Disney is fighting to find its footing in a world so overtaken by streaming platforms you either get in on the ride or risk being left behind.
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Since Disney loves keeping to the forefront of innovation and is not looking forward to being left in the dust anytime soon, they have decided to extend Bob Iger‘s contract as CEO so that he can comfortably lead the company to the greener pastures when it comes to the world of streaming.
To achieve this, Iger has announced that he will be cutting back on multiple Marvel and Star Wars projects. Already, the planned “Willow” sequel series and “The World According To Jeff Goldblum” have sadly been axed. Which of your favorite movie and/or show will you be saying goodbye to next?
Bob Iger Announces Disney’s New “Cost Containment Initiative”
No more all-you-can-watch Marvel and Star Wars content. After the company saw their recent films, from Marvel to animation, underperform at the box office, they have decided to work with a tighter budget going forward.
“You pull back not just to focus, but also as part of our cost containment initiative. Spending less on what we make, and making less,” Iger told CNBC on Thursday, July 13.
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Iger revealed that the decision was mainly made as a means of growing the company’s flagship streaming service, Disney+, and attracting more customers.
The CEO also shared that a high number of Marvel content, both on the big and small screens, had “diluted focus and attention.”
“It had not been in the television business at any significant level, and not only did they increase their movie output, but they ended up making a number of TV series,” Iger said. “Frankly, it diluted focus and attention.” Per a report by Variety, Disney is targeting a $3billion (£2.4billion) in savings for 2023.
Bob Iger Says Losses Are A Part of the Maturation Process
Due to the loss of value in content developed for Hulu and Disney+ to draw new subscribers, the company will be reducing the volume of production as they work to adjust to today’s market.
“This is part of the maturation process as we grow into a business that we had never been in,” Iger said.
“It’s critical we rationalise the volume of content we’re creating and what we’re spending to produce our content,” he told investors. “Our legacy platforms enable us to expand our audiences and often augment our potential streaming success while at the same time allowing us to amortise our content costs across multiple windows.”
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