'%20x='0'%20y='0'%20height='100%25'%20width='100%25'%20%0A%20%20%20%20%20%20%20%20%20%20xlink%3Ahref='data:image/jpg;base64,/9j/2wBDAAYEBQYFBAYGBQYHBwYIChAKCgkJChQODwwQFxQYGBcUFhYaHSUfGhsjHBYWICwgIyYnKSopGR8tMC0oMCUoKSj/2wBDAQcHBwoIChMKChMoGhYaKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCgoKCj/wgARCAAGAAoDASIAAhEBAxEB/8QAFgABAQEAAAAAAAAAAAAAAAAAAAYH/8QAFQEBAQAAAAAAAAAAAAAAAAAAAAH/2gAMAwEAAhADEAAAAMvkyP/EAB8QAAMAAQMFAAAAAAAAAAAAAAECAwQABQYREiEyov/aAAgBAQABPwDkvJ1z+NbfiSgVWWSlKGnRu72Grbur2dlNlVmJChj4+tf/xAAUEQEAAAAAAAAAAAAAAAAAAAAA/9oACAECAQE/AH//xAAVEQEBAAAAAAAAAAAAAAAAAAAAAf/aAAgBAwEBPwCP/9k='%3E%3C/image%3E%3C/svg%3E)
In a revolutionary move, Disney is pulling back on Marvel and Star Wars content that streams on its platform. This radical decision came in the wake of the immense backlash received by the content the franchises have been churning out lately. The announcement came from CEO Bob Iger when talking to CNBC.
Both Marvel Studios and LucasFilm (Star Wars) have done profitable work under the bigger banner. However, things have changed recently with the companies not keeping up with quality work. Additionally, some strategic moves by the two companies have hit their business. Under the leadership of reinstated head Bob Iger, some long-due changes have started.
The Walt Disney Company is also changing its streaming policies. They are speculating on licensing the in-house content on other third-party platforms. The company discussed some of them in April this year. This relaxation has come long after the company had taken control of all its content on Disney+ in 2010.
Trending
Disney pulling back on the content of Marvel and Star Wars
The CEO of Disney, Bob Iger, announced on Thursday, July 13, 2023, that they are pulling back on the content of Marvel and Star Wars. As part of the explanation for this move, he said that besides a cost containment initiative, pulling back would also help focus on good content.
He added said that they planned on making less as well as spending less on whatever is made. The revamping of the policies is a well-thought-out plan which came with the re-entry of Iger into the company.
Speaking on what went wrong, he presented the example of Marvel as a studio that was not in the television business before coming under the flagship of the company. However, later they produced many TV series along with a large number of movies diluting focus and attention in the process.
The company acquired Marvel in 2009 for $4 billion. The franchise turned very profitable. However, MCU’s 31st movie, Ant-Man and the Wasp: Quantumania turned into a disappointment with a sharp fall in sales and mixed reviews. On the other hand, Guardians of the Galaxy Vol.3 did better at the box office.
Similarly, LucasFilm has also generated huge revenue for the flagship company after being acquired in 2012 for another $4 billion. While LucasFilm has not come out with Star Wars films since 2019, it is focused on various series and other movies. However, its latest released movie, Indiana Jones and the Dial of Destiny has underperformed at the box office.
What other policy considerations happened on the company's board?
In early February of this year, anonymous news reports stated that to reduce losses incurred by the streaming platform, the flagship company plans to consider licensing in-house content to rival platforms. This comes after the company has offered lower-price tickets and free photos to their theme-park guests.
After the launch of Disney+ in 2019, the company slowly phased out its licensing contracts with third-party streaming services in a bid to boost its own streaming business which did work out initially. However, to curb losses a different strategy needs to be considered in the current situation.
Iger had disclosed in February that they were not planning on licensing their core products from Marvel, Pixar, and Star Wars. Keeping track of significant franchises while ensuring limited but spectacular content is the chief target of this corporate decision.
