[Asia Economy New York=Special Correspondent Seulgina Jo] Robert Iger (Bob Iger), who returned as CEO of Walt Disney, announced that he will continue the hiring freeze policy. He also signaled a shift in direction for the streaming service (OTT) business, which led to large-scale losses, stating that profitability will be prioritized over subscriber numbers going forward.
According to local media including The Wall Street Journal (WSJ), CEO Iger made these remarks on the 28th (local time) during a private town hall meeting with all Walt Disney employees.
Wearing a navy cardigan and slacks, CEO Iger emphasized the importance of creativity in the company’s future strategy. He mentioned that he recently listened to the music of the Broadway musical 'Hamilton,' especially the song 'What'd I Miss,' and introduced the lyrics, "There is no more status quo, but the sun comes up and the world still spins."
CEO Iger explained that he has no plans to change the hiring freeze policy announced earlier this month by his predecessor and former CEO Bob Chapek. He emphasized that cost-cutting measures will be taken and that employee travel expenses and other costs will be closely reviewed. However, he did not mention the possibility of layoffs, which Chapek had warned about.
Regarding the streaming business, which has been the cause of large losses, he stated that profitability will be pursued over subscriber numbers. CEO Iger said, "We need to start pursuing profitability," adding, "It will be demanded of us." The WSJ evaluated these remarks as a signal of a business direction shift that investors and Wall Street analysts have long demanded.
Under Chapek’s leadership, Disney expanded its streaming business and made massive investments in the OTT Disney+. The funds poured into content spending amount to about $30 billion in this fiscal year alone. On the other hand, Disney+ subscription fees are much cheaper than competitors like Netflix. While this helped increase subscriber numbers, it was a major factor behind the large losses. CEO Iger explained, "We will spend (funds) where it can add value to the company."
Additionally, CEO Iger confirmed that there are no major merger and acquisition plans in the near future. While saying "nothing is eternal," he also expressed satisfaction with Disney’s current asset situation. Regarding reports about the possibility of Disney being sold, he avoided direct comments but dismissed them as "pure speculation with no basis in any facts you have read." On the topic of remote work policies, he did not make any special declarations but said he feels that when employees are together in the office, it leads to better creativity and teamwork.
CEO Iger, who served as Disney CEO from 2005 to 2020, is credited with building the ‘Disney empire’ by acquiring Pixar, Marvel, Lucasfilm, 21st Century Fox, and increasing market share fivefold. He stepped down as CEO in February 2020, handing the position to Bob Chapek, and also resigned as chairman of the board last December. However, due to poor performance and stock price decline, Disney, facing a crisis, requested his return, leading him to come back as CEO. On this day, CEO Iger emphasized that Disney’s future is bright and said that if he did not believe that, he would not have returned.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
