Walt Disney (NYSE:DIS) shares fell 3% Wednesday following comments from Chief Executive Officer Bob Iger at a media investment conference hosted by MoffettNathanson.
According to reports, Iger stated that marketing expenses for the Disney+ streaming service are excessively high. As a result, the company will look to cut them as it aims to make a profit in that business by the end of its fiscal year.
Furthermore, Iger is said to have revealed that Disney will invest in technology that will allow the streaming platform to “ping highly customized messages to customers" when they suspect they’re at risk of losing interest.
Disney+ subscriber growth has been the focus of Disney for the last few years after its launch in 2019. However, it is now said to be looking to trim costs to break even.
Iger added that Disney anticipates its direct-to-consumer streaming business to have double-digit profit margins in the future.
Furthermore, at the investment conference, Iger is said to have told listeners that the company's parks business will “grow nicely” in the long term. However, he noted that the unit’s double-digit growth in recent years won’t last.