Streaming Is Disney CEO Bob Iger’s Number One Priority
Today saw Bob Iger speak to investors for the first time during the Walt Disney Company’s first quarterly results investor call, where he outlined the plan for the future, which will see the company restructured into three divisions, Disney Entertainment, ESPN and Parks & Experiences.
One of the major focal points of the investor’s call was Disney’s focus on streaming, with Bob Iger saying that it is “my No. 1 priority” and that he has “drilled down into every facet of our streaming business” since he returned as CEO. He is still focused on making sure Disney+ is profitable by 2024 and will be making many changes to do so, including cutting costs such as being more selective in what content it creates.
Bob also explained that he feels that that they will be addressing pricing, local content and promotions for Disney+. With the company becoming “too aggressive” in marketing its streaming services, and are now looking for “quality subscribers” (aka long-running subscribers, rather than those who churn in and out).
Multiple times throughout the investor call, Iger was asked about the declining linear TV networks, where Bob said:
“Linear TV and satellite is marching towards a great precipice and it will be pushed off. I can’t tell you when, but it goes away.”
One of the big changes with streaming is that streaming platforms don’t lock in subscribers like traditional cable networks, with Bob Iger explaining that he’s been:
“watching this very carefully for a long time. What I’m talking about is the impact of technology is basically causing a huge authority shift from the producer and distributor to the consumer. That’s tremendous change,”
Disney is, no longer focusing on how many subscribers its streaming platforms have and like other streaming platformplacedwill stop providing subscriber forecasts and put a greater emphasis being put on profitability and other metrics. He also explained that:
“We’re in a very interesting transition period, one that is inevitably heading toward streaming.”
Ultimately, Bob Iger really put over the importance of streaming for the company, especially with linear income declining, but adding that they have to readjust following the pandemic, the economic situation of the world and making streaming profitable for the future.
What do you think of Bob’s comments?