Robert Iger spoke about the future of Disney+ and it seems to be the crisis for everyone…
«My small business does not know the crisis», sang Alain Baschung in 1994. Almost three decades have passed and even large companies are now facing economic setbacks. In any case, this was suggested by Robert Iger, CEO of the Walt Disney Company, during an interview this Thursday at the Morgan Stanley Media and Telecommunications Conference in San Francisco.
According to the Wall Street Journal, which collects his words, the businessman is very confident about the future of Disney +, but he will still have to make some concessions.
Towards a price increase?
Robert Iger thus explains that it is fundamental “better rationalize [ses] costs“. The growth of the service will obviously depend on attracting new subscribers, but also and above all through the development of a “pricing strategy that makes sense“. He clarifies his thoughts by adding that the desire to increase the number of Disney + subscribers, the company has “cheated [sa] Prices for placing strategy».
Therefore, we must adapt and reinvent ourselves. It must be said that Disney+ was one of the cheapest SVOD services on the market and adapted in 2022 by raising its prices and launching a new ad-supported subscription (but not yet available in France). According to Robert Iger, this still does not seem to be enough…
too much competition
It must be said that the competition is increasingly fierce. If we take away Salto, which was withdrawn in February, there are still several very attractive SVOD services on the market. Robert Iger is well aware that everything “they are looking for the same subscribers” and “not everyone will win».
less new content
In addition to increasing the price of subscriptions, and therefore revenue, the other way to aim for profitability is to reduce production costs. Last month, Robert Iger explained that Disney was going to reduce the production of entertainment content. Therefore, there will be fewer new movies and series from the Disney, Star Wars, Pixar or Marvel universes.
The other possibility is to offer part of this content under license to third parties. So perhaps we could find Marvel series on Netflix, although the case of Daredevil, Jessica Jones and Luke Cage has certainly cooled the fervor of the Reed Hastings firm.
Today’s big question for Robert Iger concerns the use of Marvel characters. “What matters is how many times we return to the well for certain characters“, he explains to justify the many movie sequels. However, there is still stock:Marvel has 7000 characters, there are many stories to tell».
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