Disney CEO Bob Iger has confirmed Toy Story, Frozen, and Zootopia sequels, a part of his strategy to revive the streaming business.
The sequels to previous films are “in the works,” according to Mr. Iger.
While this was going on, the company disclosed its first decline in subscriber numbers since the introduction of its Disney+ streaming program in 2019.
Additionally, Mr. Iger declared that the entertainment company will undergo a significant restructuring that would result in the elimination of 7,000 positions.
Mr. Iger talked about his aspirations to monetize some of the company’s most recognizable franchises during a teleconference with investors.
“I’m so pleased to announce that we have sequels in the works from our animation studios to some of our most popular franchises: Toy Story, Frozen and Zootopia,” he said.
“We’ll have more to share about this production soon, but this is a great example of how we’re leaning into our unrivalled brands and franchises.”
The announced job cuts amount to around 3.6% of Disney’s workforce around the world and are part of a plan to save $5.5bn (£4.5bn) and make its Disney+ streaming service profitable. Mr Iger said he did “not make this decision lightly”.
The modifications coincided with its most recent quarterly results, his first since he rejoined Disney in November.
Mr Iger said the changes would “better position us to weather future disruption and global economic challenges”.
Disney reported an 8% rise in sales to $23.5bn between October and December last year. Profit also rose by 11% to $1.3bn.
However, Disney+ reported a $1.5bn loss and its subscribers fell by around 2.4 million to 161.8 million.
The plan will see the company restructure into three segments – entertainment which will include film, TV and streaming; sports-focused ESPN and Disney parks, experiences and products.
“This reorganisation will result in a more cost-effective, co-ordinated approach to our operations,” Mr Iger told analysts on a conference call.
The company’s streaming service remained its top priority, he added.
Disney’s share price rose by more than 5% in after-hours trading following the announcement.
Freddy Colquhoun, investment director at JM Finn, told the BBC: “Disney has been in quite a bit of trouble over the last year or so and in particular with trying to make its streaming business profitable.”
But he said the results “were actually really reassuring” and beat expectations.
Disney’s changes address some of the criticisms raised in recent months by billionaire activist investor Nelson Peltz, who criticised the company for overspending on its streaming business.
In response to the announcement Mr Peltz’s Trian Group said: “We are pleased that Disney is listening.”
Mr Iger made a shock return as Disney’s chief executive, less than a year after he retired from the firm.
He was brought back to steer the company through turbulent times after its share price plummeted and Disney+ continued to make a loss.
Mr Iger, who had previously headed Disney for 15 years, replaced Bob Chapek, who took over as chief executive in February 2020.
Mr Chapek was ousted after Disney’s streaming business posted a $1.5bn quarterly loss.
Less than 24 hours after his return to Disney, Mr Iger said he was planning a major shake-up of the business.
At the time he said he had tasked a group of executives with designing “a new structure that puts more decision-making back in the hands of our creative teams and rationalises costs”.
Source: BBC