Disney's Bob Iger talks recent box office outcomes, studio output
Iger said the bar 'is now raised in terms of quality about what gets people out of their homes into movie theaters'
Content is king, and Disney is the ‘king of content’: Ivan Feinseth
Tigress Financial Chief Investment Officer Ivan Feinseth joined ‘Varney & Co.’ to discuss the U.S. markets and Disney’s optimistic stock price.
Bob Iger recently talked candidly about some of Disney’s lackluster box office performances and the entertainment giant’s output.
The Disney CEO did so at the DealBook summit, put on last week by The New York Times, receiving a question about the Burbank-based company seeing several of its silver screen releases this year seemingly put up box office figures that some have characterized as disappointing. He pointed to factors such as the business changing and the quality of some of the films.
"I think we have conditioned the audience to expect that these films will be on streaming platforms relatively quickly and that the experience of accessing and watching them in the home is better than it ever was," Iger told DealBook editor-at-large Aaron Ross Sorkin. "So I think the bar is now raised in terms of quality about what gets people out of their homes into movie theaters. Some of it is just being part of basically the social wave."
Bob Iger attends the Los Angeles Special Screening of Searchlight Pictures' "Flamin' Hot" at Hollywood Post 43 - American Legion on June 9, 2023 in Hollywood, California. (Photo by Axelle/Bauer-Griffin/FilmMagic / Getty Images)
"In our particular case, and specifically about some of those films, they were not as good, they were not as high in quality – not every one that you mentioned – as some of their predecessors, our films, as they should have been, particularly in this environment," he continued.
Sorkin specifically mentioned three films by name – "The Marvels," "Wish" and "Indiana Jones and the Dial of Destiny." During their domestic opening weekends, those films saw about $46.1 million, $19.7 million and $60.4 million, respectively, according to IMDb’s Box Office Mojo.
DISNEY'S IGER ON HALTING X ADS: ASSOCIATION WITH MUSK, PLATFORM NOT ‘A POSITIVE ONE FOR US’
For "The Marvels," filming of the "Captain Marvel" follow-up took place during the pandemic and did not have "as much supervision on set, so to speak," the Disney CEO said.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY CO. | 111.11 | -0.95 | -0.85% |
"At the same time, we increased our output tremendously to feed the streaming platforms – too much, by the way," Iger added, a move he called a "definite mistake."
"Quality needs attention to deliver quality. It doesn’t happen by accident. Quantity, in our case, diluted quality, and Marvel suffered greatly from that," the Disney CEO said.
Disney Executive Chairman Bob Iger attends the Exclusive 100-Minute Sneak Peek of Peter Jackson's "The Beatles: Get Back" at El Capitan Theatre on Nov. 18, 2021 in Hollywood, California. (Photo by Charley Gallay/Getty Images for Disney / Getty Images)
That sentiment on quantity versus quality has previously been voiced by Iger, who has also called for a more trimmed down slate.
DISNEY'S IGER TO STEP DOWN IN 2026, SAYS CHAPEK'S TENURE WAS ‘DISAPPOINTING’
Iger also noted to Sorkin that Disney has "had the best performance in the business" for many years, something that set a high bar for the company. The entertainment giant viewed films with ticket sales below $1 billion as disappointing at one point in the past in what Iger called an "unbelievably high standard" and needs to "get more realistic," according to the Disney CEO.
While the company has put out "too many" sequels, Iger said he "do[esn’t] want to apologize" for making them since some have performed "extraordinarily well."
"You have to have a reason to make it beyond commerce. There has to be an artistic reason to make it," he said, adding the company will now "only greenlight a sequel if we believe the story that the creators want to tell is worth it."
Iger said output should consist of a combination of original films and franchise content. On the sequel side, the company has "Frozen," "Toy Story" and "Inside Out" films in the pipeline.
Walt Disney Co. Chief Executive Officer Bob Iger announced plans for a dramatic restructuring of the world's largest entertainment company that includes cutting 7,000 jobs and $5.5 billion in cost savings. (Photographer: Eric Thayer/Bloomberg via Getty Images / Getty Images)
Disney’s film studios are a "top priority," Iger also said at DealBook in a reiteration of a stance he has previously voiced.
Walt Disney Company
Iger and the company have identified making output and economics-related improvements at its film studios as one of four "key building opportunities" on more than one occasion in the past, including during Disney’s most recent earnings call.
DISNEY RESPONDS TO ACTIVIST NELSON PELTZ AFTER DENIAL OF BOARD SEATS FOR TRIAN
Disney’s Entertainment segment, where its film studios, direct-to-consumer, linear networks and content sales fall, generated $9.5 billion in revenues in the fourth quarter, an increase of 2% year-over- year. It moved from an operating loss of $608 million in 2022’s fourth quarter to an operating income of $236 million in this year’s fourth quarter.
The other three focus areas for Disney include hitting "sustained" profitability in its streaming business, "turbocharging" growth in its Experiences segment and turning ESPN into a major digital sports platform.