Disney is cutting production of Marvel movies and TV shows amid fears that the demand for their work will be exhausted by so-called super hero fatigue.
Bob Iger, Disney CEO, stated that the company will “reduce output” and “focus more on quality”, especially when it comes to Marvel . Marvel is known for franchises like The Avengers and Black Panther.
The stock fell by over 10pc after Disney Plus’s subscriber numbers were lower than expected and its traditional broadcast TV business slowed down.
Marvel movies have dominated box office for the past decade and a quarter, with 33 films being released since 2008. Recent releases, such as The Marvels or a third Ant-Man movie have not performed well. This has led to fears that filmgoers are no longer in love with the franchise.
The Marvels, which was the studio’s latest film, only generated $206.1m at the Box Office. This is less than the $274m budget. The Marvels was the lowest grossing film of the franchise’s entire history. It brought in less than one tenth the amount earned by its most successful title: 2019’s Avenger’s Endgame.
Mr Iger stated that Disney would release between two and three Marvel movies a year compared to the previous average of four. He also said they would reduce TV series from around four to two a year. He stated that certain upcoming TV series were “a vestige from a past desire to increase volume”. In the future, he said, “it will be just a balance which we believe is right”.
Disney disappointed investors with its quarterly streaming profit, which was a landmark moment for Mr Iger’s bet on video-on-demand.
The company’s traditional US broadcasting business as well as its sports operation saw profits fall. Disney Plus also attracted fewer subscribers than expected and the company expects growth to plateau when it reports its next quarterly financial results.
“We’ve always said that our path to profitability won’t be linear,” said Mr Iger.
The company reported a $20m loss for the quarter due to restructuring costs. The company’s revenues increased from $21.8bn up to $22.1bn.
Mr Iger recently defeated the activist investor Nelson Peltz . Mr Peltz was trying to gain a position on Disney’s Board and criticised both the company’s performance and its emphasis on diverse casting.
At the annual meeting held last month, shareholders rejected Mr Peltz’s bid to join as a director.
It has invested heavily in order to get a foothold on streaming services and to catch up to rivals like Netflix. However, the company is under pressure to show that it can earn money through internet video. It has recently raised prices and introduced an advertising-supported version of Disney Plus in an effort to improve profitability.
Mr Iger stated that Disney’s streaming service would be profitable at the end of the financial year which runs from September to December.