How did Disney cut costs on streaming losses?, Bob Iger is returning to lead Walt Disney Co, and he’s vowing to cut costs and restore profits in just two years.

Topics
Bob Iger: The Man Behind Disney
Is Disney’s Stock Drowning?
The Risks and Rewards of Trading

Bob Iger: The Man Behind Disney

This is a different side of Bob Iger that Wall Street hasn’t seen before,
and it’s one that they’re sure to be impressed by.
Iger took over as CEO of Disney in 2005 and during his tenure,
the company has undergone massive changes.
He oversaw the acquisitions of Pixar, Marvel, Lucasfilm, and 21st Century Fox.
He also launched Disney+, a streaming service that has quickly become a major competitor to Netflix.

Now, with all of those acquisitions behind him, Iger is focused on cutting costs
and restoring profitability at Disney.
And he’s already off to a good start: In the first quarter of 2020 (the most recent data available),
Disney reported earnings that beat analysts’ expectations thanks to cost-cutting measures.

Iger’s return could be the shot in the arm that Disney needs to get back on track.
The company has been struggling to keep up with changing consumer habits
and competition from streaming services such as Netflix.
Under Iger, Disney completed some of its biggest acquisitions,
including Pixar, Marvel and Lucasfilm.
He also oversaw the launch of its successful streaming service, Disney+.

“He (Iger) is probably one of the few people who can come in and turn things around,” said Brian Wieser,
an analyst at Pivotal Research Group. “The question is whether he wants to do it.”
It’s clear that Iger is serious about turning things around at Disney after last year’s spending spree.
And if he can deliver on his promise to cut costs
and restore profits in just two years’ time,
there’s no doubt that Wall Street will be impressed by this new side of Bob Iger.

Is Disney’s Stock Drowning?

The business has become a drag on earnings as Disney spends heavily on content to attract subscribers,
testing investor patience and contributing to a 40% slide in its shares so far this year.
As the COVID-19 pandemic continues to upend the traditional media landscape,
one company that could be in for a tough road ahead is The Walt Disney Company.
The entertainment giant has been hit hard by the closure of its theme parks and resorts around the world,
and its film business has also taken a hit with movie theatres shuttered.
In addition, Disney+ has seen subscriber growth slow down in recent months.

All of this means that Disney stock could be under pressure in the near term.
The most immediate target of that selling pressure could be Disney+,
the streaming service that Iger helped launch in 2019.
Losses at the unit more than doubled in the last reported quarter to $1.5 billion.
The company has lost billions of dollars in value as its streaming losses mount.
But there may be light at the end of the tunnel.

Disney+ is the company’s streaming service,
and it has struggled to find its footing since launching in November 2019.
The service has lost subscribers every quarter since then,
and it posted a $1 billion loss last quarter alone.

But there are signs that Disney+ is starting to turn things around.
The service added 8 million subscribers last quarter, which was better than expected.
And analysts believe that Disney+ could eventually become profitable
if it can get more people to subscribe at higher prices

The Risks and Rewards of Trading

When it comes to trading and investing, there are always going to be certain risks
that come along with the potential rewards.
However, this does not mean that you should simply avoid all risks altogether.
In fact, taking on some level of risk is essential in order to achieve any sort of success.
The key is to find a balance between the two that work for you and your individual goals.

This can be a difficult task, but it is one that becomes much easier with experience.
As you gain more experience in the world of trading and investing,
you will begin to develop a feel for what types of risks are worth taking on and which ones are best avoided.
“The problem is that Iger can’t stay on forever,
He already bumbled the transition to Tom Staggs in 2016 and now (Bob) Chapek,” Rosenblatt Securities said.

Still, Disney shares were 10% higher in premarket trading on Monday,
a sign of confidence in the executive who led the company for 15 years.
Bob Iger has been a steady hand at the helm of the Magic Kingdom,
steering it through some tough times and emerging stronger each time.

Now, with Iger set to step down as CEO later this year,
investors are betting that Disney will continue to thrive under new leadership.
The stock is up more than 50% since Iger took over as CEO in 2005,
and there’s no reason to think that momentum won’t continue under his successor.
Iger has made some smart moves during his tenure at Disney,
including acquiring Pixar, Marvel, and Lucasfilm (which gave the company control of “Star Wars”).
He also oversaw the launch of successful new ventures
like Disneyland Shanghai and Walt Disney World’s Pandora: The World of Avatar.

How did Disney cut costs on streaming losses?

Related Topics