Disney CEO Bob Iger calls the drive to make streaming profitable a priority

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by Samuel Pordengerg Nov 28, 2022 News
Disney CEO Bob Iger calls the drive to make streaming profitable a priority

One of Bob Iger's top priorities is to make the company's streaming business profitable.

Iger acknowledged that the measurement of success has changed since Disney's all-in embrace of streaming and Disney+. Wall Street investors are now focused on profitability.

Iger told a town-hall meeting on the company's Burbank, California, lot that they need to start chasing profitability instead of chasing subscribers with aggressive marketing.

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We have to take a very hard look at our cost structure in order to achieve that.

Disney is trying to grow its streaming service without losing its film or television businesses.

The board decided to install Iger as chief executive after ousting Bob Chapek who had lost the support of senior staff.

Iger posted a picture of the company's headquarters and said he was excited to be back.

Iger said from a sound stage on Disney's lot that he was coming back to the company he led for 15 years with a sense of desperation. He was struck by the song "What'd I Miss?", which was written by Thomas Jefferson, as he listened to the musical "Hamilton."

The status quo is no longer in place. There has been a lot of change. The sun is shining.

His predecessor had a rough time at Disney. He was praised by the board for guiding the company through the worst of the Pandemic.

He clashed with the star of "Black Widow" over the decision to simultaneously release the film in theaters and online.

Activist investors have pushed for change at Disney.

Iger said he would keep the hiring freeze in place while he looked at Disney's costs. The restructuring of Disney Media and Entertainment Distribution was not on the agenda. CNBC reported the details, which was confirmed by the news agency.

The returning chief executive wouldn't say if Disney would explore a sale to Apple. I don't want to leave this job and go to jail because you can get into a lot of trouble there.

One person who attended the session said that Iger left the stage to a standing applause.

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Reporting by Dawn Chmielewski in Los Angeles Editing by Nick Zieminski

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