Disney is going to make TV shows and movies on the cheap for Disney+ seems to be a takeaway from the Q1 earnings call.
Well, maybe that’s oversimplifying it a bit. But it’s clear the House of Mouse is well past its free wheelin’, free spendin’ phase.
Disney CEO Bob Iger is looking at cutting $3 billion in content costs, and stated during the call that they’re going to take a good, hard look at the costs associated with each production… and whether or not they’ll recoup those costs on streaming.
From The Hollywood Reporter…
“We are going to take a really hard look at the cost for everything that we make, both across television and film. Because things in a very competitive world have just simply gotten more expensive, and that’s something that is already underway here. In addition, we’re going to look at the volume of what we make. And with that in mind, we’re going to be fairly aggressive at better curation when it comes to general entertainment,” Iger said when asked about the savings on the earnings call.
Disney+ has yet to turn a profit, and the mounting costs of production are weighing down the company. Iger admits that streaming isn’t quite the cash cow the company was hoping for, but that they’re still on the road to profitability.
“Now it’s time for another transformation; one that rationalizes our enviable streaming business, and puts it on a path to sustain growth and profitability, while also reducing expenses to improve margins and returns,” Iger continues, “and better positioning us to whether future disruption, increased competition, and global economic challenges.”
Disney+ isn’t expected to turn a profit until 2024, and lost 2.4 million subscribers this quarter, its first loss since the streaming platform launched in 2019.
[Source: The Hollywood Reporter]
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