Bob Iger’s Originals Sin

To pare its streaming losses, Disney plans to reduce spending, raise prices, crack down on password sharing, and produce less—less!—content. In an era of ruthless competition and franchise fatigue, Iger may be pushing the limits of what consumers will pay without getting something original in return.

Photo: Charley Gallay/Getty Images

Julia Alexander

August 15, 2023

On Disney’s recent earnings call, C.E.O. Bob Iger promised a slew of changes that neatly encapsulate the company’s enormous streaming dilemma. Sure, Disney+ has been paring its losses, down to $512 million last quarter from about $1.1 billion in the same period last year, but it’s still far from a profitable business. And yes, while the majority of its subscription losses came from its India brand, Disney+ Hotstar, which isn’t really material to the business, domestic users also dropped for a second quarter in a row. But the solutions Iger offered seem geared toward winning over shareholders, not subscribers: reduced spending, fewer movies, higher prices.

Iger is likely correct that D+ customers will tolerate a few price increases. The service currently has one of the lowest churn rates in the industry, and was underpriced at $7.99/month for its basic tier. It also still packs a ton of value, especially for families: Marvel, Star Wars, Pixar, 85 years of Disney films, plus Fox hits like The Simpsons for those late nights on the couch.