Disney CEO Bob Iger is betting big on Taylor Swift, ‘Fortnite’ and football. He claims his investment will fuel “significant growth” as the Mouse House struggles to recover from years of lackluster performance.
Mr. Iger on Wednesday made a series of sweeping announcements aimed at reversing the entertainment giant’s fortunes after Disney reported lower-than-expected quarterly sales of $23.5 billion.
One of the most talked about moves is that Disney+ will be the home of Swift’s “Ellas Tour” concert film.
The film, which has grossed $261.6 million so far against a $15 million budget, was not included in the theatrical release or theatrical release when it was released on streaming platforms on March 15. Exclusive videos for 5 songs will be released. -Demand version of the almost 3 hour movie.
The exclusive track will include “Cardigan,” the lead single from Swift’s 2020 Grammy-winning album Folklore, according to the 34-year-old superstar. Instagram post “I’ve found a streaming home,” he announced.
Loyal Swifties are already on social media To tell They said they would “sign up again for Disney+ in March,” which should help the streaming company, which lost 1.3 million subscribers after implementing the price hike.
In August, Disney raised the monthly price for ad-free Disney+ by $3, or about 27%, to almost $14. Ad-free Hulu’s price also increased by $3, bringing him to nearly $18. That’s a 20% increase, making it more expensive than Netflix’s most popular ad-free slot.
Disney on Wednesday predicted it would add up to 6 million Disney+ subscribers in the second quarter, but Iger didn’t attribute that prediction to the movie “Ellas Tour.”
Iger also announced plans to invest $1.5 billion in Epic Games in exchange for a stake in the company. This will give Disney access to a portfolio of video games, including Fortnite, which has more than 100 million monthly active users. wall street journal report.
The North Carolina-based gaming giant also develops other games inspired by Marvel, Star Wars, The Lord of the Rings series, and more.
Iger said the two companies will work together to create a “huge Disney Universe” where consumers can interact with characters and stories from Disney, Pixar, Marvel, Star Wars and Avatar.
“This is Disney’s largest ever entry into the gaming world, and a huge opportunity for growth and expansion,” Iger added in a statement.
Disney also announced plans to shore up its struggling sports division with the long-awaited launch of its flagship sports network ESPN. It will be bundled with Disney+ and Hulu, and will integrate features such as ESPN Bet, fantasy sports, and e-commerce.
Iger said the venture is scheduled to begin in August 2025.
The announcement comes as Disney forms a joint venture with Fox and Warner Bros. Discovery to launch a streaming sports service that combines an extensive portfolio of professional and college sports rights with networks including ESPN and Fox Sports. This took place just one day after the announcement. 1 and TNT.
Retired University of Alabama football coach Nick Saban will join ESPN’s College GameDay program as an analyst and contribute to NFL Draft coverage, Disney announced after its quarterly results.
Asked whether the pop culture-focused effort would help appease Nelson Peltz, the activist investor who has spearheaded the proxy campaign against Mr. Iger, Disney’s chief said the quarterly results and new He said the efforts showed the team was motivated, focused and “very optimistic”. ”
“The last thing we need at this point is to give up our time and energy to activists who frankly have a completely different agenda and who don’t even understand our company, its assets, or even our organization. It’s the essence of the Disney brand,” Iger told CNBC.
A spokesperson for Mr. Peltz’s Trian Fund Management told the Post about Disney’s earnings: We saw this movie last year and didn’t like the ending. ”
Mr. Peltz is pressuring Disney to make its streaming business as profitable as Netflix, boost movie box office success and strengthen EPSN as a digital platform.
Mr. Peltz is asking shareholders to add him and former Disney executive Jay Laslo to the company’s board of directors.
Representatives for Disney did not immediately respond to The Post’s request for comment.
