(TheLibertyRevolution.com)- Disney CEO Bob Iger admitted last Thursday that the pursuit of bigger profits at its theme parks had a negative impact on the company, the Los Angeles Times reported.
While speaking at the Morgan Stanley Technology, Media, and Telecom Conference last week, Iger acknowledged that the price hikes both at Disneyland and Walt Disney World, coupled with the low subscription fee for the Disney+ streaming service were counterproductive.
Iger said Disney’s “zeal” for higher profits made the company “too aggressive” in its pricing. He said the company will have to “be smarter” in its pricing so it can “maintain” its “brand value of accessibility.”
It was reported in January, Disney was forced to cut prices at its “Star Wars”-themed Disney World hotel after the $5,000 a night rate proved too daunting for guests.
Iger vowed to continue listening to its customers so it can “continue to adjust.”
Since Iger returned to Disney last November, the company has scaled back some of the price enhancements at its theme parks, while announcing a plan to generate cost savings of $5.5 billion, which includes eliminating 7,000 jobs.
Disney is also considering whether to keep its general entertainment service Hulu, as well as its ESPN sports empire since the rising cost of sports rights fees along with dwindling cable TV subscriptions have put a dent in ESPN’s profits.
But it is the theme park strategies that are particularly under a microscope.
According to Iger, Disney has been working on ways to improve its parkgoers’ experience by reducing crowding while maintaining profitability.
At the start of the year, Disney reinstated free overnight parking for guests at its Walt Disney World hotels in Orlando. Additionally, the company expanded the number of days adult tickets at Disneyland are only $104.
Iger also said the company would also scrutinize the sequels from its big franchise films like “Star Wars” and the Marvel movies, acknowledging that the Disney studio may have churned out too many “Star Wars” movies.
