Disney CEO Bob Iger has announced that the company will be reducing the creation of new Star Wars and Marvel content. This decision comes as part of the company’s cost-cutting initiatives, following a series of recent films that have underperformed at the box office.
In an interview with CNBC on July 13, Iger explained, “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.” The decision is also aimed at bolstering the company’s flagship streaming service, Disney+, in an attempt to attract more customers.
Iger noted that the influx of new Marvel content, both in film and television, had “diluted focus and attention”. He stated, “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. Frankly, it diluted focus and attention.”
In recent months, Disney has been systematically removing content from Disney+ as part of its cost-cutting measures. This has resulted in the cancellation of new shows such as the Willow sequel series and The World According to Jeff Goldblum.
According to Variety, Disney aims to save $3 billion in 2023 and anticipates a reduction of $1.5 billion to $1.8 billion later this year due to the loss of value in content developed for Hulu and Disney+ to attract new subscribers.
Iger described these changes as part of the maturation process as Disney grows into a business area it had not previously been significantly involved in. He emphasized the importance of rationalizing the volume of content being created and the associated production costs.
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 amortize our content costs across multiple windows.”
This strategic shift by Disney signifies a new direction for the company as it navigates the challenges of the streaming market and the evolving entertainment landscape.
FAQ:
Q1: What has Disney CEO Bob Iger announced about Star Wars and Marvel content? A: Bob Iger has announced that Disney will be reducing the creation of new Star Wars and Marvel content. This decision is part of the company’s cost-cutting initiatives.
Q2: Why is Disney reducing the creation of new content? A: The decision comes in the wake of several recent films underperforming at the box office. Disney is also aiming to bolster its flagship streaming service, Disney+, and attract more customers.
Q3: How has the influx of new Marvel content affected Disney? A: According to Iger, the influx of new Marvel content, both in film and television, has “diluted focus and attention”. He believes that the company needs to rationalize the volume of content being created.
Q4: What content has Disney been removing from Disney+? A: Disney has been systematically removing content from Disney+ as part of its cost-cutting measures. This has resulted in the cancellation of new shows such as the Willow sequel series and The World According to Jeff Goldblum.
Q5: How much does Disney aim to save in 2023? A: Disney aims to save $3 billion in 2023. The company also anticipates a reduction of $1.5 billion to $1.8 billion later this year due to the loss of value in content developed for Hulu and Disney+.
Q6: What did Iger say about the changes at Disney? A: Iger described these changes as part of the maturation process as Disney grows into a business area it had not previously been significantly involved in. He emphasized the importance of rationalizing the volume of content being created and the associated production costs.