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A comment on The math’s not pretty on digital advertising’s future revenues? (2017). Parent comment

Re:The math’s not pretty on digital advertising’s future rev... by manigandham on Saturday December 29, 2018 @07:04PM (#18786475)
They generate profit with far less work than Disney, therefore their profit is much more protected and scalable with automation and tech.

Original content and physical parks are very hard to invest in and make profitable, and Disney has had plenty of missteps recently. Also Google has Youtube which is replacing TV for many young people and full of original content that required no investment.

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Re:The math’s not pretty on digital advertising’s future rev... by darawk on Saturday December 29, 2018 @07:07PM (#18786495)
a) That doesn't follow at all. How do you get from less effort to higher moat?

b) So what? You're going to value a moat at a 100% premium NPV?

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Re:The math’s not pretty on digital advertising’s future rev... by manigandham on Saturday December 29, 2018 @07:13PM (#18786513)
Less work to generate more money as an industry compared to Disney, that's why they have better valuations.

The moat has nothing to do with that and is formed by their scale, which is almost impossible to break at this point. This is valued highly when it defends a multi-billion profit machine that nobody else can match.

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Re:The math’s not pretty on digital advertising’s future rev... by darawk on Saturday December 29, 2018 @09:23PM (#18786974)
> Less work to generate more money as an industry compared to Disney, that's why they have better valuations.

That speaks to margins, not moat. Margins are already incorporated in the 'earnings' number. High margins do not factor into your multiple.

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