Disney CEO Bob Chapek forges a path to differentiate himself from predecessor Bob Iger.
Iger hasn’t agreed with several decisions Chapek has made as Disney’s new CEO, CNBC reports. The latest of Chapek’s decisions is to increase the price of the Disney+ streaming service by 38%.
Last week, Disney announced that its streaming service will now offer two options—one with ads and one without. Disney+ without ads will have a price increase of $3, jumping from $7.99 per month to $10.99 per month. Disney+ with ads will begin at $7.99 per month.
The new pricing from Chapek is a big difference from what previous CEO Iger had wanted. Iger wanted Disney+ to be the lowest-priced major streaming offering, so customers would view Disney+ as a stronger value proposition to its competitors even if it felt other services’ content might be better, says CNBC.
Why it’s news
Former Disney CEO Iger handpicked Chapek to be his successor in February of 2020. Iger said he could not think of anyone better to take over his duties, but now their relationship seems to be rocky.
Officials say when the pandemic hit, Iger announced he would stay to help Chapek through the difficult time. Apparently that did not sit well with Chapek, who thought he would be just fine without Iger’s help. Iger also expressed disappointment with how Chapek handled Florida’s “Don’t Say Gay” legislation.
After the announcement, Chapek began to make big decisions within the company that did not align with Iger’s when he was CEO. Chapek had decided to make his own path with Disney.
These new changes with Disney+ is one of many ways Chapek is changing things up. Iger’s strategy was to slowly raise prices over time, targeting a $1-per-month increase each year for the near future. Chapek’s decision to bump Disney+ by $3 per month, from $7.99 to $10.99, suggests he’s moving Disney’s strategy from maximizing subscriber growth to emphasizing profitability.