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

[MR.Dis]

I agree, you can't slam both sequels and original titles and think you'll have any standing.

FWIW, 'Turning Red' is the only movie I wish had never been made. Truly awful. 'Soul'? Good. 'Luca'? Good. 'Raya'? Good. 'Elemental'? Good. Saw both of the latter in the theater, as well.

(After release, I think my daughter was personally responsible for dozens of hours of 'Luca' viewing per month. )

Mostly agree. Turning Red was just bad, but I did not like Raya either. Elemental was way better than I thought it would be. Luca was good. What a pity on Soul--wish they could have stuck in a vault and released now, it would be a big hit. So much is riding on "Wish". An original that goes back to Disney roots, musical princess movie. If this scores big, maybe it will remind everyone how important these stories are to those who still love Disney.

 

[CaptainAmerica]

And yet they still work with him. He presently has a show airing new episodes on D+. I guess that’s indicative of their level of desperation for content?

Disney is not monolithic. Decisions made at Pixar at some point in time don't mean that some other division of the company can't make a seemingly contradictory decision at a different point in time.

 

[ToTBellHop]

Mostly agree. Turning Red was just bad, but I did not like Raya either. Elemental was way better than I thought it would be. Luca was good. What a pity on Soul--wish they could have stuck in a vault and released now, it would be a big hit. So much is riding on "Wish". An original that goes back to Disney roots, musical princess movie. If this scores big, maybe it will remind everyone how important these stories are to those who still love Disney.

Am I the only one getting the feeling Wish won’t be a smashing success? I’m sure it will do fine. But with Disney budgets, “fine“ doesn’t make much money.

 

[CaptainAmerica]

Am I the only one getting the feeling Wish won’t be a smashing success? I’m sure it will do fine. But with Disney budgets, “fine“ doesn’t make much money.

Depends entirely on the soundtrack as far as I'm concerned.

 

[ToTBellHop]

Disney is not monolithic. Decisions made at Pixar at some point in time don't mean that some other division of the company can't make a seemingly contradictory decision at a different point in time.

Sure. I presume he will voice Buzz in TS5.

 

[ToTBellHop]

Depends entirely on the soundtrack as far as I'm concerned.

They’ve released all the songs. They’re...fine.

 

[_caleb]

There aren't many tools to be developed here for making money. TWDC makes content. You can either make money providing it (movie tickets/D+ subs), you can make money while people watch it (ads) or you can sell it to other people (license it).

You're thinking in the old way. DTC is built for interaction and has endless opportunities for monetization.

Disney is trying to sort out the future of the business. Disney doesn't just make content, they foster the biggest fan communities in the world, who also make content (YouTube, TikTok) and generate revenue (like this site, Etsy, etc.). Moving into the new era, Disney's films and parks are primarily going to be treated as ways to find/build fan communities.

They've been fostering these niche audiences for years (vloggers, influencers, creators). They really haven't even begun to sell to them yet, but they are much more loyal and lucrative customers than any general audiences ever were. None of this was possible in linear, all of is it possible through DTC.

Almost like the DTC model which currently exists is an unsustainable pipe dream sold to idiot media executives with delusions of grandeur by morons with MBAs fresh out of Wharton.

You think DTC is what, a fad? A scam? The writing has been on the wall for YEARS; Netflix moved from mailing DVDs to streaming back in 2007. We're two generations in to adults who've never had to wait until Tuesday primetime to watch their favorite show. Theaters are competing with home entertainment systems. You think the way forward is back?

 

[Tha Realest]

The current DTC model cannot afford to keep content it’s already produced on its service.

 

[CaptainMickey]

Activist investor ValueAct has been building a stake in Disney​

ValueAct has a history of creating value through board seats, including at Salesforce and Microsoft, but has also added value as active shareholders in situations like Spotify and the New York Times.

I would expect that they would want a board seat here and as someone who has a reputation of working amicably and constructively with boards, the Disney board should welcome them with open arms. Aside from their extensive experience at technology companies and media companies and their innovative and relevant history of growing sustainable revenue at similar companies, there is one other reason shareholders should welcome them to the board.

Bob Iger returned to Disney in 2022 with an initial two-year contract with the explicit goal of righting the ship. The board formed a succession planning committee at that time. Iger subsequently extended his employment agreement through 2026 but longer-term succession remains one of the board’s most important priorities. Having a shareholder representative on the board is very helpful in that area particularly one like ValueAct, whose CIO participated in one of the most audacious and successful CEO successions ever when Satya Nadella replaced Steve Ballmer as CEO of Microsoft. Someone with that experience and perspective would be invaluable in navigating CEO succession at Disney.

Finally, we cannot ignore the fact that Disney is presently the target of a proxy fight by Nelson Peltz and Trian Partners that is turning somewhat confrontational.

On CNBC TV the guys were saying ValueAct could actually be Bobs ally to counter Peltz. They have been buying shares since the Summer and "They have already been in dialogue with Disney management." Bob's would much rather work with ValueAct then Peltz. They would much rather give a board seat to ValueAct then Peltz. AND ValueAct has a strong track record of helping companies it's invested in find new CEOs.

Hugh Johnson seemed a little out of the blue to be the new Disney CFO, until you realize he is on the Board of Directors of Microsoft, one of ValueActs largest investments.

If you start connecting the dots, these guys will want a board seat or two and be very involved with finding Disney's next CEO, with Bob's blessing.

 

[monothingie]

You think DTC is what, a fad? A scam? The writing has been on the wall for YEARS; Netflix moved from mailing DVDs to streaming back in 2007. We're two generations in to adults who've never had to wait until Tuesday primetime to watch their favorite show. Theaters are competing with home entertainment systems. You think the way forward is back?

The current DTC model is broken. Other than Netflix which streaming services past and present made money? The failure has nothing to do with the technology, it has everything to do with the business models being used. (To much expensive low quality content spread out across way to many streaming platforms)

 

[monothingie]

. The fact that it was remarkable that Elemental managed to finish in the black tells us all we need to know about the kinds of discussions now occurring over future theatrical releases.

It cost a reported $200M plus another reported $150M for marketing.

It grossed $425M in theaters world wide. Subtract the 50% cut of the box office going to theaters and you have $215M. It lost about $100M+ for Disney.

 

[JD80]

You're thinking in the old way. DTC is built for interaction and has endless opportunities for monetization.

Disney is trying to sort out the future of the business. Disney doesn't just make content, they foster the biggest fan communities in the world, who also make content (YouTube, TikTok) and generate revenue (like this site, Etsy, etc.). Moving into the new era, Disney's films and parks are primarily going to be treated as ways to find/build fan communities.

They've been fostering these niche audiences for years (vloggers, influencers, creators). They really haven't even begun to sell to them yet, but they are much more loyal and lucrative customers than any general audiences ever were. None of this was possible in linear, all of is it possible through DTC.

Interaction? AR/VR? Maybe in the future but we're no where near that and I don't think Disney wants to create a social media platform like Tiktok. If anything they'll add popups to buy merch or something

 

[BaconPancakes]

AGI is expected in less than 10 years. All of this discussion will be irrelevant soon.

 

[denyuntilcaught]

It cost a reported $200M plus another reported $150M for marketing.

It grossed $425M in theaters world wide. Subtract the 50% cut of the box office going to theaters and you have $215M. It lost about $100M+ for Disney.

It's interesting because yes, the math shakes out this way, but the wider narrative is that no, it wasn't a money loser for Disney. I wonder what the truth is, unless the victory is being claimed only when factoring in merch sales?

 

[_caleb]

The current DTC model is broken. Other than Netflix which streaming services past and present made money?

Are you familiar with YouTube?

The failure has nothing to do with the technology, it has everything to do with the business models being used. (To much expensive low quality content spread out across way to many streaming platforms)

This first sentence is true, the second strikes me as a conclusion based on old-model thinking.

 

[_caleb]

Interaction? AR/VR? Maybe in the future but we're no where near that and I don't think Disney wants to create a social media platform like Tiktok. If anything they'll add popups to buy merch or something

I think Disney is closer to this than it might seem. I agree that Disney doesn't need to create any social media platforms, they're already leveraging existing ones. I hope they DON'T fall back on the old tools that "worked" under the old paradigm, but I'm afraid that under the pressure of this in-between time, they'll panic and reach for old-model solutions like longer commercial breaks, premium channels, popups, etc. rather than innovating them like I know they'd planned to do.

 

[monothingie]

Are you familiar with YouTube?

YouTube operates on a very different model than D+, Apple TV+, Netflix, Hulu, Peacock, Max, P+, etc. Taking Youtube Premium offerings out, the vast majority of YouTube content is user created and revenue is driven by Ad Sales (which have been down for the last several quarters BTW).

This first sentence is true, the second strikes me as a conclusion based on old-model thinking.

Depending on the analyst you ask, the success or failure of DTC streaming may or may not depend on: the number of subscribers, ARPU, Ad Revenue, development costs, or some or all of the above.

None of this however has offered a consistent metric for success because all the major players are still loosing money.

The one thing that is consistent, is the in terms of new/original content, is that there are way too many shows that cost way to much money to develop on too many streaming platforms with not enough subscribers watching.

 

[monothingie]

It's interesting because yes, the math shakes out this way, but the wider narrative is that no, it wasn't a money loser for Disney. I wonder what the truth is, unless the victory is being claimed only when factoring in merch sales?

It's too many "experts" in the access media that believe the studio pockets 100% of the Box Office gross and murky reporting of production and marketing costs. Except of course productions that utilized generous UK tax credits can be more easily track because of mandatory public reporting of ALL production costs is required by law. It's how some sleuths found that Indy 5 was well north of $350M.

Studios are lucky to even pocket 50% of the box office. In places like the "coveted" Chinese Market , Studios are lucky to even get 10%.

 

[MisterPenguin]

It's too many "experts" in the access media that believe the studio pockets 100% of the Box Office gross and murky reporting of production and marketing costs. Except of course productions that utilized generous UK tax credits can be more easily track because of mandatory public reporting of ALL production costs is required by law. It's how some sleuths found that Indy 5 was well north of $350M.

Studios are lucky to even pocket 50% of the box office. In places like the "coveted" Chinese Market , Studios are lucky to even get 10%.

Just as too many "experts" look only at a movie's profit/loss in its theatrical window and pay no attention to the following pay windows to evaluate a movie's monetary worth. Making a profit in the theatrical window is bragging rights. But it's the net profit from the final window that matters to the studios as a business.

If studios had to rely solely on the theatrical profit of their movies, there'd be no studios left.

 

[JD80]

I think Disney is closer to this than it might seem. I agree that Disney doesn't need to create any social media platforms, they're already leveraging existing ones. I hope they DON'T fall back on the old tools that "worked" under the old paradigm, but I'm afraid that under the pressure of this in-between time, they'll panic and reach for old-model solutions like longer commercial breaks, premium channels, popups, etc. rather than innovating them like I know they'd planned to do.

For any AR/VR to work you need massive wide audience adoption of another piece of tech. Basically everyone in your family needs a headset. That's a major hurdle.