Bob Iger certainly has his work cut out for him after his return as Disney CEO, replacing his chosen successor Bob Chapek immediately following the shocking announcement on Sunday. Having to lead the Walt Disney Company through everything from political scandal to a global pandemic, Chapek didn’t do well enough for the Board as the House of Mouse lost faith after the Disney+ service operating loss increased from $0.8 billion to $1.5 billion in this year’s third quarter alone, which proved to be the final nail in the coffin for Chapek.

Chapek was Iger’s anointed and trusted to lead the company because of Iger’s success. Over his twelve-year tenure, Iger was the mastermind behind Disney’s buy-outs of Pixar, Marvel, Lucasfilm, and 20th Century Fox right before leaving the company with a seemingly very prosperous future with Disney+ in 2019. Now, 71-year-old Iger has plenty to do before his new contract expires in just two years.

Streaming Losses

     Disney+

Chapek’s deathblow was an extreme loss in the streaming wars, losing billions of dollars even when gaining millions of subscribers, with Disney+ being the biggest problem. The company promised investors that the platform would be profitable by 2024, a time quickly approaching. The planned price-hike and ad-supported tier even before Chapek was ousted may help alleviate the constant loss, but it isn’t enough to reassure investors.

The other problems are Hulu and ESPN+. Disney’s all-in-one streaming strategy with the Disney Bundle doesn’t include some other features like Hotstar and still keeps the content separate and pricey. Both services have their own problems too. Hulu is shared with Comcast, complicating both companies’ strategies, and a resolution of ownership must be reached by 2024, another important deadline for Iger. ESPN+ is underfed and uninspiring, with little of the sports content despite its brand. All these issues have a due date near the end of Iger’s two-year term but can be addressed in that time.

Not-So-Magical Disney Parks

     Pixabay

In the Parks, 68% of fans have reported that The Most Magical Place on Earth has “lost the magic” and is “just not worth the money anymore” after Chapek raised prices drastically and seemingly forgot about quality control to make up for streaming losses. Annual passes were even suspended, with no clear word if they would be continued.

The higher prices, the diminished quality, and frequent reports of brutal family fights occurring in the lines have discouraged everyone from first-time visitors to annual resort vacationers. Less and less people are going to the parks, and their very future is already at stake with a failing economy.

Marvel and Star Wars Franchise Fatigue

     Disney

Iger himself acquired and spearheaded Disney’s most popular names, Marvel and Star Wars. Under Iger’s first reign, the franchises released entire phases and trilogies and everything in between, much to fans’ delight, and became the two most popular and profitable franchises in the world. Yet, the majority of recent movies and series, even when critically acclaimed, have been labeled disappointments or failures by the majority of fans.

It turns out that even the most hard-core fanatics have limits. For whatever reasons (there are many) that the franchises aren’t working for fans anymore, Iger either has to fix the fan’s issues or change strategies. Ending the franchises is not an option, considering the money they have and can produce, but reducing output to let fatigued fans rest means less content to keep them from turning to other sources of entertainment. Iger has a lot to figure out here.

Keeping Afloat During a Recession

     Mortimer Productions

With the threat of global recession looming, consumers already feel the effects and will have more important things to spend their money on than a theme park. Currently, Disney Parks generate 62% of Disney’s income and are making up the losses in streaming. But families will have tighter budgets in the coming years, and Disney will lose that vital cushion if they can’t keep park attendance up.

Not to mention everything else that falls downhill during a recession, such as increased production costs, resource shortages, release delays, etc. Even with Chapek’s price-hikes in streaming and parks, this will be Iger’s greatest and most brutal battle.

Who Will Iger Name as Successor?

     Lucasfilm

Of course, Iger’s most important decision will be choosing a successor – again. The Disney flagship would be difficult enough to command without the fleet of studios, services, and products this must be lead as well. After the Board’s disappointment with Chapek, Iger will have to not only find someone who can handle all this but get approval from the Board and keep the trust of investors.

Bob Iger has a big hill to climb, and he will be battling every step of the way up. Let’s see if he can get all this and everything else done in just two years.