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Tag: Bob Iger

  • Disney Is Cutting 7,000 Jobs

    Disney Is Cutting 7,000 Jobs

    Disney CEO Bob Iger announced 7,000 jobs cuts at the company amid ongoing issues with profitability.

    Disney has been struggling to cut costs and increase profitability, instituting hiring freezes and even bringing back Bob Iger as CEO. Disney+ has been a big drain on the company, wracking up $1.5 billion in losses for the company recently.

    Those losses appear to be adding up, with Iger announcing the company will be laying off 7,000 employees, according to The Los Angeles Times.

    “While this is necessary to address the challenges we’re facing today, I do not make this decision lightly,” Iger said in a conference call with analysts. “I have enormous respect and appreciation for the talent and dedication of our employees worldwide, and I’m mindful of the personal impact of these changes.”

    Iger acknowledged the company may have been a bit too aggressive with its Disney+ pricing, setting itself up for losses.

    “In our zeal to go after subscribers, I think we might have gotten a bit too aggressive in terms of our promotion,” Iger said.

  • Bob Iger Has No Plans to Lift Disney Hiring Freeze

    Bob Iger Has No Plans to Lift Disney Hiring Freeze

    Bob Iger’s return as CEO of Disney may signal a time of change, but the company’s hiring freeze is one thing that won’t change.

    Disney stunned the industry when it announced last week that Bob Chapek would be replaced by his predecessor, former CEO Bob Iger. Chapek had increasingly lost the confidence of investors, as well as Iger, and the company hopes Iger will be able to help it return to greater profitability.

    Whatever changes Iger may have in store for Disney, hiring is not one of them, according to CNBC. At a meeting with company employees, Iger emphasized the need for the company’s streaming services to become profitable, rather than simply add subscribers.

    When the questions turned to the company’s hiring freeze, Iger indicated there were no plans to reverse it for the time being.

  • Bob Chapek Is Out and Bob Iger Is Back In As Disney CEO

    Bob Chapek Is Out and Bob Iger Is Back In As Disney CEO

    Disney made waves late Sunday, announcing the ouster of CEO Bob Chapek and the return of Bob Iger in the role for two years.

    Chapek replaced Iger as Disney CEO when the latter retired, but Disney has faced multiple headwinds impacting its profitability. In the midst of increasing doubt in his leadership, the company decided to go with Iger, calling him out of retirement for a two-year contract.

    One of Iger’s main mandates will be to lower cost and improve profitability, both of which have become big issues in recent quarters. Disney+, in particular, has been a big drain on the company’s financial results, accounting for $1.5 billion in losses in the most recent quarter. That was up from $0.8 billion the previous quarter.

    Iger’s mandate will also include finding and grooming a suitable replacement for him, one that will carry on once his two-year term is up.

    Below is a full copy of Iger’s email to employees, obtained by CNBC.

    Dear Fellow Employees and Cast Members,

    It is with an incredible sense of gratitude and humility—and, I must admit, a bit of amazement—that I write to you this evening with the news that I am returning to The Walt Disney Company as Chief Executive Officer.

    When I look at the creative success of our teams across our Studios, Disney General Entertainment, ESPN and International, the rapid growth of our streaming services, the phenomenal reimagining and rebound of our Parks, the continued great work of ABC News, and so many other achievements across our businesses, I am in awe of your accomplishments and I am excited to embark with you on many new endeavors.

    I know this company has asked so much of you during the past three years, and these times certainly remain quite challenging, but as you have heard me say before, I am an optimist, and if I learned one thing from my years at Disney, it is that even in the face of uncertainty—perhaps especially in the face of uncertainty—our employees and Cast Members achieve the impossible.

    *You will be hearing more from me and your leaders tomorrow and in the weeks ahead. In the meantime, allow me to express my deep gratitude for all that you do. Disney holds a special place in the hearts of people around the globe thanks to you, and your dedication to this company and its mission to bring joy to people through great storytelling is an inspiration to me every single day. *

    Bob Iger

  • Bob Iger: Act Boldly To Achieve Your Dreams

    Bob Iger: Act Boldly To Achieve Your Dreams

    Former Disney CEO Bob Iger gave the commencement address at University of Texas at Austin where he told graduates that acting boldly is the only way to accomplish meaningful things in life:

    The only way to accomplish meaningful things in life is by acting boldly. Being timid has never gotten anyone anywhere. Of course, boldness is just not being timid. It means taking swift significant action in the face of fear and uncertainty. It means standing with courage and conviction particularly when confronted with tough or unpopular choices. It means having an unwavering commitment to honesty, integrity, and just doing the right thing. It means having a deep and abiding curiosity about people, places, ideas, and just a sheer willingness to try something new.

    Being bold also requires ambition and a willingness to dream big. There is just no such thing as having dreams that are too big. My advice is to be optimistic, be confident, have faith in yourself and in your abilities, and believe that your dreams are achievable, and don’t let anyone tell you they’re not.

    Bob Iger: Act Boldly To Achieve Your Dreams
  • Bob Chapek Replaces Bob Iger As Walt Disney CEO

    Bob Chapek Replaces Bob Iger As Walt Disney CEO

    Closing out one of the most successful runs as CEO, Bob Iger is stepping down and being replaced by Bob Chapek as head of Walt Disney.

    Iger has been CEO of Walt Disney for 14 years, and helped the company grow to one of the biggest entertainment powerhouses in the world. Under his leadership, Disney purchased Pixar, Marvel Entertainment and Lucasfilm, bringing some of the most beloved franchises and entertainment properties under Disney’s umbrella. More recently, the company unveiled its own streaming service, which has already been a hit with consumers.

    “With the successful launch of Disney’s direct-to-consumer businesses and the integration of Twenty-First Century Fox well underway, I believe this is the optimal time to transition to a new CEO,” Mr. Iger said. “I have the utmost confidence in Bob and look forward to working closely with him over the next 22 months as he assumes this new role and delves deeper into Disney’s multifaceted global businesses and operations, while I continue to focus on the Company’s creative endeavors.”

    Mr. Iger continued: “Bob will be the seventh CEO in Disney’s nearly 100-year history, and he has proven himself exceptionally qualified to lead the Company into its next century. Throughout his career, Bob has led with integrity and conviction, always respecting Disney’s rich legacy while at the same time taking smart, innovative risks for the future. His success over the past 27 years reflects his visionary leadership and the strong business growth and stellar results he has consistently achieved in his roles at Parks, Consumer Products and the Studio. Under Bob’s leadership as CEO, our portfolio of great businesses and our amazing and talented people will continue to serve the Company and its shareholders well for years to come.”

    To help ensure a smooth transition, Iger will take on the role of Executive Chairman and lead the company’s Board, as well as creative endeavors, till the end of 2021.

  • Disruption Caused By Technology Certainly Is a Big Issue, Says Disney CEO

    Disruption Caused By Technology Certainly Is a Big Issue, Says Disney CEO

    “When I think about what is going on in our businesses and our world today disruption caused by technology certainly is a big issue,” said Disney CEO Bob Iger while sitting within the new Star Wars: Galaxy’s Edge at Disneyland. “It’s one that I don’t necessarily get anxious about but one that I spend a lot of time on and am deeply focused on it. What we’ve tried to do is build a company that is capable of adjusting.”

    Tour of Star Wars: Galaxy’s Edge at Disneyland

    Bob Iger, CEO of Disney, discusses the launch of Star Wars: Galaxy’s Edge at Disneyland (see video below) as well as how technological disruption is impacting media and advertising in an interview on Fox Business:

    Disruption Caused By Technology Certainly Is a Big Issue

    When I think about what is going on in our businesses and our world today disruption caused by technology certainly is a big issue. It’s one that I don’t necessarily get anxious about but one that I spend a lot of time on and am deeply focused on it. I happen to believe that because of the kinds of stories that we tell and the products that we have including Pixar, Marvel, National Geographic, Disney, Star Wars, FX, Avatar, to name a few, that we have products that are not necessarily bulletproof or invulnerable to change but are more likely to withstand that kind of disruption we’re seeing.

    What we’ve tried to do is build a company that is capable of adjusting. This is not just in terms of our culture and the wherewithal, but capable of adjusting in terms of the kind of products we have to new forms of monetization and new forms of delivery. What Disney Plus and ESPN Plus and Hulu are designed to do is not only to grow as businesses to themselves but to be there for us as major alternatives in terms of business models should disruption get so acute that the current business model ends up being less viable.

    We Priced Disney Plus To Be Very Accessible

    We priced Disney Plus to be very accessible. What we are putting on are incredibly popular products such as Disney animated movies going all the way back to Snow White, the Star Wars films, the Marvel films, and on and on. Also on Disney Plus will be all the new things we are making. We wanted as many people across the world to be able to afford what they love which is all these properties.

    I actually don’t believe that price is going to be much of an issue for us given what’s available in the marketplace. For people who maybe can’t afford to spend another $7 a month is it possible they will give something else up for it? Sure. Is it possible they will wait to subscribe? Of course. We purposely kept the price down so that it would be more affordable to more people.

    Most Focused Initially on Net Subscribers

    I think in terms of the metrics that we will be most focused on initially (with Disney Plus) it would be net adds or net subscribers. That’s probably the most important metric for the foreseeable future. Another metric will be just how much people are watching programs or movies that we put on. We are making a lot of original product including Star Wars product with a series called The Mandalorian.

    We’ll watch carefully in terms of what’s being consumed. We don’t have any worries about it. We bought a technology platform called BAMTECH. It’s going to be a great means of delivering a good experience to consumers. We certainly have an ample library of products through television and movies and we have a lot of original content being produced.

    Advertising Will Find Its Way To the Consumer

    I think there will be channel consolidation (in the future). I don’t know about companies. We are a little spent right now I should say. We’ve got a lot to digest still. I think you will see some more consolidation. More importantly, I think there will be consolidation in the types of products that are brought out, particularly channels. There will be fewer channels globally in five years than there are today.

    Advertising will find its way to the consumer. Hulu sells advertising and more than the majority of people who sign up for Hulu are watching Hulu programs with advertising in it. We know there is advertising on Facebook and advertising on a variety of new platforms. It’s not on Netflix and won’t be on Disney Plus. I think the advertiser, given the technology that’s available and given the data that will be available, will find its way to the consumer, a way of delivering their messages.

    Disruption Caused By Technology Certainly Is a Big Issue, Says Disney CEO Bob Iger
  • Disney CEO: What Netflix Has Done Has Actually Been Good For Us

    Disney CEO: What Netflix Has Done Has Actually Been Good For Us

    “We wouldn’t have been ready to launch it (Disney+) two or three years ago,” says Disney CEO Bob Iger. “We wouldn’t have even been ready to talk about it. It takes technology. It takes content. It takes the talent to make the content. It takes a marketplace. You could argue that what Netflix has done has actually been good for us because they’ve seeded the marketplace to robust over-the-top content distribution and presentation.”

    Bob Iger, CEO of Disney, discusses the launch of Disney+ and how Netflix may have actually paved the way for Disney in an interview on CNBC:

    What Netflix Has Done Has Actually Been Good For Us

    We did extremely well licensing our content and Netflix. We’re launching this product (Disney+) because we are ready to launch it. We wouldn’t have been ready to launch it two or three years ago. We wouldn’t have even been ready to talk about it. It takes technology. It takes content. It takes the talent to make the content. It takes a marketplace. You could argue that what Netflix has done has actually been good for us because they’ve seeded the marketplace to robust over-the-top content distribution and presentation. I like launching when we are launching and believe that it’s a great time for us and the Fox acquisition was had a lot to do with it.

    There is something interesting that I’ve observed and I don’t think I’ve said it publicly. We announced that we were doing (Disney+) in June 2017 and (when)  we decided to do it that led to the purchase of BamTech. Then the opportunity to buy Fox first came up later that year. In fact, just a few months after the Board approved us buying the majority share of BamTech, which was done for one reason to go into the direct-to-consumer business, Rupert and I sat down and talked about the transaction. We would not have done that transaction had we not decided to go in this direction.

    We Evaluated What We Were Buying Through This New Lens

    If we hadn’t we would have been looking at that business through a traditional lens. Oh we’re buying TV channels, were buying more movie making capability, etc. and so on. By the time the acquisition opportunity came up and we knew we were going in this space we evaluated what we were buying through this new lens. What could National Geographic mean to us? What could it mean to us being in the direct-to-consumer space in India? What could it mean having access to their library, not to monetize it through traditional means but to do it through this? Bam! I mean the light bulb went off.

    It maybe speaks to why people don’t acquire companies too, because you try to measure what you’re acquiring in a traditional sense. Our decision to buy Pixar, Marvel. and Lucasfilm was made because we believed that great storytelling would stand the test of time. No matter how much the marketplace was disrupted, whether it was cable and satellite, movie theaters, traditional television, you name it, a great story well told, was going to succeed as an investment or as a financial proposition no matter what.

    Related Articles:

    The Marketplace Has Never Been This Dynamic, Says Disney CEO

    Disney Can’t Begin to Catch Netflix, But They Don’t Need To, Says Media Innovator Tom Rogers

    John Malone says Disney Needs What Apple and Amazon Have… Massive Direct Consumer Relationships


  • The Marketplace Has Never Been This Dynamic, Says Disney CEO

    The Marketplace Has Never Been This Dynamic, Says Disney CEO

    “If you measure it against the present, the present doesn’t stay the present for very long,” says Disney CEO Bob Iger when discussing their Disney+ launch. “In fact, in today’s world that’s changing so much, the marketplace has never been this dynamic, meaning speed of change is much faster. That’s technology, that’s consumer behavior driven by technology, it’s economics, it’s how things are marketed, anywhere you look.”

    Bob Iger, CEO of Disney, discusses their new Disney+ service and the necessity for companies to innovate beyond their current business models in an interview on CNBC:

    The Marketplace Has Never Been This Dynamic

    I’m an optimist and a realist. I’ve been at the company for 45 years and I’ve been president or COO since 2000. I have a deep understanding and appreciation of Disney and its brand and its relationship to consumers. I’m pretty optimistic about the ability for this thing to work particularly when we make it accessible. Because of the content we’re putting on, because of the user interface, and because of the price, I believe this is going to be successful. If in 5 years time we prove to be wrong, we’re still making great content that’s going to be in great demand globally.

    If you measure it against the present, the present doesn’t stay the present for very long. In fact, in today’s world that’s changing so much, the marketplace has never been this dynamic, meaning speed of change is much faster. That’s technology, that’s consumer behavior driven by technology, it’s economics, it’s how things are marketed, anywhere you look. You can’t measure it against what it is today, you have to measure against what you believe it’s going to be tomorrow. One of the reasons why companies fail to innovate is they continue to measure it against today.

    Companies Should Think About Tomorrow’s Business Model

    If you’re in the business of selling physical film you want to keep selling as much of that film as you possibly can. You believe you may hit a speed bump here and there, whether it’s the economy or a new competitor enters the marketplace, but you’re not really thinking it’s going away. Your business is not about film, it’s about taking pictures, and (you should) let people take pictures no matter how they want to take them.

    It’s a lot of pressure to not do that in a way because you’re getting measured by quarterly earnings, annual earnings, how much you grew, and in many cases compensation is tied to near term versus long term. It becomes very difficult to innovate because you just you’re so tied to the business model that got you where you are. This could be great, but it often causes companies to not think about what is that business model going to look like tomorrow.

    Related articles:

    Disney Can’t Begin to Catch Netflix, But They Don’t Need To, Says Media Innovator Tom Rogers

    John Malone says Disney Needs What Apple and Amazon Have… Massive Direct Consumer Relationships


  • Bob Iger Talks Disney’s Relationship With Netflix

    Bob Iger Talks Disney’s Relationship With Netflix

    Disney posted its fiscal Q3 earnings on Tuesday. The company had a record quarter with earnings per share up 27% from the prior year.

    CEO Bob Iger said, “Our strategy of building strong brands and franchises continues to create great value across our company. This quarter we delivered the highest EPS in the company’s history, and we’ve now generated greater EPS in the first three quarters of FY 2014 than we have in any previous full fiscal year. We’re extremely pleased with these results and we are also thrilled with the spectacular performance of Guardians of the Galaxy, which holds great promise as a new franchise for our company and once again reinforces the tremendous value of Marvel.”

    Something else that is bound to continue to help Disney’s Marvel brand is the set of shows coming to Netflix. We’re not expecting anything Guardians of the Galaxy-great with those, but it’s hard to imagine they won’t draw in the viewers.

    Late last year, Netflix and Disney announced a deal for at least four different shows and a mini series including shows about Daredevil (the first one up), Jessica Jones, Iron Fist, and Luke Cage. The miniseries will be The Defenders. This will all stretch over multiple years starting with Daredevil in 2015.

    This is not the first time the two companies have partnered. They made a big movie distribution deal in 2012, which will see theatrically released feature films from Disney appear on Netflix starting in 2016. Netflix will be the exclusive U.S. subscription TV service for first run movies from Disney, Walt Disney Animation Studios, Pixar Animation Studios, Marvel Studios, Disnynature, and Lucasfilm. The two companies also have a deal in Canada.

    Suffice it to say that there is a lot of Netflix in Disney’s future.

    Disney didn’t bring up Netflix in its earnings report, but was asked about it by analysts on the earnings call. Iger had this to say about the companies’ relationship:

    Netflix, we’re growing our business with Netflix, first of all because we believe in their platform and its future. And we have from the beginning, when we did the output deal with the studio and we also believe that our brands can be well monetized on their platform, which is evidenced what they are paying for our brands and our content. So as long as that continues, which I think it will, not just domestically but internationally our business is expected to be robust with them or even grow. So it’s a good combination. We’ve got brands and content that they want and they have a platform that we like and that we want and they are willing to pay the right price for our content, good prices for our content. I think it’s mutually beneficial.

    CFO Jay Rasulo added:

    I’m not going to put shadow what revenue we’ll come off with Netflix in the future but everything that Bob says I believe applies to every market that Netflix would enter in the future.

    Netflix is, of course, already offering streaming customers some Disney titles. It even exclusively got the final season of Lucasfilm’s Star Wars: Clone Wars . In the coming years, however, Disney’s presence is going to be felt much more on the service.

    You can find Disney’s full earnings release here.

    Image via Wikimedia Commons

  • Michael Strahan to Join ‘Good Morning America’

    Michael Strahan may soon be joining the cast of Good Morning America according to unnamed sources with knowledge of ABC’s plans for the flagship morning show.

    Strahan currently co-hosts the network’s Live with Kelly and Michael, which runs right after GMA.

    On Wednesday, Strahan assured Live viewers that he wouldn’t be leaving cohost Kelly Rippa’s side anytime soon: “I’m not going anywhere. I’m right here on Live, okay?”

    He did, however, confirm he’s been talking with network executives about joining GMA, adding that “I don’t think I could do an everyday thing.”

    Strahan, who played for the New York Giants from 1993-2007, would appear during the first hour of GMA, an arrangement that would afford him plenty of time to make it to the Live studio. GMA airs from 7:00 am and Live at 9:00 am.

    GMA is currently coanchored by Robin Roberts and George Stephanopoulos. Amy Robach is news anchor, Lara Spencer is lifestyle anchor, and Ginger Zee is weather forecaster.

    The addition of Strahan to the GMA cast would balance out the male-female ratio.

    Josh Elliott left his role as news anchor for NBC Sports just last week and Sam Champion left for The Weather Channel in December after seven years as GMA’s weather anchor.

    In a staff memo regarding Robach’s succession of Elliott as news anchor, ABC News president Ben Sherwood wrote “In the days ahead, there will be more good news on the show, so stay tuned.”

    The network announced on March 24 that Sherwood would replace Anne Sweeney as Co-Chairman, Disney Media Networks and President, Disney/ABC Television Group effective February 2015.

    In the press release, Disney chairman and CEO Bob Iger cited Sherwood’s success with GMA:

    “Ben is one of those unique executives who combine rich creative experience with great business acumen. He’s also focused, strategic, and competitive, as evidenced by the success of GMA, the Yahoo deal that delivered ABC News online dominance, and his vision behind our new cable and digital joint venture, Fusion. These reasons, and many others, make Ben the ideal candidate to oversee the future of the Disney/ABC Television Group.”

    As of the end of March, industry sources ranked GMA as the number one morning news program for the second straight year in both total viewers and adult viewers age 25-54.

    Image via YouTube

  • Disney, Pixar Remember Steve Jobs

    Disney, Pixar Remember Steve Jobs

    With all of Steve Jobs’ achievements as the CEO of Apple (and they were many), some people forget his major involvement with Disney Pixar. In 1986, Jobs purchased the company that would later be called Pixar from Lucasfilm for $10 million. He invested $5 million into the company as capital.

    That means that on a basic level, Steve Jobs is responsible for some of the best animated films of the past decade and beyond – from Toy Story to Cars. Jobs’ reach extends even beyond the massive innovations he made in the personal computing and mobile technology fields.

    Disney Pixar CEO John Lasseter and Ed Catmull, President of Walt Disney Pixar Animation Studios have made a joint statement on Jobs’ passing on the Disney Pixar Facebook page:

    Steve Jobs was an extraordinary visionary, our very dear friend and the guiding light of the Pixar family. He saw the potential of what Pixar could be before the rest of us, and beyond what anyone ever imagined. Steve took a chance on us and believed in our crazy dream of making computer animated films; the one thing he always said was to simply ‘make it great.’ He is why Pixar turned out the way we did and his strength, integrity and love of life has made us all better people. He will forever be a part of Pixar’s DNA. Our hearts go out to his wife Laurene and their children during this incredibly difficult time.

    They also posted a photo of the three together, which is the image seen above.

    Disney CEO Bob Iger also had this to say about Jobs:

    Steve Jobs was a great friend as well as a trusted advisor. His legacy will extend far beyond the products he created or the businesses he built. It will be the millions of people he inspired, the lives he changed, and the culture he defined. Steve was such an “original,” with a thoroughly creative, imaginative mind that defined an era. Despite all he accomplished, it feels like he was just getting started. With his passing the world has lost a rare original, Disney has lost a member of our family, and I have lost a great friend. Our thoughts and prayers are with his wife Laurene and his children during this difficult time.