The Walt Disney Company just held the first earnings call since Bob Iger’s return.
Cinderella Castle
We learned a ton of details about Disney+ streaming and subscriber numbers, park operations and profits, and layoffs that are coming for the company. We also learned one very important piece of information: what Bob Iger’s number one priority is now that he’s back at the helm.
Since Bob Iger returned as CEO to restructure and reorganize The Walt Disney Company, investors and fans alike have been waiting to hear exactly what his plans are in order to achieve that goal. And now, following the first quarter earnings call of 2023 — we have an answer.
©Reuters | Disney CEO Bob Iger
Iger’s number one priority is improving streaming at Disney — most likely when it comes to Disney+, but also Hulu and ESPN+ as well. It’s no surprise that the second-time CEO would choose streaming as his top priority, especially considering that area of the company hasn’t been doing so hot historically.
Bob Iger ©New York Post
In November 2022, we got an updated look at the Disney+ subscriber numbers but we also learned that Disney’s streaming business as a whole had a loss of nearly $1.5 BILLION. This loss ultimately contributed to the ousting of Bob Chapek as CEO.
In the Q1 earnings call on February 9th, we learned that the total number of Disney+ subscribers is now 161.8 million. As far as ESPN+ and Hulu go, both of those services are up in subscriber count as well, with 24.9 million and 48 million, respectively. Disney reported a $1.053 billion operating loss in its direct-to-consumer division this quarter compared to Q4 of FY 2022.
©Disney
No sudden flipping of the Bob switch could magically make Disney’s streaming division profitable, and because of that, Iger is still choosing to focus on growth and profitability for streaming. Iger reiterated Disney’s previous comments that they expect Disney+ to be profitable by the end of fiscal year 2024.
©Hulu
The new organizational structure announced by Iger during the call will hopefully help by relinking the creative process with the financial results. As Iger put it, Disney is putting content back into the hands of the creatives.
Disney will be focusing on its core brands and franchises, which have historically delivered higher returns. They’re working on curating content and adjusting as needed, adjusting pricing and marketing strategies, and fine-tuning streaming advertising.
©Disney
According to Iger, the “streaming business is the future and has been growing.” During the call, he also announced that 3 popular franchises will be getting sequels — but has promised that there will be more of a focus on the quality of the content being created versus the quantity.
More specifically, Iger said Disney has “to be better at curating the Disney and the Pixar and the Marvel and the Star Wars of it all” by focusing on “core franchises” like these.
©Alberto E. Rodriguez / Getty Images
When asked about how exactly Iger plans on improving and growing Disney’s streaming division, he had a few ideas in mind:
- Seeking loyal subscribers for the long-term
- Reviewing pricing and making sure services are priced correctly
- Rebalancing marketing on the platform versus marketing of the programs
Bob Iger ©Bloomberg
There’s a long road ahead of Bob Iger and Disney+, so stay tuned to DFB for the latest news from Disney and more.
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What do you think the future of streaming will look like? Let us know in the comments!
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As a life long guest I really want them to add a new park, but I like streaming too… so basically I’m going to take whatever they give me
Bring back Magical Express and allow us to book lightning lanes and Genii+ ahead of time like we could do with Fastpass+ and I will buy your streaming services and get lots of other customers for you. I know we will never get free Fastpass+ again and I don’t mind paying for Genii+ just let us book it ahead of time. It’s really hard to plan your day when you have to wait until 7:00 in the morning to book things. We have to book park reservations way ahead of time, so it only makes sense to allow us to book our Genii+ and lightning lanes. The excuse about being more spontaneous makes no sense when you have to make park reservations way ahead.
I have no idea how to run a streaming media service, so I don’t know why Disney+ is losing so much money. You’d think since they show only Disney context, it wouldn’t cost much since there is no licensing fees. I can understand Hulu an ESPN, but not Disney+. Maybe because they are all connected?
No mention of the 7,000 cast members to be laid off?
Could have sworn one of the reasons Iger got rid of Chapek was that he focused too much on streaming?
There they go AGAIN!!! With everything ALL Wrong at DISNEY WORLD,- Paying for the New FAST-PASS, the Continuous Price INCREASES of FOOD, TICKET PRICES, Loss of FREE Bus Transportation, and just about EVERYTHING Else!!! They still are just thinking of making More money and not caring about what is happening to all the old faithful Disney World customers and those who hardly can NOT even AFFORD to go there any longer !! They should realize,- its the people who go there that is the Most important to KEEP the PARKS, HOTELS, etc. Going for the future years !! WAKE UP Disney.
His number one priority is streaming? It should be having Disney return to creating family entertainment. His idea of fixing steaming profitability? That will be raising prices and adding commercials. Also, raising prices. Also, he was the one to put Disney in this situation to begin with.
So, he is going to work on Disney streaming but layoff 7,000 employees. I am sure that makes sense somewhere.
I don’t get this at all, it’s the parks that need the love, Disney must go back to its core beginning, and start to create original art , from that comes ideas,attractions etc. plus the merchandise cost has to be looked at, it’s ridiculous that people are looking at $40 for wearable ears , just crazy, tee’s that are $30-50 , crazy, paying individual LL, cost of Genie plus for large family’s , why can’t they give a family a GP for $30 for 4 , streaming is lost! Stop over selling Star Wars , marvel, the galactic star cruiser , scrap those prices, money is being wasted hand over foot , and I’m sorry but BI has to take responsibility for all these failings, we love WDW , have just come back, had a brilliant time, will go back for sure, but please make the prices across the board fair for all family’s, not just the wealthy. Start to paint the parks , look after them ! They are the heartbeat of Disney . I overheard an American family say in Epcot , “ we been here for 5 hrs and done nothing “ they then went to TT and had to grab 6 single riders just to get on a ride. Just because people don’t stay in the world, stop punishing them , this only half hour if you stay in the world is crazy, bring the hour back to morning entry , these little things go s long way . Thanks AJ for all your reporting from DFB , love your informative information, mark from uk
I couldn’t care less about the streaming – start making the parks magical again. Get rid of Genie in all its incarnations. Get rid of the park reservation system – I want to decide where I want to go when I want to go that day. Return daily housekeeping – your resort guests pay a pretty penny to stay at your hotels. Clean up the parks and keep attractions up to date with maintenance. Decent food for a decent price. And please stop de-theming everything. We’re at WDW – we want to know we are. We don’t pay that price to stay at a Ramada, Holiday Inn or Drury Inn. I want to know which resort I’m at when I walk into the lobby or enter my room.
Re: Disney+
Growing up I’ve loved everything Disney so of course subscribed to Disney+ and gave gift subscriptions to my kids and grandkids. For the past year I’ve been disappointed with the content and considered canceling. I’ve always enjoyed the classic Disney movies and have most of them on DVD. If that’s all I watch, why pay? I did enjoy Hamilton which was a big plus but not much since. I thought the stage production of Aladdin was promised but never appeared. I’d like to see more about the parks especially WDW. I was happy to find Harmonious. For people unable to go to the parks due to age, disability etc this would be a plus.
Listen the reason we comment is because we live and love Disney , but the last few years have yes been brilliant with Pandora, galaxy’s edge, Tron, GOTG, and it costs a lot of money to run these no doubt, these new attractions are incredible, but come on mr Igor, the changes in pricing and general annoyance of having to wake early just to make a difference to your day seems very in Disney like I must say, we try and visit each year , 10 years ago it was £2000 for staying ASM and ticket prices, now ASM with tickets £3700 and rising, plus DG , plus transportation from airport to resort, plus nearly $4 for water, with Mickey ice cream bars now $6, these everyday items are getting out of control , this needs a major overhaul in thinking, mr Igor is as much to blame for this as mr cheapek, sorry but the experience is not the same, such a shame , we are lucky , we have jobs and a good living , I really feel for family’s ,
When asked about how exactly Iger plans on improving and growing Disney’s streaming division, he had a few ideas in mind:
Seeking loyal subscribers for the long-term
Reviewing pricing and making sure services are priced correctly
Rebalancing marketing on the platform versus marketing of the programs
I read this and I think tiers of Disney+ memberships with a”lower tiers no longer being ad free or commercial free. And if you still want that you going to have to pay more.
I wish they put more of the tv shows that Walt had a hand in making. They did finally put 1957 Zorro on. I want more of these hard to find classics, as I already own all of the classic feature films. If they do that, I will consider coming back. But I feel more strongly about the problems at the park. At this point I’m planning my final trip. I look forward to going somewhere else after this. There are plenty of other vacations that aren’t so stressful
He’s focusing on the wrong things. There has never been an uproar over Disney+. That is not where Disney is losing guests. The parks are hemorrhaging guests right now. For example… Christmas is usually the busiest time of year for the parks. At the beginning of December a night at Animal Kingdom Lodge was $1200. A couple days before Christmas you could get the same room for $375. This tells me that the hotel wasn’t even close to full. But if Disney can make money with fewer guests why would they change anything.
I would LOVE to see Disney build theatres on their property, that they could perform their Broadway shows in…Lion King, Beauty and The Beast, Cinderella, Little Mermaid, Tarzan, Mary Poppins etc.
They have Cirque, but this would add something that you can only get in NYC or larger cities.
His main priority will always be making money for the greedy board and stockholders. As attested by the cutting of jobs and lousy wages, while Disney made about 20 billion dollars. Don’t let the change of face fool you, he is just as big a shark as Chapek, only with prettier words.
Bob, it’s interesting that your NUMBER ONE PRIORITY IS DISNEY STREAMING. Increasing the prices in the Parks, HOTELS AND FOOD should NOT BE THE SOURCE OF MONEY TO SUPPORT STREAMING. Increase the price paid for streaming and give the park and hotel guests a REDUCTION IN PRICE.
This is my first time writing into any of the Disney blogs and I actually read everything that others wrote and I agree. Disney + is crap and I only used it for a month. You are making your money from the parks so they need to listen to everyone’s voice. I love WDW but I am not going again until you bring back your dining program. Also I am a high end wage earner and even I am having a hard time with all of the changes and the cost increases. I go with one other person and I just can’t justify it. I keep hoping to hear that BI is going to do something and I am very disappointed. BI needs to listen to the people and him and including his CFO who stabbed the last Bob in the back and maybe he looks into what she’s doing because you can’t tell me you get more money from the streaming services because everyone who comments says that is not Disneys most profitable venture. LISTEN TO THE FANS and we will comeback very quickly
No surprise with that. The parks make money because of constant price hikes and taking away things that were included in the price of admission and making you pay more to have them back. It sure wasn’t going to be improving guest park experiences. With all executives, it’s how much money can we make for the company. Unfortunately the park cast members have to hear the wrath from unhappy guests.
I have to say this, I cancelled D+ a while ago, reason was it was a bit boring to be honest , and I’m a Star Wars fan big time, but I have them on 4K disc, I like the imagineer programmes and the Disney parks shows, but thats it, I’m 53, I watch Yellowstone, last of us , Tulsa’s king etc, there’s nothing on D+ like those anywhere, they need to show more park stuff on there, also you should be able to buy park merch through the streaming service, honestly I think that would be huge for them, book vacations through that also , don’t try to compete with Netflix , paramount, and yes magical express to return . Mr Igor chasing mr Igors dreams ain’t gonna work I’m afraid, unless he changes the way D+ operates, good luck