When Walt Disney Co. announced that it had closed more than 20 foreign TV channels last week, Chief Executive Officer Bob Chapek looked like he was taking the knife to a big chunk of the company’s international audience. The move would have been unthinkable a few years ago. But Chapek -- less than six months after succeeding longtime CEO Bob Iger -- is using the Covid-19 crisis to transform Disney much faster than expected, all with an eye toward making the company an online juggernaut that reaches far more people worldwide. Besides scrapping the networks, he shut down a musical version of the animated film “Frozen” that opened with much fanfare on Broadway two years ago, closed a chain of English-language schools in China, and scaled back a $1 billion resort-technology project that has largely been replaced by a simple mobile-phone app.
With the global pandemic crippling Disney’s theme-park, movie and TV businesses, Chapek’s first months atop the world’s largest entertainment company have been anything but a honeymoon. The broad-shouldered, 61-year-old Indiana native jumped in with characteristic zeal, making big changes to cope with the crisis and the tectonic forces reshaping the company’s core businesses. The decisions came large and small. Disney shuttered its theme parks in March, anchored its cruise ships and furloughed some 100,000 workers. Revenue slumped 42% last quarter, hurt by the closed businesses and loss of advertising sales at networks like ESPN and ABC. But the biggest strategic shift is unquestionably Disney’s push into online video. Chapek provided a clue to what was coming in June, when the company said it was removing the Disney Channel TV networks from pay-TV systems operated by Virgin Media and Sky in the U.K. and putting the programming on the new Disney+ streaming service instead. source