Robert Iger, who returned as CEO of Walt Disney Co DIS late last year, hinted at what may lie down the road for the entertainment giant in its quest for streaming profitability.
What Happened: At Morgan Stanley’s Media and Telecom Conference in San Francisco on Thursday, Iger said Disney could raise streaming prices further and begin licensing content to competitors, the Wall Street Journal reported.
The Mouse House has "a lot of rationalization to do from a pricing perspective," Iger said, adding that subscriber growth would slow.
The Disney veteran dismissed the idea that all streaming competitors would be profitable and boost subscribers by the millions.
"It can’t possibly happen,” Iger said. "Not everybody’s going to win.”
He said Disney was thinking about windowing and exclusivity for content among its own platforms. "There probably are opportunities to license to third parties,” he said.
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Touching on Disney's blockbuster Marvel franchise, Iger questioned the need for too many sequels. “Marvel has 7,000 characters. What we have to look at ... is not necessarily the volume of Marvel’s storytelling, but how many times do we go back to the well on certain characters?” he said.
Why It Matters: Total Disney+ subscribers fell in the company's first quarter to 161.8 million from 164.2 million in the previous three-month period.
The streaming platform hiked prices in December and also rolled out an ad-supported plan in its quest to boost revenue.
Iger last month reiterated his streaming-first approach, admitting Disney+ had become "intoxicated" by its own subscriber growth in early days but expects to be profitable by the end of 2024.
Price Action: DIS shares closed 3.175 lower at $96.15 on Thursday, before dipping marginally in after-hours trading, according to data from Benzinga Pro.
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