Worse than the woke part and purely from a financial perspective, Iger bet big on Disney+ and Chapick continued on that path. But, instead of charging a premium for their brand/content, they made the subscription price so low (to compete with the others) that all they did was chase subscribers.

Now, they have 150M global subscribers on Disney+, while losing $500M-$1B per Quarter on Disney+, while simultaneously gutting their linear business by reducing the number of channels that they had globally. They accelerated the demise of their cash cow to focus content and energy on an exclusive basis into Disney+.

When interviewed by CNBC, Iger said he had to turn it around but didn’t say how.

I’m in the media industry way on the backend technical services side, and none of my colleagues have ever seen anything like this.

My best guess is that Disney will be acquired, and Apple is the most likely buyer.

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Posted by SECdragonmaster

Order of the Dragons

Member since Dec 2013

16291 posts

Posted on 8/9/23 at 1:21 pm to Atttaboy

quote:
But, instead of charging a premium for their brand/content, they made the subscription price so low (to compete with the others) that all they did was chase subscribers.

Problem is that if they charge more - they would not get subscriptions.

I have Disney + but only because it is so cheap and my kids like to watch the good Disney Channel shows they watched growing up 15 years ago.

If they double the price - we would cancel.

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Posted by Jag_Warrior

Virginia

Member since May 2015

4180 posts

Posted on 8/9/23 at 7:03 pm to Atttaboy

quote:
My best guess is that Disney will be acquired, and Apple is the most likely buyer.

While I enjoyed reading your well written post, I’d have to say that Apple is one of the least likely acquirers of Disney. For years, people floated the idea that Apple was going to buy AT&T (or part of it), then Netflix, then Tesla and then another one that escapes my memory. But the largest acquisition that Apple has ever made was the Beats deal for, I believe, somewhere around $3 billion. Disney’s market cap is approximately $160 billion… and even a modest buyout premium would put the takeout close to $200 billion.

Could Apple afford the deal? Sure, they could write a check tomorrow and still have $25+ billion in the bank. But is it in their DNA to do large deals? Doesn’t seem so. Not impossible, but just not very likely IMO.

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