11:06 AM EDT, 05/15/2024 (MT Newswires) -- Walt Disney ( DIS ) will lower marketing expenses for its Disney+ streaming service as it seeks to make a profit in that business, Chief Executive Bob Iger said Wednesday.

"Our marketing expenses are too high," Iger said at a media investment conference hosted by MoffettNathanson, according to a Capital IQ transcript. "The reason they're too high is because we didn't build in the technology to have not only the algorithms but the ability to send very, very highly customized messages to our subscribers when we believe they're potentially at risk."

Iger said the reduction in marketing expenses will be on top of the company's efforts to increase engagement and plan to crack down on password sharing, starting in June to be expanded globally in September.

The company got into the streaming business "in a very, very aggressive way," Iger said, adding that "we tried to tell too many stories." Disney ( DIS ) invested "too much way ahead of possible returns," resulting in streaming ending up as a $4 billion loss, he said.

The company's shares were down 2.9% in recent trading.

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