Yesterday, we learned about some BIG priorities for the Walt Disney Company.
©Natacha Rafalski and Walt Disney Imagineering via Instagram
The company held its Q4 Earnings Call, and we learned a ton about what has been happening inside the company recently and got a peek inside the curtain for what is to come. This includes Disney’s FOUR biggest priorities for this coming year, and they may not be what you think.
While these things may be their biggest priorities for the upcoming year, it is important to note that Iger stated, “We have already made considerable progress on these four opportunities, and we will continue to move forward with a sense of purpose and urgency,” so a lot of these things are already in the works and are planning on becoming even bigger than what they are right now.
Walt Disney Studios
Iger outlines four key priorities for The Walt Disney Company. Let’s see what’s in store.
Achieving significant and sustained profitability in our streaming business
Their first priority for this coming year is achieving significant profit streaming, meaning they want their streaming services to get even bigger. They have been making great headway on these goals recently, with the release of the ad-backed subscription of Disney+, which has grown the subscription numbers by almost 2 billion. This is in addition to the over 112 million Disney+ subscriptions.
©Disney
Their main goal with this is to turn streaming into a profitable growth business. During the Q4 earnings call, Iger said, “Our recent performance solidifies that we are on that path.” Disney+ has had great success recently with the release of Guardians of the Galaxy Vol. 3, Elemental, and various other titles. Theatrical movies are some of their most watched content on Disney+, and they don’t plan to stop putting them on Disney+ for us to stream, even if it is after the release in theaters.
Building ESPN into the preeminent digital sports platform
We know Disney has a great relationship with ESPN. Their second goal for this coming year is to build up ESPN into something even bigger. During the call, Iger said the strength that ESPN has been showing has “demonstrated the value of sports and the power of the ESPN brand.”
©ESPN
The results that the company has been seeing recently have given them confidence in their beliefs that sports have the power to drive up revenue in the Walt Disney Company, especially since the is is a very popular and high-demand product.
Improving the output and economics of Disney film studios
The third priority for the Walt Disney Company is improving the output of their movie studios. One of their biggest goals is strengthening the film studios and focusing heavily on the brands and franchises that fuel businesses while continuing to create new intellectual properties. Films from the studios do very well on Disney+ and will hopefully continue to do so.
©Disney
Disney has already seen some progress in this regard, noting that 4 of the top 10 highest-grossing films at the global box office have been made by Disney.
Turbocharging growth in the Experiences business
Disney Parks are one of the most well-known assets of the Walt Disney Company. We’ve seen them go through intense ramp-up phases (The Disney Decade), and we’ve seen them tone things down a bit with a few changes and additions here and there. During the call, they shared that they plan to announce a 10-year plan for parks and experiences. They have noticed that the experiences division has given them a strong return over time, and over the last five years, their return on investment has almost doubled in the domestic parks. It sounds like they want to continue this trend going forward with the 10-year plan that they had mentioned.
All of this to say, the Walt Disney Company has some big plans ahead. Keep checking in with us at DFB for updates!
Read more about the earnings call here!
Join the DFB Newsletter to get all the breaking news right in your inbox! Click here to Subscribe!
WE KNOW DISNEY.
YOU CAN, TOO.
Oh boy, planning a Disney trip can be quite the adventure, and we totally get it! But fear not, dear friends, we compiled EVERYTHING you need (and the things to avoid!) to plan the ULTIMATE Disney vacation.
Whether you're a rookie or a seasoned pro, our insider tips and tricks will have you exploring the parks like never before. So come along with us, and get planning your most magical vacation ever!
What do you think about these big plans? Let us know in the comments below!
Our handy (and portable!) ebook guides make sure you get the best deals and can plan a vacation of a lifetime.
Means what… higher prices for everything Disney. Did not hear reduce operating costs by unit.
Three of the four big priorities that Mr. Iger talks about are made possible by the fourth big priority. The parks, hotels and restaurants are paying for everything else Disney wants to do. Give the Park Guests a break. Please bring back the Fast Pass with three rides each day well in advance of arrival. I would be willing to pay for that rather than the COST AND INCONVENIENCE OF THE GENIE PLUS AND THE INDIVIDUAL ATTRACTION. PLEASE!
4 of the top 10 grossing movies might have been from Disney but as far as the financial consideration, they were all flops! Disney didn’t make their “break even” money on any movies so they are in the hole and once again, Iger spins a different tale from reality.