Entertainment Heads Dana Walden and Alan Bergman Reflect on Disney’s Streaming Turnaround
2024 was a memorable year for The Walt Disney Company in multiple ways.
After a disastrous 2023 at the box office, Disney came roaring back last year with the historical releases of Inside Out 2, Deadpool & Wolverine, and Moana 2.
Not only did all three films exceed expectations and break box office records, but they also showed the strengths of Disney’s biggest brands, with Pixar, Marvel, and Walt Disney Animation releasing their own blockbuster.
Photo: Marvel
In addition to their film success, Disney continued to invest in its theme parks, announcing many new projects, including Monstropolis to Disney’s Hollywood Studios, a Disney Villains land in Magic Kingdom, and an expanded Avengers Campus at Disneyland Resort.
Photo: Disney
At sea, Disney saw the Disney Treasure set sail and announced that a slew of new Disney Cruise Line vessels were on the way.
Disney’s Streaming Turnaround
While the new movies, attractions, and ships grabbed headlines worldwide, the most important outcome of 2024 was that Disney reached profitability in streaming.
After years of hemorrhaging money, Bob Iger fulfilled his promise to investors, and Disney’s streaming division finally turned a profit.
Photo: Disney
The streaming turnaround is certainly a feather in Bob Iger’s cap. Disney’s CEO has been lauded by investors and analysts alike for his leadership, and Disney’s stock has surged.
Photo: Deadline
However, as Iger would be the first to say, it was a team effort.
Dana Walden and Alan Bergman Reflect on 2024
In a recent interview with Vulture, Disney Entertainment Co-Chairman Dana Walden and Alan Bergman reflected on Disney’s streaming turnaround.
As Walden explains, everything Disney does comes down to the quality of its stories.
JON KOPALOFF/GETTY IMAGES
“It has been the coming together of the creative teams across the company, and of creative executives being given authority over decisions that are made throughout our streaming business so there’s accountability. But it has to start with the very best stories,” she said.
Photo: NY Times
“Across the board, whether you’re looking at the popularity of the shows, the awards, the critical acclaim, we start from a place of, ‘Are we delivering the very best stories to our subscribers?’ And I think the answer is ‘yes.'”
Changes Behind the Scenes
Storytelling may be the bedrock of Disney streaming, but the success of the direct-to-consumer business has also been the result of hard work behind the scenes.
Photo: Disney
“Then we’ve been steadily advancing our platforms. We hired a new head of technology, Adam Smith, from YouTube. He started three months ago and it’s been a bit of a game changer,” Walden continued.
“You can see it in the number of tests that we have going on around the world that are enhancing the experience on our platforms. I think we have the best advertising team in the business, led by Rita Ferro…And we successfully executed Hulu on Disney+, Star and ESPN on Disney+ and Latin America, and ABC News Live on Disney+. Putting Joe Earley in charge of our [streaming] business has brought together resources across the company in a very focused way. We have a strategy, and the results are profitability early and tremendous growth potential.”
Photo: Disney
As Walden notes, 2024 was a transformative year for Disney+. In just twelve short months, Disney integrated Hulu, Star, and ESPN+ into its flagship streamer, creating a seamless one-app experience for users.
The goal is to entice non-bundle subscribers to sign up for Hulu or ESPN while also reducing churn.
Looking Ahead
While Disney certainly has reason to celebrate its profitability reversal, its work is not done yet. The goal now is to turn the direct-to-consumer division into a growth business.
“We’ve actually got [to profitability in streaming] one quarter earlier than was anticipated. And when we look at the content that we have and improved personalization, we are aiming towards our target of double-digit growth, double-digit margins by ‘26,” Bergman explained.
Photo: Disney
As Disney looks ahead to 2025, the company is in a radically better position than it was just a year ago. While there are challenges, Iger, Walden, and Bergman have every reason to be optimistic.
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