Is the magic back? Bob Iger's return to Disney and what it means for the company and fans

Events in Walt Disney Company's boardroom overnight would not have looked out of place in one of the resorts and entertainment giant's blockbuster films.

Bob Chapek, the company's chief executive, was unceremoniously ousted and replaced with Bob Iger, not only his immediate predecessor, but also the man who hand-picked him.

It was a very public dismissal. The Wall Street Journal reports that Mr Chapek had been due to introduce singer Sir Elton John on stage ahead of a concert at Dodger Stadium in Los Angeles that was being shown live on the Disney+ streaming service.

The event was attended by several top Disney+ executives who first learned of Mr Iger's return via an email.

In that email to employees, Mr Iger wrote: "It is with an incredible sense of gratitude and humility - and, I must admit, a bit of amazement - that I write to you this evening with the news that I am returning to the Walt Disney Company as chief executive officer."

The appointment brings to an end a disappointing spell as chief executive for Mr Chapek, who had been at Disney for 29 years, latterly heading Disney's resorts and theme parks business for five years before being anointed by Mr Iger as his successor.

He took the helm in February 2020, just as the COVID pandemic was erupting around the world, forcing Disney to close its resorts. Cinemas were also banned from opening, depriving Disney of a major revenue source, while delaying the launch of big films such as Mulan and the production of others such as Spider-Man: No Way Home and Black Widow. Mr Chapek was forced to cut costs and jobs as well as introduce a hiring freeze in response.

That was not, though, what did it for him.

The Magic Kingdom's investors have been increasingly unhappy about the spiralling cost of Disney+. The service has been hugely successful in terms of garnering subscribers and, despite only launching in December 2019, has already overtaken its rival Netflix - which launched its streaming service as long ago as 2007 - in terms of subscriber numbers in August this year.

That, though, has come at a cost.

Ballooning operating costs at Disney+

Disney shocked investors earlier this month when it reported that, during the three months to 1 October, operating losses at Disney+ ballooned from $800m to $1.5bn. Mr Chapek's strategy for Disney+ was also criticised by Mr Iger himself. CNBC reported earlier this year that the pair had fallen out in spring 2020 and were barely speaking, chiefly over a decision made by Mr Chapek to streamline the running of Disney, taking responsibility for profit-and-loss away from Disney's divisional heads and passing it to Kareem Daniel, a long term lieutenant, Disney's head of media and entertainment distribution.

The losses at Disney+ are the main reasons why shares of Disney have fallen by 41% since the beginning of the year.

As damaging for Mr Chapek was his handling of relations with the creative and artistic talent that is at the heart of what Disney does. These included a public and embarrassing falling out with the actress Scarlett Johansson in June last year, when she sued Disney, claiming the release of Black Widow on Disney+ at the same time as it was being released in cinemas was a breach of her contract. Rather than seek to make peace behind the scenes, Mr Chapek instead hit back with a press release, in which the company publicly revealed Ms Johansson had been paid $20m for her work on the movie.

'Don't Say Gay' row

Worse still, the company found itself being drag