A recent bit of news that has shaken the entertainment and business world is the sudden removal of Bob Chapek and replaced with his immediate predecessor Bob Iger effective immediately. Many rumors circulate the reason why and what this means for Disney moving forward. But, a new report alleges that Bob Chapek, now ex-CEO of Disney had attempted to make Dinsey+ a more profitable by moving around the budgets for many projects.
According to The Wall Street Journal, several “people familiar with the matter” stated that projects such as The Mysterious Benedict Society as well as Doogie Kamealoha M.D. were first aired on the Disney Channel, this was so that the budgets for these projects production and marketing were not included against Disney+. Because of this, the steaming service was apparently losing less money on their original content. In fact, even the Chief Financial Officer, Christine McCarthy was apart of the reason for Chapek’s removal because she was, “concerned about this strategy.”
Chapek’s Tenure as CEO
Chapek had a turbulent time as Disney’s CEO. He was banking a lot on Disney+ to be profitable and had promised stockholders that Disney’s streaming, which also includes ESPN+ and Hulu would be profitable by 2024. As of now, Disney+ only has two-thirds of the subscribers that Netflix has. Which is about 164 million. Even $30 billion was put into streaming content for 2022 alone. However, there still continued to be increasing losses every quarter. The streaming services of Disney has lost $9 billion since the 2019 launch of Disney+.
It has been one week since the surprise announcement of Chapek stepping down after less than three years as CEO. Bob Iger, the former CEO before Chapek is stepping in again after having the job for 15 years. During Iger’s tenure he was known for the acquisitions of several companies including Pixar, Marvel, Lucasfilm, and 21st Century Fox.
The announcement had theories and rumors circling that Chapek’s lead was not up to par. Some of his moves had included the price hike that angered many and his remarks regarding animation led to a divide with the animation departments. Even back in March, there were talks of Chapek’s mishandling of the Florida “Don’t Say Gay Bill” which saw the walkout of many Disney employees. Chapek did not condemn the bill and it was revealed that Disney donated to the politicians that were behind the law.
Because of these things, it was quite obvious that Bob Chapek had to step down. Let’s all hope that with Iger’s return, Disney can save some face.