The Walt Disney Company just held the first earnings call since Bob Iger’s return.

We learned a ton of details about Disney+ streaming and subscriber numbers, park operations and profits, and layoffs that are coming for the company. We also learned one very important piece of information: what Bob Iger’s number one priority is now that he’s back at the helm. 

Since Bob Iger returned as CEO to restructure and reorganize The Walt Disney Company, investors and fans alike have been waiting to hear exactly what his plans are in order to achieve that goal. And now, following the first quarter earnings call of 2023 — we have an answer.

Iger’s number one priority is improving streaming at Disney — most likely when it comes to Disney+, but also Hulu and ESPN+ as well. It’s no surprise that the second-time CEO would choose streaming as his top priority, especially considering that area of the company hasn’t been doing so hot historically.

In November 2022, we got an updated look at the Disney+ subscriber numbers but we also learned that Disney’s streaming business as a whole had a loss of nearly $1.5 BILLION. This loss ultimately contributed to the ousting of Bob Chapek as CEO.

In the Q1 earnings call on February 9th, we learned that the total number of Disney+ subscribers is now 161.8 million. As far as ESPN+ and Hulu go, both of those services are up in subscriber count as well, with 24.9 million and 48 million, respectively. Disney reported a $1.053 billion operating loss in its direct-to-consumer division this quarter compared to Q4 of FY 2022.

No sudden flipping of the Bob switch could magically make Disney’s streaming division profitable, and because of that, Iger is still choosing to focus on growth and profitability for streaming. Iger reiterated Disney’s previous comments that they expect Disney+ to be profitable by the end of fiscal year 2024.

The new organizational structure announced by Iger during the call will hopefully help by relinking the creative process with the financial results. As Iger put it, Disney is putting content back into the hands of the creatives.

Disney will be focusing on its core brands and franchises, which have historically delivered higher returns. They’re working on curating content and adjusting as needed, adjusting pricing and marketing strategies, and fine-tuning streaming advertising.

According to Iger, the “streaming business is the future and has been growing.” During the call, he also announced that 3 popular franchises will be getting sequels — but has promised that there will be more of a focus on the quality of the content being created versus the quantity.

More specifically, Iger said Disney has “to be better at curating the Disney and the Pixar and the Marvel and the Star Wars of it all” by focusing on “core franchises” like these.

When asked about how exactly Iger plans on improving and growing Disney’s streaming division, he had a few ideas in mind:

• Seeking loyal subscribers for the long-term
• Reviewing pricing and making sure services are priced correctly
• Rebalancing marketing on the platform versus marketing of the programs

There’s a long road ahead of Bob Iger and Disney+, so stay tuned to DFB for the latest news from Disney and more.

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What do you think the future of streaming will look like? Let us know in the comments!

The post Disney CEO Bob Iger Announces His “Number One Priority” first appeared on the disney food blog.