I love a solid feature article on a Saturday, and that’s exactly what I’m reading this morning.
Barrons.com’s Jack Hough talked with Walt Disney Company CEO Bob Iger, who outlined his reasoning for shifting the company away from cable television to digital streaming:
Iger comes across as calm and confident, but when the subject turns to streaming, he speaks with more urgency. Companies can fall victim to industry disruption when they regard it as a passing storm or take too much comfort in their ability to endure, he says.
Iger points to Eastman Kodak, which once sold more film in Disney parks than in any country outside of the U.S., and which failed to negotiate the shift to digital photography.
Of streaming, Iger says, “This felt like our ability to endure was going to be solely tied to our ability to transform ourselves, and not pursue ‘we’re going to get through this; it’s a storm that’s passing overhead, and when it clears we’ll be fine.’ We have to be different when that storm clears. We can’t be the same.”
The piece is fascinating, from outlining Disney’s future strategy to describing Iger’s 4:15 AM workouts. But the most important paragraph speaks to the CEO’s business acumen:
This year, Disney will again become the only studio in history to reap $7 billion in worldwide box office receipts: $4 billion internationally and $3 billion in the U.S. It also did so in 2016. And Disney makes eight to 10 films a year; some big studios make two dozen.
Be sure to take a solid look at this lengthy article (but don’t click away when you take a break; Barron’s only allows one free article).