According To A Damning New Report Disney Executives Want CEO Bob Chapek Replaced
Following a series of disastrous business decisions, Disney executives are looking to replace CEO Bob Chapek, according to a new report.
Chapek has made a series of controversial actions since becoming CEO that have reflected adversely on Disney. His decision to release Black Widow on Disney+ on the same day film was released in theaters prompted a lawsuit from star Scarlett Johannson, which, while quickly handled, was something few could have predicted happening during Iger's tenure. Chapek most recently bungled Disney's response to Florida's "Don't Say Gay" Bill, attracting ire from both employees and the general public.
Now, according to a new story by Puck, some Walt Disney Company executives are so skeptical of Chapek's abilities to lead the company that they're hoping he "shovels himself an inescapably deep hole," causing Disney to fire him. Chapek is also fighting a losing battle at Disney+, where membership numbers are increasing but revenue is not. Disney+ has a $6.32 average revenue per subscriber, compared to $14.92 for Netflix. This is a significant disparity, and investors are becoming increasingly concerned about Chapek's capacity to increase sales.
Chapek's lack of content experience has undoubtedly harmed the organization. Pixar employees were dismayed by Chapek's decision to send Pixar's three most recent original films — Soul, Luca, and Turning Red — straight to Disney+ with no additional expense, rather than a theatrical release or a hybrid release with Premier Access. Analysts estimate that bringing Turning Red on Disney+ cost the studio $300-$400 million in box office income.
Several sources indicated in March that Chapek may be ousted as CEO after only two years. It's becoming increasingly doubtful that Chapek will be regarded in the same manner as prior CEO Bob Iger or even Michael Eisener, who, despite departing on a sour note, did lead Disney into a prosperous period in the late 1980s and 1990s. Chapek's reputation at Disney is already harmed, and he'll need to make some bold moves and wise decisions to restore faith in his abilities to lead the firm.