shows on Disney channels -- They logon to the Disney website.
They will no longer be bombarded with unhealthy messages.
During those commercial breaks so is this good business or bad we've got an analyst who says the move gives Disney a competitive edge joining us now.
-- -- -- Standard and -- senior media and entertainment analyst.
Well first you -- what is -- federal figure that out but if -- includes names like McDonald's which could be big bucks how was this a positive move for Disney.
What I think this is natural progression of the baby steps that Disney's been taken over the last few years to B response -- -- to be responsive -- somebody concerns about childhood obesity.
When you step back and take a look at this Tom I don't really think that didn't -- -- money on the table so to speak.
Mena -- advertising and is still a relatively small portion of the overall Disney empire.
And while this move -- may raise some concerns.
We don't -- any chances that any advertiser backlash or -- a backlash we just think it's up.
-- a burnished Disney's reputation as a as a corporate citizen.
But -- in this environment.
And I speak as a stockholder of one share of disease spots off -- I have a say in this I'm just wondering that in this economic environment it's the right time to do some -- -- down ad dollars that's asset.
That's a pretty tough thing to defend when your when your looking in an economic environment like we have.
That's a very good point to note but the more debt you think about the potential.
Implications of what this might mean for the overall Disney brand the -- perception -- very important in the family oriented Asia on our.
I'm inside Disney you -- last few years has been actually implemented somebody steps.
In the kinds of food that he serves and its theme parks.
It's been sick not in four years that this is where.
You know they're heading to and given the fact that this move doesn't even begin until 2015.
We think it gives them enough time to put in place potential contingency plans bush for the company and for advertisers.
I'm so we just I think -- -- and they cut the right thing to do.
Well I'll tell you this when I was watching cartoons is a kid every other minute there was a commercial for light right or -- bake oven easy pick up and all of that stuff -- we constantly be running door -- think I have.
My kids don't do that because Disney doesn't have commercials during most of their show -- So they've moved to being a little bit more responsible in that regard to using kids that are moving away from using -- is sort of that next consumer.
And yet.
They're the first to sell the Disney princess costumes -- -- -- that of course doesn't hurt your health -- hurts my bank account but.
Looking forward Disney has -- that the brand image outweighs the potential revenue losses.
How soon do you expect to see any or not movement in that revenue that may or may not be lost would -- be one quarter.
But we don't think -- revenue loss these are gonna be significant.
-- to any logic stand -- and to your earlier point I think this is a culmination of you know whereas the industry's been -- -- into if you remember the children's from a television act of 1990.
That is only major legislation that seeks to address the issue about kids -- -- time and has been a lot of you know clamoring to -- dot act does not go far enough.
And to have a -- Disney to voluntarily step up and say this is what we're gonna do.
I think it puts pressure on other content that Viacom's Nickelodeon or -- cartoon network's and we wouldn't be surprising they follow suit in the near future.
OK quickly to ratify the political aspect of all -- weren't very politically charged year right now.
This might be playing into a lot of people's dislike for the nanny state for -- yet Michelle Obama in front of the Disney thing.
Again she's not she's known -- are defending that nanny state image is that a problem for -- That's it fair comment and there is always some potential political overtones in any scenario like this.
And I wouldn't necessarily delve into commenting on those -- I would say is that from a business.
I'm an investor standpoint.
It's really not in major -- issue of concern.
Two and a -- always a pleasure to have you thanks again please come back -- is again from standard poor's finish it.
