The way folks talk, it's like Iger took over in 1995, not 2005 - the last half of Eisner's career seems erased when it comes to criticizing Iger and romancing Eisner's reign.
As a WDW fansite, we tend to judge Iger based on what's happening at WDW, particularly within the theme parks.
Yes, Eisner initiated the higher prices and quality cuts that many WDW fans loathe. However, until the post 9/11 economy, Eisner also continued to invest heavily in Disney's domestic Parks & Resorts (P&R).
From 1996 to 2000, Eisner's domestic P&R capex budgets averaged
26.7% of domestic P&R revenue, slightly higher than Universal's current level of spending. Contrast that to Iger's domestic P&R budgets, which have averaged
13.4% over his first 9 years. Take away 2 very large cruise ships and Iger's domestic P&R capex budgets are at
11.3% of domestic P&R revenue.
Post 9/11, WDW was temporarily shuttering entire hotels. Still, from 2001 to 2005, Eisner averaged
11.4%. Those who monitored these activities at the time understood why theme parks investments were down. WDW was facing the most difficult financial time of its existence.
Iger has no such excuse.
So, ...
Yes, Eisner initiated higher prices but these increases have continued under Iger.
Yes, Eisner initiated quality cuts but, at least at WDW, these have continued under Iger.
Meanwhile, even at the start of Eisner's so-called 'bad decade', Eisner invested in the domestic theme parks at more than double the rate of Iger. Conversely, Iger has kept domestic P&R investments at post 9/11 levels despite record profits from his operations.
I think most could stomach higher prices if we felt the money was being reinvested in the parks, as is happening right now at Universal.
Instead, Iger has 'invested' pretty much all company profits over the last 9 years in stock buybacks. During Iger's first 9 years as CEO, Disney's net income has been
$43.9 billion while stock buybacks have been
$39.7 billion.
Investing 5-10% of that stock buyback money could have a transformational effect at WDW.
In recent years, Universal has been increasing prices just as much as WDW yet comparatively few complain because so much is being done at Universal. I was just at Universal last week; the parks were buzzing with change, quality was up compared to years past, and Team Members were genuinely friendly.
Universal is headed in the right direction.
I wish I could write the same for WDW.