Last week Disney CEO Bob Chapek was suddenly replaced by Bob Iger. Disney's announcement comes as a surprise because Iger chose Chapek to replace him when he retires in 2020. We are reporting that Chapek was replaced for hiding Disney+ losses.
Among the things he did was transfer the promotion and production expenses of several Disney+ series to the Disney Channel TV channel. This indicates a smaller expenditure on Disney+ and reduces the losses incurred by this streaming platform. Since its launch as much as $80 billion has been spent by Disney+ to give competition to Netflix.
Since its launch in 2019, Disney+ has posted a loss of $8.5 billion with losses widening over the past four quarters as the cost of producing original content rose to $30 billion this year.
These mounting losses cast doubt among investors who were once promised that Disney+ would start posting profits by 2024. This is the reason why Iger is back at the helm of the company to avoid continued losses. After taking over, Iger said Disney's restructuring would include reducing theme park ticket prices.
