Status: 21.11.2022 09:22 a.m
Walt Disney is bringing former CEO Bob Iger back from retirement. The streaming business in particular is in crisis; Iger’s successor Bob Chapek has not lived up to expectations.
At the Walt Disney Company, former boss Bob Iger (71) surprisingly returns to the top of the group. Iger is to take over the management of the group again for two years, the media company said. Bob Chapek, who only succeeded Iger in 2020, resigned from his post. Iger ran Disney for 15 years.
Board Chair Susan Arnold said the council concluded that Disney is in an “increasingly complex period of industry transformation” and that Iger is uniquely positioned to lead the company through this important phase.
Problem child streaming service
Iger takes over as CEO at a difficult moment for Disney and the entire entertainment industry. The group has to take account of consumers’ reduced willingness to spend in times of high inflation. At the same time, revenues from cable TV in the USA are falling.
Under Iger, who is considered the architect of the company in its current form, Disney bought and integrated the production companies Lucasfilm, Pixar, Marvel and the entertainment division of Fox, and he was also responsible for the launch of the Disney Plus streaming service.
Ironically, the streaming service is currently Disney’s particular problem: It’s growing fast with services like Disney+, but it’s in the deep red. In the last quarter alone, it brought in an operating loss of $1.47 billion. The reason for this is the high cost of elaborately produced films and series that have not yet been brought in from subscription revenues. The losses are offset by the booming theme parks after the pandemic break.
Expectations missed, share under pressure
With the most recent quarterly profit of 162 million dollars, Disney had also missed the expectations of the stock market, the share came under pressure. Chapek then announced austerity measures such as a hiring freeze and job cuts. Disney has also been targeted this year by aggressive investors who buy into companies and then demand change. At times, billionaire Dan Loeb called for the sports broadcaster ESPN to be sold.
Disney’s handling of a dispute with actress Scarlett Johansson was also considered unfortunate under Chapek’s leadership. She sued the company for lost revenue after her film “Black Widow” was also released online during the corona pandemic.
Disney countered that Johansson had already received $20 million. The dispute was settled out of court, but the process was negative for the group from a marketing point of view.