The Walt Disney Company CEO Bob Iger has admitted the company’s streaming technology is behind that of its main rival.
In a speech to the Morgan Stanley Technology Media and Telecom Conference, Iger admitted the technology behind Disney Plus isn’t strong enough to “lower customer acquisition and retention cost, to increase engagement, to essentially grow our margins by reducing marketing expenses.”
He said Disney was now in the process of updating its technology, however, he didn’t go into details as to what that entails.
“Obviously, the gold standard there is Netflix,“ said Iger. “We need to be at their level in terms of technology. One of the reasons why their margins are so much more significant than ours is because they have that technology.
“We’re finding wherever we bundle, churn rates are down significantly. So that’s a path to profitability,” he added.
