Kamikaze
Well-Known Member
Oh I wasn't giving Chapek an excuse, I was saying it makes sense that the search the Board did came up empty.
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News Disney Exec Resignation
- Thread starter Gary7777777
- Start date
GimpYancIent
Well-Known Member
Does not speak well for the Board and it's processes.
Tom P.
Well-Known Member
My guess is that it wasn't really a search. Just a perfunctory thing to show that they did there "due diligence." But, for better or worse, I think Chapek was Iger's handpicked successor.
GimpYancIent
Well-Known Member
The board needs to be responsible stewards of the company and its assets on behalf of the investors. Thus far this does not reflect well on the board not just on B.I. or B.C.
Vegas Disney Fan
Well-Known Member
I wouldn’t last beyond the first year, I couldn’t bring myself to focus primarily on the stock holders with so many areas requiring improvement for the long term success of the company.
I’d see a billion dollars a quarter as enough profit and sink the rest back into the company.
That’s not how corporate America works though, if the projection is a $10 billion annual profit and I “only” hit $4 billion I’d be gone so fast heads would spin.
Chapeks focus is clearly profit, which he’s doing a good job on, the stock price will probably be his undoing though, he hasn’t found the balance between keeping the investors happy and also keeping their outlook for the future positive though.
ShookieJones
We need time for things to happen.
Did homie have something to do with the early Magic Band release too!?? 
Chapek is a product guy. Really you can't pin the Riviera resort completely on him, but there is some strong influence there. The difference is that in the past, Disney (I think this permeates the whole company now) was about the experience. The resorts were an experience, and they marketed that. But that has changed. Disney now markets products - merchandise. And people staying in a hotel are not out at the parks buying merchandise. Not only has Disney changed it's focus from marketing the resorts as experiences to marketing them as conveniences, but the don't want people spending time at the resort - they want them in the parks where they are making money off of them.
TrainsOfDisney
Well-Known Member
What I don’t understand is why they are cutting the budget at the most profitable parts of the company (parks and resorts) while sinking money into a new, unproven market that hasn’t turned any profit at all (streaming).
How does that make sense?
Tom P.
Well-Known Member
They believe that there is little they can do to the parks and resorts that would actually result in people not coming. And so far, they have been proven correct.
JoeCamel
Well-Known Member
Parks have long been the engine that fueled other parts of the company.
Before I get my nit picked there are different budgets for each division but if one has good returns that makes the whole company able to explore other areas. They think they are prepping for the future but the streaming business will be in turmoil for years with all the players trying to be in the space.
A lot of money to be made from it but a huge gamble you will be the next Netflix. Different time now than when Netflix was founded, it will be interesting to see who are the survivors.
Vegas Disney Fan
Well-Known Member
Sadly I think it’s this simple, as long as the parks are packed there’s not much reason (in their eyes) to spend more than they have to.
TrainsOfDisney
Well-Known Member
Yes and no. I think the pendulum is swinging far enough that in the next couple of years we might see a drop in attendance.
When parks weren't running due to the lockdowns and had a low attendance cap due to distancing rules, they were running in the red. But, basically, the whole Disney Corporation was nearly breaking even. How? Linear channels (ABC, ESPN, Disney Channel, etc...) supported by advertising. That was still making a huge profit.
But... the future of home entertainment is not with cable channels, but with streaming. For a company that has a significant portion of its income in home entertainment, it better be one of the handful of companies that survive The Streaming Wars.
The long term future of the company depends on it. That's why it was identified as the corporation's number one priority. The BoD and Wall Street are totally on board and are willing for that segment to be a loss leader until all the infrastructure is in place and they dominate the competition.
Netflix threw huge losses until it became profitable. Same with Amazon. It's part of Big Tech's playbook: Run huge deficits in order to be number one, then you can start charging a price that brings in profits.
Home entertainment saved the parks during the pandemic. The future of home entertainment is streaming.
Some graphs just grow without any oscillation.
Do you have any data to suggest a pendulum effect? Because we've just witnessed big price increases with diminished offerings, and yet, the parks keep hitting the new cost-efficient capacities.
TrainsOfDisney
Well-Known Member
Nope. Hence the words “I think” - just my personal thoughts. Specific to WDW as well. California hasn’t made the same type of cuts and is continuing to make ADDITIONS to the park (Mickey’s runaway being latest example) rather than replacements.
I’m not sure what the future of home entertainment will be.
Sirwalterraleigh
Premium Member
It’s really kinda silly looking…take a closer look. Concrete shell with a “nondescript” theme that makes it look like they didn’t want to bother.
So the reason people hobble is mostly due to degenerative knee conditions from birth? It’s “nature”? You must be going to a different place/Buffet
But those were not built as “efficiency towers”…as the current DVC slate has been. The Coronado one is the outlier - but that has more of a defined purpose than any other single block on property with the evolution of the convention business.
Wilderness and animal kingdom lodge where Never that. They were built with much more detail on the inside and out. Better architects…better WDI.
Sirwalterraleigh
Premium Member
There’s no “data” to show what ultimately has always regulated park attendance: economic recession. That has been the entire history of the park.
I say this all the time - nobody believes me - but as a fan you should want one. They serve a very important purpose as a stabilizer.
Sirwalterraleigh
Premium Member
I agree with all this…
The problem is the “turn” has yet to happen on one example. Doesn’t mean it won’t - it just hasn’t happened as of yet.
Netflix can’t keep its trajectory steady…and Amazon’s money comes overwhelmingly from crap and AWS.
Sirwalterraleigh
Premium Member