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The announcement came as Disney improved Wall Street expectations for his first quarter earningscutting losses on its streaming services and stabilizing subscribers.
“This marks Disney’s largest entry into the world of video games and offers significant opportunities for growth and expansion.” Iger said in a statement, adding that the changes the company implemented last year are now “bearing fruit.” He told CNBC in a television interview that Disney has sought a “minority stake” in Epic Games.
In the interview, Iger said investment in gaming is “an important step when you look at demographic trends and look at where Generation Alpha and Generation Z and even millennials are spending their time in media.”
Generation Z spends more time each week playing games on consoles, smartphones and computers than watching television or movies. according to an analysis by YPulse, a market research group focused on younger generations.
Fortnite, an online multiplayer game franchise known for chaotic battles, creative open worlds, and comical avatars, first launched in 2017. Its popularity skyrocketed, with online counters record millions of players at any given time, including a record 44.7 million simultaneous players in November.
A video announcing the association, posted by the Fortnite YouTube channelshowcased an animated universe connecting brands like ESPN and Marvel, with appearances by popular characters like Elsa from the animated musical film “Frozen,” Captain America and Darth Vader.
Disney and Epic have already attracted hundreds of millions of players through collaborations with Fortnite. Marvel’s “Nexus War with Galactus” attracted more than 15.3 million concurrent players, Disney said.
Iger began his second stage as CEO of Disney in 2022and has focused on turning around the media giant’s fortunes, as box office failures and its costly foray into streaming services hurt profits in recent years.
“Just over a year ago, we outlined an ambitious plan to return to a period of sustained growth and shareholder value creation, and our strong performance this past quarter demonstrates that we have turned the corner and entered a new era,” Iger saying in a post-earnings statement Wednesday.
Disney also announced that its streaming platform, Disney Plus, will run a exclusive cut from Taylor Swift’s “Eras Tour” concert film that kicks off March 15.
disney stock pink in after-hours trading when investors responded to the earnings report better than expected.