When Disney CEO Bob Iger returned last November, it was seen as a breath of fresh air. Former Disney CEO Bob Chapek was loathed by Cast Members, stockholders, and Disney fans. Iger’s return was meant to bring the Walt Disney Company back to its former glory, and who better to accomplish that than one of the architects of its rise to prominence?
That was the story. That’s the way it was supposed to happen. But this isn’t a Disney Fairytale. Iger’s second tenure as Disney CEO has faced the harsh reality of politics and the post-Covid business climate. And thus far, Iger’s return has been a failure.
When he returned, Iger was meant to have main jobs to accomplish during his two years as CEO: bring the Company back to profitability and find a suitable successor.
Let’s start with profitability. Disney Parks have flourished since Iger’s return, but most came from post-Covid pent-up demand. It seems that the Parks have begun to level off lately. But Disney’s streaming service has taken a nose dive in the last year. The Wall Street Journal has been tracking Disney’s stock and its leading competitor in the streaming business, Netflix. In the past year, Netflix’s stock is up 147 percent, while Disney has dropped three percent.
At Disney’s last earnings meeting in May, Iger announced that Disney Plus lost more than four million subscribers. Disney is also losing massive amounts of ad revenue from its television properties. And that doesn’t even include the enormous amount of money Disney has lost from its recent film releases.
And then there’s the question of succession. Disney CFO Christine McCarthy was a logical successor to Iger, but she resigned last week amid reports that the two were fighting over the Company’s spending.
With McCarthy leaving Disney, Chairman of Parks, Experiences, and Products Josh D’Amaro and Co-Chair of Disney Entertainment Dana Walden are the most likely internal candidates. But neither of them inspires confidence in investors.
So, there are many things for Iger to accomplish in his next 18 months as CEO. And that doesn’t even get into Disney World’s fight with Florida Governor Ron DeSantis.
We will see what rabbit Iger can pull from his hat to try and save Disney. And when he does, we will update you at Disney Fanatic.
