DISNEY’S NEW CEO WILL FOCUS ON THE DIRECT-TO-CONSUMER BUSINESS

Disney’s new CEO, Bob Chapek, will focus its strategy on direct-to-consumer services such as Disney+ and Hulu, which he considers the “most important” to the company.

Speaking to CNBC, Chapek was asked about the trends of cord-cutting and streaming, which has led to the company launching Disney+ worldwide. The CEO responded by pointing towards the demands of the consumer, explaining that the company’s strategy is more focused towards creating a “one-on-one relationship with the customer without necessarily having a lot of middlemen in between”.

News that Chapek, who previously ran the company’s parks and products division, would replace Bob Iger took the industry by surprise earlier this week, sending Disney’s shares 2% down in after-hours trading. Iger has been Chief Executive since 2005, establishing Disney’s place as the pre-eminent Hollywood studio through its acquisitions of 21st Century Fox, Pixar, Marvel and Lucasfilm. He also launched the Disney+ streaming channel late last year.

In the interview, Chapek was sat alongside now Executive Chairman Bob Iger, very much framing himself as a continuity figure for the company. Chapek admitted he has “huge shoes to fill” and described Iger’s legacy as “profound,” before adding: “I think my role is now to take the strategic pillars that Iger so well established over the last 15 years, work on those and implement those in the marketplace – most importantly our direct-to-consumer initiatives”.

Though Iger will remain with the company until the end of 2021, he asserted that there will not be any confusion around responsibilities, with Chapek handling the day-to-day business and Iger focusing solely on creative efforts. Iger said that Chapek will be “at his side” for “any of the big creative decisions that need to be made” and that the transition process will enable the new CEO to “learn as much as possible”.