Disney wants to focus less on chasing subscribers in the future. Instead, CEO Bob Iger announced that he wants to increase the company’s profitability. To achieve this, the organization in particular is to be redesigned. Despite the new course, Iger wants to maintain the cost-cutting measures of his predecessor.
After former Disney CEO Robert “Bob” Iger returned to his post from retirement, he recently announced that his top priority is to make the company’s streaming business profitable. That’s according to a report from Reuters news agency.
Disney no longer wants to chase subscribers
Speaking at a town hall meeting at the company’s Burbank campus in U.S. California, Iger said Wall Street investors are also now more focused on the streaming service’s profitability. Subscriber growth is taking a back seat for now, he said.
The measure of success has changed, he said. Instead of chasing customers with aggressive marketing and spending on content, Disney needs to start chasing profitability, Iger said.
Iger wants to change organizational structure at Disney
The move joins a number of media companies that are trying to expand their streaming services without sacrificing their film or television businesses. According to a report from CNBC, Iger is planning to revamp the organizational structure.
No more home offices for employees?
This would include the working mode of employees. Iger reportedly does not want to make any dramatic announcements about Disney’s work-from-home policies. However, he said he believes creative businesses work best when employees are together in person.
He also said Disney is not seeking any major acquisitions in the near future. Iger is satisfied with the current state of affairs, he said.
Disney presented disappointing quarterly figures
Just recently, Bob Chapek surprisingly resigned from his post as CEO. To fill the vacancy, Iger, the company’s longtime chief executive, has returned from retirement.
The board asked him to set the strategic direction for renewed growth. Most recently, the company has struggled with disappointing quarterly results and relatively high costs. In addition, Disney shares fell nearly 38 percent in 2022.
Iger maintains hiring freeze
Ex-CEO Chapek announced a cost-cutting program, including layoffs and a hiring freeze, shortly before his resignation. Iger wants to maintain that while he reviews the company’s cost structure.
To achieve profitability, Disney must take a very, very close look at its cost structure in all business areas, the CEO also expressed.
Iger is responsible for the group’s extensive entry into the streaming business and the launch of Disney Plus.