While that was a 9% increase year-on-year, it came below analyst expectations. Poor earningsīut it might have been Disney’s earnings struggles that finally marked the end for Chapek.ĭisney reported lower-than-expected revenue for the fourth quarter, at $20.2 billion. Florida’s state government in April revoked a law granting Disney special tax status for its operations in Orlando, Florida. Yet Chapek’s statements against the “Don’t Say Gay” law were enough for conservatives to attack the company of being beholden to activists. Florida is the home of Walt Disney World, the company’s largest theme park. ‘Don’t Say Gay’ĭisney’s public relations difficulties intensified in 2022 due to Florida’s Parental Rights in Education Act (described by critics as the “Don’t Say Gay” law), which barred discussion of sexual orientation in classrooms from kindergarten to third grade. Disney shares sunk about 4% the following day, and the board released a rare statement expressing support for Chapek. The decision shocked Hollywood, used to more graceful removals of studio executives. (Disney settled with Johansson a few months later.)Īlmost a year after the Johansson incident, Chapek fired Peter Rice, the head of Disney’s television division. Disney accused Johansson of “callous disregard” toward the COVID-19 pandemic and publicly revealed her salary. In July 2021, Disney had a harsh response to a lawsuit from Black Widow actress Scarlet Johannsson, which accused the company of breaching her contract by releasing the film in cinemas and streaming platforms silumtaneously. Parkgoers were upset over a feeling that Disney was now squeezing them for extra revenue.Īt other times, Chapek’s Disney engaged in abrupt business decisions that unnerved shareholders and others in Hollywood. ![]() In October 2021 Disney launched the Genie+ app to monetize the once-free FastPass system, which allows guests to book priority access to busy rides. Yet some executives responsible for content were reportedly upset that profit-and-loss responsibility was being taken away, and instead centralized under distribution.Ĭhapek’s plans to increase revenue from Disney’s parks also annoyed regular customers. One of Chapek’s first major decisions as CEO was to reorganize the company, giving greater power to executives responsible for distribution, in an effort to bolster Disney’s approach to streaming. Yet the new CEO quickly garnered criticism for public relations missteps, political controversy, and unpopular business decisions-which, combined with Disney’s recent poor earnings, may have pushed the board to replace Chapek. Disney shares are down 41.4% overall for the year. Chapek, then the head of Disney’s parks division, took over the CEO position from Iger in 2020.
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