News TWDC Organizational Shakeup - Parks combined with Consumer Products

[lazyboy97o]

Prior to this announcement I heard there was going to be some changes in consumer products. Expect to see something significant by the end of the year. Not sure if this change is linked to this announcement but it seems they are trying to raise consumer products. Not “downgrade” Parks.

Then why not raise Consumer Products by lumping it in with all of those blockbuster movies whose merchandise they sell?

 

[Andrew C]

Then why not raise Consumer Products by lumping it in with all of those blockbuster movies whose merchandise they sell?

It should make more sense by the end of the year. From what I know, the alignment makes sense and I think it will be good.

 

[shortstop]

Then why not raise Consumer Products by lumping it in with all of those blockbuster movies whose merchandise they sell?

My guess is because consumer products has more in common with Parks than with movies from a corporate structuring perspective.

 

[EricsBiscuit]

Well even in the Eisner Era, parks management was looked down upon by Eisner.

 

[lazyboy97o]

My guess is because consumer products has more in common with Parks than with movies from a corporate structuring perspective.

Only because the parks are not viewed by leadership as a valid storytelling medium.

 

[castlecake2.0]

It makes sense because the local Disney store employees are cast members just like in the Parks. The stores also sell many of the same products.

To add to that, the stores and parks have the most face to face time with actual guests, so it makes sense that you have it part of the same segment so they cross utilize those businesses. The stores do however generally carry a much different selection than the parks, with some overlapping SKUs. Not sure how this will change going forward. Hopefully will result in a balance between 90s and current Disney Store strategies.

 

[Sirwalterraleigh]

I think you’re making too much of this.

Which part? Putting more units under fewer/bad leaders?

Or the appalling concept that bob iger is gonna pick his successor?

I find the second far, far worse

 

[lazyboy97o]

To add to that, the stores and parks have the most face to face time with actual guests, so it makes sense that you have it part of the same segment so they cross utilize those businesses. The stores do however generally carry a much different selection than the parks, with some overlapping SKUs. Not sure how this will change going forward. Hopefully will result in a balance between 90s and current Disney Store strategies.

Then move Disney Store to Parks & Resorts.

 

[shortstop]

Only because the parks are not viewed by leadership as a valid storytelling medium.

Maybe so, but I think we already knew this. We knew Chapek has a consumer products background already. So my question is will this reshuffle change things?

 

[MisterPenguin]

So now what becomes the priority of the division slumping toy sales or deteriorating quality of parks?

The parks are a unique entity, lumping them in with merchandise basically shows they are nothing more to Disney than a mechanism to capitalize on IP and not a place for a quality vacation experiences and entertainment. But of course we’ve known that for sometime thanks to Chapie’s track record. This just makes it official.

I need to put you in the same room of the folks who are saying ESPN will bring the whole company down and let you all fight it out over whether one division affects another.

 

[castlecake2.0]

Then move Disney Store to Parks & Resorts.

That’s what they did, consumer products( which includes Disney Store)now reports to the parks and resorts chairman.

 

[smile]

But of course we’ve known that for sometime thanks to Chapie’s track record.

Maybe so, but I think we already knew this. We knew Chapek has a consumer products background already.

pardon me, lest we forget such ideology far predates the ol' chap and mr. i...
goes all the way back to me at least as far back as pp twenty-four years ago

 

[monothingie]

I need to put you in the same room of the folks who are saying ESPN will bring the whole company down and let you all fight it out over whether one division affects another.

There would be a lot of people in that room.

 

[Disneyhead'71]

It makes sense because the local Disney store employees are cast members just like in the Parks. The stores also sell many of the same products.

The last time the retail guys designed a theme park (DCA 1.0), it took over 2 billion dollars to fix it.

No this is not a good thing.

 

[lazyboy97o]

That’s what they did, consumer products( which includes Disney Store)now reports to the parks and resorts chairman.

It is not at all what they did. Consumer Products was much more than the long withering Disney Store.

 

[smile]

The last time the retail guys designed a theme park (DCA 1.0), it took over 2 billion dollars to fix it.

... and counting

can you also recall before then, when they let a guy actually run a park?
t'was learned one can run a park on the absolute dirt cheap, drive down attendance, yet increase profits!

not sure i'd go as far as calling it a template, but the guy was promoted

 

[larryz]

Disney is reorganizing into four divisions: Streaming, TV, Movies, and Everything Else (parks, tours, cruise, events, merch).

People are seeing that merch and parks falling under one division is a sign of the apocalypse because... reasons.

Because it puts the parks at the same level as The Disney Store: just another place to dump cheap shirts and toys made in China.

Looks like they've cut off the liquid nitrogen.

 

[castlecake2.0]

It is not at all what they did. Consumer Products was much more than the long withering Disney Store.

I didn’t say it wasn’t, consumer products includes a lot of things, but I work for Disney Store and have the memo in front of me explaining I’m part of a newly aligned segment that includes the parks.

 

[Rodan75]

The wall street folks seem to think this is an upgrade not a downgrade. Apparently Parks, Experiences and Consumer Products is the largest division by revenue and profit.

Some folks here seem to think this is a downgrade because of a couple hundred Disney Stores? That is very short sighted.

If Chapek squanders this opportunity and let’s the parks rot like Rassulo did, he gets booted from the race for the big chair.

Love him or hate him, Chapek is the first Parks leader in a long time to define a new path for P&R and actually get things moving (albeit a IP centric path).

 

[the.dreamfinder]

The last time the retail guys designed a theme park (DCA 1.0), it took over 2 billion dollars to fix it.

No this is not a good thing.

People died under Pressler’s leadership.