With Disney’s stock price dropping, Disney CEO Bob Chapek addressed concerns regarding the costs of creating content for streaming and the lack of profits from Disney+, according to Deadline.
- Chapek took part in a Q&A at the Paley Center for Media’s International Council Summit in New York called “The Walt Disney Company: The Next 100 Years.”
- The talk followed yesterday’s disappointing earnings report and the call for Chapek to lose his job from prominent CNBC financial commentator Jim Cramer.
- Chapek made it clear they are still looking toward the future while also understanding current concerns:
- “Keep in mind we have only been in this for three years. We are looking at making Disney+ all that it can be, but at the same time know that shorter term our investors expect us to have a return on that investment.”
- Chapek explained that, coming out of the pandemic, they have been playing catchup with the amount of content they’ve been making for Disney+:
- “Now, it’s sort of like the floodgates have opened and all that content is swarming at us. The good news is we’ve got lots of great content and it’s building a lot of subs for us. The bad news is that all that cost that had been greenlit years ago finally came through the gate and it is hitting us all at once. We are hoping to get that normalized very, very quickly.”
- Chapek also doubled down on the future of Disney+, assuring everyone that there is a lot still to come:
- “It’s no longer about what happens to be coming down the pipeline and where are we gong to put it. That was the first three years. Now it’s what needs to be made that will come down the pipeline in three years. We haven’t even touched the benefit of that. But it’s coming.”
- In the realm of Disney Parks, Chapek expressed confidence in current pricing and reservations systems:
- “The one thing that was clear is that people do not want to be treated the same.”
- He also touched on the idea of virtual park experiences, calling the idea unlikely while pushing the idea of using the technology to create behind-the-scenes experiences:
- “People like to get off attractions and see exactly how those ghosts in the Haunted Mansion work. [They] say, ‘I want to check that out. It’s usually the reason why rides stop… We can give you that ability, to exit the theme park virtually and figure out what makes that tick. Then, when you’re watching Disney+, The Haunted Mansion movie will be served up as your first choice, not buried on page four.”