Disney4me Posted December 1, 2022 Report Posted December 1, 2022 Bob Iger’s return as Disney’s CEO will bring about many changes within the company. Disney fans have shared what they hope those changes will be, including lower prices and the return of certain perks. Shareholders and investors have their own set of goals for the company, including profitability for Disney+. So what’s really going to change? ©Disney A report that Disney recently filed with the U.S. Securities and Exchange Commission may provide some insight into the future of changes at the company. One of the most important voices in Bob Iger’s ear right now comes from the Disney Board of Directors — the people who re-hired him in the first place. The Board has its own goals for Iger’s time as CEO, which were outlined in the initial announcement about the CEO’s return. Here’s an excerpt from that announcement: “The Walt Disney Company announced today that Robert A. Iger is returning to lead Disney as Chief Executive Officer, effective immediately. Mr. Iger, who spent more than four decades at the Company, including 15 years as its CEO, has agreed to serve as Disney’s CEO for two years, with a mandate from the Board to 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.” ©Disney Those 2 goals — set a strategic direction for renewed growth and develop a successor to lead the Company when he leaves — are likely at the forefront of Iger’s mind as he plans for upcoming changes. ©Alberto E. Rodriguez / Getty Images In the recent SEC filing, Disney provided more information about what a “strategic direction for renewed growth” will look like. One section included this statement: “As contemplated by the leadership change announcement, we anticipate that within the coming months Mr. Iger will initiate organizational and operating changes within the Company to address the Board’s goals. While the plans are in early stages, changes in our structure and operations, including within DMED (and including possibly our distribution approach and the businesses/distribution platforms selected for the initial distribution of content), can be expected. The restructuring and change in business strategy, once determined, could result in impairment charges.” ©Disney | Walt Disney Company Headquarters Essentially, Disney is saying here that The Walt Disney Company is going to get a shake-up. “Organizational and operating changes” will likely mainly affect Disney’s strategy for streaming, as the company specifically named the DMED (Disney Media and Entertainment Distribution) as one area that will be changed. ©Disney Underperformance in streaming was likely one of the main reasons that Disney decided to oust Chapek in favor of Iger. Chapek reported unfavorable streaming numbers during a fourth-quarter report in 2022, shortly before he stepped down from his position. Disney has previously claimed that Disney+ will become profitable by 2024 — a lofty goal Disney apparently felt Chapek was unable to meet. ©Disney Currently, “the majority of Disney+ revenue is derived from subscription fees.” Disney+ will be getting a price increase in December 2022, and an ad-supported tier will also be introduced, which will bring in revenue from advertisers. Disney stated that “Disney+ Hotstar generates advertising revenue and Disney+ generates Premier Access fees.” Many of the changes that will happen at Disney will affect organizational structures and processes within the company, and they may not be obvious to outside observers. We’ve already seen a few executives from Chapek’s era exit the company, and it sounds like more staffing changes could be on the way. Chapek isn’t the only one who left. ©Disney Disney warned in their report that these changes may initially affect profits as the company goes through growing pains: “Changes in our business strategy or restructuring of our businesses has increased and may continue to increase our costs and has otherwise affected and may continue to affect the profitability of our businesses or the value of our assets.” We’ll continue to watch for more updates from Disney on changes that are happening with Iger’s return. Keep following DFB for all the latest news! Click here to see every major CHANGE since Bob Iger returned as Disney’s CEO. Join the DFB Newsletter to get all the breaking news right in your inbox! Click here to Subscribe! The post Disney Announces “Organizational and Operating Changes” As a Result of Bob Iger’s Return first appeared on the disney food blog.View the full article Quote
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