Iger said he looked expansively at traditional media when he came out of retirement to return to Disney as CEO in November 2022. He added, to prioritize streaming services, Walt Disney Co has significantly reduced its investment in traditional TV networks.

Disney cuts TV spending

Bob Iger added on the TV budget that traditional channels such as ABC still serve as an important marketing tool and help reach older viewers who are not watching series such as “Abbott Elementary” on Disney’s streaming platforms.

Still, the company has reduced “pretty dramatically our investment in content specifically aimed at those traditional networks,” Iger said at the MoffettNathanson’s 2024 Media, Internet and Communications Conference in New York.

“We feel comfortable with our hand right now, because we’re using those networks efficiently and effectively,” he said.

Disney’s focus on streaming service

Shows such as “Abbott” or “Grey’s Anatomy” move quickly to Disney’s Hulu streaming service, where they attract a younger audience, Iger said.

The strategy to focus on streaming service allows Disney to amortize costs across platforms, the CEO added. One executive, Dana Walden, oversees the traditional entertainment networks and streaming.

“We’re basically aggregating greater audience, and we’re amortizing costs and we’re using the marketing of the traditional network, really, to help in some cases,” Iger said.

“We’re doing that across the board, Disney Channel, ABC, National Geographic, and it’s working,” he added.

Disney’s theme parks

Iger said he expected continued growth from Disney’s theme parks business, but perhaps not at the same rate as in recent years.

“We’ve had double-digit revenue growth in that business for quite some time, and that’s extraordinary,” he said. “But I think we’re being realistic, too, in that delivering double-digit revenue growth … well into the future is not necessarily that achievable.”

Why Disney TV spending cut matters?

Disney’s Q2 earnings showed a 1% year-on-year revenue growth to $22.08 billion, slightly missing the consensus of $22.11 billion. The company’s entertainment revenue declined by 5% year-over-year to $9.8 billion, while sports revenue grew 2% year-over-year to $4.3 billion.

During the earnings call, Iger announced a global crackdown on password-sharing, citing Netflix Inc. as the “gold standard” in streaming.

Disney stock

Disney shares fell 2.5% to close at $102.77 on the New York Stock Exchange on Wednesday.

The post Disney CEO Bob Iger’s Strategic Cut in Traditional TV Spending appeared first on Industry Leaders Magazine.

Since returning as Disney CEO, Mr. Iger has led a significant, enterprise-wide transformation to restore creativity to the center of the company and position Disney’s business for sustained growth and profitability. It’s high time that we look back on Iger and his many accomplishments at Disney companies.

Going the distance in transforming Disney World

Bob Iger first joined the Walt Disney Company in 1996; In January of 2000, he was promoted as the president and COO of the Walt Disney Companies, serving as the number-two man to Michael Eisner, the then CEO of Disney. Before he became the Disney CEO, Iger wasn’t automatically thought of as a natural fit for the role by Eisner as a top boss for Disney business, nor was he always held in the best acclaim by his peers. And Eisner, only a couple years before Iger took over as Disney CEO, was dismissive in saying that Iger could never run the company. But Bob Iger ended up being the perfect person to take the place of Michael Eisner.

In 2020, Iger is about as powerful a CEO as you can think of; he’s going out on top. In 2005, he was installed as a more balanced leader in place of Eisner.

Growth of Disney business to infinity and beyond

One of the biggest sources of tension for the Walt Disney Company in the mid 2000s was Pixar Animation Studios. Soon after he started as CEO of Disney, he went to work on John Lasseter and Jobs, eventually getting them to sell Pixar to Disney for a whopping but well-earned $7.4 billion. That was just the beginning of a leadership tenure marked by smart and savvy mergers, which have led the Walt Disney Companies to a point of success almost everyone would have thought impossible 15 years ago. Attendance numbers at the major Disney World theme parks in the U.S. skyrocketed in the 15 years due to smart Disney marketing, and to the swift decision to add even more intellectual property in attractions and live entertainment.

Disney business strategy to engulf and devour

Of course, it helps when you buy everything. If Bob Iger excelled at anything during his time at the top of the Walt Disney Companies is acquiring as much as humanly possible. Admittedly, some of the acquisitions have worked out better than others. It takes good timing, talent, and acquisitions and Disney CEO, Iger did it all to grow. Disney fostered the revival of intellectual properties with little concern for their creative value. Remakes, sequels, prequels, re-imaginings, reboots, etc. were a major part of Iger’s legacy, too. This strategy hasn’t promoted originality, per se. But that strategy has allowed Disney to become the most powerful American entertainment company in the world. Iger’s Disney has not always succeeded, sometimes at the expense of the intellectual property that he steered them to acquire.

Disney World: The ride of a lifetime

Whatever mistakes were made at Disney in the 15 years in their films, their theme parks, their shows, their TV networks, etc., the corporation has still become a true powerhouse. Disney now encompasses what used to be 20th Century Fox, Hulu, Disney+, Marvel, Pixar, Lucasfilm, National Geographic, ESPN, ABC, and more. Some of those acquisitions existed before Bob Iger became CEO. But they’ve grown stronger over time, and in many cases, those acquisitions are in a more powerful place now than they were before. No doubt, many of the men and women who work at the company are instrumental for the Disney companies’ overall success, yet there’s only one man on the top.

Whenever, Bob Iger steps down as CEO of Disney, he would surely leave the company in what could be a very challenging bind. It’s the curse and blessing of having created such an impact in just 15 years at the top.

The post Disney CEO Bob Iger: A Challenging Legacy to Follow appeared first on Industry Leaders Magazine.

Less than a year after he left Disney, Iger returned to the helm as Chapek struggled to bolster the company’s dwindling revenues, making investors worried. They hope to see a repeat of The Walt Disney success story, under Iger’s guidance.

Bob Iger Returns, Bob Chapek is Out

It is no secret that Iger has been disappointed by Chapek’s working style. Mid-July, reports surfaced that Bob Iger was unhappy with the way Chapek handled his exit and confided to some trusted associates that letting him take the reins was one of Iger’s “worst business decisions.”

Before these reports made the news, CNBC reported that the two men had a fallout over Florida’s “Don’t Say Gay” legislation and rarely speak to each other. Eventually, the entertainment giant lost its special tax status in the state. Disney’s misadventures prompted speculation that Chapek could be replaced by Bob Iger in the near future.

However, in June, Chapek received an extension on his contract, complete with a $20 million bonus that put wagging tongues to rest. Bob Chapek had taken over as Disney CEO in February 2020, just before Covid struck the world economy.

Shares of Disney have fallen roughly 41% this year and the stock is at a yearly low.

The change in leadership was conveyed on Sunday via email. Some employees refused to believe the news thinking it is a prank.

“It is with an incredible sense of gratitude and humility — and, I must admit, a bit of amazement — that I write to you this evening with the news that I am returning to The Walt Disney Company as Chief Executive Officer,” Iger wrote to employees in an email.

What does Iger’s Return Mean for Disney?

As Bob Iger returns, the Disney board is expecting him to turnaround slumping shares and boost investor confidence. Much like the return of Howard Schultz to Starbucks, Iger’s appointment seems to be an interim one for now. Disney has signed him on for two years, during which he will “set the strategic direction for renewed growth and to work closely with the Board in developing a successor to lead the Company at the completion of his term”

Bob Chapek has initially planned layoffs, cost cuts, and hiring freezes for this year, after a dismal earnings report. Chapek shepherded Disney when the pandemic ravaged the entertainment giant, forcing parks to shut down and preventing the release of its multi-billion-dollar movies from being released in theaters. The video streaming business has also incurred losses, with Chapek saying that the segment will be profitable by 2024.

But as losses rose, the Disney Board, despite the initial show of confidence, decided to bring Iger on board. Susan Arnold, Disney’s board chair stated that the company was grateful to Bob Chapek for his leadership, especially during the pandemic.

Bob Iger is very liked and respected within Disney’s walls. As the CEO who spearheaded multiple acquisitions that are each worth multi-billion-dollar franchises, nobody can question his business acumen. Although he has repeatedly said that he is not interested in returning, as Bob Iger returns to Disney, experts are curious to see what changes he will bring.

Some analysts predict that the first change would be an upturn in the company’s stock. Industry veterans are also optimistic that Bob Iger’s return will improve content offerings and quality.

“The Board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the Company through this pivotal period,” board Chair Susan Arnold said in a statement.

Bog Iger’s return is expected to raise Disney’s fortunes, as the former Disney CEO enjoys a great relationship with the board and employees alike, fostering confidence that he will put the company to rights.

The post Disney’s U-Turn: Bob Iger Is Back to Revive Fading Profits appeared first on Industry Leaders Magazine.