Disney CEO Bob Iger’s Leadership Under Fire

The numbers tell a sobering story for Iger’s second tenure. In the most recent reporting period, Disney’s revenue grew a meager 2% to $23.7 billion, while income from operations before taxes increased just 4% to $3.2 billion. These tepid results come despite Iger’s promise of a dramatic turnaround following the brief leadership of his predecessor, Bob Chapek. The stock performance over the past five years has substantially underperformed the broader market, reflecting investor skepticism about Disney’s direction under Iger’s renewed leadership.

The lone bright spot in Disney’s financial picture has been the Experiences segment, which includes the company’s theme parks and resorts. This division saw revenue increase 8% to $9.1 billion, with operating income climbing 13% to $2.5 billion. However, this strong performance from the parks business wasn’t enough to offset weaknesses elsewhere in the entertainment conglomerate’s portfolio, highlighting the uneven nature of Disney’s recovery under Iger’s guidance.

One of Iger’s most significant legacy issues from his first term continues to haunt the company. The launch of Disney+ in November 2019, while initially celebrated, has proven to be a massive financial drain. According to Forbes estimates, the streaming service has accumulated operating losses of $10.7 billion since its debut, with the Direct-to-Consumer segment serving as the proxy for these staggering losses.

The fundamental problem with Disney+’s strategy was apparent from the beginning: the service launched with approximately 500 movies from Disney, Pixar, Marvel, Star Wars, and National Geographic, but this library proved too small and insufficient to compete effectively with streaming giants Amazon and Netflix. While the service has recently begun generating modest revenue, analysts believe it’s unlikely to recoup its massive losses in today’s dollars, representing a significant strategic miscalculation during Iger’s initial leadership period that continues to impact the company’s bottom line.

Beyond financial concerns, Iger’s second term has been marred by controversies that have damaged Disney’s reputation. The CEO faced significant backlash for initially allowing local station owners Sinclair and Nexstar to pressure him into dropping Jimmy Kimmel after comments the host made about Charlie Kirk. The decision sparked outrage from other entertainment figures and Disney customers, forcing Iger to reverse course and bring Kimmel back.

This incident raised serious questions about Disney’s commitment to free speech principles under Iger’s leadership. The controversy has created uncertainty about whether Hollywood talent will continue to do business with Disney and whether customers who canceled Disney+ subscriptions in protest will return. The episode has become emblematic of broader leadership challenges during Iger’s second act, potentially overshadowing his earlier successes from 2005 to 2020.

As Iger prepares to depart next year as planned, his legacy appears clouded by these recent struggles. The CEO who once transformed Disney through strategic acquisitions and brand building now faces questions about whether his return ultimately hurt more than helped the company he sought to save. With the entertainment landscape rapidly evolving and competitors like Amazon and Netflix continuing to dominate streaming, Disney’s path forward remains uncertain as Iger’s troubled second act draws to a close.