Today, Disney’s CEO Bob Iger announced at the MoffettNathanson Session today, according to Variety, that Disney is “pretty dramatically” cutting back on the spending for its traditional cable networks. This come as cord cutting is quickly growing eating into the revenue from cable TV networks.
This comes as Bob Iger said he expects subscribers to cable TV to continue to decrease. To help keep the networks profitable, he is cutting back on costs for its cable networks.
Exactly how dramatically Disney is cutting back is unknown, but it’s clear that streaming is becoming its main focus. At the same time, though, Bob Iger argued that they invested too much into streaming. He said Disney made content in volume for streaming not in quality. Because of that, Disney last year rethought its strategy for streaming. Now Bob Iger wants Disney to focus on making less content that is great than a lot of good content.
Disney also reportedly plans to use AI to create customer content for consumers. Like customer highlight shows versions of SportsCenter that will only show you the sports you want.
Disney, like many media companies, is facing the fact that revenue from ads is down and revenue from subscribers is dropping as cord cutting grows. Now, it seems they want to focus on more profitable content versus spending a lot on a bunch of small projects.
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