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Tag: Bob Chapek

  • SCAN Seeks Disney Magic with New Hire

    SCAN Seeks Disney Magic with New Hire



    SCAN Seeks Disney Magic with New Hire – Los Angeles Business Journal














































    Howard Fine

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  • Disney Board Holds Off ‘Activist Investor’ Nelson Peltz

    Disney Board Holds Off ‘Activist Investor’ Nelson Peltz

    Mickey Mouse and Minnie Mouse at the Disneyland Hotel reopening celebration at Disneyland Paris on February 3, 2024.
    Photo: Kristy Sparow (Getty Images)

    The atmosphere at Disney’s corporate offices must feel slightly lighter these days, between Disney World’s recent detente with Florida Gov. Ron DeSantis, and news today that shareholders have voted against billionaire “activist investor” Nelson Peltz’s attempt to snag two seats on the company’s board.

    As io9 previously explained, a behind-the-scenes situation that probably wouldn’t interest the average Disney fan suddenly became more headline-worthy when Peltz gave an interview to the Financial Times in which he complained about diversity in recent Disney Marvel projects, including last year’s The Marvels and the Oscar-winning smash hit Black Panther. “Why do I have to have a Marvel [movie] that’s all women?” the 81-year-old asked. “Not that I have anything against women, but why do I have to do that? Why can’t I have Marvels that are both? Why do I need an all-Black cast?” Not only was this attitude off-putting to fans, it also rubbed high-profile Disney shareholders the wrong way—including Star Wars creator George Lucas, who spoke out against Peltz’ proxy fight.

    As the Hollywood Reporter updates, today’s annual shareholder meeting proved to be “a win for the Walt Disney Co. and CEO Bob Iger” as all of the company’s director nominees “have been elected by shareholders, rebuffing the activist investor Nelson Peltz, who had been running a high-profile campaign to put himself and former Disney CFO Jay Rasulo on the company’s board.”

    Sources cited by the trade make it sound like the voting wasn’t exactly close, coming out decisively in favor of Team Iger. THR also has a statement from Iger, who sounds ready to put the Peltz situation in Disney’s rear-view mirror as quickly as possible: “I want to thank our shareholders for their trust and confidence in our Board and management. With the distracting proxy contest now behind us, we’re eager to focus 100% of our attention on our most important priorities: growth and value creation for our shareholders and creative excellence for our consumers.”


    Want more io9 news? Check out when to expect the latest Marvel, Star Wars, and Star Trek releases, what’s next for the DC Universe on film and TV, and everything you need to know about the future of Doctor Who.

    Cheryl Eddy

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  • Former Disney CEO Bob Chapek Breaks Silence Because of Bob Iger’s ESPN Plan

    Former Disney CEO Bob Chapek Breaks Silence Because of Bob Iger’s ESPN Plan

    Former Disney CEO Bob Chapek has thoughts on Bob Iger’s ESPN plans. Steven Ferdman/Getty Images

    As The Walt Disney Company (DIS) tries to map out its plans for ESPN, one of its past leaders has decided to weigh in on the sports brand’s prospects. Bob Chapek, the CEO of Disney from 2020 to 2022, said in a new CNBC documentary that current Disney CEO Bob Iger’s plan to bring in a new stakeholder in ESPN would be unnecessary. 

    “Strategically, I don’t really see a benefit in bringing on yet another minority partner into ESPN,” Chapek said in the documentary. “How ESPN tries to stay relevant as cable declines.”

    The new documentary outlines how ESPN’s business model is no longer sustainable because of the industry-wide shift from cable to streaming. ESPN already has its own streaming service, ESPN+, but the brand has other streaming plans in store.     

    ESPN is currently 80 percent owned by Disney and 20 percent by Hearst Communications through a joint venture called ESPN Inc. Iger is looking for another minority investor in ESPN, as the sports network faces new developments, including a part in a joint streaming venture among Disney, Warner Bros. Discovery (WBD) and FOX (FOXA) and a separate ESPN streaming service that launches next year. 

    Chapek believes ESPN should take full control of its own future. “It seems incumbent upon the market leader in sports, as ESPN, that they’ve got an opportunity to simplify this,” he said. “Streaming is all about satisfying the customers with a more personalized or customized type of experience. If anyone can play that role, it should be ESPN.” 

    Chapek held various leadership roles at Disney from head of consumer products to head of theme parks over the time span of almost three decades. He was named CEO in 2020 but ousted two year later. He recently took on a new role, this time in the tech world. In January, he was appointed to the board of health tech firm Masimo.

    Disney shareholders are meeting on April 3 for a highly anticipated vote as activist investors are vying for board seats. Nelson Peltz of Trian Partners and former Disney executive Jay Rasulo will be challenging Iger’s leadership.    

    Former Disney CEO Bob Chapek Breaks Silence Because of Bob Iger’s ESPN Plan

    Nhari Djan

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  • Marvel’s Undergoing A Big Shake-Up Right Now

    Marvel’s Undergoing A Big Shake-Up Right Now

    The Marvel Cinematic Universe is in a weird phase right now, and no, I don’t mean Phase Five which began with Ant-Man and the Wasp: Quantumania. Over just a few short days, it became clear that the shared movie universe is undergoing a lot of change, and not for the best reasons. From actors to workers and even top leadership, Marvel’s going through it right now.

    Marvel as a subset of Disney was just part of a huge set of layoffs earlier this week, with Mickey Mouse and friends slashing over 7000 jobs. Only the first wave of those cuts happened this week, and the final 7000 number is expected to come sometime in April. Company-wide, personnel is being dropped by one of the biggest corporations in the world, but even outside of egregious labor issues, Marvel has been dealing with a few more precise changes in its workforce.

    Top executives are being let go

    Marvel recently fired Victoria Alonso, who AV Club describes as “one of the biggest architects of the Marvel Cinematic Universe,” having been with the connected universe project for over a decade before her leaving the company earlier in March. At the time of her departure, she was Marvel’s president of physical production, post-production, VFX and animation. According to a Variety report, this came as part of a joint decision between Disney’s human resources, legal department, and executives including but not limited to Disney Entertainment co-chairman Alan Bergman. Kevin Feige, president of Marvel Studios, reportedly didn’t intervene, and Alonso was “blindsided.” The entire situation is wading into legal territory. Disney says Alonso’s firing came as part of a breach of contract because of her production work on Argentina, 1985, a non-Disney film, though Alonso’s team claims she had permission to do so.

    On top of this, there seems to have been conflict between Alonso and Disney/Marvel in regards to queer issues within the company, according to Variety and The Hollywood Reporter. Alonso, who is gay, reportedly clashed over an issue where Disney wanted a scene in Ant-Man and the Wasp: Quantumania altered to blur out a shop window that included Pride memorabilia in Kuwait, which has anti-LGBTQ+ laws in place. This is after she publicly spoke out against then-CEO Bob Chapek at the GLAAD awards for Disney’s reaction to Florida’s “Don’t Say Gay” bill, and was told she would no longer be allowed to do press for Marvel. Attorney Patty Glaser, who is representing Alonso, released the following statement to Variety:

    “The idea that Victoria was fired over a handful of press interviews relating to a personal passion project about human rights and democracy that was nominated for an Oscar and which she got Disney’s blessing to work on is absolutely ridiculous,” Glaser says. “Victoria, a gay Latina who had the courage to criticize Disney, was silenced. Then she was terminated when she refused to do something she believed was reprehensible. Disney and Marvel made a really poor decision that will have serious consequences. There is a lot more to this story and Victoria will be telling it shortly—in one forum or another.”

    While Alonso’s influence on the MCU is significant and dates back to the earliest films like the original Iron Man, she’s also been named in ongoing reports about the dire state of the animation industry as reported by Vulture and allegedly blacklisted artists working on Marvel projects that she took issue with. In general, Marvel’s animation and VFX workers have been coming forward about apparent toxic work environments and unfair contracts while working on the studio’s projects. This has reportedly been especially difficult on Disney+ projects like She-Hulk, with smaller budgets and shorter turnaround times still expecting movie-quality work.

    Read More: Let’s Rank All The Spider-Man Games, From Worst To Best

    Another high-profile departure is that of Ike Perlmutter, who was let go from the company this week. Perlmutter has had a long, storied history with Marvel, including a stint on the board of directors (as well as the chairman of the board), working as the vice chairman of the company in the early 2000s, moving up to the chief executive officer position in 2005, then remaining the CEO after Disney acquired the comic company in 2009. He oversaw Marvel Studios up until 2015 while reportedly being very tight on production budgets and also claiming Black people “look the same” regarding Don Cheadle’s replacement of Terrence Howard as James Rhodes in the MCU. He operated as a chairman from 2017 until his eventual layoff.

    Jonathan Majors’ domestic violence case is ongoing

    While executive departures will have an effect on things down the line, the most immediate problem Marvel movies have to contend with is the ongoing domestic violence case against actor Jonathan Majors. The actor, who plays Kang the Conquerer most recently in Ant-Man and the Wasp: Quantumania, was arrested in Manhattan on assault, strangulation, and harassment charges. Majors’ legal team led by attorney Priya Chaudhry claims he’s innocent and released text messages allegedly sent by the victim in the case. The texts say this was “not an attack,” claim fault for the dispute because she was “trying to grab [Majors’] phone,” and disputed the strangulation charges. The alleged texts say the authorities were called due to the woman fainting, and that when there was a suspicion of a domestic dispute, Majors was arrested per mandatory arrest laws associated with domestic abuse cases in New York.

    Majors’ future in the Marvel Cinematic Universe is unclear as the investigation is ongoing, but the U.S. Army has pulled ads featuring the actor until the investigation is complete. The reason this is so significant in Marvel’s view is Majors’ character, Kang the Conquerer, is essentially Marvel’s main villain right now. He’s only appeared in two projects thus far, one being the Loki Disney+ show, and the second being Quantumania. But the shared universe franchise is leading up to Avengers: The Kang Dynasty and Avengers: Secret Wars, both of which are set to feature Kang as the primary antagonist. He’s a Thanos-style character that Marvel can’t simply pluck from the story. Should the investigation lead to a guilty verdict, it’s likely Majors will be recast.

    While all of these developments have happened for different reasons, whether that be corporate greed, office politics, and a domestic violence case, Marvel as a production is seeing some serious shake-ups right now. Not all of it seems to be of the company’s volition, but things are changing for Marvel at a time when the brand has been losing a lot of its staying power. Quantumania is the last movie Marvel released in theaters, and it was one of the series’ most poorly received and is sitting at a 47 percent approval rating on Rotten Tomatoes.

    While Marvel movies still make more money than you or I will ever see in a room at once, the franchise has been trending somewhat downward at the box office. Quantumania still made $470 million in its theatrical run, but that’s significantly lower than Ant-Man and the Wasp made in 2018, which was around $623 million. Several Marvel movies have made below the half-a-billion mark in recent years, such as Eternals and Shang-Chi and the Legend of the Ten Rings. Black Widow is one of the lowest-performing movies in the franchise’s lifetime with $379 million but was notably hindered by the covid-19 pandemic making fewer people willing to head out to theaters in 2021. Black Panther: Wakanda Forever did manage to bring in over $859 million, but that was even down from the original’s $1 billion.

    It’s unclear what, if any, changes this might bring to the franchise, but figureheads and workers that have been with the brand for a long time are gone. Reading over it all now, ultimately, I sympathize most with the workers who were subject to the layoffs. Alonso and Perlmutter will be fine, but the people who worked (and apparently suffered) under them are in a much worse position.

    We’ve reached out to Marvel, Majors, and Alonso for comment on this story and will update it should we hear back.

    Update: This piece has been updated with information about Alonso’s reported disputes with Disney regarding queer content in its movies.

    Kenneth Shepard

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  • Ousted Disney CEO Bob Chapek will get $20 million exit pay | CNN Business

    Ousted Disney CEO Bob Chapek will get $20 million exit pay | CNN Business


    New York
    CNN
     — 

    Ousted Disney chief executive Bob Chapek is set to receive a hefty paycheck following his exit.

    The Walt Disney Company said the former CEO, who took over in February 2020 after longtime CEO Bob Iger retired, is eligible to take home a severance pay package worth roughly $20 million, according to a regulatory filing Tuesday. That’s in addition to the $24 million he made last year — his $2.5 million base salary plus millions in stock options and awards. That’s down from the $32.5 million he made in 2021.

    Chapek abruptly exited the company in November after a hectic two-year stint marked by Covid-19 shutdowns, a PR debacle related to Florida’s “Don’t Say Gay” bill and a significant slowdown in demand for streaming services. He was replaced by his predecessor, Iger.

    The proxy filing said that the board determined that Chapek “was no longer the right person to serve in the CEO role,” even though it had voted to extend Chapek’s tenure for three years in June 2022.

    “The significant developments and change in the broader macroeconomic environment over this period informed how the board viewed the appropriate leader in light of the rapidly evolving industry and market dynamics,” the filing said.

    Disney shares, which were trading at about $170 in January 2022, have fallen to about $100 a share.

    Iger has returned to Disney at a tumultuous time. Its streaming business lost $1.5 billion in the fourth quarter, and Disney’s media networks are struggling as cord-cutting accelerates and once-lucrative outlets like ESPN lose household reach.

    Dan Loeb, the activist investor and Third Point CEO, made headlines in August when he suggested “a strong case can be made that the ESPN business should be spun off to shareholders with an appropriate debt load.”

    A Wells Fargo analyst also called on Disney to ditch ESPN in December.

    Disney

    (DIS)
    previously revealed that Iger earned a $1 million base salary. However, that compensation comes with an annual bonus of up to $1 million, as well as an annual incentive-based award with a target value of $25 million. That means that Iger has the potential of pulling in around $27 million.

    Last week, Disney named Nike executive chairman Mark Parker as its new board chair, replacing longtime director Susan Arnold, whose term limit is expiring.

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  • Bob Iger moves fast to dismantle Chapek’s reorganization of Disney | CNN Business

    Bob Iger moves fast to dismantle Chapek’s reorganization of Disney | CNN Business


    New York
    CNN Business
     — 

    One day after the shock announcement of Bob Iger’s return to Disney, and the resulting ouster of his successor-turned-predecessor Bob Chapek, an astonished Hollywood is grappling with what exactly the move will mean for the entertainment behemoth’s short-term and long-term future.

    But while there is no shortage of questions that are being asked, two things are certain. First, investors are thrilled to have him once again reigning over the Magic Kingdom. Disney’s shares ended Monday up more than 6% on a day that the Dow Jones was slightly down. Second, Iger is moving fast — not even waiting a full 24 hours to announce sweeping changes — to dismantle Chapek’s reorganization of the company.

    The speed at which Iger is hurtling is especially remarkable given that Disney’s board only made its overture for Iger to return to the embattled company on Friday. “It literally started Friday and ended Sunday,” a person with knowledge of the matter told CNN, adding that Iger “felt a sense of obligation to go back because he really does care about the company.”

    Now he’s already calling big plays.

    A version of this article first appeared in the “Reliable Sources” newsletter. Sign up for the daily digest chronicling the evolving media landscape here.

    In a Monday evening memo sent to employees of Disney Media and Entertainment Distribution, a key organ of the company created by Chapek that frustrated some creatives, Iger announced that Kareem Daniel, the division’s chief and a Chapek ally, would “be leaving the company.”

    Iger also announced the entertainment giant will be undergoing a broader transformation with him back at the helm. “Over the coming weeks, we will begin implementing organizational and operating changes within the company,” Iger wrote to employees. “It is my intention to restructure things in a way that honors and respects creativity as the heart and soul of who we are.”

    Iger added that he had asked Dana Walden, Alan Bergman, Jimmy Pitaro, and Christine McCarthy to “work together on the design of a new structure that puts more decision-making back in the hands of our creative teams and rationalizes costs.” Iger said the goal “is to have the new structure in place in the coming months.”

    Outside Iger’s reorg of Chapek’s reorg, the Disney chief could also unwind another key decision made by Chapek that is just weeks from taking effect: Disney+’s price hike. Iger launched Disney+ at a mere $6.99 a month and, as CNBC’s Alex Sherman reported, his strategy was to “slowly raise prices over time.” Chapek, however, ditched that modus operandi earlier this year when he spiked the price to a whopping $10.99 a month.

    Looking further into the future, bigger questions abound: What will Disney look like when Iger’s two-year deal is up? How will Iger position and reshape the company for the digital age? Could he make a move to shed ABC and the broadcast division? Or perhaps execute a mega-deal to eat a company like Netflix? Or will Disney itself be eaten by a Big Tech giant such as Apple?

    One source at a top talent agency pointed out that the biggest question Iger will have to answer is how he “tops his last run as CEO.”

    “The world is a much more complicated place than it was a few years ago and it is going to be hard to live up to the reputation he built as the most formidable media CEO ever,” the source said. “And he’s going to have a short runway to pleasing Wall Street, his staff, creative partners, and the audience.”

    “So much for going out on top.”

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  • Disney taps ex-CEO Bob Iger to return, set strategy

    Disney taps ex-CEO Bob Iger to return, set strategy

    BURBANK, Calif. — The Walt Disney Company has tapped its former CEO Bob Iger to return to head the company for two years, firing his successor Bob Chapek in a move that stunned the entertainment industry.

    Chapek is leaving after the company posted lower than expected earnings in the last quarter. Hollywood’s creative community had grumbled about Chapek’s cost-cutting measures and sometimes blunt approach to talent, while theme park regulars had been unhappy with price hikes.

    So, it’s back to Iger.

    “The Board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the company through this pivotal period,” Susan Arnold, Disney’s chairman, said in a statement.

    Arnold thanked Chapek for leading the company through the pandemic, while enthusing over Iger’s stature within the company, which he led for 15 years before his ouster in early 2020.

    Iger has the “deep respect of Disney’s senior leadership team,” she said. She added that he was “greatly admired by Disney employees worldwide.”

    “The company’s robust pipeline of content is a testament to his leadership and vision,” the company’s statement said.

    Iger said in the statement that he was “thrilled” to return and “extremely optimistic” about Disney’s future.

    “I am deeply honored to be asked to again lead this remarkable team, with a clear mission focused on creative excellence to inspire generations through unrivaled, bold storytelling,” said Iger, who is 71.

    He replaced Michael Eisner as CEO in 2005 and the former TV weather man won over Wall Street and Hollywood with bold acquisitions and public displays of respect for the creative community and the company’s storied history.

    During his 15 years at the helm, Disney absorbed Pixar, Lucasfilm, Marvel and Fox’s entertainment businesses, then launched its Disney+ streaming service.

    After Chapek became CEO in 2020, Iger remained as chairman through 2021.

    Chapek is stepping down in what has been a tough year for Disney. He faced blowback earlier this year for not using the company’s vast influence in Florida to help quash a Republican bill that would prevent teachers from instructing early grades on LGBTQ issues. The bill sparked a spat between Disney and Republican Gov. Ron DeSantis.

    He also was criticized for his handling of Scarlett Johansson’s lawsuit last year over her pay for “Black Widow,” an unusually public conflict between the studio and a top Hollywood star. The 2021 Marvel film was released simultaneously in theaters and through Disney+ for a $30 rental.

    There are reports of plans for major layoffs as the company maneuvers to improve its profitability.

    Currently, Disney+ now is ad-free, but in December it will launch a new tiered service in December for U.S. subscribers. The basic Disney+ service that costs $7.99 per month will run ads. A subscriber who wants no ads will have to upgrade to a premium service that starts at $10.99 per month, a 38% increase over current prices.

    Disney said it ended its fiscal year with more than 235 million subscribers to its streaming services. That was above analysts’ expectations of 231.5 million.

    Disney’s share price is at about the level it was at when Iger stepped down as CEO in early 2020, closing at $91.80 pm Friday. That’s about half its peak of just over $200 a share in March 2021.

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  • Disney’s former chairman & CEO returns! What does it mean for Disney+ Hotstar?

    Disney’s former chairman & CEO returns! What does it mean for Disney+ Hotstar?

    Disney+ Hostar’s parent Disney has brought back former Chairman & CEO Robert Iger to replace Bob Chapek as its top executive amid mounting losses on its streaming business, which includes the largest OTT player in India by user base which has been struck by slowing subscriber addition because of void created by the loss of the Indian Premier League (IPL). 

     “The Board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the Company through this pivotal period,” Susan Arnold, Chairman of the Board, said in a press release early on Monday IST. 

    The American entertainment giant has lost $1.5 billion on its streaming business, which includes Disney+ (as Disney+ Hotstar in Asia), Hulu, ESPN+ and the Star service in Europe, just this quarter and around $8 billion over the past three years, according to Q4 results declared 10 days ago. The company follows the October-September calendar. 

    Recent results showed that Disney+ Hotstar has a whopping 60.3 million subscribers in Asia. A large majority of it comes from India, making it the largest streamer by user base in the country, way ahead of rivals Amazon Prime Video (approximately 20 million) and Netflix (approximately 6 million). Disney+ Hotstar is also a crucial piece in the global scheme of things as it contributes around 37% to Disney+ ’s 164.2 million-strong global subscriber base. 

    The platform managed to attract a large part of that subscriber base because of the cricket IPL tournament, the digital streaming rights of which it has lost to Reliance-backed Viacom18 for the 2023-27 cycle.  

    It added fewer than 3 million subscribers in July-September compared to the 8 million in April-June. Besides, the firm expects its user base to decline in the October-December quarter because of the IPL void and stabilise during January-March, Disney’s chief financial officer Christine McCarthy warned in the recent earnings call. Further, the firm in August cut Disney+ Hotstar’s user base growth projection to 80 million by fiscal 2024 compared to its earlier projection of 70-100 million. 

    “The loss of digital IPL rights will be a short-term problem for Disney+ Hotstar. Sony had also lost the IPL rights five years ago and they also came out stronger after that by focusing on good content,” says former Sony LIV head and Kurate Digital Consulting’s Founding Partner Uday Sodhi. He says they have a great product and one of the best app distributions in the digital space, giving them a good edge in the long run as the market grows because of connected TVs and 5G. 

    At a time of proposed budget cuts and layoffs by parent firm Disney to focus more on profitability, the OTT player has its task cut out in grabbing eyeballs as the digital streaming landscape gets more competitive in India where content costs are high but ARPUs are low. That is, customers are not paying as much to match the platforms’ content investments. 

    “Sport content costs are escalating and that’s probably why they shied away from buying the IPL digital streaming rights. They are at a risk of losing 40-50% of subscriber base because of IPL. We see them trying to curtail that impact by investing in original content and licensed movies. They need to focus on large-scale franchise web series with strong recall so they can make multiple seasons of the same to get a sticky audience,” says Karan Taurani, Senior Vice-President, Elara Capital.  

    He also points out that a lot of OTT platforms were investing heavily in content because of high valuations and a good flow of money. “But that money flow has slowed down now globally.”  

    Also Read: CII recommends slashing of income tax rates in upcoming budget

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  • Disney announces ex-CEO Bob Iger to return for 2 years

    Disney announces ex-CEO Bob Iger to return for 2 years

    BURBANK, Calif. — The Walt Disney Company announced late Sunday that former CEO Bob Iger would return to head the company for two years in a move that surprised the entertainment industry.

    Disney said Bob Chapek, who succeeded Iger in 2020, had stepped down from the position.

    “The Board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the Company through this pivotal period,” board Chair Susan Arnold said in a statement from Disney.

    Arnold thanked Chapek for his service, including his time during “the unprecedented challenges of the pandemic.”

    Iger steered Disney through its absorption of Lucasfilm, Pixar, Marvel and Fox’s entertainment businesses and the launch of Disney Plus.

    Earlier this month, Disney posted lower than expected results for its fiscal fourth quarter.

    Iger led Disney for 15 years before stepping down in 2020.

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  • Disney posts Q4 results below Wall Street estimates

    Disney posts Q4 results below Wall Street estimates

    The Walt Disney Co. on Tuesday posted lower-than-expected profit and revenue for its fiscal fourth quarter even as its streaming services did well, sending its shares lower in after-hours trading.

    The company said it earned $162 million, or 9 cents per share, in the July-September quarter, nearly flat compared to $160 million, or 9 cents a share, a year earlier.

    Excluding one-time items, Disney earned 30 cents per share. Analysts, on average, were expecting earnings of 56 cents per share on that basis, according to FactSet.

    Revenue grew 9% to $20.15 billion from $18.53 billion. Analysts were expecting revenue of $21.27 billion.

    Disney said it ended its fiscal year with more than 235 million subscribers to its streaming services. That’s above analysts’ expectations of 231.5 million.

    The company plans to increase prices at Disney+ next month and also introduce a lower-priced version that includes advertisements. Currently, Disney+ is ad-free.

    Disney+ added 12.1 million subscribers to bring the total 164.2 million as of Oct. 1. In comparison, Netflix — which is also adding an ad-supported tier to its streaming service — has about 223 million subscribers.

    CEO Bob Chapek said the company still expects Disney+ to be profitable in 2024 “assuming we don not see a meaningful shift in the economic climate.”

    Shares in Disney, which is based in Burbank, California, fell almost 8% in after-hours trading.

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