But Disney has one problem its competitors don’t, and that’s Mr. Chapek’s biggest move during his time as CEO.
In 2020, Mr. Chapek restructured Disney to prioritize the company’s streaming services (Disney+, Hulu, and ESPN+). He took profit and loss responsibility away from the executives who run Disney’s film and television studios and gave it to a protege, Kareem Daniel, who was named president of a new division, Disney Media and Entertainment Distribution.
The loss of that turf — along with control over when and how movies and shows would be released — upset longtime Disney executives, including Alan Bergman, the chairman of Disney Studios Content. To make the situation more sensitive, Mr. Daniel had little experience in the vast area he had to oversee. Mr. Chapek repeatedly stressed that his highly unpopular reorganization was in fact the opposite, with “100 percent buy-in” from Disney executives.
Mr. Daniel’s division is notably the one that contributed to the $1.5 billion in “peak” streaming losses for the past quarter, compared to $630 million a year earlier, surprising investors.
Mr Iger deposed Mr Daniel on Monday. In a message to employees, Mr. Iger that a new corporate structure is on the way that “puts more decision-making back in the hands of our creative teams and rationalizes costs.”
Mr. Iger faces other challenges.
A competitive frenzy has erupted around sports broadcasting rights, with Apple, Amazon and others driving up prices, hurting ESPN’s bottom line. Sports betting is seen by some investors as the new streaming — a burgeoning master solution — but fully embracing that business could tarnish the family-friendly Disney brand.
Animated movies, the heartbeat of Disney, are starting to struggle, with Pixar’s “Lightyear” bombing in June and “Strange World” expected to disappoint at the Thanksgiving box office.
