May 30, 2024

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As streaming numbers decline, Disney announces Toy Story and Frozen sequels

Frozen, Toy Story, and Zootopia sequels have been confirmed by Disney CEO Bob Iger as he outlined strategies to revive the company’s streaming industry.

Mr. Iger claimed that sequels are in the works at Disney’s animation division. The company also disclosed its first decline in member counts since the debut of its Disney+ streaming service in 2019.

And Mr. Iger declared that he would “radically restructure the entertainment industry giant, eliminating 7,000 positions.”

Mr. Iger discussed his aspirations to monetize some of the company’s largest properties during a teleconference with investors.

He said, “I’m extremely happy to report that our animation teams are working on sequels to some of our most well-known brands, including Toy Story, Frozen, and Zootopia.”

The third Frozen movie and a second Zootopia movie would be the most recent sequels. Along with the spin-off Light-year from last year, there have now been four Toy Story movies.

Within the framework of a strategy to save $5.5 billion (£4.5 billion) and turn Disney+ into a lucrative streaming service, about 3.6% of Disney’s global workforce would be affected by the planned job losses. “We are not making this choice lightly,” Mr. Iger claimed.

His first quarter of results after rejoining Disney in November coincided with the adjustments.

According to Mr. Iger, the modifications will “better position us to withstand future turbulence and world economic difficulties.”

Between October and December of last year, Disney recorded an 8% increase in sales to $23.5 billion. Also up 11% to $1.3 billion was profit. Disney+’s subscribers declined by about 2.4 million to 161.8 million, and the service reported a $1.5 billion deficit.

According to the strategy, the business will be divided into three areas: “entertainment, which includes movies, television, and streaming; sports-focused ESPN; and Disney parks, experiences, and merchandise.”

In the hours after the news, Disney’s stock price increased by even more than 5%.

Following Bob Chapek’s appointment as CEO in February 2020, Mr. Iger, who had demonstrated success at Disney for 15 years, assumed his place.

Disney’s online division reported a $1.5 billion quarterly deficit, leading to Mr. Chapek’s termination. Mr. Iger announced he was preparing a significant shake-up of the company less than 24 hours after returning to Disney.