Disney CEO Bob Iger appeared on CNBC’s “Squawk on the Street” Thursday following the company’s announcement it would cut 7,000 jobs and slash $5.5 billion in costs as part of a larger reorganization.
Iger, who returned to Disney’s helm in November, said Thursday he had no plans to stay longer than two years in his post.
“Well, my plan is to stay here for two years, that’s what my contract says, that was my agreement with the board, and that is my preference,” Iger said.
Iger acknowledged that he has a lot to do in his short period of time, in addition to helping the board “succeed at succession.” The board ousted Bob Chapek last year. He was Iger’s handpicked successor.
On the top of the list is Disney’s streaming strategy and making the business profitable, Iger said Thursday. He called streaming “the future.”
Disney announced this week that as part of its cost cutting measures, it would slash $3 billion in content costs. The company also said that as it will focus on getting its streaming business to profitability by the end of 2024, it would no longer give guidance on its subscriber numbers and instead focus on revenue.
“We got maybe intoxicated by our own sub growth,” Iger said on Thursday, noting the low price point of $6.99 that Disney+ entered the market with.
On Thursday, Iger said the company had “pricing leverage” for its streaming strategy.
Disney reported this week that its direct-to-consumer business had once again posted an operating loss in its most recent quarter.
Media executives have begun increasing the cost of streaming services in an effort to grow profit. Disney’s recent price hike likely led to the loss of about 2.4 million Disney+ customers during the quarter.
Shares of Disney rose in premarket trading following the Wednesday announcement and the company’s earnings report.
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