Disney Chief Robert Iger Defends Marvel Movies Against Hollywood Critics -- Update
October 23 2019 - 01:10AM
Dow Jones News
By Erich Schwartzel
LAGUNA BEACH, Calif. -- Walt Disney Co. Chief Executive Robert
Iger pushed back forcefully at criticism from acclaimed Hollywood
directors Martin Scorsese and Francis Ford Coppola about Marvel
Studios' superhero movies, saying it was disrespectful to the
people who work on successful films that audiences enjoy.
Mr. Scorsese, known for movies such as "Goodfellas" and "Raging
Bull," had said earlier this month the productions were more like
"theme parks" than cinema. Mr. Coppola this week called them
despicable.
"I reserve the word 'despicable' for someone who committed mass
murder," said Mr. Iger, speaking at the WSJ Tech Live conference in
Laguna Beach, Calif. "These are movies."
"They want to bitch about movies, it's certainly their right,"
Mr. Iger added, saying he'd gladly put those directors' movies up
against features directed for Marvel by Taika Waititi and Ryan
Coogler.
Mr. Iger is weeks away from launching his company's Disney+
streaming service, a dramatic shift in strategy for a company that
for years has profited handsomely from the traditional TV and movie
business. Disney+ will feature Disney movies and television shows
for a $6.99 monthly subscription. The launch of a flagship
streaming service has reoriented his company's managerial ranks and
prompted an influx of production in anticipation of the Nov. 12
launch.
Mr. Iger said he is piloting the service himself. He spent two
hours on Tuesday exploring the app and offering notes to engineers.
His feedback: Make the product rely less on algorithms to predict
what consumers want.
Mr. Iger's idea came after he had clicked on a category called
"Mickey Mouse Through the Years." In addition to Mickey Mouse
programs, the app serviced up related suggestions, including Pixar
Animation Studios features.
"I think if people are clicking on Mickey Mouse, they mostly
want Mickey Mouse," he said.
Mr. Iger has delayed retirement several times but is now
scheduled to step down in 2021. He said the Disney board discusses
succession and potential CEO candidates at each meeting, adding
that he expects the handover to go more smoothly than the
protracted interview process that preceded him getting the top
job.
"I hope it is a more clear-cut decision," said Mr. Iger.
Mr. Iger's realization that the company needed a radical shift
in strategy came in August 2015, when he reported on an earnings
call that Disney's ESPN sports channel was registering subscriber
losses because cable customers were dropping their
subscriptions.
Wall Street panicked at the prospect of one of Disney's most
profitable divisions facing existential questions about its growth,
sending the company's stock price tumbling and erasing billions of
dollars of market value.
"The reaction was really harsh and swift," said Mr. Iger. "There
was no way, in my opinion, to be timid or do something either small
or incremental -- it required a big change."
Since Disney announced its ambitions in streaming about two
years later -- including an ESPN-branded service -- Wall Street has
responded favorably.
Mr. Iger said the company will release Disney+ subscriber
figures on quarterly earnings calls following the launch, and
reiterated that the company expects the service to be profitable by
2024.
Mr. Iger said he wasn't personally involved in Disney's decision
to stop accepting ads from Netflix on its entertainment platforms.
But he supported his ad division's calculus, which was based on the
fact the companies will compete head-on in streaming. "My initial
reaction was that it felt somewhat petty, but when it was described
to me, I decided to support the decision that was made," he
said.
Apple Inc. and Amazon.com Inc. can still buy ads on Disney, Mr.
Iger said, because they market products beyond entertainment.
Mr. Iger declined to comment on the challenges of doing business
in China, calling it a "damned if you do, damned if you don't"
situation to remark on the topic. A tweet by an NBA executive in
support of Hong Kong's protesters recently triggered a major
controversy in China and the U.S., putting the league in the
delicate position of trying to stand up for free speech while not
offending authorities in a growing market.
ESPN instructed talent to refrain from commentary about the
political crisis in the region. Like many U.S. companies, Disney
has a lot of business at stake in China, including a theme park and
billions of dollars in box-office receipts.
Elaborating on why he won't comment on China, Mr. Iger added:
"To take a position that could harm our company in some form would
be a big mistake."
Write to Erich Schwartzel at erich.schwartzel@wsj.com
(END) Dow Jones Newswires
October 23, 2019 00:55 ET (04:55 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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