Core points of Gamers


Core points of Gamers

Bob Chapek Shifted Budgets to Disguise Disney+’s Massive Monetary Losses

New information about outgoing Disney CEO Bob Chapek’s tenure suggests he disguised Disney+’s losses by changing the budgets of its original shows.

A recent report alleges DisneyFormer CEO Bob Chapek tried to make Disney+ look more profitable by tweaking the budgets of various projects.

By The Wall Street Journal“people familiar with the matter” shared that the shows were intended to be (and billed as) Disney+ originals, including The mysterious Benedictine society Y Doogie Kamealoha, M.D. they first aired on other networks, such as the Disney Channel, so their production and marketing budgets would not be deducted from Disney+. In this way, the streaming service was seen to lose less money on original content. CFO Christine McCarthy, who was reportedly one of the voices behind Chapek’s removal, was “concerned by this strategy.”

RELATED: Why Disney’s Sudden Decision to Drop Bob Chapek as CEO Shocked Hollywood

Chapek had a lot riding on Disney+, having promised investors that Disney’s streaming division, which also includes Hulu and ESPN+, would be profitable by 2024. Yet 164 million Disney+ subscribers, roughly two-thirds of Netflix’s current number, and $30 billion invested in content in 2022 alone have not been enough to prevent losses from mounting over the past four quarters. Overall, the streaming division has lost more than $8.5 billion since the launch of Disney+ in 2019.

In a surprising announcement on November 20, 2022, Disney confirmed that Chapek would be stepping down after less than three years in the role and would be succeeded by his predecessor, Bob Iger. The returning executive, who held the top job at Disney for 15 years, oversaw such momentous moments for the company in the 21st century as the acquisitions of Pixar, Marvel, Lucasfilm and 21st Century Fox. Since the announcement, rumors have been circulating. about why the Disney board of directors found Chapek’s leadership unsatisfactory. These include Disney+’s unpopular price hike and disparaging comments he made about animation, which reportedly angered and alienated staff in both Disney and Pixar’s animation departments.

There were also rumors in March 2022 that Chapek would be ousted for his mishandling of Florida’s “Don’t Say Gay” bill, which saw Disney employees stage a walkout amid Chapek’s refusal to condemn the bill and the revelation that Disney financially supported some of the Florida politicians behind the anti-LGBT law. Another cause for concern for investors was Scarlett Johansson’s lawsuit against the company over the direct-to-streaming release of black widow, which violated the contract he had with the entertainment monolith. According to inside sources, many board members believe Chapek’s handling of the situation left a lot to be desired.

Font: The Wall Street Journal

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