According to a new report, some Disney executives are actively rooting for CEO Bob Chapek to continue making mistakes so he'll be replaced. Chapek was previously head of the Buena Vista Home Entertainment division before becoming Chairman of Disney Parks, Experiences, and Products, where he became a controversial figure due to his increase in prices and emphasis on intellectual properties. He was chosen to succeed longtime Disney CEO Bob Iger as head of the Walt Disney Company on February 26, 2020, just a week before the global COVID-19 crisis started to take effect.
Since becoming CEO, Chapek has made a number of controversial decisions that have reflected poorly on Disney. His decision to make Black Widow available for streaming on Disney+ the same day as theaters resulted in a lawsuit from star Scarlett Johannson which, though quickly resolved, was something many could never imagine happening under Iger's tenure. Most recently, Chapek fumbled Disney's response to Florida's "Don't Say Gay" Bill, drawing criticism from employees and the public.
Now, a new report by Puck reveals some executives at the Walt Disney Company are so pessimistic about Chapek's ability to run the company that they're hoping he "shovels himself a hole inescapably deep," forcing Disney to remove him. Chapek is also facing an uphill battle with profitability at Disney+, as subscriber numbers continue to grow but revenue does not. The average revenue per user at Disney+ is $6.32, compared to Netflix's $14.92. That's a substantial gap, and investors are growing increasingly wary of Chapek's ability to boost revenue.
There's no doubt Chapek's lack of experience in content has hurt the company. Chapek's decision to send Pixar's three latest original films — Soul, Luca, and Turning Red — straight to Disney+ with no additional cost, as opposed to a theatrical release or a hybrid release with Premier Access, left Pixar employees feeling demoralized. According to analysts, sending Turning Red to Disney+ likely cost the company $300-$400 million in box office revenue.
In March, various insiders speculated that Chapek could be replaced as CEO after only two years. It seems increasingly unlikely Chapek will be remembered the same way that previous CEO Bob Iger was, or even Michael Eisener, who, while going out on a sour note, did steer Disney into a successful age during the late 80s through the 90s. Chapek's legacy at Disney is already tarnished, and he will have to make some big swings and successful choices to rebuild confidence in his ability to lead the company.