News The Walt Disney Company Board of Directors Extends Robert A. Iger’s Contract as CEO Through 2026

[_caleb]

Who knows? Maybe there is something sustainable there where the bulk of their customers don't directly pay and they make it up on volume with ads... Does that mean we can expect broadcast network quality output in the future?

They're obviously moving to cut production budgets and content spending, so I think we'll see an adjustment in quality. But I'm hopeful it will be a positive adjustment: from striving for (and failing to meet) blockbuster tentpole film level quality to Netflix's Daredevil-level quality (and not ABC's Agent Carter or Agents of S.H.I.E.L.D.-level quality (I LOVE those shows, but they just felt cheep).

We'll have to agree to disagree on their content being compelling at this point - at least not for anything beyond the binge-and-dump cycle for people paying attention to their subscriptions.

Unless you've got children or adults with cognitive disorders wanting to watch the same older content over and over and over again, that back catalog has little value when it comes to retaining subscribers and plunking money into three seasons of the Mandalorian is great but after the existing subscribers have watched all three, what's to keep them paying?

I believe people are finding themselves falling into binge-holes (is that a thing?) of decades-old shows they never would have thought they'd ever care about. I think this is actually what keeps people on streaming platforms. We're like drug addicts; "I can unsubscribe any time I want, and I probably will soon, it's just that I'm halfway through season 4 of Gilmore Girls."

Are you old enough to remember when the Disney channel was a premium add-on service like HBO - a real subscription service?

I have vivid memories of going to my aunts house (single woman - no children) to watch it because we didn't have it in our cable package. I also remember a Disney channel digital watch she gave me which she'd gotten as part of a sign-up promotion as one of my prized possessions as a young child.

Yes! Same! We didn't have the money for Disney Channel, so we lived for those free preview weeks/weekends!

Where they got big was when they left that model and instead became a part of the basic package. There were no more negotiations with customers. No more having to advertise their channel or offer trinkets to get people to sign up. They negotiated just with the cable providers and once they made a deal, they basically got all those companies customers locked in until it was time to renew and after getting ESPN and a few other channels, they developed the kind of leverage needed to force their whole suite of programming onto cable providers rosters.

They have absolutely none of that power with D+.

Yeah, but there was a cost to becoming part of the cable bundle; it allowed cable companies to stand between Disney and its customers. Lower touch meant higher risk and less informed programming decisions. Like licensing content to Netflix, they lose control and interaction with viewers. This is something they're trying to remedy w/their Direct-to-Consumer model.

If their ultimate goal is to turn D+ into Amazon Prime, their doing an abysmal job at it. Amazon is finally offering ads on a streaming service that never was the original reason anyone signed up. With their complicated web of offerings, they've created a very sticky subscription model that still makes most of it's profit by juicing sales on their website.

If that's the model Disney is going after, it seems strange that they'd start with with the streaming service, raise prices, pull back on content and only after that, start to offer the services they expect to make bigger profit from.

I don't think their goal is Amazon's model OR Netflix's. It's something of a hybrid (especially with Hulu folded into the mix) to be one of the two? three? streaming platforms you subscribe to as a base. And interactivity in ads and the addition of shopping/gaming/social will make it more personal and lively even when they're not cranking out new content at the pace they've been.

Frankly, that looks like an incredibly stupid approach unless it was a late-in-the-game pivot.

And exactly what games and product are they going to be selling?

Star wars cloaks and spiderman masks?

What games?

They don't even have their own gaming studio so who is going to be making and who will be making the majority of profit over whatever this amounts to?

I'm not being rhetorical or trying to prove a point with these questions - I honestly don't know so if you do, please share.

I'm not sure exactly, but we've seen them test product tie-ins and cross promotions, and they've been pretty open about their plans to add in shopping and gaming.

Edited to add this from Disney's recent Global Tech and Data Showcase in Las Vegas:

"Gateway Shop and Shop The Stream: Evolving from GatewayGo, Disney’s first commerce-enabled ad format, new format Gateway Shop allows consumers to access personalized offers for purchase from a retailer without leaving the viewing environment. Soon, viewers can discover and explore products as they watch by sending products they see in films and TV straight to their second screen with Shop the Stream."

I think it was a bad move to shutter their video game studios, but they still have a bunch of licensed games out there (many of them mobile apps, which would play well within the Disney+ interface).

Also, I think gaming for Disney+ won't just be "the inclusion of games on the platform," but also the gamification of ads (ugh, I know) and even of the platform itself. I'm sure they've learned a lot from social media and from their Fortnite partnerships to know what big business (cheap to produce, easy to distribute, high demand) in-app purchases of cosmetic items and digital gifts can be.

 

[_caleb]

Companies LOVE barriers to exit. Ask Comcast or any other subscription based business model.

Companies like Comcast have regularly found themselves on lists of America's most-hated brands. It's no wonder people are cutting cable, ditching their wireless carriers, opting out of nonsense, and rejecting add-on fees and services.

I think companies think they love barriers to exit. That is, until Ryan Reynolds comes along with a no-contract, cut-rate version of the same service and undercuts a major portion of your business!

 

[Lilofan]

Companies like Comcast have regularly found themselves on lists of America's most-hated brands. It's no wonder people are cutting cable, ditching their wireless carriers, opting out of nonsense, and rejecting add-on fees and services.

I think companies think they love barriers to exit. That is, until Ryan Reynolds comes along with a no-contract, cut-rate version of the same service and undercuts a major portion of your business!

I have noticed that the few forum members who talk highly of Universal parks and resorts and not so of Disney never mentions who owns Universal - Comcast.

 

[Sirwalterraleigh]

Companies like Comcast have regularly found themselves on lists of America's most-hated brands. It's no wonder people are cutting cable, ditching their wireless carriers, opting out of nonsense, and rejecting add-on fees and services.

I think companies think they love barriers to exit. That is, until Ryan Reynolds comes along with a no-contract, cut-rate version of the same service and undercuts a major portion of your business!

You’re describing exactly what Bob’s sold you about for Disney + to make big bank

Nonsense that frustrates customers

 

[MrPromey]

Also, I think gaming for Disney+ won't just be "the inclusion of games on the platform," but also the gamification of ads (ugh, I know) and even of the platform itself. I'm sure they've learned a lot from social media and from their Fortnite partnerships to know what big business (cheap to produce, easy to distribute, high demand) in-app purchases of cosmetic items and digital gifts can be.

Thanks for the link.

The comparison you make to Fortnite is an interesting one because everyone wants to mimic that success without really acknowledging that it's some of the hardest easy money ever earned. I won't bother with the book-length post about how difficult it is for them to maintain that and why nobody else has seen that level of success but it's like giving away the worlds most expensive razor that you constantly have to pour hundreds of millions of dollars into in order to make money on the blades.

That's a platform pushing out major software updates to over half a dozen different systems every single week just to maintain their presence.

No way do I see today's Disney being willing to do a fraction of that work.

As for that link, all it says is they're thinking about it.

That doesn't sound like a very firm plan to me and the article reads more like they see it as a marketing-advertiser offering rather than anything actually intended to benefit consumers.

To me it reads a lot like their current thinking in other areas of their business which is that they've got these locked in and captive suckers customers that'll go along with whatever they do where lowering standards while raising prices and exploring other ways to increase revenue either through up-charges or additional advertiser revenue through more creatively invasive marketing to the determent of their audience will just be accepted.

Maybe to some degree, they're right? I don't know.

 

[_caleb]

You’re describing exactly what Bob’s sold you about for Disney + to make big bank

Nonsense that frustrates customers

What nonsense? Have you used Disney+? You can subscribe monthly or annually, ads or no ads. There's more content than you could ever watch. And I'm not sure what Bob has sold me, but I'm a user of the product and I recognize the possibilities here.
You're so blinded by your hate for Iger you're projecting it on everything (including me).

 

[MrPromey]

What nonsense? Have you used Disney+? You can subscribe monthly or annually, ads or no ads. There's more content than you could ever watch. And I'm not sure what Bob has sold me, but I'm a user of the product and I recognize the possibilities here.
You're so blinded by your hate for Iger you're projecting it on everything (including me).

... And I think most of that content does not get watched by the majority of their subscribers.

I know watching the "Apple Dumpling Gang" was fun when D+ first launched and my aunt enjoyed watching the original "That Darn Cat" on Christmas that first year while I humored it and my son ignored it while playing with his new toys but it's difficult to imagine their back-catalog is doing a whole lot to keep modern audiences hooked.... at least the 60% that, according to stats MrPenguin cited, are households without children.

 

[Sirwalterraleigh]

What nonsense? Have you used Disney+? You can subscribe monthly or annually, ads or no ads. There's more content than you could ever watch. And I'm not sure what Bob has sold me, but I'm a user of the product and I recognize the possibilities here.
You're so blinded by your hate for Iger you're projecting it on everything (including me).

Ads…bundles…tiers…annual subscriptions….


It’s cable tactics…cuz Bob is a cable guy

He was also a throw in when Eisner wanted to buy his first employer…lest we forget

 

[Sirwalterraleigh]

... And I think most of that content does not get watched by the majority of their subscribers.

That’s been Bourne out…
Streams are attractive for hot commodities…not catalogues

Disney has a family edge on catalogue…but a disadvantage on hot properties as it stands

 

[_caleb]

Thanks for the link.

The comparison you make to Fortnite is an interesting one because everyone wants to mimic that success without really acknowledging that it's some of the hardest easy money ever earned. I won't bother with the book-length post about how difficult it is for them to maintain that and why nobody else has seen that level of success but it's like giving away the worlds most expensive razor that you constantly have to pour hundreds of millions of dollars into in order to make money on the blades, there with a platform that is pushing out major software updates to over half a dozen different systems every single week just to maintain their presence.

No way do I see today's Disney being willing to do a fraction of that work.

As for that link, all it says is they're thinking about it.

Sorry, I edited my post to include a better, more recent link with actual products and services they're rolling out. Specifically, for shopping, Disney's announcement at their recent Global Tech and Data Showcase in Las Vegas (press release here):

"Gateway Shop and Shop The Stream: Evolving from GatewayGo, Disney’s first commerce-enabled ad format, new format Gateway Shop allows consumers to access personalized offers for purchase from a retailer without leaving the viewing environment. Soon, viewers can discover and explore products as they watch by sending products they see in films and TV straight to their second screen with Shop the Stream."

For gaming, Disney's been tight-lipped beyond those comments by Ferro. They say they're happy with third-party development strategy, but that doesn't really align with their Direct-to-Consumer strategy, so I guess we'll see.

Probably the biggest thing coming out of the Tech and Data Showcase are all the tools they're providing to advertisers, like their self-service campaign management system and advanced metrics and user behavior data. This stuff is really worth a lot. They've amassed a solid subscriber base, so now it seems they're focused on leveraging that.

 

[MrPromey]

Sorry, I edited my post to include a better, more recent link with actual products and services they're rolling out. Specifically, for shopping, Disney's announcement at their recent Global Tech and Data Showcase in Las Vegas (press release here):

"Gateway Shop and Shop The Stream:Evolving from GatewayGo, Disney’s first commerce-enabled ad format, new format Gateway Shop allows consumers to access personalized offers for purchase from a retailer without leaving the viewing environment. Soon, viewers can discover and explore products as they watch by sending products they see in films and TV straight to their second screen with Shop the Stream."

For gaming, Disney's been tight-lipped beyond those comments by Ferro. They say they're happy with third-party development strategy, but that doesn't really align with their Direct-to-Consumer strategy, so I guess we'll see.

Probably the biggest thing coming out of the Tech and Data Showcase are all the tools they're providing to advertisers, like their self-service campaign management system and advanced metrics and user behavior data. This stuff is really worth a lot. They've amassed a solid subscriber base, so now it seems they're focused on leveraging that.

Wow.

"Shop The Stream" sounds like a new level of hell sending push notifications to my phone while watching something. Where's the opt-out button, will there be an upcharge to press it and is it different from the unsubscribe button?

Also "According to a survey conducted by Lucid in 2023, 75% of viewers agree they would rather see an interactive TV ad than a standard commercial"

Is this opposed to just doing our best to ignore the advertisement we can't get away from or going to the bathroom or other stuff while it's playing?.. 'cause that's what we do with the ads they're popping up right now at our place.

 

[_caleb]

... And I think most of that content does not get watched by the majority of their subscribers.

I know watching the "Apple Dumpling Gang" was fun when D+ first launched and my aunt enjoyed watching the original "That Darn Cat" on Christmas that first year while I humored it and my son ignored it while playing with his new toys but it's difficult to imagine their back-catalog is doing a whole lot to keep modern audiences hooked.... at least the 60% that, according to stats MrPenguin cited, are households without children.

As the audience diversifies (in all the ways that is happening), what has become niche content is going to increase in value. I know "That Darn Cat" isn't going to be a major draw, but you watching it told them some things about you and was an opportunity for them to recommend other content to you to try to create a rabbit hole for you to fall into.

If enough people from strong spending demographics watch That Darn Cat, I think we can expect them to produce a remake/reboot/inspired related content.

 

[MrPromey]

As the audience diversifies (in all the ways that is happening), what has become niche content is going to increase in value. I know "That Darn Cat" isn't going to be a major draw, but you watching it told them some things about you and was an opportunity for them to recommend other content to you to try to create a rabbit hole for you to fall into.

If enough people from strong spending demographics watch That Darn Cat, I think we can expect them to produce a remake/reboot/inspired related content.

Jokes on them - my aunt isn't a D+ subscriber and if they use that information to push stuff on me, they're pushing me closer to the exit door.

Maybe that's the whole reason I'm a barely-there customer and people like you are totally hooked.

It's all because of that darn cat!

 

[MrPromey]

I have noticed that the few forum members who talk highly of Universal parks and resorts and not so of Disney never mentions who owns Universal - Comcast.

It's the same way nobody talks about Comcast when a new Jurassic or Minnions movie comes out.

The companies leverage and manage their brands in very different ways.

In the case of Disney, there are pros and cons to putting your core brand's name on every single thing you do.*

In the past when they were a smaller company, there was really nothing but benefit but the way they are today, I bet they wish they could operate like Comcast sometimes.

*Well, okay, I guess the general public probably doesn't realize Disney owns Searchlight or the Poor Things controversy would be 100x bigger.

 

[Model3 McQueen]

Companies LOVE barriers to exit. Ask Comcast or any other subscription based business model.

Or fitness centers, scummiest of the scum.

 

[MrPromey]

Or fitness centers, scummiest of the scum.

Not if everyone wipes their own benches down after use like they're supposed to!

 

[Trauma]

Netflix earnings today.

They also just inked a deal for WWE Raw.

This earning report needs to be flawless or the stock will tank 10%.

If it does tank great buying opportunity.

 

[Trauma]

 

[Sirwalterraleigh]

I’m out of the McMahon orbit…what kinda eyes they get now?

 

[Trauma]

Netflix shares pop 10% as streamer adds 13.1 million subscribers, tops revenue estimates

Netflix reported earnings after the bell. Here are the results.

www.cnbc.com