Chapek out - Iger back

[Jrb1979]

A small change that will not cost them will be the park hopping time rule. Immediately make some happiness without expense.

That would defeat the whole purpose of the reservation system. The point of the reservation system is to push guests to the parks that aren't MK.

 

[Jrb1979]

Idk, there's a chance. The reservation system was a pandemic response and Chapek/D'Amaro loved it so much they kept it. I get it makes it easier for Disney to manage staffing and other resources, but Disney has enough experience to effectively manage this without blunt force tools like the park reservation system. They did it for decades. True, there would always be a hiccup here and there, but for the most part Disney was able to handle this just fine. Its possible that Iger leaves something like this to D'Amaro to decide, and certainly he has experience with handling this through proper forecasting.

What we don't know is whether D'Amaro really wants to keep the system, or if he sees the substantial guest experience drawbacks as too big a cost to pay for the nickels and dimes (relatively speaking) it saves. Under Chapek, we know nickels and dimes ruled. Iger wasn't exactly loose with the purse strings, but he did at least have a basic understanding of how the guest experience would impact Disney's long term business model. At the very least, his method was to slowly chip away, and evaluate the impacts after each chip. Whereas Chapek was much more "damn the torpedos".

We'll have to see.

I doubt the reservation system is going away cause According to Len Testa of Touring Plans " Disney manipulates the number of reservations to ensure the right number of guests in each park. So even if the MK is below capacity, if the AK demand is too low relative to the labor they're paying for, they'll shut off MK reservations to encourage guests to go to AK (and the other parks)"

 

[wabbott]

https://www.ft.com/content/a9277a18-18f6-42ea-a1fb-7e762120846a
Financial Times - London

Disney executives staged revolt against ousted chief Bob Chapek
Rebellion by senior staff hastened reinstatement of predecessor Bob lger
Anna Nicolaou and James Fontanella-Khan in New York and Alex Barker in London

Senior Walt Disney executives led a rebellion against chief executive Bob Chapek in recent weeks, which resulted in his ousting and replacement with predecessor Bob Iger, according to people familiar with the matter.

The covert campaign to overthrow Chap ek, which began in the summer, came after the outgoing chief executive lost the confidence of some members of his top team during a tumultuous 33 months at the helm of the media empire.

“A lot of people were approaching the board, Iger loyalists who felt marginalized,” said one person with knowledge of the talks.

Shares in Walt Disney rallied by as much as 10 per cent on Monday as investors wagered that Iger, one of America’s most celebrated media executives, could lift morale and boost returns at the company’s costly streaming unit. The company’s stock price remained up more than 5 per cent in early afternoon trading in New York.

Susan Arnold, chair of Disney’s board, contacted Iger a few months ago seeking advice on how to fix the problems at the company, said two of the people. “[The board] were clueless about what to do,” one person added.

Shortly after those talks, Disney executives began approaching the board to express concerns about Chapek’s leadership. Christine McCarthy, chief financial officer, was among the executives who complained, three of the people said. Disney declined to comment.

The final straw was Disney’s bruising earnings release on November 8, during which Chapek reported that the company’s streaming business had lost $1.5bn during the most recent quarter. Three days later, Chapek announced job cuts, telling staff in an email: “We are going to have to make tough and uncomfortable decisions.”

Iger, who ran Disney for 15 years before leaving in 2021, stunned Hollywood on Sunday night by agreeing to replace Chapek. Iger had handpicked Chapek as his successor after he won plaudits for his management of Disney’s theme parks division.

The changes at the top come after the company’s stock had fallen by nearly 40 per cent this year as Disney and others spent heavily to compete in streaming, a business that has been costly and less profitable than cable television or cinema.

Relations between the “two Bobs” quickly soured as Iger bristled over Chapek’s handling of Disney’s creative output and his management shake-up, which introduced more centralised decision making and empowered Chapek’s allies.

The decision to reinstate Iger, brokered by Arnold, came less than six months after Disney renewed Chapek’s contract for a further three years, quelling speculation of a potential exit. People close to Chapek said he became aware of the moves against him some weeks ago but was caught off guard by the speed of events.

The abrupt dismissal will entitle Chapek to a significant payout. Under his old contract, at the end of 2021 he was entitled to an estimated $54mn in cash and stock in the event of early termination. The company has not published the full details of his most recent contract.

Iger, 71, has agreed to stay on for two years to help steady the ship and choose another successor.

Iger, who delayed his retirement four times before finally leaving the company, said in a memo to staff on Sunday that he felt “a bit of amazement” that he was returning to the company.
As recession fears grow, investors have become increasingly concerned about the high costs of streaming, weighing on the valuations of all major US entertainment companies this year.

MoffettNathanson analysts expect Iger to “re-examine” Disney’s streaming strategy.

Steven Cahall, a Wells Fargo analyst, said: “While the announcement doesn’t solve all of Disney’s problems, we think investors will embrace it as it puts perhaps the best leader in media at the helm with a mandate to shake things up.”

 

[AnnabelleTheTalkingTree]

Idk, there's a chance. The reservation system was a pandemic response and Chapek/D'Amaro loved it so much they kept it. I get it makes it easier for Disney to manage staffing and other resources, but Disney has enough experience to effectively manage this without blunt force tools like the park reservation system. They did it for decades. True, there would always be a hiccup here and there, but for the most part Disney was able to handle this just fine. Its possible that Iger leaves something like this to D'Amaro to decide, and certainly he has experience with handling this through proper forecasting.

What we don't know is whether D'Amaro really wants to keep the system, or if he sees the substantial guest experience drawbacks as too big a cost to pay for the nickels and dimes (relatively speaking) it saves. Under Chapek, we know nickels and dimes ruled. Iger wasn't exactly loose with the purse strings, but he did at least have a basic understanding of how the guest experience would impact Disney's long term business model. At the very least, his method was to slowly chip away, and evaluate the impacts after each chip. Whereas Chapek was much more "damn the torpedos".

We'll have to see.

I'd love to agree with you, but I doubt it's just about whether they CAN manage it the old way. We know they CAN. But now they also know they can cut labor costs by doing it the new way, and I can't say I believe that they'll be willing to give that up. I feel like realistically park reservations will probably not go away, just like Genie+ won't go away, but my hope is that they will tweak/revise these things so at least they make the guest experience better.

 

[raidermatt]

***Disregard. The article above contains the same info and more.***

A little more info on how this went down, and why.

https://www.cnbc.com/2022/11/21/dis...iger-friday-after-concerns-over-earnings.html

 

[Disney_lost_it]

While Chapek needed to go, I don't know that Iger was the right choice. Whatever happened, I'm sure they weren't left with a lot of choices. Iger left Disney with tons of debt (a lot from the 21st Century Fox acquisition) - debt that Chapek was forced to address. Chapek did an awful job handling it imho - trying to prioritize short term profits at the long term expense of the brand. Lets hope whoever they choose to replace Iger in 2 years will pave a much better future for the company. I wonder if Josh D'Amaro is now on the short list to succeed Iger?

Lets start the petition now, bring back Fastpass+, bring back Magical Express, bring back Extra Magic Hours!

Lets start the petition now, bring back Fastpass+, bring back Magical Express, bring back Extra Magic Hours!-----without a doubt. the 3 strikes that have kept us from returning.

They still have the ME for the cruise line, so why not the parks. It was something about getting the plane and stepping on the the ME, seeing the commercials, cartoons and the like that but you mind to rest immediately.

 

[MillauFr]

Lets start the petition now, bring back Fastpass+, bring back Magical Express, bring back Extra Magic Hours!-----without a doubt. the 3 strikes that have kept us from returning.

But isn't that it. We all want a better park experience but have to understand that improving things will just attract more people which is the exact opposite of what Disney needs.

 

[raidermatt]

I'd love to agree with you, but I doubt it's just about whether they CAN manage it the old way. We know they CAN. But now they also know they can cut labor costs by doing it the new way, and I can't say I believe that they'll be willing to give that up. I feel like realistically park reservations will probably not go away, just like Genie+ won't go away, but my hope is that they will tweak/revise these things so at least they make the guest experience better.

Again, there is a cost to the park reservation system. Namely, guests do not like it. That's just not the kind of cost Chapek cared about. Its not exactly Iger's top priority either, but he gave it a lot more weight that Chapek did.

Further, we don't really know how much this saves. As compared to a competent forecasting system, it likely doesn't save all that much, relatively speaking.

I certainly give it a better chance of being scrapped than Genie+.

 

[Snap Crackle Pop]

Bob Iger is marginally better.

 

[Devil13]

That would defeat the whole purpose of the reservation system. The point of the reservation system is to push guests to the parks that aren't MK.

When I think/do hopping it’s to get out of MK most of the time. With this, I’m stuck there until 2.

I paid to hop. The staffing for it is on you.

 

[Leigh L]

But isn't that it. We all want a better park experience but have to understand that improving things will just attract more people which is the exact opposite of what Disney needs.

What would help is improving all things for the guest experience, but also simultaneously building out capacity. Too much unused real estate sitting empty for years (looking at you Stitch's Great Escape to name one). They don't need to go E-ticket level to build out capacity.

 

[Jrb1979]

What would help is improving all things for the guest experience, but also simultaneously building out capacity. Too much unused real estate sitting empty for years (looking at you Stitch's Great Escape to name one). They don't need to go E-ticket level to build out capacity.

As quoted from another poster.
"I know we’re all myopically fixated on the Parks, but those are fiscally in good condition.

Bob I’s coming back to address streaming, streaming, and streaming, and in that order."

 

[Cfabar1]

I doubt the Magical Express returns. Especially given the ease of getting an Uber in 2023.

Chapek was not respected by his team and was an exceptionally poor communicator. Iger has always been an incredibly savvy person. It has and continues to serve him well.

 

[BrianL]

What would help is improving all things for the guest experience, but also simultaneously building out capacity. Too much unused real estate sitting empty for years (looking at you Stitch's Great Escape to name one). They don't need to go E-ticket level to build out capacity.

Yes! There's this idea that everything has to be a mind-blowing E-Ticket experience, but the fact is the lower tier attractions play a critical role in the parks. They are needed.

 

[DonMacGregor]

As quoted from another poster.
"I know we’re all myopically fixated on the Parks, but those are fiscally in good condition.

Bob I’s coming back to address streaming, streaming, and streaming, and in that order."

While I agree that Disney+ will be the first order of business, I'd disagree with the whole idea that Iger will simply see profit from the parks and move on. He's a creative guy and has always pushed for innovation. He's also not going to just look at the ledger and be happy. He has enough foresight to understand that declining cleanliness, increased ride downtimes, cast member displeasure/staffing difficulties and lack of any meaningful future expansion/renovation plans (beyond Tiana's Adventure and Epcot) will eventually stem that theme park profitability.

 

[Dulcee]

As quoted from another poster.
"I know we’re all myopically fixated on the Parks, but those are fiscally in good condition.

Bob I’s coming back to address streaming, streaming, and streaming, and in that order."

Streaming and messaging.

Iger often excelled because he was an awesome communicator. The parks may not be bleeding financially but they are taking a heavier hit of bad press than they have in any recent memory. And what they don't want is parents seeing parks commercials and thinking "wow I saw that news article about how pricey/busy/rowdy its become."

 

[Jrb1979]

While I agree that Disney+ will be the first order of business, I'd disagree with the whole idea that Iger will simply see profit from the parks and move on. He's a creative guy and has always pushed for innovation. He's also not going to just look at the ledger and be happy. He has enough foresight to understand that declining cleanliness, increased ride downtimes, cast member displeasure/staffing difficulties and lack of any meaningful future expansion/renovation plans (beyond Tiana's Adventure and Epcot) will eventually stem that theme park profitability.

I agree with the first part of increased ride downtime, cleanliness and displeasure. Im sure Iger will fix that. I disagree on theme park expansion mainly due to Iger only staying on for 2 years

 

[Jwaire]

It was CFO Christine McCarthy that drove the final nail in Chapek's coffin. I'm shook. Of course, McCarthy best known for her fat shaming comments about portion sizes a few months ago.


https://www.cnbc.com/2022/11/21/dis...iger-friday-after-concerns-over-earnings.html

 

[DonMacGregor]

I agree with the first part of increased ride downtime, cleanliness and displeasure. Im sure Iger will fix that. I disagree on theme park expansion mainly due to Iger only staying on for 2 years

I don’t think Iger will be directly involved in any expansion plans, but his mandate is to groom a new CEO and given his limited time he may be able to plant the right philosophical seeds.

 

[AnnabelleTheTalkingTree]

As quoted from another poster.
"I know we’re all myopically fixated on the Parks, but those are fiscally in good condition.

Bob I’s coming back to address streaming, streaming, and streaming, and in that order."

I agree with you mostly, but I also think he's going to have to do some damage control of public perception of the brand and of the parks.