"Among the biggest mistakes Iger made late in his first time as a CEO was the launch of Disney's streaming product Disney+. The service kicked off in November 2019. It had about 500 movies from Disney, Pixar, Marvel, Star Wars, and National Geographic. It was too small and had too little content to compete with industry leaders Amazon and Netflix. In February, Forbes put the operating loss of Disney+, the proxy for which is Disney's Direct To Consumer (DTC) segment, at $10.7 billion since the service started."
"Iger's new turn at the helm has not helped Disney's overall results one bit. In the most recent period, revenue rose only 2% to $23.7 billion. Income from operations before taxes was up only 4% to $3.2 billion. Without strong results from its Experiences segment, which includes Disney's parks, the figures would have been much worse. Its revenue rose 8% during the period to $9.1 billion. Its operating income rose 13% to $2.5 billion."
Disney's stock declined about 10% over five years while the S&P 500 rose roughly 100%. Bob Iger returned as CEO in November 2022 after Bob Chapek's tenure. Major acquisitions expanded Disney but leadership decisions and strategic moves created operational challenges. Disney+ launched in November 2019 with roughly 500 titles but faced heavy competition and significant losses, with Forbes estimating DTC operating losses at $10.7 billion since launch. Recent results showed revenue up 2% to $23.7 billion and operating income before taxes up 4% to $3.2 billion, driven mainly by the Experiences segment, which saw revenue rise 8% to $9.1 billion and operating income rise 13% to $2.5 billion.
Read at 24/7 Wall St.
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