'Maybe this is good news for its competitor, Netflix.'
Bob Iger's return as Chief Executive Officer (CEO) at Walt Disney Co after retiring 2 years ago failed to have any immediate impact.
It's even worse when the company reports a loss of 2 million subscribers for fiscal year 2022 even though the Disney+ streaming service has been a hit this year.
Iger, who has 15 years of experience with Disney, did not flinch and the company appeared to defend him by informing investors that there would be a change in management and strategy.
In fact, Iger himself in a company memo informed the employees about the upcoming changes in the management structure to align with the mandate given to him by Disney.
Among the essence of the mandate that Disney gave Iger is to change the way the company produces and shows movies and TV programs including 'the platform of choice for initial content distribution'.
To date Disney has struggled to turn a profit from its streaming service even as consumer viewing patterns shift from traditional cable TV to online.
However, Disney is not alone with ESPN and Disney Channel experiencing a decline of 2 million subscribers while other channels such as FX, Freeform and National Geographic lost 3 million users.
It turns out that despite the success of Disney+'s popular programs such as Mandalorian, it still failed to record multiple profits and let's not forget that the streaming industry itself is struggling in the current post-pandemic period.
As of this writing Disney shares are trading 1.05% lower at $94.69.
