On layoffs, very bad attendance, and Iger's legacy being one of disgrace

Sirwalterraleigh

Premium Member
Within 2 minutes of the earnings being released many users were claiming it was an accounting trick. I highly doubt anyone on here has the capacity to read and digest the mechanics of an earnings report in that amount of time.

Surely Disney used a few perfectly legal tactics to move money and losses, but nothing they did was illegal in order to puff up their financial situation to appear exponentially better than what many are trying to allude to.

The same doom and gloom insiders were preaching dooms day was FINALLY upon us and got caught, again. This is their time to do damage control.
I think the problem may be that “legal” accounting tricks allow for a ton of maneuvering that distorts the realities...a tool for the companies...

Nothing illegal...but not veiled either. They posted an 85% decline in revenue and a “small profit”??

Nothing illegal...it just doesn’t pass end sniff test too well.
 

GoneViral

Well-Known Member
I think the problem may be that “legal” accounting tricks allow for a ton of maneuvering that distorts the realities...a tool for the companies...

Nothing illegal...but not veiled either. They posted an 85% decline in revenue and a “small profit”??

Nothing illegal...it just doesn’t pass end sniff test too well.

Part of it is that we're blurring terms. The Parks, Experiences and Products division dropped 85%, which is actually substantially better than SeaWorld, Universal, and The Oriental Land Company did. They were all around 95%.

Still, Disney's Parks branch lost $1.96 billion. No amount of accounting tricks could hide that.

Thankfully for Disney, Direct to Consumer was the only other moderate loser, down $706 million. Studio Entertainment accidentally saved money by not having any films to promote. Its profit of $668 million almost zeroes out DTC's loss.

However, Media Networks had operating income of $3.153 billion. That's the reason why Disney was in the black. If the company weren't diversified and only had the parks and movies like in the olden days, this quarter would have been a bloodbath.

I guess someone could argue that Disney took nearly $1.5 billion in eliminations. However, they'd done $3 billion already in the first two quarters, which averages out to $1.5 billion per. So, that's not really out of line, either.
 

GoneViral

Well-Known Member
Eisner was only “bad” when he had too much power and became “a legend in his own mind”...

...that tends to happen to everyone if they’ve been there too long. It’s a self fulfilling prophecy.

I've always thought that Eisner's decline stemmed almost entirely from the tragic death of Frank Wells, one of the most underrated Disney execs ever. He kept Eisner in check, and we saw what happened without that voice of reason whispering in his ear.
 

the.dreamfinder

Well-Known Member
I've always thought that Eisner's decline stemmed almost entirely from the tragic death of Frank Wells, one of the most underrated Disney execs ever. He kept Eisner in check, and we saw what happened without that voice of reason whispering in his ear.
The decline started before Wells died. Strategic Planning played a critical, and ultimately harmful, role in the company’s history.
 

Sirwalterraleigh

Premium Member
I've always thought that Eisner's decline stemmed almost entirely from the tragic death of Frank Wells, one of the most underrated Disney execs ever. He kept Eisner in check, and we saw what happened without that voice of reason whispering in his ear.
We’ll never know....obviously it’s a big factor...

But he fought with katzenberg...and Roy...and jobs...
He bought abc/cap no matter what the price...he pushed ahead with park projects without fully committing to them...he became the “Michael corleone” of Hollywood - settling all family business on a day by day basis.

I’m not gonna sugarcoat what happened with late Eisner...
But the record still doesn’t make him somehow inferior to Iger.
Iger’s biggest move was buying marvel. Everything else was being lead to the water. Nothing to bold or visionary. He’s bland...and that’s ok...but he’s also not put them in a spot to build on much going forward. It’s great he bought all that IP...but strangled it. And his park moves have only maintained their standing...not moved forward any if at all.
 
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the.dreamfinder

Well-Known Member
We’ll never know....obviously it’s a big factor...

But he fought with katzenberg...and Roy...and jobs...
He bought abc/cap no matter what the price...he pushed ahead with park projects without fully committing to them...he became the “Michael corleone” of Hollywood - settling all family business on a day by day basis.

I’m not gonna sugarcoat what happened with late Eisner...
But the record still doesn’t make him somehow inferior to Iger.
Iger’s biggest move was buying marvel. Everything else was being lead to the water. Nothing to bold or visionary. He’s bland...and that’s ok...but he’s also not put them in a spot to build on much going forward. It’s great he bought all that IP...but strangled it. And his park moves have only maintained their standing...not moved forward any of at all.
Looking back, and despite his “I was bffs with Steve Jobs“ shtick, Bob Iger’s tenure at the company was one of BRAND withdrawals instead of BRAND deposits. My only point of disagreement with your post is that Iger kept the parks where they were. Brand extraction was and is at its most extreme at parks. @ParentsOf4 ’s charts on price increases under Iger show how aggressively they sought to exploit generations of goodwill for short term gains whilst dumbing down the product quality and clientele they attracted.

The problem with treading water is everyone else is still moving forward and you’re right where you were.
 
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the.dreamfinder

Well-Known Member
Wasn’t Colglazier in that group? Who’s left?
Not sure. Mayer and Colglazier obviously were the last high profile members of the group, but the damage is done. We need to have a more nuanced understanding of how the company runs beyond EISNER BAD!!! since Iger didn’t choose to change the way the company operated from Eisner and kept most of his people.
 
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larryz

I'm Just A Tourist!
Premium Member
BTW, if anyone is naive enough to think they are getting inside stock information from a WDW fansite, and act on it, they deserve anything they get. Anyone who thinks the SEC would consider what is being said on a WDW fan forum as "real" insider information that could affect company stock is also pretty naive. Take all rumors stated here with a grain of salt - or a whole salt shaker.
Thanks. Please pass the low-sodium WDWMagic...
 

Sirwalterraleigh

Premium Member
Looking back, and despite his “I was bffs with Steve Jobs shtick”, Bob Iger’s tenure at the company was one of BRAND withdrawals instead of BRAND deposits. My only point of disagreement with your post is that Iger kept the parks where they were. Brand extraction was and is at its most extreme at parks. @ParentsOf4 ’s charts on price increases under Iger show how aggressively they sought to exploit generations of goodwill for short term gains whilst dumbing down the product quality and clientele they attracted.

The problem with treading water is everyone else is still moving forward and you’re right where you were.
...I was being kind.
You know what I think of park management and strategic decisions...

It’s been terrible. My thought for about the last 10-11 years has been that as soon as bob leaves, the cracks are gonna show and we will be finally talking about the missteps.
 

lindawdw

Well-Known Member
Can you speculate on why attendance is so low? Anecdotally I know of four separate parties who cancelled trips due to the one park per day limit and the reservation system.

Expecting people to pay thousands and only get into the parks guaranteed for 3 days of their trip is lunacy. If they want people in the parks, OPEN the parks and resorts. This is not Ebola.

I'm simply not convinced the low attendance is due to covid. I've seen too many packed with people places.
I think it's because the Quarantine of 14 days when guests arrive from various States such as NJ, NY and CT has really affected attendance as this area of the country makes up a large attendance group for WDW. We have a trip scheduled for the end of October but unless they lift the quarantine restriction, we will have to cancel our trip.
 

Jrb1979

Well-Known Member
I think it's because the Quarantine of 14 days when guests arrive from various States such as NJ, NY and CT has really affected attendance as this area of the country makes up a large attendance group for WDW. We have a trip scheduled for the end of October but unless they lift the quarantine restriction, we will have to cancel our trip.
That's a big part of it. Also a part is many aren't interested in going to theme parks at all. Look at the regional parks. Their attendance is much lower then expected as well. Usually when people can't afford a Disney trip many will opt for their local park and people aren't even doing that. Many are opting for cheaper staycations like going to state parks.
 

Heppenheimer

Well-Known Member
I think it's because the Quarantine of 14 days when guests arrive from various States such as NJ, NY and CT has really affected attendance as this area of the country makes up a large attendance group for WDW. We have a trip scheduled for the end of October but unless they lift the quarantine restriction, we will have to cancel our trip.
The quarantine was the final nail in the coffin for me cancelling our upcoming trip. Even though I have enough spare vacation days saved up, I'm not spending 14 extra days afterwards at home. On a practical level, too much work would pile up while I was away to make it feasible.
 

Nubs70

Well-Known Member
I think it's because the Quarantine of 14 days when guests arrive from various States such as NJ, NY and CT has really affected attendance as this area of the country makes up a large attendance group for WDW. We have a trip scheduled for the end of October but unless they lift the quarantine restriction, we will have to cancel our trip.
The quarantine also applies to individual companies. I am in sales and do not reside in a state with quarantine requirements. All my customers will not allow me on site for 14 days if I have been out of the country or visit an area classified as a hotspot.
 

BlackCauldron

Well-Known Member
I think it's because the Quarantine of 14 days when guests arrive from various States such as NJ, NY and CT has really affected attendance as this area of the country makes up a large attendance group for WDW. We have a trip scheduled for the end of October but unless they lift the quarantine restriction, we will have to cancel our trip.

According to reports (as seen in the other Covid thread), DeSantis just rescinded the quarantine for travelers from the NY tri-state area.
 

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