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Industry News: House Of Mouse

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Normally, boardroom shenanigans don't necessarily affect the kind of content us peons enjoy.

However, in, this case it may well do, if you're a D+ subscriber.

 Longtime CEO Bob Iger has been recalled to his role and his handpicked replacement Bob Chapek promptly, dismissively iced.


For people whose companies are share-listed, many industry prognosticators will set what they think you'll earn, as a multiple of the number of shares in circulation. It's based on what you've been telling the market, plus wider market analysis, so you'd better hit it. Q3 was expected to grow by around half to 56¢ per share and $21bn in revenue, compared to Q3 2021.
They missed.

For stonks fanciers, that is bad news.


While the revenue wasn't that short - $20bn - the cleared earnings total was only 30¢ per share, due to a loss of $1.47bn across all their streaming platforms (D+, ESPN+, Hulu), originating from content and marketing spending. That wiped 13% off DISN stock - or about $24bn in value. Stonks people not happy, and out for blood. They got it.


That was the nail in Chapek's coffin, but the mishandling of the Don't Say Gay affair, the public spat with Johannson, a general dislike for Whollyodd schmoozing, and a fairly blunt management style had pretty much put him there.


Iger now has two jobs - get back in and turn around those losses, and fend off a bunch of notorious activist investors hungry for profits, even if it means breaking the company up.


Key things that may happen as a result:

  • Changes or cutbacks at D+. They've got a vast library now, they can afford to dial down the acquisition spending for a bit, and they've racked up impressive subscriber numbers. D+ are also adding an ad-supported tier like Netflix.
  • Cutbacks generally. Anything underperforming is likely to get sold if someone thinks it's worth it, sidelined or redlined if not.
  • Buy out Hulu completely from Comcast, and deepen the content partnership with FX.
  • Sell off ESPN.
  • Chapek held off doing another Star Wars tentpole movie, favouring Obi-Wan and Andor to drive people to D+. Mando S3 is in the can and hopefully S2 of Andor is safe, but Chapek had already cut it back from 5 seasons. It's possible this is why Patti Jenkins dragged her heels on the Rogue Squadron development.


Look out for me being generally cool, stylish and funny (delete as applicable) on Excelsior.


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