"Instead, he focused on the last three years, when he returned to the CEO role in 2022 after leaving it in 2020. When he first came back, the streaming business had lost $4 billion that year, Iger said, and required massive organizational restructuring to "create more accountability." All that effort seems to have paid off, financially speaking. Last quarter, Disney's SVOD services grew 11% year-over-year to more than $5 billion, driven by growth in both subscription and advertising revenue."
"Meanwhile, sports had the opposite concerns. The category only grew 1% to $4.9 billion, offset by higher production and programming costs (plus a $110 million loss in operating income from Disney's spat with YouTube TV). However, sports advertising revenue grew a sizable 10%, which aligns with recent advertising industry trends, as well as Disney's recent focus on ESPN."
Bob Iger is expected to step down before his contract ends this year after returning as CEO in 2022 to address severe streaming losses and lead organizational restructuring. The streaming business had lost $4 billion before restructuring measures aimed to create more accountability. Recent results show SVOD services grew 11% year-over-year to over $5 billion, with SVOD advertising revenue up 4% to $952 million. Total fiscal first-quarter revenue rose 5% to $26 billion. Entertainment revenue increased 7% to $11.6 billion while entertainment advertising fell 6% due to specific transactions and weaker political advertising. Sports revenue grew 1% to $4.9 billion amid higher costs, with sports advertising up 10%.
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