Bob Chapek was thanked because of the extent of the losses of the streaming platforms of The Walt Disney Company and a political skid in Florida.
by Nicole Vulse
A taste of deja vu. The Walt Disney Company (TWDC) announced, on Monday, November 21, the return with the immediate effect of its former managing director Bob Iger. At 71, the latter, who had retired in 2020, after managing the group for fifteen years, was called to the rescue for a two -year term. With a clear mission: to establish a strategy for “renewed growth” and work with the board of directors to find its successor. The investors praised this news. Thus, the share price, which had dropped by more than 40 % in one year, took 8 %, at 100.07 dollars (97 euros), Monday in session.
Suffice to say that Bob Chapek, in office since February 2020, did not convince, despite his management of the group during the Pandemic of Covid-19. In June, the board of directors had however renewed its mandate for three years. But things were spoiled and the much heavier than expected losses of Disney +, the group’s video streaming platform, precipitated its disgrace. “The Council judged that at the time of Disney entered a phase of growing complexity with the transformation of the sector, Bob Iger was best placed to direct the company in this decisive period,” said Susan Arnold, President of the Council of ‘TWDC administration to justify this big return.
The “growing complexity phase” is aimed at nothing other than the disappointment of investors during the publication, on November 8, of the annual results of the financial year 2021-2022 enclosed at the end of September. The race engaged with the other streaming platforms (Netflix, Amazon Prime Video, Apple TV Max, HBO Max, Paramount + or Universal +) Exact day by day. And costs a fortune.
Disney + certainly won 12 million subscribers in three months, to peak at 164.2 million at the end of September. However, analysts have seriously ticked by noting the extent of the operational losses generated by all the Californian group streaming platforms (Disney +, ESPN + and Hulu): they have doubled in one year, rising to $ 1.47 billion at the end of September.
No risk in the cinema 2>
Bob Chapek promised that these losses were going to “start to decrease during the current quarter”, reaffirming that Disney + would succeed in profitability in 2024. Parodiant Netflix, Disney + will launch, on December 8, a new subscription formula Cheaper, with advertising, for $ 7.99 per month (against a slightly increased formula, at $ 10.99 without advertising in the United States). The Disney director had suggested that he could carry out budget cuts, especially in marketing expenses, while continuing to further increase the prices of the platforms of the platforms.
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