When it was announced that Disney CEO Bob Iger would return to lead the Walt Disney Company, fans were ecstatic. After two years of ex-CEO Bob Chapek’s decisions, deemed questionable and out of touch by Disney fans, the community was thrilled to have the tried and true Bob Iger back in charge of all things Disney.
Make no mistake, CEO Bob Iger has better charisma, public image, and reputation among casual and hardcore Disney fans.
Despite this, Bob Iger also has had his fair share of missteps and out-of-touch moments. After all, he’s only human, like the rest of us.
But some fans think the CEO of the Walt Disney Company is about to make some of his worst mistakes yet…
Is the Worst Yet to Come For the Walt Disney Company?
The Walt Disney Company recently held its Third Quarter Financial Year 2023 Earnings call, in which the company leaders discussed the current state of financial affairs and plans moving forward.
Bob Iger spoke at length about some of his ideas, but the experts over at the Motley Fool think he may be making some big mistakes…
Theme Parks and Merchandise and Streaming, Oh My!
One of the most controversial ideas is price hiking for Disney Plus (stylistically Disney+) and Hulu, two of the most popular streaming platforms around.
In just a few months, the Disney Plus package, which gives viewers the privilege of seeing no advertisements, will increase from $10.99 to $13.99 a month.
Not only that, but the equivalent Hulu package containing no advertisements will increase from $14.99 a month to $17.99 a month. For the consumer who wants access to both streaming platforms with no ads, the Walt Disney Company will soon offer a bundle including Disney Plus and Hulu, with no ads, for $19.99 a month.
The Motley Fool points out that in the past, even the biggest streaming platforms have suffered dramatically after introducing price hikes. Netflix, in particular, experienced a massive loss in subscribers (up to 1.2 million) after increasing its prices.
If Disney Plus and Hulu raise prices simultaneously, the results could be devastating for the Walt Disney Company’s streaming revenue.
Price Hiking Is One Thing, But Punishing Subscribers Is Something Else Entirely…
It’s also no secret that Bob Iger is considering a plan to stop users from password-sharing for Disney’s streaming services. During the earnings call, the CEO stated, “Later this year, we will begin to update our subscriber agreements with additional terms on our sharing policies, and we will roll out tactics to drive monetization sometime in 2024.”
This is another instance where the Disney CEO should learn from Netflix’s past mistakes. From a reputation and public relations-centric standpoint alone, cracking down on users who share passwords with friends and family is a horrible idea.
Financially, it also serves as a risk to drive out a loyal division of consumers. After all, imagine the number of users who will simply stop paying for these services at all!
While the Disney CEO has proven time and time again that he knows what he’s doing, it can’t be denied that these are some slippery slopes he’s traversing.
What do you think about these ideas regarding Disney’s streaming services? Let us know!