Disney CEO Bob Iger Looks to Drastically Change Marvel and Star Wars Strategy, Considers Licensing Original Content

Bob Iger, the CEO of Disney, recently discussed the future of the company in a 40-minute interview with CNBC. During the interview, Iger revealed that there could be significant changes to some of Disney’s biggest brands in the next four years or more.

One of the changes that Iger mentioned is a reduction in spending on Marvel and Star Wars-related content. According to Iger, the influx of Marvel TV shows has “diluted focus and attention” on the films, leading to disappointing performances at the box office. For example, the film “Ant-Man and the Wasp: Quantumania” only earned $463 million, making it one of the lowest-grossing Marvel movies of all time. This drop in box office performance is one of the reasons why Iger is reconsidering where Disney’s money is allocated.

When asked about pulling back on Marvel and Star Wars, Iger explained that it is not just about focusing on other areas but also part of a cost containment initiative. He also mentioned the possibility of licensing some of Disney’s original content to other streaming services instead of keeping it exclusively on Disney Plus.

In addition to changes in content spending, Iger hinted at potential changes to Disney’s linear business, including its cable TV networks such as ABC, National Geographic, and FX. He suggested that Disney may explore a sale of these channels, as they may not be considered core to the company. Iger stated that while these networks create valuable content, the distribution and business models underlying them are broken and have not been as profitable in recent years.

Regarding ESPN, Iger expressed that the sports industry “stands very, very tall.” While Disney is not looking to spin off the network, Iger mentioned the possibility of seeking strategic partners to assist with distribution or content. He also hinted at the inevitability of bringing the network off of cable, a move that has been speculated in the past.

The interview also touched on the leadership transition at Disney. After stepping down as CEO in 2020, Bob Chapek took over the position. However, Chapek faced criticism for Disney’s response to Florida’s “Don’t Say Gay” bill and its handling of a dispute with Scarlett Johansson. As a result, Iger returned as CEO last November, acknowledging that the challenges were greater than he had anticipated.

In addition to the internal challenges, Disney is also dealing with writers’ and actors’ strikes, which Iger believes are disruptive. He stated that there is a level of expectation from these groups that is unrealistic and adds to the challenges the company is already facing.

Actress Joely Fisher, the national treasurer of SAG-AFTRA, the union representing Hollywood actors, criticized Iger’s statement, calling it “bullshit.” Fisher argued that while some individuals are making significant profits, it is not unreasonable for actors to expect fair compensation for their work.

Overall, Iger’s interview shed light on the potential changes and challenges that lie ahead for Disney. From reevaluating content spending to exploring new opportunities for its linear business, the company is navigating a rapidly evolving entertainment landscape under Iger’s leadership.

What potential changes to content spending and linear television networks can Disney make to stay ahead of the competition and remain profitable in the international market

F these networks or consider partnering with other companies to reduce costs and increase profitability.

Iger emphasized the importance of adaptability in the ever-evolving media landscape and acknowledged that Disney needs to evolve and pivot to stay ahead of the competition. He mentioned that the company will continue to invest in its streaming services, such as Disney Plus, as they have seen tremendous success and have become a significant part of the company’s future strategy.

Furthermore, Iger touched on the importance of international expansion and target audience customization. He highlighted the success of Disney’s theme parks and resorts in Asia, particularly China, and expressed the company’s intention to continue expanding its presence in these markets.

Overall, Iger’s interview provided insights into Disney’s future plans, highlighting potential changes to content spending, linear television networks, and international expansion. These considerations demonstrate Disney’s commitment to adapt and innovate in order to remain competitive in the ever-changing media industry.