Financially Viable In order for Disney to expand to Mexico, our group has had to look at a multitude of factors, from opportunities, risks, threats, marketing plans, pricing strategies, and risk mitigation strategies to name a few. Based on all of our groups research, we determined that expanding to Mexico is financially viable. In this section we will start with initial start up costs that Disney will have to incur in year 0. After year 0, we will discuss total operation cost factors and potential revenue Disney expects in the first year. Finally, we will discuss total subscribership and expected revenues starting in year 1. So what startup costs will Disney have to incur in year 0? The Costs of Goods Sold (COGS) refers to the direct costs it takes to produce goods sold by a company (Hayes, 2019). This includes costs like labor costs, materials etc. Per our group’s Income Statement, we have determined our COGS to be $286,434. Followed by COGS, we will look at Operating costs, which include translation for programming, advertising, research and development (includes maintenance and improvements), selling, general and administrative (Disney’s Income Statement). Operating expenses will be expenses every year our firm is in operation. Our first expense-translations for programming will include services like dubbing, subtitles and experienced translations services. Our Income statement has valued this cost at $100,000 per year. Keep in mind translation costs could vary depending on the number of new content Disney produces in a given year. Disney’s next operational cost is advertising. Using a combination of television adverting, web advertising and social media advertising (Group 1 Week 9 Paper), costs are estimated at $400,000. This price is much lower than Netflix’s $2 billion dollars advertising budget, but Disney will have the option of lowering or escalating their advertising budget as needed. Furthermore, with our main brand recognition, having a lower advertising budget would be wise. Next on the Operational cost list is research and development. These costs include creating a friendly and usable user interface, maintenance and creating fixes to bugs as they occur. R&D funds creating a user friendly interface is vital for Disney to succeed regardless of what country Disney decides to expand to (Karn, 2014). R&D will be estimated at $200,000. Our last operational cost category is selling, general and administrative costs, which include employee salaries, and other administrative costs, which we have totaled at $1,270,000. Total Operational costs will be $1,970,000. Within year 0, we are estimating $0 revenue, because year 0 will be dedicated to building up our SVOD service. So our total expenses will be total cost revenue+ Operational costs, which puts us at $2,256, 434. However, given Disney’s other Lines of Business revenue streams, they will be able to absorb these start up costs. In Year 1, our group will also assume operational ...

1. Financially Viable
In order for Disney to expand to Mexico, our group has
had to look at a multitude of factors, from opportunities, risks,
threats, marketing plans, pricing strategies, and risk mitigation
strategies to name a few. Based on all of our groups research,
we determined that expanding to Mexico is financially viable.
In this section we will start with initial start up costs that
Disney will have to incur in year 0. After year 0, we will
discuss total operation cost factors and potential revenue Disney
expects in the first year. Finally, we will discuss total
subscribership and expected revenues starting in year 1.
So what startup costs will Disney have to incur in year 0?
The Costs of Goods Sold (COGS) refers to the direct costs it
takes to produce goods sold by a company (Hayes, 2019). This
includes costs like labor costs, materials etc. Per our group’s
Income Statement, we have determined our COGS to be
$286,434.
Followed by COGS, we will look at Operating costs, which
include translation for programming, advertising, research and
development (includes maintenance and improvements), selling,
general and administrative (Disney’s Income Statement).
Operating expenses will be expenses every year our firm is in
operation. Our first expense-translations for programming will
include services like dubbing, subtitles and experienced
translations services. Our Income statement has valued this cost
at $100,000 per year. Keep in mind translation costs could vary
depending on the number of new content Disney produces in a
given year. Disney’s next operational cost is advertising. Using
a combination of television adverting, web advertising and
social media advertising (Group 1 Week 9 Paper), costs are
estimated at $400,000. This price is much lower than Netflix’s
$2 billion dollars advertising budget, but Disney will have the
option of lowering or escalating their advertising budget as
needed. Furthermore, with our main brand recognition, having a

2. lower advertising budget would be wise. Next on the
Operational cost list is research and development. These costs
include creating a friendly and usable user interface,
maintenance and creating fixes to bugs as they occur. R&D
funds creating a user friendly interface is vital for Disney to
succeed regardless of what country Disney decides to expand to
(Karn, 2014). R&D will be estimated at $200,000. Our last
operational cost category is selling, general and administrative
costs, which include employee salaries, and other administrative
costs, which we have totaled at $1,270,000. Total Operational
costs will be $1,970,000.
Within year 0, we are estimating $0 revenue, because year 0
will be dedicated to building up our SVOD service. So our total
expenses will be total cost revenue+ Operational costs, which
puts us at $2,256, 434. However, given Disney’s other Lines of
Business revenue streams, they will be able to absorb these start
up costs.
In Year 1, our group will also assume operational expenses will
be the same; and there will be $0 dollars in cost of revenue. So
our total operational costs for year 1 would be $1,970,000. As
mentioned earlier, some of these operational costs will fluctuate
year to year, given circumstances.
Now we will discuss subscribership goals, and potential
revenues from those goals. Since we are proposing several
different options, which will include getting Disney+ and
HULU separately at $4.99 each or getting both SVOD services
for a total of $7.99 total; our group is expecting different levels
of interest depending on the type of customer. We are
predicting, more potential customers will aim towards our
bundled SVOD service package of HULU and Disney+, given
its’ value. Our group is expecting a total of 38,000,000
subscribers total, within the first year (Disney’s Income
Statement). We break up our plan into 3 categories- 1.
Customers who only sign up for Disney+, 2. Customers that
only sign up for HULU, and 3. Customers that sign up for the
bundled package. Our group has estimated that HULU and

3. Disney+ separately will get 9,000,000 subscribers each.
Disney’s Income statement also estimates they will have
20,000,000 subscribers for their bundled Disney+ and HULU
package. So Disney is expecting a Net Income of $151,634,000.
As per Groups 1’s previous paper, we expect subscribership to
grow after year 1, as our original content expands, raising
revenues. Disney’s breakeven point will be less than a year.
Major Risk Factors Regarding Projections and Assumptions
Our operating expense variables will be fairly stable in
year 1 and beyond; however, operating expenses will change
from year to year depending on Disney’s needs. For example
after the first year, If Disney finds that they need to increase
their advertising budget or R&D budget, they will have room to
do so, given revenue streams are accurately described as in the
previous section suggests. Overall, operational costs will be low
risk and can be managed as issues arise. Furthermore, Disney
will be able to cover costs from other Lines of Business as
needed.
Since Disney is already entering a market that is Netflix
centric; they will have to prove their value and worth in the
Mexican market. Disney’s major risk factor, is subscribership
not reaching our intended goals. For example, if subscribership
is significantly underwhelming, Disney may not be able to
justify startup costs (year 0)+ Year1 costs; If subscribership is
at what Group 1 predicted or higher, than Disney will be in a
good position. If subscribership starts out low and slow going,
Disney should consider- is our platform/interface user-friendly
and easy to use; do we need to be more active in advertising
etc.? In other words the number of subscribers is key to
Disney’s success, especially given the already high demand for
Netflix in Mexico.
Resources
Hayes, A. (2019, June 16). Understanding Cost of Goods Sold –
COGS. Retrieved July 24, 2019, from
https://www.investopedia.com/terms/c/cogs.asp
Karn, K. S. (2014, October 2). Why Invest in a Usable User

4. Interface? Retrieved July 16, 2019, from
httPps://www.bresslergroup.com/blog/measuring-roi-usable-
user-interface-part-2/
<Project Name>
<Course Number and Name>
Prepared By
<Names>
<Date>
1. Executive Summary
1.1
..Introduction…………………………………………………………
……………
1.2 ..
Purpose………………………………………………………………
………….
1.3 ..
Scope…………………………………………………………………
…………
2. Project Overview
2.1 Project Description
2.2 Problem Statement
2.3 Goals
2.4 Project Background
2.5 Product Objectives
2.6 ..Business
Objectives…………………………………………………………….
.

5. 2.7
..Milestones…………………………………………………………
…………….
2.8 Assumptions, Constraints and Dependencies
2.9 Project Deliverables
2.10.. Project Success Criteria
………………………………………………………..
2.11..Schedule and Budget Summary
2.12..Evolution of the Plan
2.13 ..References
2.14 Definitions and Acronyms
3. Stakeholder Register
4. Schedule
4.1
..Purpose/Overview…………………………………………………
……………..
4.2 ..Schedule
Baseline……………………………………………………………….
4.3 .. Schedule
Control………………………………………………………………
…
5. Resource Plan
5.1 .. Overview/Purpose of the Resource Section
……………………………………
5.2 ..Resourcing Strategy &
Assumptions….………………………………………….
5.3 .. Resourcing
Development………………………………………………………..
6. Risk Management Plan
6.1 ..
Purpose/Overview……………………………………………………
…………
6.2 .. Risk
Identification…………………………………………………………
……
6.3 ..Risk

6. Analysis………………………………………………………………
……
6.4 Risk Monitoring Plan
…………………………………………………………….
7. Communications Plan
7.1..Overview
7.2..Communication Message and Delivery
7.3..Communications Guidelines
7.4.. Escalation Process
8. Procurement
9. Cost
9.1.. Introduction
9.2.. Estimate Cost
9.3.. Contingency reserve project purpose or justification
9.4..Budget
9.5..Project and Monitoring
9.6.. Project Reports
9.7..Cost Change Control
9.8..Project Budget
9.9..Microsoft Performance Report #1
9.10..Microsoft Performance Report #2
10. Integrated Change Control
1.Executive Summary
1.1 Introduction
1.2 Purpose
1.3 Scope
2.Project Overview

7. This section of the Project Management Plan provides an
overview of the purpose, scope and objectives of the project for
which the Plan has been written, the project assumptions and
constraints, a list of project deliverables, a summary of the
project schedule and budget, and the plan for evolving the
Project Management Plan.2.1 Project Description
2.2 Problem Statement
2.3 Goals
2.4 Project Background
2.5 Product Objectives
2.6 Assumptions, Constraints and Dependencies
2.7 Project Deliverables
2.8 Schedule and Budget Summary
2.9 Evolution of the Plan
2.10 Definitions and Acronyms
This section provides a glossary of all terms and
abbreviations used in the plan.

8. 3.Stakeholder Register
4.Schedule Component
4.1 Purpose/Overview
4.2 Schedule Baseline
Tasks
Description
Creation of the Activity List and attributes
Describe how project activities and activity attributes will be
defined and who will be involved in this process. For longer
projects, consider using rolling wave planning where activities
in the near future are planned in detail while other later
activities can be at a higher level. Consider the activity list
from previous similar projects.
Estimation of activity resources
Describe how the needed quantities of human resources and
equipment to complete identified activities will be estimated.
Document the needed level of accuracy for the estimates and
units of measure. Consider company’s procedures, policies and
resource calendars.
Activity duration estimates
Describe how the activity duration estimates will be developed
and the estimating method (analogous, parametric, three-point,
bottom-up). Document the needed level of accuracy for the
estimates.
Approval of the schedule baseline
Who will approve the schedule baseline?
4.3. Schedule Control
The approved schedule baseline will be changed only through
the formal change control process and only after the impact on

9. the project constrains has been assessed.
Performance reviews
Please describe the frequency of the schedule performance
reviews. Describe how the schedule performance will be
reviewed (e.g., earned value management, actual vs. planned
dates, percentage completed, etc.). Document who will be
involved in the schedule performance review.
Schedule control thresholds
Specify any acceptable variation from the schedule before the
corrective measures are needed (e.g., increase in duration of the
activity/work package by 15%).
Schedule performance reporting
Describe how the schedule performance will be reported and the
frequency of reporting.
5.Resource Plan with RACI
5.1Overview/Purpose
5.2 Resourcing Strategy & Assumption
[Define the resourcing strategy for the project. How will
resources be acquired and released from the project?]
5.3 Resourcing Development
[When estimating the resources on the project, have you made
any assumptions about those estimates?]
6.Risk Management Plan

10. 6.1 Review of Risk Management Plan
6.2 Risk Identification
6.3 Risk Analysis
6.4 Risk Monitoring Plan 7.Communications Plan
7.1 Overview/Purpose
The purpose of the communication plan is to ensure the Project
Management Improvement Project provides relevant, accurate,
and consistent project information to project stakeholders and
other appropriate audiences. By effectively communicating the
project can accomplish its work with the support and
cooperation of each stakeholder group.
The communication plan provides a framework to manage and
coordinate the wide variety of communications that take place
during the project. The communication plan covers who will
receive the communications, how the communications will be
delivered, what information will be communicated, who
communicates, and the frequency of the communications.
The following outlines the targeted audiences, the key
communication messages to be delivered, and the method for
delivering the information, the communicator, and the
frequency of the delivery.
7.2 Communication Message and Delivery (Matrix)
Audience
Message
Delivery Method
Delivery Frequency
Communicator
Example: Project Sponsor
Project Plans

11. Status Reports
Meeting
Report published in My Web space with DoITnet and PSST link
Weekly
Biweekly
Project Manager
Project Manager

12. 7.3 Communications Guidelines
Communication Guidelines—E-mail, Text:
1) Do not use reply all to emails
2)
3)
4)
5)
6)
Communication Guidelines—Meetings:
1) Meetings must have pre-published agendas, prior to meeting
request…agenda must accompany the OUTLOOK meeting
request
2)
3)
4)
5)
.
7.4 Escalation Process

13. 8. Procurement
9. Cost
9.1 Introduction
[The purpose of this document is to provide general content of a
Cost Management Plan and to describe submission required in
Microsoft Project format (.mpp file).]
Cost Management
Plan
[A cost management Plan defines cost baseline, modifies it
whenever necessary, and uses it for monitoring and controlling
cost. A project cost management plan generally includes
descriptions, procedures and responsibilities for items such as
Costs included, activity resource estimating, cost estimating,
cost baseline, budget determination and cost control.]
9.2 Estimate Cost
[Estimate Cost is a process of developing an approximation of
monetary resources needed to complete project activities.]
9.3 Contingency Reserve Project Purpose or Justification
[Contingency reserve is money assigned to the project and
allocated for identified risks for which contingent responses are
developed. Generally, how much money is reserved and its

14. rationale are included here.]
9.4 Budget
[Once the project costs or cost baseline is determined, a time-
phased project budget is developed. Project budget shows how
the project cost will be incurred by appropriate periods (months,
weeks, quarter, etc.) during project performance period.
Describe how your budget is developed.]
Cost Control and
Monitoring
[The approved project budget with contingency reserves serves
as a baseline for project control. This section usually include
project approach to monitor actual versus planned performance,
approach ( e.g. Earned Value analysis), and how any cost
changes will be managed.]
9.5 Performance Monitoring
[Describe your approach to monitor planned versus actual
performance and matrices that will be used]
9.6 Project Reports
[Include name and description of 2 to 3 reports that you plan to
use for performance monitoring, status reporting or other
reports. These are the reports for which you will be submitting
a Microsoft Project mpp file. See section below. ]
9.7 Cost Change Control
[Describe briefly how any changes to the cost baseline will be
administered and implemented.]
Microsoft Project
Deliverables

15. 9.8 Project Budget
[Include your project WBS (in .mpp format) that represents your
project cost. Ensure that contingency reserves as a separate line
item. The report submission is in Moodle]
9.9 Microsoft Performance Report
[Include report name and describe how the report will be used]
9.10 Microsoft Performance Report
[Include report name and describe how the report will be used]
[Type here]
10. Integrated Change Control
<Project Name>
Revision: <6.0>
Project Charter

16. Date:
<Organization Name>
<Organization Name>
<Full Name>
<Date>
<Name and authority of the sponsor or other person(s)
authorizing the Project Charter>
<Project Name>Project CharterRevision <6.0>
<Note: The Project Charter is created during process 4.1
"Develop Project Charter" as described in A Guide to the
Project Management Body of Knowledge (PMBOK® Guide).
This template is derived from a sample template authored by the
Project Management Institute (PMI): Document Code: PMBOK
4.1.3.1. Text in brackets and/or blue is designed to explain or
define required content and meant to be deleted and replaced by
your specific project information before submission. Make sure
to update all portions (i.e. Table of Contents) with each
submission.
The Project Charter is the document issued by the project
initiator or sponsor that formally authorizes the existence of a
project and provides the project manager with the authority to
apply organizational resources to project activities. It

17. documents the high-level information on the project and on the
product, service or result the project is intended to satisfy.
The Project Charter is developed on the basis of the Business
Documents, the Agreements on project implementation and
other information like enterprise environmental factors and
organizational process assets.
The Charter is developed by individual(s) external to the
project, such as the sponsor, project management office (PMO)
or the portfolio governing body. The project initiator or sponsor
should be at a level that is appropriate to procure funding for
the project. They either develop the Charter themselves or
delegate this responsibility to the Project Manager. The
initiator’s signature on the Project Charter authorizes the
project.>
[Type here]
List of Changes
Date
Revision
Description
Author
<m/d/yyyy>
<6.0>
Publication for use
<Author>

18. · Revision: The revision number of the document (the first digit
is increased and the second one is set to zero if significant
changes are made in the document; the second digit changes if
the minor changes are made).
· Description: A detailed description of the revision and the
amendments (for example, Publication for internal comments,
Publication for use, Publication with changes in Chapter X,
etc.).
· Author: Full name of the amendments’ author.
Table of Contents
1. General Provisions 4
2. Terms and Abbreviations Error! Bookmark not
defined.
3. Project Purpose 4
4. Measurable Project Goals and Objectives 4
5. High-Level Project Description and Boundaries 5
6. High Level Requirements 5
7. Key Project Deliverables 6
8. Overall Project Risk 6
9. Summary Milestone Schedule 6
10. Preapproved Financial Resources 6

19. 11. Key Stakeholder List 7
12. Project Approval Requirements/ Exit Criteria 7
13. Project Exit Criteria 7
14. Project Manager 7
15. Appendixes 7
1. General Provisions
<This section describes the general characteristics of this
document folder and the set of documents to which it refers.
These general provisions can be modified or supplemented in
accordance with the particular project requirements.>
This document refers to the project "<Project Name>", which is
implemented by the organization "<Organization Name>".
The Project Charter formulates the practical requirements and
documents the high-level description of the product, service or
other deliverable that should meet these requirements and will
be result of the project.
The Project Charter is issued and signed by the Initiator or
Sponsor of the project and formally legitimized the existence of
the project. It provides the Project Manager with the authority
to use the organizational assets in the project operations.
The approved Project Charter formally initiates the project.
If the project consists of several phases, the Charter can be
updated to verify or improve the decisions taken during the
previous iteration of the Project Charter development. In such a
case the Charter is re-issued and signed as amended.
Terms, Notations, Abbreviations
<This section should contain the definitions of all terms and
abbreviations required to properly interpret this document,
arranged in alphabetical order. This information can be
presented in the form of the following table, or as a reference to
a Project Glossary in the Communications Management Plan.>

20. Term/Abbreviation
Definition
Project Purpose
<This section briefly describes the purpose of the project and its
justification. The justification describes the necessary
information from a business standpoint to determine whether or
not the project is worth the required investment. Justification
describes one or more of the following factors:
· Market demand (e.g., a car company authorizing a project to
build more fuel-efficient cars in response to gasoline shortages)
· Organizational need (e.g., a training company authorizing a
project to create a new course to increase its revenues)
· Customer request (e.g., an electric utility authorizing a project
to build a new substation to serve a new industrial park)
· Technological advance (e.g., an electronics firm authorizing a
new project to develop a faster, cheaper and smaller laptop after
advances in computer memory and electronics technology)
· Legal requirement (e.g., a paint manufacturer authorizing a
project to establish guidelines for handling toxic materials)
· Ecological impacts (e.g., a company authorizing a project to
lessen its environmental impact)
· Social need (e.g., a nongovernmental organization in a

21. developing country authorizing a project to provide potable
water systems, latrines and sanitation education to communities
suffering from high rates of cholera).
These factors may also be called incentives, opportunities or
business requirements. The basic point of all these factors is
that management should decide what the response should be to
them, and what projects should be authorized and fixed in the
Charter.>
Measurable Project Goals and Objectives
<This section describes the business goals and the project
objectives aimed at achieving those goals. Business goals
should be measurable and explain WHY the organization is
doing the project (i.e. increase profits/market share; decrease
costs/waste). Project objectives should explain WHAT the
project should attain, including any related success criteria. All
project objectives should be traceable to a business goal, and all
project goals should have at least one project objective. >
Business Goal 1:
· Project Objective 1.1:
· Project Objective 1.2:
· Project Objective 1.3
Business Goal 2:
· Project Objective 2.1
· Project Objective 2.2
Business Goal 3:
· Project Objective 3.1:
· Project Objective 3.2:
· Project Objective 3.3

22. High-level Project Description and Boundaries
<This section provides a general description of the products or
services that the project is supposed to produce; there is a brief
description of the business need, a very general description of
the product and an initial strategic plan.>
High-Level Requirements
<This section documents the requirements that satisfy the needs,
wishes and expectations of the Customer, Sponsor and other
project participants. Requirements are the certain conditions or
capabilities that must be met or possessed by a system, product,
service, result or component to satisfy a contract, standards,
specifications or other formally imposed documents.
Requirements include the quantified and documented needs,
wants and expectations of the Sponsor, Customer and other
stakeholders of the project. The Project Charter contains high-
level requirements only. A complete list requirements should be
developed later in the Project Management plan as they become
more concrete during the gradual elaboration of the project.
Overall Project Risk
<This section describes the high-level risks and also provides a
brief description of the project risk management implementation
and the risk tolerance levels of the project Sponsor and
Customer.
Please note that the Project Charter contains high-level risks
only. The complete list of risks should be presented in the Risk
Register.>
High Level Constraints and Assumptions
<This section describes the high-level assumptions and
constraints of the project. Assumptions are things believe to be
true (with or without evidence). Constraints are limitations
placed upon the project that the project manager and team must
work with.
Constraints:

23. · Constraint 1
· Constraint 2
· Constraint 3
Assumptions
· Assumption 1
· Assumption 2
· Assumption 3
Summary Milestone Schedule
<This section lists specific points along the project timeline that
show an important achievement of the project. They should list
the responsible party as well as the projected date of
completion. Note that the Project Charter contains high-level
milestones only. The complete list of milestones should be
presented in the Milestone List.>
No.
Milestone
Responsible Party
Date
<Title of the milestone>
<Customer or performing organization>
1.
2.
3.

24. Key Project Deliverables
<This section lists the key tangible product outputs
(deliverables or services) to be provided by this project. Explain
the criteria that will be used by the product users to determine if
the project can be accepted.>
Deliverables
Date Available
Acceptance Criteria
Preapproved Financial Resources
<This section contains a high level (summary budget) or rough
order of magnitude estimate. Ideally, a summary budget
includes the cost for labor, supplies/equipment, and
management reserve.
Please note that the Project Charter contains summary budget
only. The itemized budget should be presented in the Cost
Baseline.>
Key Stakeholder List
<This section contains the list of individuals, groups or
organizations who may affect, be affected by or perceive itself
to be affected by a decision, activity or outcome of a project.
Please note that only main stakeholders are specified in the
Project Charter. The complete list of stakeholders should be
presented in the Stakeholder Register.>

25. Full Name
Position/Organization
Role in the Project
Telephone/E-mail
<Full name of the stakeholder>
<Position of the stakeholder and organization name>
<What kind of work is performed by the stakeholder in the
project>
<Key contact information of the stakeholder >
Project Approval Requirements
<This section specifies what constitutes project success, who
decides the project is successful and who signs off on the
project. This section also identifies the acceptance criteria,
including performance requirements and essential conditions
that must be satisfied before the acceptance of the project
deliverable.>
Project Exit Criteria
<This section specifies what conditions need to be met in order
to close or to cancel the project or phase (e.g., documented
approvals, completed documents, completed deliverables).>
Project Manager
<This section contains information about the assigned Project

26. Manager, responsibility and authority level. A Project Manager
is identified and assigned as early in the project as is feasible,
preferably while the project charter is being developed and
always prior to the start of planning. It is recommended that the
Project Manager participate in the development of the Project
Charter because this document provides him/her with the
authority to use the organization assets to complete the project
and responsibility for the project objectives achievement.>
Signed/Project sponsor(s) or charter approving authority
<This section is a signature block or matrix (if there are
multiple sponsors). This section is not signed by the customer
or the end-user. The signature block should include the
following details: Name/Title/Position/date signed>
Appendixes
<This section contains all appendixes to the document. In the
absence of appendixes, this section is excluded.>
Revenue forecast and assumptions
For Disney+ and Hulu streaming service first year in Mexico,
the annual forecastrevenues is expect to reach $ 216,620,000
with 38,000,000 subscribers. Disney+ will enter into the
Mexico streaming market by providing a low price with bundle
service to compete with its competitors. First, we will be
assuming that we will have at least a 14% increase of new
Disney+ subscribers. After six months our subscribers will
increase by a little more than 10% every month.
We also forecast Disney+ subscribers will continue to grow
each month and there's no reason to believe that won't continue.
By the end of the fourth quarter, revenue will reach up to
$86,648,000. This will be accomplished by not only growing
subscriber base but also by the company's pricing power. We

27. are also assuming the average subscription price (ASP) grew 3%
year over year, and excluding the impact of foreign exchange
headwinds, international ASP increased by 6%.
The method used for this study is combination of aggressive and
conservative methods, which eminently works best for Disney+.
The assumptions made for forecasting are as follows:
· Offer different contents Hulu only, Disney+, and bundle
· Entry price are lower than competitors
· The revenues are expected to increase by more than 10% after
6 month
· Estimate to have 38,000,000 subscribers by at the end of the
first year
· Partner with local cellular company to attract more subscribers
Disney+ and Hulu REVENUE Forecast and assumptions
Year 1
Hulu
# of subscribers
9,000,000
Price persubscribers
4.99
Total
44,910,000
Disney+

28. # of subscribers
20,000,000
Price persubscribers
4.99
Total
$99,800,000
Bundle
# of subscribers
9,000,000
Price persubscribers
7.99
Total
71,910,000
Net Revenue
216,620,000
Months

29. Year 1
Month 1
0
Month 2
0
Month 3
0
Total 1st Quarter
0
Month 4
10,831,000
Month 5
17,329,600
Month 6
21,662,000
Total 2nd Quarter
49,822,600
Month 7
21,662,000
Month 8
25,994,400
Month 9
32,493,000
Total 3rd Quarter

30. 80,149,400
Month 10
25,994,400
Month 11
28,160,600
Month 12
32,493,000
Total 4th Quarter
86,648,000
Total for year
216,620,000
Average Revenue
by Month
18,051,667
by Quarter
54,155,000
Month 1 Month 2 Month 3 Total 1st Quarter Month 4
Month 5 Month 6 Total 2nd Quarter Month 7 Month
8 Month 9 Total 3rd Quarter Month 10 Month 11 Month
12 Total 4th Quarter Month 1 Month 2 Month 3 Total

31. 1st Quarter Month 4 Month 5 Month 6 Total 2nd Quarter
Month 7 Month 8 Month 9 Total 3rd Quarter Month
10 Month 11 Month 12 Total 4th Quarter 0 0 0 0
10831000 17329600 21662000 49822600 21662000
25994400 32493000 80149400 25994400 28160600
32493000 86648000
REVENUEDisney+ REVENUE Forecast and assumptions Year
1Hulu # of subscribers9,000,000Price persubscribers4.99Total
44,910,000Disney+# of subscribers20,000,000Price
persubscribers4.99Total $99,800,000Bundle # of
subscribers9,000,000Price persubscribers7.99Total
71,910,000Net Revenue216,620,000MonthsYear 1Month
10Month 20Month 30Total 1st Quarter0Month
410,831,000Month 517,329,600Month 621,662,000Total 2nd
Quarter49,822,600Month 721,662,000Month 825,994,400Month
932,493,000Total 3rd Quarter80,149,400Month
1025,994,400Month 1128,160,600Month 1232,493,000Total 4th
Quarter86,648,000Total for year216,620,000Average Revenue
by Month18,051,667by Quarter54,155,000
&D
&T
Month 1 Month 2 Month 3 Total 1st Quarter Month 4
Month 5 Month 6 Total 2nd Quarter Month 7 Month
8 Month 9 Total 3rd Quarter Month 10 Month 11 Month
12 Total 4th Quarter Month 1 Month 2 Month 3 Total
1st Quarter Month 4 Month 5 Month 6 Total 2nd Quarter
Month 7 Month 8 Month 9 Total 3rd Quarter Month
10 Month 11 Month 12 Total 4th Quarter 0 0 0 0
10831000 17329600 21662000 49822600 21662000
25994400 32493000 80149400 25994400 28160600
32493000 86648000

32. CostDisney+ Operation Forecast and assumptions Year
1Operating Expenses Translation for program100,000
Advertising400000Research & Development200,000Selling
General & Administrative1,270,000Total Operating
Expensive1,970,000Total Expenses1,970,000Earning from
OperationsNumber of PersubscribersHulu
($4.99)9000000$44,910,000Disney+
($4.99)20000000$99,800,000Bundle
($7.99)9000000$71,910,000Total Subscription
Revenue$216,620,000Income Taxes30%Net
Income$151,634,000
Disney + Operation Forecast and Assumption Summary
Regardless, short- and medium-term financial projections are a
required part of your business plan if you want serious attention
from investors. The financial section of your business plan
should include a sales forecast, expenses budget, cash flow
statement, balance sheet, and a profit and loss statement.
At a glance Disney+ forecasting is predicting future
performance of the organization for the first year. The company
is projected to spend almost $1,970,000 dollars by multiplying
units times prices to calculate sales within the first year to get
the company going in the right direction to be successful in
Mexico.
Disney + will have to spend a lot of money to advertise its
SVOD in Mexico to have a successful break through that will
cost the company almost $400,000 dollars. International
Television — The Company also licenses its films outside of the
U.S. The typical windowing sequence is consistent with the
domestic cycle such that titles premiere on VOD services and
then on pay TV or SVOD services before airing in free TV.
Windowing strategies are developed in response to local market
practices and conditions, and the exact sequence and length of
each window can vary in Mexico.
Sheet1Walt Disney - Disney+ & Hulu Income StatementStart Up

33. Costs
(Year 0)Revenue & Operating Costs
(Year 1)RevenuesCost of Goods Sold
(COGS)$286,434$0Delivery Services$0$0Total Cost of
Revenues$286,434$0Operating ExpensesTranslation for
Programming$100,000$100,000Advertising$400,000$400,000Re
search and Development (includes maitenence and improvement
of service GUIs)$200,000$200,000Selling, General and
Administrative (Based upon wages shown in headcount
chart)$1,270,000$1,270,000Total Operating
Expenses$1,970,000$1,970,000Total
Expenses$2,256,434$1,970,000Earnings from OperationsHulu
($4.99)$0$44,910,0009,000,000Disney+
($4.99)$0$99,800,00020,000,000Bundle
($7.99)$0$71,910,0009,000,000Total Subscription
Revenue$0$216,620,000Income Taxes$030%Net
Income($2,256,434)$151,634,000