(Bloomberg) -- Walt Disney Co. Chief Executive Officer Bob Iger said marketing expenses at the flagship Disney+ streaming service are too high and will be cut as the company seeks to make a profit in that business by the end of its fiscal year. 

Disney will invest in technology so that the streaming platform can “ping highly customized messages to customers when we suspect they’re at risk” of losing interest, Iger said Wednesday at a media investment conference hosted by MoffettNathanson. Flagging shows of interest to subscribers who have stopped engaging with a platform is something Netflix Inc. was “brilliant at,” he said.

After years of focusing on subscriber growth since the launch of the Disney+ service in 2019, the world’s largest entertainment company is trimming costs to break even. 

Disney expects the direct-to-consumer streaming business, which includes Hulu and ESPN+, to have double-digit profit margins in the future, Iger said, although he declined to specify a time frame. Earlier in May, Disney reported that losses in the streaming unit narrowed to $18 million in its fiscal second quarter from a loss of $659 million in the year earlier quarter. 

Read More: Disney Shares Decline on Outlook Despite Path to Profit

Still, shares tumbled the most in a year and a half after the earnings report. Disney gave a tepid outlook for growth in streaming subscribers in the current quarter and said that visits to parks are expected to moderate from peak post-Covid levels.

Iger said at the investment conference that the parks business will “grow nicely” in the long term, but reiterated that the division’s double-digit growth in recent years won’t last. 

Disney has also recently gotten city approvals for an expansion of its original Disneyland resort in California, Iger said. That site was making about $100 million a year in profit when Iger became CEO in 2005 and earns “well over $1 billion” today, he said.

Disney shares were little changed at $105.50 in New York Wednesday morning.

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