As Disney continues to adapt to the evolving landscape of the media industry, CEO Bob Iger revealed that the entertainment giant is mulling over a measured approach in creating content for its Star Wars and Marvel franchises.
During his recent CNBC interview, Iger divulged Disney’s contemplation to moderate the pace of content creation for its iconic Marvel Studios and Lucasfilm franchises. This strategy coincides with the company’s efforts to rationalize expenses amidst a backdrop of lukewarm box office performances across various film categories, including Marvel and animated productions.
“We need to adopt a two-pronged strategy, focusing more intently on what we produce while keeping a vigilant eye on expenditure. By producing less and spending less on production, we aim to strike a balance between creativity and cost-effectiveness,” Iger outlined.
Earlier this year, Disney initiated a sweeping business restructuring that targeted $5.5 billion in cost savings, with a significant portion, $3 billion, earmarked from non-sports content. This recalibration is in line with Disney’s pursuit of bolstering its primary streaming service, Disney+, to attract and retain more customers.
Iger identified Marvel as a case in point where the fervor to inflate original content for streaming has led to a dilution of the brand’s focus. “Marvel ventured into the television business at a substantial scale, increasing their movie output alongside numerous TV series. This, however, risked diminishing the brand’s focus and attention,” he remarked.
Since Disney’s $4 billion acquisition of Marvel in 2009, the franchise has reaped substantial global box office earnings. However, following the steep decline in ticket sales for the film “Ant-Man and the Wasp: Quantumania” and its mixed-to-negative reviews, Iger previously indicated that Disney should reconsider the number of sequels each Marvel character warrants, and seek out “newness” for the brand.
On the Lucasfilm side, despite no Star Wars films hitting the theaters since 2019, the focus has primarily been on series for Disney+ like the Emmy-nominated “Andor” and “Obi-Wan Kenobi”. Although Lucasfilm’s “Indiana Jones and the Dial of Destiny” underperformed at the box office, both Lucasfilm and Marvel have proven to be reliable revenue streams for Disney since their respective acquisitions.
Disney’s approach to its content has been, for the most part, exclusive to its streaming service, an approach shared by many competitors. However, in light of the challenges encountered, Iger suggested that Disney may consider licensing its content to other streaming platforms.
“We may consider licensing in the future. It’s not off the table,” Iger said. He further added that while holding content exclusively on their platform was the right move in the initial stages of streaming, licensing has traditionally been a part of the TV business model.
Recently, there have been reports of Warner Bros. Discovery considering licensing HBO content to other platforms, including Netflix. As Disney finds its footing in the era of streaming, it may also pull back on content creation for its premium franchises to enhance focus, contain costs, and ensure sustainable growth. This strategic rethinking signals Disney’s flexibility and willingness to adapt to the ever-changing dynamics of the entertainment industry.
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