Disney has decided to target a multi-billion dollar figure for content savings as announced by Bob Iger on Wednesday. This will give Disney an annualized savings target of $3 billion of future spending as clarified by CFO Christine McCarthy. They are attempting to save this money via terms of costs and the volume of content.
Iger stated, “We are going to take a really hard look at the cost for everything that we make, both across television and film. Because things in a very competitive world have just simply gotten more expensive, and that’s something that is already underway here. In addition, we’re going to look at the volume of what we make. And with that in mind, we’re going to be fairly aggressive at better curation when it comes to general entertainment.”
Iger added that, “In addition, the structure is now designed to place responsibility of all international programming and investment in content in the hands of one unit, so that they can better decide the balance between what we make for global distribution and consumption and what we make for local distribution and consumption, with an eye toward possibly reducing expenses there as well.”
Disney also stated that they are targeting $5.5 billion in cost savings, including $2.5 billion in non-content costs.
Iger concluded in saying, “Now it’s time for another transformation; one that rationalizes our enviable streaming business, and puts it on a path to sustain growth and profitability, while also reducing expenses to improve margins and returns, and better positioning us to whether future disruption, increased competition, and global economic challenges.”
—
Photo Credit: J Stone / Shutterstock.com