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Bob Iger Talks Disney's 'Transitional' Q3 With CNBC, Highlights Streaming Business

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Bob Iger Talks Disney's 'Transitional' Q3 With CNBC, Highlights Streaming Business

Global media behemoth and Dow Jones component Walt Disney Co (NYSE: DIS) reported a top-and-bottom-line miss in its fiscal third quarter Tuesday.

It would be wrong to describe the company's performance as disappointing, CEO Bob Iger told CNBC's Julia Boorstin.

Quarter In Review

Disney's third quarter was impacted by "a lot of variables" from the acquisition of certain Fox assets and recent M&A deals, including increasing its ownership of Hulu, Iger told Boorstin. The results were also impacted by the company's shift in focus toward direct-to-consumer, he said. 

"We knew that this quarter, and really the next quarter too, were transitional quarters." 

Integration Plans

Disney publicly disclosed it expects to realize $2 billion in synergies from the acquisition of former rival media properties, the CEO said. The cost-cutting process will be ongoing for a "significant period of time," but the integration of acquired properties is already underway and should be apparent to customers by 2021 in the content slate, he said. 

China

The escalating U.S.-China trade war has not yet impacted Disney's theme park in Shanghai and its movie business throughout China, Iger said. The problem is an absence of clarity on the long-term outlook for China, he said. 

"We just don't know how far this trade war will go and how long it will be waged," Iger said. "It's just too soon."

'Plenty Of Room' In Streaming

Disney confirmed that its streaming bundle package of Disney+, ESPN+ and Hulu will cost $12.99 per month — the same price as Netflix, Inc. (NASDAQ: NFLX).

This is purely coincidental and shouldn't be viewed as a sign that Disney is "going after" Netflix, Iger said.

Pitted against Netflix, Disney stands out in the crowded streaming space because of its content and strength of brand, he said. 

"We've always believed there's plenty of room for both of us to thrive in this marketplace." 

Disney shares were trading down by 5.05% at $134.71 at the time of publication Wednesday. 

Related Links:

3 Reasons Disney's Upcoming Film Schedule Is Good News For Investors

'Lion King' Release Might Be A Good Time To Look At Disney's Stock

Photo courtesy of Disney. 

Posted-In: Bob Iger CNBC Hulu streaming videoEarnings News Management Media Best of Benzinga

 

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