Creators, Creativity, and Technology with Bob Iger
Jan 6, 2023
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Bob Iger, former CEO of Disney and mastermind behind acquisitions like Pixar and Marvel, shares insights on how technology reshapes creativity and content. He discusses navigating the transition from traditional media to streaming and the importance of storytelling. Iger highlights the significance of feedback and risk in fostering creativity, plus the challenge of decentralization in decision-making. The conversation also touches on immersive experiences and the future of content in a rapidly evolving digital landscape.
Investing in high-quality branded content helped Disney attract consumers across different distribution platforms.
Managing creatives effectively requires partnership, constructive feedback, and trust-building.
Disney's success in streaming came from adapting to changing consumer behavior and investing in a direct relationship with customers.
Deep dives
Disney's focus on high-quality branded content
Disney's strategic priority was to invest in high-quality branded content, believing that great stories and creativity would stand the test of time and attract consumers regardless of the distribution platform. This led to the acquisitions of Pixar, Marvel, and Lucasfilm, which brought well-known brands and talented creatives under the Disney umbrella.
Managing creatives and delivering feedback
Bob Iger emphasized the importance of managing creatives effectively, understanding their perspective, and establishing a partnership instead of exerting authority. He highlighted the value of giving constructive feedback that focuses on the big picture and avoids getting too granular or petty. Building trust and providing guidance without creating unnecessary anxiety were key elements in managing creative talent.
The impact of streaming and changing consumer behavior
The rise of streaming platforms like Netflix and changes in consumer behavior highlighted the need for Disney to adapt and enter the streaming industry. Iger recognized the shift towards app-based entertainment and the increasing authority of consumers in deciding when, where, and how to watch content. This led to the decision to develop a streaming platform and foster a direct relationship with customers to better understand their preferences and strengthen engagement.
Challenges of disrupting traditional business models
Transitioning from traditional distribution models to streaming faced challenges such as shifting organizational mindset, changing key performance indicators, and convincing investors of the long-term benefits. Iger acknowledged the innovator's dilemma and the need to disrupt themselves to navigate the rapidly evolving media landscape. Decentralization empowered decision-making and enabled talent to thrive, while maintaining a centralized focus on brand management and consistency.
Disney Plus's Success and the Importance of Going All In
Disney Plus surpassed Netflix in global subscribers, which was seen as a successful outcome for a non-founder CEO. The CEO credits the right timing, credibility, and the support of the board for the company's achievements. The board's trust in the CEO's vision, despite some doubts, pushed them to fully commit to the streaming platform. To ensure the success of Disney Plus, the company made significant investments, even at the cost of initially depressing earnings. The decision to go all in paid off when the platform gained 10 million subscribers within 24 hours of its launch.
The Shift Towards Streaming and the Future of Entertainment
The CEO believes that streaming is the future of entertainment, while linear cable and satellite viewing are declining. As the younger generation replaces the baby boomers, the trend towards streaming will continue and eventually overtake traditional TV viewing. To accommodate consumer preferences and affordability, some streaming platforms may introduce ad-based models alongside subscription options. While streaming platforms will strive for quality content and immersive experiences, the CEO acknowledges that not all streaming services will succeed, as it requires substantial investment and the ability to adapt to changing market dynamics.
A wide-ranging conversation with Bob Iger on the interplay between technology, content, and distribution; as well as Bob’s journey -- and that of various creators! -- especially as the industry evolved from TV and cable to the advent of the internet/ web 1.0 to 2.0 to briefly touching on web3 and other emerging technologies. As well as topics top of mind for all company and community builders: from build vs. buy and the innovator's dilemma, to managing creativity, decentralization, remote work, and much more.
Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. For more details please see a16z.com/disclosures.
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