Since Disney entered the streaming arena with Disney Plus in 2019, the company has been focused on becoming one of the biggest competitors in that space, and has spent the majority of this year doing whatever it takes to get closer this goal. The Mouse House has gone through some growing pains in the process, but closing a new deal with Comcast could give Disney the leverage it needs to come out on top.
A failed renewal with cable company Spectrum adds fuel to the fire, and Disney’s seeing the incident as an opportunity to push people toward streaming — albeit for a significantly cheaper price than we’re used to. Amid record-low stock prices, how generous can Disney really be with its subscription prices, and how long is the deal good for?
Finally, today’s roundup will cover some reported drama between Bob Iger and Bob Chapek, or as I like to call it, the “Battle of the Bobs.” Who would’ve thought the world of corporate entertainment would be wrought with succession woes?
Comcast and Disney agree to conclude Hulu deal negotiations by the end of this month
Disney and Comcast have changed the date of talks negotiating the sale of Comcast’s share in Hulu to Disney, according to a report from Variety. Comcast currently owns 33% of the streaming service, and Disney, which owns the remaining share of 67%, is looking to buy the entirety of Hulu from Comcast in a move that would largely benefit Disney. Talks were originally scheduled for January of next year, but Disney and Comcast have moved the date to Sep. 30 in an effort to speed things up. “It will take a little time for this to play out,” Comcast CEO Brian Roberts shared during the Goldman Sachs Communacopia and Technology Investor Conference Wednesday, “but both companies wanted to get it behind us so we pulled the date forward.”
Hulu, with its large subscriber base, is an undeniable asset when it comes to winning the overall streaming war, and it makes sense Disney wants it all to itself. Comcast’s stake was previously valued at $27.5 billion, but Roberts believes its worth is closer to $30 billion since the valuation was made five years ago. Roberts is hopeful Comcast will get a good deal, but regardless of the price Disney pays, the sale is likely to go through. Don’t expect sales to conclude soon though; Roberts didn’t give a timeline despite reassuring investors both companies would be able to give them “clarity” regarding the sale.
Amid millions losing access to Disney-owned channels as Spectrum deal falls through, Disney is offering Disney Plus for $1.99 a month
Disney Plus is lowering its with-ads subscription price to an affordable $1.99 a month — or less than the price of a churro at Disneyland, as my fellow writer Cody Raschella points out — but there are some limitations to Disney’s generosity. The new rate is only available for new and returning subscribers, and is only available for three months. After the three months are up, subscribers will be charged the regular rate of $7.99 a month unless they manually end their subscription. Disney’s done similar deals in the past, but this one comes during a tumultuous time for the Mouse House when it comes to streaming.
As We Got This Covered previously reported, millions who use Charter Spectrum as their cable provider lost access to over two dozen channels when Disney and Spectrum were unable to successfully negotiate a new deal. Disney’s been pretty cavalier about the whole thing, giving a statement saying the onus is on Spectrum to renew the deal and, in the meantime, why not try streaming? The statement then goes on to urge customers who lost their cable access to try out Hulu and/or Disney Plus, and when combined with the cheaper rate, it’s hard to not to be cynical and think Disney might have been planning this all along. Combined with Disney’s recent subscriber losses and the threat of more to come as subscribers complain of raised prices, it’s not hard to see Disney’s motivation to push people toward streaming.
Battle of the Bobs: A massive new report details the alleged deterioration of Bob Iger and Bob Chapek’s business relationship, including a dispute over… a bathroom?
A very detailed report has emerged from CNBC — I mean it, this is a long read — recounting the power struggle between Disney CEO Bob Iger, and his successor, Bob Chapek. The report covers Iger’s decision to choose Chapek, as well as the fallout, which resulted in Iger’s return as Disney CEO. CNBC spoke with “more than two dozen people who worked closely with Iger and Chapek between 2020 and 2022” for the story, which reads as compelling as any drama available on Disney Plus (or this one on Max, for that matter). After making the decision to retire (a decision he postponed several times), Iger quickly appointed Chapek as his successor, but allegedly hoped to act as a CEO in proxy and have final approval over any decisions Chapek made as CEO.
The first sign of a troubled transition was when Iger refused to give Chapek the keys to his office, which had a private shower, a vanity, and two custom posters (one inspired by Clint Eastwood’s The Eiger Sanction, a film about a retired assassin who returns for one last job, would prove particularly precognitive). Iger would make use of the private shower almost daily, and would use it to prepare for events post-work, telling Chapek he lived for those “two-shower days,” according to the report. Iger ended up keeping the office, while Chapek moved to a smaller one on the same floor, a move foretelling the two’s relationship during Chapek’s tenure as CEO.
Iger reportedly regretted his decision mere weeks after retiring, and felt Chapek wasn’t involving him in decisions regarding the company. Chapek, meanwhile, feared Iger wanted his job back, and felt the former CEO was trying to run the business for him during the height of the COVID pandemic. The two continued to butt heads throughout Chapek’s time as CEO; Iger would privately discuss Chapek and Disney’s future with fellow executives, as Chapek struggled to manage the company during those unprecedented times.
The struggle came to a head when Scarlett Johannson sued Disney for breaking her Black Widow contract. Both Iger and Chapek thought the other should handle the issue; Chapek believed it was Iger’s territory as a creative issue, while Iger believed “If Chapek wanted to be CEO, he should be CEO” and handle what he thought was clearly a business matter. When Iger finally left his executive chair position, Chapek moved into the big office (never using the bathroom) before a series of blunders and unfortunate events persuaded Iger to come back as CEO.
Iger’s return hasn’t been an easy one as Disney stock reaches its lowest price in nearly a decade. With this report circulating, it doesn’t look like it’s getting any easier.