At a recent investor conference, Disney CEO Bob Iger blamed the company’s huge losses on spreading itself over too many projects.
Speaking at the 2024 Moffett Nathanson Media and Communications Summit, Iger explained why he believes projects like streaming platform Disney+ are hurting the company’s bottom line.
“Because we entered the streaming business in a very, very aggressive way, we tried to tell too many stories. Basically, we got way ahead of our potential revenue and tried to tell too many stories. That’s why streaming ended up losing $4 billion,” Iger said during the webcast. meeting.
Recent reports have revealed that outside of Disney+, the studio’s supposed blockbuster films have been catastrophic failures.
“Marvels,” “Wish,” the new Indiana Jones, and Disney’s “Haunted Mansion” titles combined resulted in a staggering $600 million in losses in 2023.
Iger said his successor, Bob Chapek, who later replaced him upon his return, was irresponsible with spending.
“It was clear that our structure wasn’t working, because we were basically removing accountability from the companies in which we were investing the most capital,” Iger said. the paper reported. hollywood reporter.
“I’ve been telling everyone that good isn’t good enough. It has to be great.”
Iger argued that increased spending meant there was too much content to focus on, adding that the spending “led to quantity, not quality, and that was a mistake.”
But Iger also said that to compete with Netflix and Amazon Prime Video, it actually needs volume.
“There is a fine line that can be crossed and problems arise if we end up less concerned with management that we are making the right quantities. That’s what happened. So I withdrew it,” the CEO told the newspaper. meeting.
It’s unclear how Iger’s comments will mesh with the company’s recent efforts to focus on creating sequels rather than original stories. The CEO said there is a lot of value in making a sequel, especially because the story is “known” and it takes less time “from a marketing standpoint.”
Mr. Iger does not acknowledge in any way, shape or form that injecting diversity, equity and inclusion into Disney projects is offensive to audiences. Rather, Iger said, the company doesn’t inject any message into its content.
The Mickey Mouse company is reportedly planning to reconnect the studio’s creative department to the monetization side to ensure quality is not lost.
“I’ve been telling you guys that good is not enough. It has to be great. Just keep pushing it, but if you force yourself to earn too much, it’s It becomes almost impossible,” Iger said.
Disney also hopes bundling streaming platforms like Hulu and ESPN+ will increase overall engagement.
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