Robert Iger in 2020.
Photo:
robyn beck/Agence France-Presse/Getty Images
The world of
hasn’t been wonderful of late, and on Sunday it cost CEO
Bob Chapek
his job. The Disney board ousted him in favor of predecessor
Robert Iger,
amid disappointing earnings and a 38% fall in its stock price this year. The tougher economic times mean there will be more such corporate casualties.
Mr. Chapek took the reins from Mr. Iger in February 2020 after rising through Disney’s consumer products and parks divisions. The pandemic soon arrived, which closed down Disney’s theme parks but helped boost its streaming platform, Disney+, which Mr. Iger launched in his last months as CEO.
During Mr. Iger’s tenure from 2005 to 2020, Disney built an unrivaled content catalogue by acquiring 21st Century Fox, Marvel Entertainment, Pixar and the rights to the Star Wars franchise. Disney blockbusters rang up banner profits as other film studios struggled to adapt to the digital age. Mr. Chapek was well-positioned to capitalize.
Early on Disney+ experienced rapid growth as lockdowns forced people to stay home and government Covid payments gave them money to burn. It boasted 130 million subscribers by this year’s first quarter. But growth has slowed amid increased streaming competition and inflation, which has prompted consumers to cut back on media subscriptions.
Netflix’s
stock plunged this spring after it reported losing subscribers, although it still boasts 60 million more than Disney+. Rising interest rates have put pressure on corporate valuations and caused a selloff in growth and tech stocks. What the Federal Reserve giveth it also taketh away.
Corporate earnings are under pressure, and investors are losing patience with companies that miss profit projections. Disney’s stock plunged after it warned in August that Disney+ had added only 100,000 U.S. and…
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