The Walt Disney Company’s CEO, Bob Iger shares insights on what may be ahead for streaming, including the future of Disney+.
Bob Iger Returns
Bob Iger returned as Disney CEO back in November 2022. Many were hopeful that many issues would be addressed with the return of Bob Iger.
During his first earnings call, many big announcements were made including big job cuts for the Walt Disney Company, a brand new Avatar experience, and also three great sequels were announced.
He also took the time to share some plans for the theme parks. Read all about those HERE.
Improving Streaming Business
Iger shared in today’s (March 9) webcast that although streaming and Disney Plus has grown, Disney needs to control costs and create a pricing strategy that makes sense. He added that Disney needs to increase subscriptions and come to grips with rising costs of production.
Then, Iger stated that Disney cannot expect Disney+ to continue growing at the current rapid rate. However, there are other markets that haven’t been tapped into.
Content versus Financial Performance
Iger feels that there needs to be stricter accountability between income, advertising, and expense. Bottom line is stockholders expect streaming services to be profitable.
Disney streaming services can become effective and efficient by reducing expenses by 5.5 billion dollars. To do this, Iger believes that pricing needs to be more aggressive and marketing more effective. This will be done by reducing the amount Disney spends to create content while also creating less content.
There are 6-7 well-funded programmers all wanting the same subscribers currently. Disney currently owns 2/3 of Hulu and has the chance to purchase 100% of the company from Comcast. Iger says that erosion of traditional programming is being blended with growth of streaming services.
Disney streaming services can become effective and efficient by reducing expenses by 5.5 billion dollars.Bob Iger, The Walt Disney Company CEO
In a disappointing statement, Iger said that exclusive Disney Plus content is not as great a priority as Disney believed. In other words, Disney Plus content will also be available on other networks.
The combination of reducing exclusive content, cutting costs, and increasing revenue sounds as if Disney Plus will cost more for less content in the future. This makes me (Susan) wonder if people will continue to pay more and receive less?
Disney Plus may cost more for less content in the future.
What are your thoughts on these changes? Will you continue a Disney Plus subscription or cancel it? Please let us know your thoughts in the comments and share this post with a friend.