Disney's planning to cut costs that will save the company nearly $8 billion
👉 Background: Late last year, we spoke about Disney and it’s enormous growth under long-term CEO Bob Iger. He stepped down 2 years ago, but after a shaky couple of years, he’s stepped back up to the plate.
👉 What happened: While there were some losers (TV and direct-to-consumer), Disney has announced its first quarter earnings which were better than expected (Disney owes a big TYSM to Disneyland).
👉 What else: As part of this announcement, Disney announced a plan to cut 3% of the workforce and save nearly $8 billion. And the CEO reckons it's time to shift the streaming power back to streaming platforms and studios.
What's the key learning?
💡 Streaming has delivered a “huge authority shift” from the content producer and distributor to us, the consumer. It gives us the ability to watch programs, like Squid Game, rather than channels. We get it a la carte. On demand. Whenever, wherever.
💡While this is great for us, it’s become unsustainable for streaming platforms. But for the past few years, major media players have been too focused on a land grab in streaming at the cost of sustainable earnings.
💡 So now, in a plan to become profitable, companies like Disney are not only looking at ways to increase their revenue.. but also cut costs.
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