Following his reinstatement into office, Walt Disney Co. CEO Bob Iger has highlighted that one of his top priorities is to make the company’s streaming business profitable.
The company said that Iger will be responsible for Disney’s all-in embrace of streaming and the launch of its marquee service, Disney+. Iger acknowledged that the measurement of success has changed. Wall Street investors now focus on profitability, not merely subscriber gains.
Iger said, “Instead of chasing subscribers with aggressive marketing and aggressive spending on content, we have to start chasing profitability. We have to take a very hard look at our cost structure across our businesses.”
Disney joins several media companies seeking to grow its streaming services without sacrificing its film or television businesses.
Iger was reinstalled as the company’s CEO on 20 November 2022 following the removal of his handpicked successor, Bob Chapek, who had lost the support of senior staff.
Commenting on his return, Iger said he returns to the company he led for 15 years with a sense of urgency.
According to BMA sources, Bob Chapek had a rocky tenure at Disney’s helm, even as he was credited with navigating the company through the worst of the pandemic.
Disney has also been under pressure from activist investors pushing for change. Iger said he planned to keep a hiring freeze, which Chapek instituted, while he assesses Disney’s cost structure. However, sources say he offered no timing on restructuring the company’s film and television distribution group, Disney Media and Entertainment Distribution.
