Bob Iger said today Disney‘s content investment in EMEA and APAC has “slowed down” as the company wrestles with technology challenges and sees its Hollywood movies land strongly in local territories.
Talking to analysts during a fourth quarter earnings call, the Disney CEO painted a mixed picture of what international spend will look like going forwards, citing “opportunities, and even the need” for “selective investing outside the United States,” while warning that these should not be considered “enormous by any stretch of the imagination.”
This was primarily because local hype for billion-dollar grossing movies Deadpool & Wolverine and Inside Out 2 prove there is less need for locally-produced programs and films than elsewhere.
“We know we are making content that has global application. In most markets, we don’t have to spend as much as some of our competitors,” he said, before later adding, “If you look at some of our competitors who don’t have movies of that quality or that level of success, they have to spend more on local content as they don’t have that.
Iger said Disney was “being careful” about overall international investments “until we get the technology right,” while not going into specifics on what issues are at hand.
Elsewhere on the call, Iger was asked about the shape of Disney’s business in India following the news it has formed a new $8.5B entertainment giant with Reliance Industries. Though the operation is being touted as a joint venture, Reliance will own two-thirds of the shares and its execs will run the biz on a day-to-day basis.
Disnet CFO Hugh Johnston said: “We are very, very excited about the deal with Reliance. They’re a terrific company and obviously have huge presence in India. Going forwards, we’ll have an ownership stake in the high thirties. Obviously Reliance, with their share of ownership, will be managing the business.”
The deal merges Disney’s Star India TV business and Disney+ Hotstar streamer with Reliance’s JioCinema and Viacom18, which has been fully consolidated with Paramount Global selling its remaining 13% stake today.
