Following the news that Disney CEO Bob Iger would be extending his contract another two years, he appeared on CNBC’s “Squawk Box” news show to talk about several issues pertaining to The Walt Disney Company.
In a lengthy sit-down with CNBC’s David Faber from the Sun Valley Conference in Idaho that Iger is attending, the CEO touched on subjects ranging from streaming to DeSantis, and even the current writer’s strike.
The Contract Extension
“I came back to the company at the board’s request,” said Iger, “and after coming back I realized the company was facing a number of challenges, some self-inflicted, some caused by changes in the business. And while a lot of work has been accomplished in the seven or so months that I’ve been back, the board believed…and I agree with them…there was a lot more work to do. And the time table we initially established, which was two years, it seemed like it was putting undue pressure on us…to acomplish everything we wanted to accomplish.”
Film, TV and Streaming
Bob Iger said the company is looking at a range of strategic options for linear TV, from ABC to FX to Hulu, including possible sales, but chose not to really elaborate further.
“There’s clearly creativity and content that is core to Disney, but the undercore of that business that delivered great profits for years is definitely broken, and we have to call it like it is,” explained Iger.
Disney, which has recently positioned ESPN as its own corporate division, plans to roll out a direct-to-consumer ESPN streaming offering in the next couple of years, though Iger declined to offer any specific timeline or further details.
Media Output
Bob Iger also addressed the rush of Marvel movies and TV projects, saying Marvel had been asked to do too much by former CEO Bob Chapek.
“In our zeal to basically grow our content significantly and serve our streaming offerings, we ended up taxing our people, in terms of their time and their focus, way beyond where they had been,” he said.
“Marvel is a great example of that. They had not been in the TV business at any significant level. Not only did they increase their movie output, but they ended up making a number of television series”
That surge “diluted focus and attention” both internally, and for audiences awash in new titles, Iger said.
The prevailing strategy for the overall production engine, Iger said, is to recalibrate efforts across Marvel, Lucasfilm, Pixar and other suppliers, and pull back on spending.
He also noted that despite a few misses, Disney’s combined studios have put the company at No. 1 at the global box office in 2023 to date.
Florida Issues
When Faber turned the conversation to Disney’s issues with Florida Gov. DeSantis, he asked Bob Iger, “An article in the ‘Wall Street Journal’ seemed to indicate that people aren’t going to Disney World because of your fight with the governor there…or his fight with you. Is he having an impact, do you think?”
To which Iger offered an emphatic, “No,” before elaborating, “We no sign of that at all. The article you referred to…it was not accurate. It was measuring the attendence at Walt Disney World on July 4th, not factoring in the temperature and humidity that day.”
Faber returned to the subject of DeSantis, asking, “He’s made this part of his campaign; attacking Disney, saying it’s a ‘woke’ corporation, and that ‘we’ve embraced the eye of getting the sexual content line I’m not willing to cross.’ How do you respond to that?”
“So far what we’ve said publicly is that we are concerned that he has decided to retaliate against the company for a position the company took on pending legislation in that state. Frankly the company was within its right, even though I’m not sure it was handled well, was in its right to speak up on an issue…constitutionally protected right of free speech…so we have filed a lawsuit to protect our first amendment rights, and to protect our business.”
“The last thing that I want for the company to be drawn into any culture wars. We’ve operated for almost 100 years making product we are proud of in terms of its impact on the on the world. I joke every once in a while that we’re there to manufacure fun. We’re there to tell great stories.”
“But you can’t be happy when there’s literally nazis standing out at the front gates of the park,” Faber interupted.
“It was horrifying, frankly,” shared Iger. “It’s concerning to me that anyone would encourage a level of intolerance, or even hate, that could become some dangerous act of sort.”
“We are the preeminent entertainer in the world, and we’re proud of our track record there. The notion that Disney is in any way sexualizing our children quite frankly is preposterous and inaccurate.”
WGA and SAG-AFTRA
Faber also touched on the ongoing Writers Guild of America strike and imminent decision for SAG-AFTRA to join them, to which Iger commented:
“It’s very disturbing to me. We’ve talked about disruptive forces on this business and all the challenges we’re facing, the recovery from COVID which is ongoing, it’s not completely back. This is the worst time in the world to add to that disruption.”
“I understand any labor organization’s desire to work on behalf of its members to get the most compensation and be compensated fairly based on the value that they deliver. We managed, as an industry, to negotiate a very good deal with the directors guild that reflects the value that the directors contribute to this great business. We wanted to do the same thing with the writers, and we’d like to do the same thing with the actors. There’s a level of expectation that they have, that is just not realistic. And they are adding to the set of the challenges that this business is already facing that is, quite frankly, very disruptive.”
Iger finished saying, “It will have a very, very damaging affect on the whole business, and unfortunately, there’s huge collateral damage in the industry to people who are supportive services, and I could go on and on. It will affect the economy of different regions, even, because of the sheer size of the business. It’s a shame, it is really a shame.”
So what are your thoughts on Bob Iger’s comments? Let us know in the comments, but please keep your comments constructive, not combative. Thanks!
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