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During the investor earnings call on Nov. 15, 2018, Disney Chairman and CEO Bob Iger discussed his vision for the company’s future. He stated that he would be putting more effort into creating more original programming.
Iger also stated he thought there was some “pricing-elasticity” in Hulu’s prescription rates. The company has even exceeded expectations in terms of their earnings this year. Disney recently had a three percent increase in their shares, as well as an eight percent increase to date.
Since becoming the Disney Chairman and CEO of The Walt Disney Company in March 2015, Iger has increased the company’s worth. Under Iger, movies, television shows, amusement parks, cartoons, and streaming services have thrived.
One example is the schedule for their ambitious release of 50 new movies between 2018 and 2023. Another is they are cashing in on people canceling their cable subscriptions and leaning toward streaming.
Disney ended their agreement with Netflix in August 2017. Since then, they have devised plans to compete by purchasing claims in Hulu and BAMTech. Additionally, they plan to establish their own streaming service division by 2019.
On that front, they currently hold a 30 percent stake in Hulu. Once the acquisition of 21st Century Fox is finalized in 2019, Disney will gain majority ownership. They launched the ESPN-branded multi-sport video streaming service in early 2018 following their purchase of BAMTech. Adding to these two streaming media subsidiaries, the entertainment giant announced Disney+ will be available for consumers next year.
Despite the fact that in August 2018, CNBC reported Hulu loses over $1 billion per year, Iger believes the deficit can be reversed. For that number to increase tremendously, he intends to expand Hulu subscription services outside of the United States.
When the time comes for their shareholders to receive compensation for their original content, it is an expense for Hulu. In actuality, it increases the shareholders’ income by the same amount. Iger plans to bring more original content to Hulu. He says, his main goal is to keep Hulu very relevant during this generation of online streaming services.
The entertainment giant’s streaming service will add Disney created content, including upcoming releases. Among those, “The Nutcracker and the Four Realms,” was released on Nov. 2, 2018, and “Mary Poppins Returns” in theaters on Dec. 19. In 2019, cinemas will release, “Toy Story 4” on June 21; “Captian Marvel” on March 8, to be followed by “Avengers 4” on May 3; and “Aladdin,” an American musical, romantic, fantasy, and adventure film will hit the big screen on May 24.
With all of these enormous plans, Disney seems to have a bright future in becoming a powerhouse in this blooming generation of online streaming services.
Written by Parris Winfrey
Edited by Cathy Milne-Ware
Sources:
Neowin: Disney Intends To Invest In Hulu And Expand It Internationally
CNBC: Disney gains after reporting that studio revenue grew 50% year over year
TubeFilter: Disney Eyeing Global Rollout For Hulu, Potential Subscription Price Hike
PureWow: Disney Has 50 Movies Hitting Theaters from 2018 to 2023
Featured and Top Image Courtesy Josh Hallett’s Flickr Page – Creative Commons License