With Bob Iger's Return, Will Disney Lower Subscription Fees?

Former CEO Chapek Decides Disney Plus Subscription Price Increase
Eiger: "Rates Must Be Affordable to Stay Competitive" - Is Disney Policy Changing?

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Yoon Seul-gi] Robert Iger (Bob Iger), who previously led Disney, has returned as Walt Disney's Chief Executive Officer (CEO), raising expectations of changes in Disney's policies.

On the 20th (local time), Disney's board of directors announced the appointment of Iger as the new CEO. CEO Iger will work for the next two years while searching for his successor.

Previously, CEO Iger served as Disney's CEO from 2005 to 2020. He is credited with acquiring Pixar, Marvel, Lucasfilm, 21st Century Fox, and increasing market share fivefold, transforming Disney into the world's largest entertainment company. Afterwards, CEO Iger handed over the CEO position to Bob Chapek in February 2020 and stepped down as chairman of the board last December.

However, under former CEO Chapek, Disney faced a crisis due to poor performance and a decline in stock price. In the third quarter alone, Disney Plus, the online video streaming service (OTT), recorded a loss of $1.47 billion (approximately 2 trillion KRW). Disney's stock price has plummeted 40% this year. Ultimately, Disney's board reversed its decision to extend Chapek's term by three years and abruptly dismissed him after five months.

With CEO Iger returning as Disney's savior, some changes in Disney's policies are expected. Former CEO Chapek had decided to raise the monthly fee for the 'ad-free' Disney Plus from $7.99 to $10.99 starting this December, an increase of $3. Iger's approach is different. He believes that affordable subscription fees will be the competitive edge for OTT services. Analysts suggest that measures such as withdrawing the price increase may be implemented.

CEO Iger is also reported to have expressed opposition to former CEO Chapek's handling of Florida's controversial so-called 'Don't Say Gay' law. This law prohibits education on sexual orientation and gender identity for kindergarten and early elementary school students, sparking controversy for potentially restricting the freedoms of sexual minorities. Initially, Disney did not respond strongly to the law, but reversed its stance after thousands of Disney World employees in Florida protested.

Will the Declaration to Halt Political Donations Also Be Reversed?

Former CEO Chapek's declaration to stop all political donations to Florida also became a burden for Disney. In April, Chapek stated that he would withhold political donations because Florida's new education law infringed on human rights. In response, Republican Governor Ron DeSantis and the Florida legislature moved to revoke tax benefits for Disney World Resort, which had lasted over 50 years.

Meanwhile, the stock market is cheering the announcement of CEO Iger's return. As of 11 a.m. on the 21st (Eastern Time), Disney's stock price on the New York Stock Exchange stood at $97.75 (approximately 133,037 KRW), up 6.48% from the previous trading day. It briefly surpassed the $100 mark for the first time in about two weeks since the 8th.

This content was produced with the assistance of AI translation services.