News Bob Iger talks about attendance declines, ticket pricing, the feud with Ron DeSantis, and his huge optimism for Disney Parks and Resorts

[Disstevefan1]

Watching the CNBC interview Iger in so few words has not ruled out selling the company, parts of the company and or outside part owners investing in TWDC. The words " cost structure reflective of business " is a loaded statement. Disney will continue to be lean and mean when anything that involves spending money and the unfortunate part is offerings to the guest experience will eventually be eliminated , streamlined , etc to include continual relook at staffing needs. Iger legacy is maybe he's a deal maker .

 

[Willmark]

As I recall the last strike led to the rise of “reality” TV. I wonder what will be next.

 

[Smugpugmug]

As I recall the last strike led to the rise of “reality” TV. I wonder what will be next.

5 more seasons of 90 Day Fiance?

 

[Willmark]

A note for those who think “Disney is too big to fail.” While I don’t think they will “fail” per se, I do think they are going to look very different.

And if they do fail?What happens? It’s not unprecedented: Kodak.

For 100 years they were IT when it came to photography. By the late 80s early 90s they were saying “we have 50 years of paper” meaning traditional photography, paper and film.

They barely had 10.

And this is despite having invented the first or one of the first digital cameras in 1976. I know this because my father worked at Kodak and actually saw it then. They saw it as a threat to their business model and ignored the writing on the wall.

And now they are a shell of themselves.

How this relates to Disney? A cautionary tale that sometimes “too big to fail, does indeed…fail.”

 

[Splash4eva]

That's a great big - "Yup!"

I don't think people realize the transformation that is going on around us, in so many industries. As always (I need a hat that says this...), the pandemic accelerated trends that were already happening.

People are going to be writing books for many years to come about the "Great Transformation" going on right now.

Yes, a lot of people are going to lose their jobs, especially in the middle, middle-upper tiers. Companies have already spent the last decade or so bringing the front of the line, on the ground jobs to their breaking points by staffing as a little as possible. They can't squeeze any more out of that end, so they are moving up the toothpaste tube.

A lot could be said about why the current state of Hollywood is what it is - why budgets are so high, and how it's gotten so out of control - and it's not just because of executive pay.

One interesting thing to think about - you notice how it's always the creatives who have union problems in Hollywood? Everyone on a Hollywood set is unionized, with dozens of trade unions, yet...they never come up because they are very happy. They have such sweetheart deals in place that have movie sets way over-staffed. If you start to look up the rules as to how many people they require you to hire (you can't just have one camera assistant, you have to have 3, etc.) it's really eye-opening.

I have friends who work on movie sets every day and their biggest complaint is boredom, because most of the time you work a few minutes every few hours. They are long days, but most of it is doing absolutely nothing, when if one person was allowed to do the tasks required they could replace 4 or 5 of the jobs that the union mandates they have. And they literally are not allowed to do anything else - they can't touch anything, they can't even hold a dang door open for someone. In a few select circumstances (prop weapons, or electrical work, etc.) that makes sense, but it's just everywhere. The goals of all the trade unions have always been to make sure the movie sets are employing as many people as possible.

Thing is, Hollywood can afford creatives to go on strike, but not them - so those bloated costs are not going anywhere. With the creatives - let's face it, they can all be replaced by YouTubers. We are far from the days where you had to schlep out to LA or NY to be discovered. There are so many content creators out there across the spectrum - actors, directors, writers, etc. There are very few names these days that sell tickets or streaming subscriptions on just that name alone. And there are a nearly infinite amount of aspiring talents out there in all the creative fields that are just a click away - it's just finding the ones that don't suck.

That's why the studio's are totally willing to play hardball with them. That said, obviously, while they are replaceable, they are not completely irrelevant - and as it goes on public opinion is going to be interesting. On one hand, at the moment it's very much "support the unions!", but on the other - once the content drought really hits (and Iger is right on that one, they were just beginning to recover from the pandemic, and this is really catastrophic) and people are sick of hearing about it, it's going to be hard to find sustained support from the general audience.

I mean, the average writer in Hollywood makes $250K a year. Sure, some make less, but some make more - and while writers will tell you about all the costs of living in LA (at least to their preferred lifestyle...) - it's really difficult for the average person who makes $50K a year to have an endless amount of sympathy, regardless of how much they want to stick it to the corporations. Especially when they aren't getting any new movies or TV shows for a year or more because of it.but to say 250k living in LA compared to the avg salary of 50k in US is not even something you can compare... living in NY i can assure you this and its been brought up countless times cost of living is all that matters as opposed to what someone makes a year because im positive 250k a year in LA is not going as far as 250k in say Tennessee

 

[FigmentFan82]

Personally could care less about Hollywood and these entitled actors if they never work again...

have personal family who act for a living, they're not hollywood elite. this affects thousands who are not making millions per job.

 

[the_rich]

Personally could care less about Hollywood and these entitled actors if they never work again... but to say 250k living in LA compared to the avg salary of 50k in US is not even something you can compare... living in NY i can assure you this and its been brought up countless times cost of living is all that matters as opposed to what someone makes a year because im positive 250k a year in LA is not going as far as 250k in say Tennessee

The Hollywood elite aren't being effected by this. They don't have to worry about what the pay scale is. It's the small time actors who need to work.

 

[Sirwalterraleigh]

TWDC board fired Chapek when the stock was trading at $91.80.

Doesn’t seem like the markets were impressed with the extension or the Aspen confab?

View attachment 730056

Yeah…I was wondering when this was gonna come up?

$79.99 is the magic number for “change in plans”

 

[AEfx]

I agree with almost all of this except the trust part.

Yes the scale is as you describe but Disney’s tumble down the rankings is shocking.

Somewhat related- I’ve said for a while now Disney is going to have to choose which customers they want because the answer used to be “all of them” and by and large they succeeded.

Not anymore.

As you note there are some aspects that we can’t discuss here but… it’s decision time Disney it’s either bucket A or folks in bucket B. There is no C.

Funny enough - I actually agree with you about the "trust" thing, and only mentioned it because usually when this topic comes up, someone will chime in with a link to some survey that shows how "trusted" Disney is among companies we we must not know what we are talking about, and I just wanted to head that silliness off at the pass, LOL.

In general, though - I'm starting to fear that you are right about A, B, and C. Up until relatively recently, I did believe there was a C - and I saw evidence of that in a number of instances where companies were just ignoring the social media pundits (which is all A and B really are) and doing just fine (and even record profits on some projects).

It felt like a realization was dawning where everyone was waking up to the fact that social media isn't life, and at the least isn't actually reflective of consumer behavior. That praise or outrage from A or B weren't actually affecting profit margins, or the actual success of projects. Things that were endlessly praised on social media ended up financial duds, and things that had massive, unprecedented boycott campaigns ended up being massive best sellers.

But...the last few months, man - I don't know any more. Everything is just so messy. Entertainment products are really the least of it. Culturally, politically, structurally...things are coming down. And so fast, that a lot of people aren't really noticing. It's two-fold - no one can keep up with it all to begin with, and many just don't want to see the change that is coming, or have faith that it will all just "work out".

All of this chaos at Disney is but a small microcosm of what is going on across the country - and the world. It's enough to make you just want to hunker down and clutch your favorite old Disney movies, while you watch it burn.

 

[Sirwalterraleigh]

That's a great big - "Yup!"

I don't think people realize the transformation that is going on around us, in so many industries. As always (I need a hat that says this...), the pandemic accelerated trends that were already happening.

People are going to be writing books for many years to come about the "Great Transformation" going on right now.

Yes, a lot of people are going to lose their jobs, especially in the middle, middle-upper tiers. Companies have already spent the last decade or so bringing the front of the line, on the ground jobs to their breaking points by staffing as a little as possible. They can't squeeze any more out of that end, so they are moving up the toothpaste tube.

A lot could be said about why the current state of Hollywood is what it is - why budgets are so high, and how it's gotten so out of control - and it's not just because of executive pay.

One interesting thing to think about - you notice how it's always the creatives who have union problems in Hollywood? Everyone on a Hollywood set is unionized, with dozens of trade unions, yet...they never come up because they are very happy. They have such sweetheart deals in place that have movie sets way over-staffed. If you start to look up the rules as to how many people they require you to hire (you can't just have one camera assistant, you have to have 3, etc.) it's really eye-opening.

I have friends who work on movie sets every day and their biggest complaint is boredom, because most of the time you work a few minutes every few hours. They are long days, but most of it is doing absolutely nothing, when if one person was allowed to do the tasks required they could replace 4 or 5 of the jobs that the union mandates they have. And they literally are not allowed to do anything else - they can't touch anything, they can't even hold a dang door open for someone. In a few select circumstances (prop weapons, or electrical work, etc.) that makes sense, but it's just everywhere. The goals of all the trade unions have always been to make sure the movie sets are employing as many people as possible.

Thing is, Hollywood can afford creatives to go on strike, but not them - so those bloated costs are not going anywhere. With the creatives - let's face it, they can all be replaced by YouTubers. We are far from the days where you had to schlep out to LA or NY to be discovered. There are so many content creators out there across the spectrum - actors, directors, writers, etc. There are very few names these days that sell tickets or streaming subscriptions on just that name alone. And there are a nearly infinite amount of aspiring talents out there in all the creative fields that are just a click away - it's just finding the ones that don't suck.

That's why the studio's are totally willing to play hardball with them. That said, obviously, while they are replaceable, they are not completely irrelevant - and as it goes on public opinion is going to be interesting. On one hand, at the moment it's very much "support the unions!", but on the other - once the content drought really hits (and Iger is right on that one, they were just beginning to recover from the pandemic, and this is really catastrophic) and people are sick of hearing about it, it's going to be hard to find sustained support from the general audience.

I mean, the average writer in Hollywood makes $250K a year. Sure, some make less, but some make more - and while writers will tell you about all the costs of living in LA (at least to their preferred lifestyle...) - it's really difficult for the average person who makes $50K a year to have an endless amount of sympathy, regardless of how much they want to stick it to the corporations. Especially when they aren't getting any new movies or TV shows for a year or more because of it.

There is really no way out of these strikes

It’s being downplayed a bit

This isn’t pilots or railroad workers.

The studios can’t make money on their streams - HINT - and they can’t change anything but undercutting labor and guarding the books

Technology has become so easy it’s taking over

Very matrix/terminator

 

[Splash4eva]

Apologies for the comment about Hollywood it was more meant for the actors etc… post was edited

 

[Ayla]

Apologies for the comment about Hollywood it was more meant for the actors etc… post was edited

The percentage of actors that make millions is tiny. The VAST majority of union members do not.

 

[AEfx]

Personally could care less about Hollywood and these entitled actors if they never work again... but to say 250k living in LA compared to the avg salary of 50k in US is not even something you can compare... living in NY i can assure you this and its been brought up countless times cost of living is all that matters as opposed to what someone makes a year because im positive 250k a year in LA is not going as far as 250k in say Tennessee

Yes, that's what I said - and it is true - but in terms of public perception, again, it doesn't hold sympathy long when that person in Tennessee is actually working their butts off 50 hours a week doing manual labor or service jobs to make $30K/year so they can afford to live with 3 roommates in a trailer.

In short, the perception is that even the lowest paid person who works in Hollywood lives a more comfortable, if not "cushy", life than the average American.

Even in LA, $250K a year can get you a very decent apartment, a nice set of wheels, and you aren't worrying about having to subsist on ramen noodles. You aren't stocking away big money that's going to make you a millionaire, but your quality of life is pretty high compared to the national average.

In any case, again - we can quibble about the faults in that logic, but nonetheless, for strikes to work they have to have public support, and it's difficult to see public support continuing to swell. Especially given the hard times so many people are experiencing right now, and they can't even sit back and watch a new movie or TV show for the next year and a half.

 

[KrzyKtty]

Yes, that's what I said - and it is true - but in terms of public perception, again, it doesn't hold sympathy long when that person in Tennessee is actually working their butts off 50 hours a week doing manual labor or service jobs to make $30K/year so they can afford to live with 3 roommates in a trailer.

In short, the perception is that even the lowest paid person who works in Hollywood lives a more comfortable, if not "cushy", life than the average American.

Even in LA, $250K a year can get you a very decent apartment, a nice set of wheels, and you aren't worrying about having to subsist on ramen noodles. You aren't stocking away big money that's going to make you a millionaire, but your quality of life is pretty high compared to the national average.

In any case, again - we can quibble about the faults in that logic, but nonetheless, for strikes to work they have to have public support, and it's difficult to see public support continuing to swell. Especially given the hard times so many people are experiencing right now, and they can't even sit back and watch a new movie or TV show for the next year and a half.

I think that he might be the AI parts of the strike. These are the first industries majorly affected by AI taking over jobs. Average people I talk to who could really care less about disney and the strikes, get the fear of computers taking their jobs.

 

[AEfx]

The percentage of actors that make millions is tiny. The VAST majority of union members do not.

That may be true, but there is no guarantee to make a living acting. If a large percentage of them can only manage to nab a non-speaking background role every couple of years to keep up their membership, maybe they aren't in the right business.

That may sound harsh, but it's the reality - acting isn't any more special than any other art - very, very few people can actually make a living wage off of it, let alone something more.

That doesn't mean the actors union doesn't have some valid complaints, but "not enough of our members make enough to support themselves" isn't one of them.

 

[Splash4eva]

Yes, that's what I said - and it is true - but in terms of public perception, again, it doesn't hold sympathy long when that person in Tennessee is actually working their butts off 50 hours a week doing manual labor or service jobs to make $30K/year so they can afford to live with 3 roommates in a trailer.

In short, the perception is that even the lowest paid person who works in Hollywood lives a more comfortable, if not "cushy", life than the average American.

Even in LA, $250K a year can get you a very decent apartment, a nice set of wheels, and you aren't worrying about having to subsist on ramen noodles. You aren't stocking away big money that's going to make you a millionaire, but your quality of life is pretty high compared to the national average.

In any case, again - we can quibble about the faults in that logic, but nonetheless, for strikes to work they have to have public support, and it's difficult to see public support continuing to swell. Especially given the hard times so many people are experiencing right now, and they can't even sit back and watch a new movie or TV show for the next year and a half.

So Iger wins this again with his statement?

 

[TP2000]

I think that should be a requirement of management. Go to the parks for a week. Stay at one of their non-deluxe resorts. Make park reservations, dining reservations, and use G+ all day starting at 7am.

Anyone working for Disney's Parks division with a title of Senior Vice President or above should have to do this, but that would kill them all and then there'd be a power vacuum without anyone in charge.

I would start them off slowly, with just one Saturday at Disneyland where they drive to Anaheim from their SoCal home. But they don't get to valet park at the Grand Californian, they have to park in the 18,000 space Mickey & Friends parking garage and take the tram in and then start from there. Also, put their admin assistant under strict orders from HR to not help them in advance, and don't tell them about the App beforehand, let them hear about the App and Genie+ when they are on the tram. Not a single VIP guide or plaid CM is is allowed to even acknowledge them, much less help them in any way. They are allowed to ask directions from custodians, though.

Things would start changing by the following Monday afternoon.

Then, work up from there every month; a mandatory 2 night stay at the Howard Johnson's on Harbor Blvd. Then a mandatory 3 night stay at the Pixar Place Hotel in a non Club level room. Then send them to WDW for a week in a Value Resort. Etc.

Six months later the entire Parks experience would suddenly be improved from the parking toll booths at 7am to the last monorail at Midnight.

I’ve always said the ones making the decisions to do things this way never have to do them so they have no idea what the common park guest experiences.

They've been clueless idiots about their customers for a while now.

But lately it's becoming more obvious that they're getting snotty about it. Not good.

 

[hopemax]

Yes, that's what I said - and it is true - but in terms of public perception, again, it doesn't hold sympathy long when that person in Tennessee is actually working their butts off 50 hours a week doing manual labor or service jobs to make $30K/year so they can afford to live with 3 roommates in a trailer.

In short, the perception is that even the lowest paid person who works in Hollywood lives a more comfortable, if not "cushy", life than the average American.

Even in LA, $250K a year can get you a very decent apartment, a nice set of wheels, and you aren't worrying about having to subsist on ramen noodles. You aren't stocking away big money that's going to make you a millionaire, but your quality of life is pretty high compared to the national average.

In any case, again - we can quibble about the faults in that logic, but nonetheless, for strikes to work they have to have public support, and it's difficult to see public support continuing to swell. Especially given the hard times so many people are experiencing right now, and they can't even sit back and watch a new movie or TV show for the next year and a half.

Not everyone is making $250K though. Script writers on tv shows, the average is $132K. On streaming shows the average is $91K. What does that get you in LA? A lot closer to regular, white collar folks. My household is doing better than that, and we don't live in LA. The people making the bigger bucks are writer-producers. However, looking at just them their salaries are down 4% over the last decade and down 23% inflation-adjusted. And that's before these people pay their lawyer & agent, necessary people in the process.

So I wouldn't assume that regular folks are looking at these people thinking they are living the high life. Even if they were, 23% drops in a decade should scare any laborer, that if they do it to that group, they will do it to me.

 

[tl77]

Watching the CNBC interview Iger in so few words has not ruled out selling the company, parts of the company and or outside part owners investing in TWDC. The words " cost structure reflective of business " is a loaded statement. Disney will continue to be lean and mean when anything that involves spending money and the unfortunate part is offerings to the guest experience will eventually be eliminated , streamlined , etc to include continual relook at staffing needs. Iger legacy is maybe he's a deal maker .

There was talk of them selling of ABC television because they didn't think it would be a profitable as people move to steaming platforms

 

[TrainsOfDisney]

but it's smart business given the circumstances.

That’s debatable. What division is currently doing well because of Igers leadership?

That may be true, but there is no guarantee to make a living acting.

There is also no guarantee that talented workers will work for whatever the company says they deserve. This is the entire union which is way more than actors.