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Even ABC had notable triumphs in 2024: Fall dramaHigh Potentialwas an immediate hitand is now broadcast TVs No.
That in theory could help slow down cord-cutting while also driving viewership of Disneys streaming platforms.
More importantly, We believe Disney is on the road towards meaningful [streaming] profitability, Fishman added.
That mission is far from accomplished, of course.
And what are you doing now to ensure it becomes a sustainable business model for Disney?
But it has to start with the very best stories.
And I think the answer is yes.
Then weve been steadily advancing our platforms.
We hired a new head of technology,Adam Smith, from YouTube.
He started three months ago and its been a bit of a game changer.
I think we have the best advertising team in the business led by Rita Ferro.
We have a strategy, and the results are profitability early and tremendous growth potential.
Alan Bergman:We were actually losing, as you well know, several billion dollars.
And in a couple of years time, weve turned it around.
In addition to the initiatives that Dana has outlined, weve increased our price.
Our price was very low when we rolled out the service.
So weve sort of turned the corner on profitability.
Weve actually got there one quarter earlier than was anticipated.
Is it substantially less?
And what about going forward?
Walden:Joe, you and I have had this conversation for a long time.
Weve never been the place thats interested in making themostcontent; we want to make the best content.
And we feel, ultimately, its about the right programming mix and not about volume.
We also have programming coming from a number of different sources.
And so I really dont see the cutting back in programming, to be honest with you.
I think the original content strategy during the beginning of the streaming wars was not effective.
They really didnt know how to discover the right content.
Additionally, theres so much value in our bundle.
And it was the same thing withAliens, it was the same thing withApes, same thing withMoana.
So we found that to be effective.
Were not, at this point, reducing our costs at all.
And we found that the pay one window titles were performing very, very well.
So we readjusted how we looked at that.
What about programming for originals at Hulu, FX, ABC and whatever is left of cable production?
So much of TV historically has been cyclical.
Is it possible that well see the spending there go up again?
It is fair that we have cut back on some of the volume.
We have shifted the mix.
SoMoana 2was going to be a series, but you obviously decided to turn that into a theatrical release.
And instead of making the next season ofTheMandalorian, you opted to toThe Mandalorian & Grogufor theaters.
Were either of these tough calls?
Bergman:These are two particular situations.
So its really title by title.
And because were a global service, these titles play everywhere.
Lets turn to FX.
You didnt do that.
And more broadly, what do you make of the success John Landgraf has had at FX this year?
Walden:Well, I really have to credit Bob with the vision.
Remember, this was a pretty bleak time for basic cable.
Walden:Well, as you know,Shogunseason two is coming, so its a portfolio of projects.
And thats always been the strategy.
And were also doingThe Secret Lives of Mormon Wives,and a series of highly successful documentary series.
Alien: Earthis a big shot for John, and Ive actually seen the first three episodes.
So, we are going to continue taking shots at all levels.
Alan, managing Marvel is a big part of your job.
But, you know, you never know.
It just depends on what creative comes up as we look at each of our development titles.
So clearly those with big visual effects cost significantly more.
But the whole goal, in whatever we do, is quality.
Its the most important thing, and we wont do anything that we dont think is quality.
And then youre going to see some titles that are less expensive because they have less visual effects.
But what theyll both have are great stories.
Staying on the franchise front, lets talk Star Wars.
It feels like its had a bumpier road of late compared to Marvel.
Why didnt you move forward?
And can you offer any hint as to howSkeletonCrewis doing, or its future?
So thats the reason why we didnt do that.Skeleton Crewis in process now, so well see.
Weve seen some growth on that.
Well see how that goes.
What about the broader franchise, both on streaming and in theatrical?
Bergman:In terms of whats coming up, we haveAndorseason two, which were really excited about.
Ive watched all the episodes, and it is a fantastic season.
And then we haveAhsokaseason two, which Dave Filoni is leading.
And then were looking at a number of additional series that are in development.
Well see what we decide to do.
When were ready, well be making announcements as to what those are.
But YouTube remains a huge threat to your historic dominance.
Whats your plan going forward?
Walden:Well, I think we have a multi-pronged strategy.
I would just point toBluey: 800 million hours streamed last year, and theyre eight-minute long episodes.
So we have a YouTube strategy with channels for Disney Junior, Disney Channel,Descendants.
Its all part of an ecosystem that continues to grow very important IP likeSpidey and his Amazing Friends.
We also recentlylaunched our Streams, which are programmed channels and our Playtime channel took off like a rocket.
It is a benefit to a parent to not have to keep selecting another show when one ends.
Its a trusted stream of Disney kids programming.
Are there going to be more full-length episodes?
Would you ever consider just buying the IP from BBC Studios?
Walden:Thanks, Joe.
Could you put that strategy on paper and just send it over to me?
No, but whats going on withBluey?
Will there be more full-length episodes?
Walden:Im not in a position at this exact moment to tell you specifically whats going on.
What I will tell you is that we have a great relationship with the BBC and Joe Brumm.
We just released another tranche of the mini-sodes this week.
But Im pretty bullish about it.
In addition toTheSimpsonsandFamilyGuy, Hulu has originals such asSolarOppositesand the reboot ofFuturama.
Can you talk about building up that business at a company like Disney?
Walden:Im glad you asked this question.
We dominate in this unique form of storytelling.
Last year, our adult animation drove 3.7 billion hours of engagement on our platforms.
Im curious about how long you thinkSimpsons,FamilyGuy, andBobsBurgerswill continue to be shared with Fox.
Or do you think its likely youll renew the current deal when itexpires next year?
But youre not doing this with new titles from Marvel, Star Wars and Pixar.
Is there any chance that youll evolve that strategy, and once again license tentpoles to other streamers?
I saw that Warner Bros. has already soldBarbieto Netflix, and that came out last year.
So thats a no on Disneys branded films being licensed outside Disney+?
Bergman:Not at this time, no.
I dont think it makes sense.
There have been a few, but not a lot.
Any chance that changes as the Disney+ and Hulu ecosystems become more mature and more widely distributed?
Bergman:We are focused on the tentpole movies.
Then consumer products will sell a bunch of merchandise.
Ultimately, were doing stuff in the theme parks.
It will be on Disney+; it will be games.
So it lifts the entire company, and I think thats a more strategic way of spending our money.
But theres not going to be that many of them.
Were more focused on theatrical.
And its going to hit the service anyway.
Lets end this by looking ahead.
What do you think 2025 will bring, both for the industry overall and for Disney streaming?
Bergman:So we are incredibly focused on what we are doing.
Were certainly aware of what others are doing, but we dont want to be followers.
Youve seen what werestarting to do with sports.
I think as we look forward, sports will become a more important part of the service.
And Ill just kind of leave it at that without getting into detail.
But clearly it seems like a logical assumption that more consolidation is in [Hollywoods] near future.
We dont think thats going to impact us.
We are already consolidated.
We have 100 years of the Walt Disney Company, and almost 100 years of Fox.
We took those steps already, and were sort of six years down the road from that.
So we feel like weve got a head start on whats happening in the industry right now.
