News Josh D’Amaro Named Next CEO of The Walt Disney Company

[Tha Realest]

They’re overpriced. Parks can’t carry their studios load…it’s already gone to far

Price cuts? No. But if he can’t reverse that perception through smoke and mirrors somehow? He’s DOA.

The math won’t work

Steaming has a 5% margin. The Parks are never getting that investment those profits made into streaming back.

 

[Kamikaze]

Quite a pickle, huh?

But generally people will still go to movies they want to see in the theaters…it’s not a conspiracy against certain studios

Never said it was. All the studios are suffering.

 

[Disney Irish]

Steaming has a 5% margin. The Parks are never getting that investment those profits made into streaming back.

Margins on streaming can improve. Netflix's margins are in the 30% range now, and I don't see any reason why Disney DTC can't get within that range in the coming years. Meaning that DTC has the potential to bring in the same margins as Experiences in the future.

As for whether Parks will "recoup" any profit used to invest in Disney DTC, that is not how corporations work. This isn't one division loaning money to another division. This is a corporation allocating all resources of the company as they see fit, including any profit used to fund other divisions and ventures. So there was never an expectation of recouping any profit used to fund any other division. Just like there is no expectation of DTC recouping any money if its profits are used to fund the next capex infusion into Parks.

 

[Charlie The Chatbox Ghost]

Finish the job, Josh. Drain the Jungle Cruise. Bulldoze Tokyo Splash. Level Kali. Leave no water ride alive. I want a dry and beautiful Disney World, y'see.


I mean uh, hip hip hooray?

All this recent talk about getting rid of MK’s Jungle Cruise scares me, lmao

 

[Kamikaze]

All this recent talk about getting rid of MK’s Jungle Cruise scares me, lmao

They aren't getting rid of the JC.

 

[wdwfan4ver]

All this recent talk about getting rid of MK’s Jungle Cruise scares me, lmao

I have a hard time seeing Jungle Cruise going away because Jungle Cruise had a lot of major changes on the ride for its 2021 refurbishment. What I mean by changes the ride got rethemed with new storyline elements.

 

[Andrew C]

I have a hard time seeing Jungle Cruise going away because Jungle Cruise had a lot of major changes on the ride for its 2021 refurbishment. What I mean by changes the ride got rethemed with new storyline elements.

They will soon tell us the JC river has leaks and it’s too expensive to maintain.

 

[Kamikaze]

They will soon tell us the JC river has leaks and it’s too expensive to maintain.

Or they won't because, you know, people actually go on it.

 

[HMF]

I don’t expect Josh to make drastic changes. He can’t and would never lead a price cut. But maybe bringing some lost value back to WDW. That would be signal to me it’s not the same old same old. But I’m not holding my breath

I don't see much of the value ever returning seeing as how the place has changed so much it is unlikely the lost feeling will ever return especially under this management.

 

[SamusAranX]

The value proposition isn’t there as it once was.

But I meant: fell down the dark hole and will go 5-6 times a year?

Ah I just meant DVC, not the parks.

 

[Andrew C]

I don't see much of the value ever returning seeing as how the place has changed so much it is unlikely the lost feeling will ever return especially under this management.

I may go back if they can provide a greater bang for your buck. Not holding my breath

 

[Lilofan]

Josh isn’t old so if he does a good job he might be around for a while.

That’s up to the Board who determines his fate and if his days are numbered then spend time negotiating your golden parachute.

 

[Sirwalterraleigh]

I don't see much of the value ever returning seeing as how the place has changed so much it is unlikely the lost feeling will ever return especially under this management.

It’s really worse than that.

The bobs implemented a “retraining program”…in that scheme there is no concept of “lost feeling”…it’s that they seriously thought they are so irresistible that whatever feeling you get…in the moment…is good enough and will be accepted by all.

Boomers will be gone in 10 years…x will be grandparents…that will automatically lose the “nostalgia” urge a lot.

The problem there is THAT is where the loyalty is. It’s not gonna translate the same with the subsequent no attention peeps.

And doubt how vindictive X is at your peril, Disney…give us control of all the money and we’ll crash ya…

…now…about those crappy excuses for “Star Wars”….

 

[Chi84]

I don't see much of the value ever returning seeing as how the place has changed so much it is unlikely the lost feeling will ever return especially under this management.

I think the feeling is fine right now and so do the other people packing the parks.

This management will last for many years. Nothing is going back to what it was.

 

[Jrb1979]

I think the feeling is fine right now and so do the other people packing the parks.

This management will last for many years. Nothing is going back to what it was.

You have many times if you didn't take you kids to Disney they wouldn't be going at all. What happens the day you don't take them anymore? That's a multi generation family they lose. You're likely not the only one that's in that situation.
Management may last years but people packing the parks will start dropping once the baby-boomers stop going.

 

[EricsBiscuit]

JC puts many more people per hour through than the RoA did and is an IP in its own right. If they do replace it, it won’t be for a while. They have other low hanging fruit to pick (from their utilization perspective).

 

[Chi84]

You have many times if you didn't take you kids to Disney they wouldn't be going at all. What happens the day you don't take them anymore? That's a multi generation family they lose. You're likely not the only one that's in that situation.
Management may last years but people packing the parks will start dropping once the baby-boomers stop going.

My thought is that they’re going to correct course. But it won’t be by going backwards.

The problem isn’t a “lost feeling.” It’s that the place is too expensive.

 

[Lilofan]

You have many times if you didn't take you kids to Disney they wouldn't be going at all. What happens the day you don't take them anymore? That's a multi generation family they lose. You're likely not the only one that's in that situation.
Management may last years but people packing the parks will start dropping once the baby-boomers stop going.

That’s wishful thinking. Thats not happening.

 

[Sir_Cliff]

As for whether Parks will "recoup" any profit used to invest in Disney DTC, that is not how corporations work. This isn't one division loaning money to another division. This is a corporation allocating all resources of the company as they see fit, including any profit used to fund other divisions and ventures. So there was never an expectation of recouping any profit used to fund any other division. Just like there is no expectation of DTC recouping any money if its profits are used to fund the next capex infusion into Parks.

Yes, I get the impression from the way people talk about this issue that a lot of people imagine Disney executives are just adjusting profit margins at the parks to cover declining profit margins elsewhere when the reality appears far more nuanced than that. They certainly can and have made bad decisions, but they're not so stupid as to think they can just ring the parks dry for as much profit as they need without any concern for keeping that business healthy.

They certainly are looking for more profits from the Experiences division, however that also involves trying to grow the business with new capacity which is a change from the past few decades. It suggests they see the parks not just as an ATM but also as one of the more productive ways to invest their money for the future health of the company as a whole.

Also, I'm sorry, but a lot of the pricing strategies and upcharges also respond to changing demographics which have seen a hollowing out of the middle class who were traditionally their bread and butter. It is also a challenge from their perspective to figure out how to bring in a demographic they want to keep consuming their films, products, etc. but who have less money than previous generations for things like a vacation to Walt Disney World at the same time another segment of the population that seems large enough to fill the parks and resorts has more money than they know what to do with. Hence, more capacity, dynamic pricing, etc.

 

[Sirwalterraleigh]

Yes, I get the impression from the way people talk about this issue that a lot of people imagine Disney executives are just adjusting profit margins at the parks to cover declining profit margins elsewhere when the reality appears far more nuanced than that. They certainly can and have made bad decisions, but they're not so stupid as to think they can just ring the parks dry for as much profit as they need without any concern for keeping that business healthy.

Sure about that?

They certainly are looking for more profits from the Experiences division, however that also involves trying to grow the business with new capacity which is a change from the past few decades. It suggests they see the parks not just as an ATM but also as one of the more productive ways to invest their money for the future health of the company as a whole.

Iger intentionally did not expand capacity…he actually allowed it to fail as a price control tactic

Also, I'm sorry, but a lot of the pricing strategies and upcharges also respond to changing demographics which have seen a hollowing out of the middle class who were traditionally their bread and butter. It is also a challenge from their perspective to figure out how to bring in a demographic they want to keep consuming their films, products, etc. but who have less money than previous generations for things like a vacation to Walt Disney World at the same time another segment of the population that seems large enough to fill the parks and resorts has more money than they know what to do with. Hence, more capacity, dynamic pricing, etc.

This is true…the problem is the parks cannot support themselves as “boutique”…and they will never be “luxury”