Walt Disney Shares (NYSE:) fell 3% on Wednesday after CEO Bob Iger’s comments at a media investment conference hosted by MoffettNathanson.
Iger reportedly said that the marketing costs of the Disney+ streaming service are prohibitive. As a result, the company will be looking to reduce these as it aims to turn a profit in this business by the end of the financial year.
In addition, Iger reportedly said that Disney will invest in technology that will allow the streaming platform to “send customers personalized messages” when they suspect they are at risk of losing interest.
Disney+ subscriber growth has been a focus for Disney over the past few years following its 2019 launch. However, the company is now said to be looking to cut costs to break even.
Iger added that Disney expects its direct-to-consumer streaming business to generate double-digit profits in the future.
Additionally, at the investment conference, Iger reportedly told audience members that the company’s parks business would “grow well” over the long term. However, he noted that the division’s double-digit growth in recent years will not last.