Last week, Disney CEO Bob Iger openly admitted that the corporation has made errors in its creative endeavors in recent years. During an investor call, Iger acknowledged that the pandemic has posed significant creative problems for Disney and the industry as a whole. Consequently, the company’s lack of concentration led to an excessive production of films.
“I have consistently believed that an abundance of something can actually have a detrimental effect on its quality, and I believe that is precisely what occurred,” stated Iger. “We experienced a loss of concentration.”
In response to this issue, Iger stated that Disney will reduce the number of films produced in the coming years. This mirrors a comparable approach that Iger employed upon assuming the role of Disney CEO in 2005. Disney was facing difficulties with a series of unsuccessful movies. Iger reduced the workforce in the studio by 650 positions and decreased the company’s yearly movie production by 50%. In addition, he obtained Pixar, a move that significantly enhanced the film quality and box office performance of Disney.
Iger seems to be aiming to duplicate his achievements from 2005. In June, he has already terminated employment opportunities in the field of animation and will only be releasing a single film belonging to the Marvel Cinematic Universe in the year 2024. The absence of Star Wars films is indicative of Disney’s prioritization of quality above quantity.
“I am optimistic about the path we are taking, but I am aware that our performance in terms of quality did not meet the high standards we have set for ourselves,” stated Iger. “Collaborating with the skilled team at the studio, our objective is to streamline operations by reducing the number of projects and prioritizing the enhancement of quality.” All of us, including me, are actively preparing to accomplish that task.
Bob Iger , CEO, The Walt Disney Company
Iger’s remarks coincide with the potential intervention of activist shareholders Trian Partners and Value Act, who are poised to exert pressure on Disney’s management and board. Both companies have expressed strong disapproval of Disney’s recent performance and have demanded alterations to the company’s approach. The emphasis on quality by Iger is a refreshing shift for Disney. The firm has faced criticism for producing an excessive number of films in recent years, with some of these films being of inferior quality. Disney can enhance its impact on audiences by reducing the number of films produced and prioritizing the quality of each individual film.
Iger’s strategy is equally astute from a business one. Disney can enhance its profit margins by reducing the number of films it produces, resulting in cost savings. During this period, the company can seize the opportunity to allocate resources towards acquiring cutting-edge technologies and recruiting top-notch staff. This strategic move will enhance the company’s ability to produce superior films in the coming years.
In general, Iger’s choice to prioritize quality is a commendable decision for Disney. The corporation has had challenges in recent years, but Iger’s innovative strategy has the potential to facilitate a positive transformation.