Bob Iger's return to Disney as the chief executive officer has put most of outgoing CEO Bob Chapek's major decisions in question, as reported by BBC.
(Photo : by Kevin Dietsch/Getty Images)
SUN VALLEY, IDAHO - JULY 08: Bobby Kotick (L), CEO of Activision Blizzard, and Bob Iger, CEO of The Walt Disney Company, walk together at the Allen & Company Sun Valley Conference on July 08, 2022 in Sun Valley, Idaho.
This year, Disney's shares have fallen over 40% and slumped on weak fiscal fourth-quarter results earlier this month. The board of director's choice to replace Chapek with Iger shows their confidence in Iger to bring in better results.
Iger has disapproved of the several changes that Chapek has made to Disney. One of the biggest changes he had done was the reorganization of the company, resulting in a new division called Disney Media and Entertainment (DMED). The new division also consolidated budgetary power for the content and distribution divisions.
In addition, Iger firmly belied that Disney+ should underprice competitive streaming services to maximize the price-value perception. It is known that Chapek raised the price of Disney+ to $10.99 without ads, making it more expensive than other no-ad streaming services. The price hike is slated to be released on Dec. 8, which is only a couple of weeks away. Therefore, it may be too late for Iger to take back the price increase, yet there remains a possibility of a do-over.
Not At All 'Bad Blood'
Despite these disagreements, Iger and Chapek don't disagree on everything. However, Iger's clash with the initial handling of Chapek regarding Disney's reaction to Florida's "Don't Say Gay" legislation is noteworthy. Iger expressed how the brand will be affected.
Also read: Disney To Reduce Its Workforce Soon, A Round of Layoffs Predicted
First Order of Business
Many await Iger's first move when he comes on board again with Disney. It won't be a surprise if the first thing he does is to bring Disney pride back to its culture. After that, it's not impossible if he moves things around its structure and addresses consumer spending on their products and services.
What Happens Next?
In the upcoming months and years, this shift of power will definitely affect decisions of Disney. However, Iger and Chapek's plan is not to duke things out. Although they will still work together, Iger and his team will handle the decision-making process.
The power shift is undoubtedly a big deal among investors and the media. But it doesn't mean that consumers will be affected by this. All changes that Disney makes will be for a better experience for its customers to make it a memorable experience for its fans.
Iger has been part of Disney for the past two decades. These 20 years were specifically Disney's best years regarding the company's success and growth in the entertainment industry. Thus, there's no doubt that his return will make a difference in how Disney operates and handles things. With that said, it will be a fascinating watch for Disney's next move!
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Written by April Fowell
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