This is interesting... Right now Disney is relying on successfully relaunching the NBA and WDW to save the company. If Disney can get the NBA functional, ESPN could roar back to life. WDW’s reopening is the path to strong cashflow. But both seem tenuous at best...
Some stories coming out of the “bubble:”
Kings center Richaun Holmes is in quarantine once again after leaving the NBA's bubble to pick up a food delivery.
www.google.com
That’s synergy! If Disney and the NBA aren’t careful, the hopes for a NBA season could be nerfed. ESPN is betting its future on a quarantine that may or may not work. Now Walt Disney World also seems vulnerable to partial or even complete shutdown. The company’s most important paths to recovery are fragile. I can see why there is panic.
The “Red Button” would be humiliating for Iger. The man spent nearly two decades trying to bring a big Disney presence to China. He spent years kowtowing to Chinese authorities and making the case for a Disneyland. Finally, he was able to open one of his biggest legacy items. Shanghai Disney Resort was more than a theme park. It was a massive flag planted firmly on Chinese soil. Iger was able to bring one of the most “American” experiences to China. He was the “Authentically Disney and Distinctly Chinese” guy. Thanks to his ability to work with international partners, Iger was able to build a monument to his vision.
The “Red Button” plan throws that whole narrative into the toilet. Did Iger get Disney into a geopolitical nightmare? Why is Disney divesting itself from a market that it supposedly knows how to navigate? Why is Chinese Disney in trouble if Iger is such a good deal maker?
It’s just a bad look. Though that doesn’t mean it’s a bad deal. There is an increasing possibility that a vaccine never makes its way to the market. This virus is gnarly. Disney Parks will need to remain closed or near closed until the virus has either been eliminated or the public becomes accustomed to the risks of living with it. These closures/restrictions could remain for the next several years. Disney is best not fighting against them.
With the Shanghai/HKDL money Disney could go into hibernation mode and lay-off most of its workforce. Then it could just wait this thing out for a few years. The “Red Button” kills two birds with one stone. It raises capital while getting Disney out of a tricky situation. It’s hard to be the CEO of a company and admit that your nearly 20 billion a year business simply cannot be reopened. That unenviable task may soon fall to Chapek. Disney Parks should stay shutdown for years to come. This is the best thing for the company both in terms of PR and profitability. These partial reopenings are simply untenable. They are expensive in both destroying goodwill and burning cash. Obviously a vaccine would be game changing, but that could also be months, years, or never.
So Iger may have to stomach his pride.
Concern about access to direct messages stems in part from broader worries that they could be leaked as part of a campaign to influence the U.S. election in November.
www.nbcnews.com
Politicians do not understand tech, Disney execs using Twitter for DM’s is peanuts when comparing this to politicians, no surprise on why they would use it and spread internal information, but I highly doubt they would target disney just for dirt...
Honestly, I’m less worried about potential leaks. This feels like Disney’s IT and Legal departments being extra-cautious and warning employees to secure their messages. Just being careful.
There seems to be some people that think that dropping Epcot would be enough to fill the little bit of leftover supply that MK and AK have (they both alternate with getting filled up). However, they put so much effort into adjusting for and dealing with the quirks of getting Epcot ready for operations, that I have a hard time seeing them throw it all away.
This seems like the definition of sunk cost. It feels like Disney is on the wrong side of history with this one.
