"We're focusing more on quality," Iger stated in a call with Wall Street analysts. "That's particularly true with Marvel." This move signals a departure from Disney's previous strategy of churning out numerous blockbuster films to compete with streaming services like Netflix.
Despite Disney's recent box office struggles, Iger remains optimistic about the company's future slate of releases. "I feel great about our upcoming releases," he affirmed. Among the anticipated sequels are Pixar's Inside Out 2, Moana 2, and Marvel's Deadpool & Wolverine. Additionally, the company is set to debut Kingdom of the Planet of the Apes later this week.
While Disney's traditional revenue streams, such as theme parks and resorts, continue to perform well, its streaming services, Disney+ and Hulu, have unexpectedly turned a profit for the first time. However, Disney shares experienced a sharp decline following the revelation that Disney+ failed to meet subscriber growth expectations. Pre-tax profits also fell short of projections, contributing to the market's reaction.
Despite these challenges, Iger remains committed to Disney's streaming ambitions. "Our path to profitability [on streaming] will not be linear," he cautioned. Nonetheless, he emphasized streaming as a significant growth driver for the company in the years to come.
To bolster its streaming offerings, Disney+ is set to implement measures to combat password sharing, a practice that has been prevalent among users. Additionally, the platform will introduce live sports content through a partnership with ESPN, Disney's sports network, later this year.
Iger acknowledged Netflix's success in revitalizing growth by targeting users who share accounts and convincing them to subscribe individually. "Netflix is, in many respects, the gold standard when it comes to streaming," he remarked. Disney aims to emulate this success as it navigates the increasingly competitive streaming landscape.
Despite the emphasis on streaming, Disney remains committed to its core intellectual property and franchise development. Iger highlighted the value of sequels, citing their association with established franchises and lower marketing costs. "There's a lot of value in sequels," he noted, signaling Disney's intention to strike a balance between original content and follow-up films.
Looking ahead, Disney faces both opportunities and challenges in the evolving entertainment landscape. The company's pivot towards quality over quantity reflects a strategic recalibration aimed at maintaining its position as a leader in the industry. With continued investment in streaming and a robust lineup of upcoming releases, Disney remains poised for growth despite recent setbacks. As the entertainment landscape continues to evolve, Disney's ability to adapt and innovate will be crucial in securing its future success.