Bob Iger is returning to Disney as CEO, retaking the reins of a company that’s very different from the one he led when he stepped down as chief executive in February 2020.
Bob Iger is returning to Disney as CEO, retaking the reins of a company that’s very different from the one he led when he stepped down as chief executive in February 2020.
With $1.5 billion in streaming losses last quarter alone, park fans unhappy, sinking cable networks like ESPN dealing with cord cutting, and a moribund stock price, Iger has his work cut out for him.
Disney’s problems are vast, and fixing them all may not be possible, particularly in the two years that Iger said he’d dedicate to the company in his return to the C-suite.
But If anyone can bring back the magic to the Walt Disney Company, the company believes Bob Iger may be uniquely qualified to do it.
The first priority: the streaming business.
Disney’s streaming service — which includes ESPN+, Hulu and most importantly, Disney+ — had been the most vital part of the company’s vast media kingdom. It served as a life raft for Disney in the early days of the pandemic — one of the most tumultuous periods in the company’s history — and grew to 100 million subscribers in just 16 months. Now, that business has become an anchor that’s weighing it down.
The company reported earlier this month that Disney+ exceeded Wall Street’s expectations for subscriber growth. But that came at a great cost for the company: Disney said its streaming business lost $1.5 billion in the quarter, news that sent Disney’s stock tumbling.
The days of “growing streaming at any cost” are over for Wall Street, and now Iger and the rest of Disney’s leadership have to prove to investors that its streaming business can achieve profitability while also continuing to grow.
This more than anything else is what will move the needle on Disney’s stock, which is down roughly 40% for the year.
“He needs to refocus streaming, as well as other parts of the company, back to the core Disney consumer,” Trip Miller, a Disney investor and managing partner at hedge fund Gullane Capital Partners, told CNN Business. “This consumer is family-friendly, global and multi-generational. That’s the beauty of Disney, right? It’s not just kids, it’s not just adults. When it’s working, it can be everybody.”
That refocusing effort is easier said than done, especially considering that other parts of the company are not as solid as they used to be.
