Great Huffington Post article on what Disney really needs in a new CEO

[DDLand]

I was a DVC member from 1994 to 2011 and I'm not sure calling the clientele all middle class would be correct. Maybe the top 1% weren't in the mix, but DVC always had a broad mix of DINK's, families, empty nesters and retirees and while they were in the big 99% group, I'd suggest the demographics were mostly in the upper 25%. Sure Disney's financing made it cheap and easy to buy in over time, but the core customer was upper middle class.

DVC members have always felt a sense of entitlement. Perks came and went but you only heard cries of outrage when they went. Through the mid-90's, you got free theme park tickets until 2000 as a perk of buying. Good food discounts existed until at least around 2005 when the Dining Plan options started to take hold. I never understood how DVC could afford free valet parking at Boardwalk and when it went away I could understand why. It didn't stop the whining from the DVC community who felt it was their right to have such freebies.

As an aside, Golden Oaks is in a way DVC for the 1%. Just like the early DVC'ers, the early buyers there got a great deal - does that make them middle class in a rich sort of way? Case in point, today's $2.5 million lowest price home at Golden Oak was $640K in late 2010/early 2011. Look at Orange County property records if you don't believe me. The only thing to keep out the rif raf was a $3,500 a month HOA/concierge fee. That fee covered a lot more in 2011 than today, but it still covers limo service to/from the parks, VIP passes, Imagineer themed landscaping, etc. Golden Oak was an even bigger push by Disney to cater to the people with money. Let's hope they don't get bored with it all anytime soon as that is an expensive community to maintain.

You're right that it was never exactly cheap. Disney has never really done cheap. The whole package (point prices, food, merchandise, tickets) has gone up in price though. If you look at recent years of wage growth, you'll see pretty flat. Compare that to Disney prices that have like clockwork continued moving up. Even the upper middle class has to stop and wonder if it's worth it.

The problem with ever removing perks is unless they sell people are stuck with their interest. It feels like you bought a house with a great backyard and then having it be taken away from you. Unlike renting (like cash rooms) you can't just move. You're stuck with a mortgage and a crappy backyard. That ticks people off.

I never knew they were going that cheap... Whoa. Weren't their "starting prices" like 1.8 mil?

 

[ChipnDale79]

You can hate on the guy but in the first 7 years he fixed two broken theme parks, built two cruise ships, started construction on a brand new property, built and finished a new resort property, and invested in cutting edge technology that has boosted guest spending.

Yeah, it sure sucked for us Disney World regulars during the great ride drought, but when I went to Disneyland this summer I sure enjoyed it. Just like the people on the Dream and Fantasy are having a ball, or the guests exploring Mystic Manner, or the 10s of millions who will get their first exposure to Disneyland at Shanghai. We the Walt Disney World Resort people subsidized one of the greatest and most prolific expansion periods in Disney history. Is it fair? No not really, but those parks were in need of help after years of Eisner. Just remember that our small sacrifice of forgoing rides for a few years will ultimately bring joy to 100's of millions for decades. With that perspective, I kind of can't complain too much. Tell me that the early 2000's were better then this. Just try.

The current investment strategy follows the company's increased international focus (because that's where growth is) while also reflecting a weaker economy.

I'd say the first Act of Iger's reign ended in 2011. The second act is coming together and I have a feeling that WDW fans should be excited...

I think I said specifically WDW.....there's no argument to it that until recently, he's neglected WDW.

 

[rteetz]

I think I said specifically WDW.....there's no argument to it that until recently, he's neglected WDW.

I agree the only thing he has done for WDW is brought More DVC which of course is more guaranteed money.

 

[DDLand]

I think I said specifically WDW.....there's no argument to it that until recently, he's neglected WDW.

He's not neglected Walt Disney World. He's simply focused his massive expenditures elsewhere. If he was neglecting WDW they wouldn't have sunk a couple hundred million on next gen and NF, and continued to upkeep the parks at current current level. Neglect would imply that the Resort is not getting what is necessary to continue to meet and exceed guest expectations. Judging by the Record Attendance I would be hard pressed to say he's neglecting Buena Vista. New attractions are like dessert. Not really necessary (in most cases) but still pretty great!

 

[Reddog1134]

He's not neglected Walt Disney World. He's simply focused his massive expenditures elsewhere. If he was neglecting WDW they wouldn't have sunk a couple hundred million on next gen and NF, and continued to upkeep the parks at current current level. Neglect would imply that the Resort is not getting what is necessary to continue to meet and exceed guest expectations. Judging by the Record Attendance I would be hard pressed to say he's neglecting Buena Vista. New attractions are like dessert. Not really necessary (in most cases) but still pretty great!

It's not that Iger is necessarily doing a bad job. It's that he's doing an adequate job for a company that was known for going above and beyond. From that point of view, he's doing a a bad job. Magic Bands and next gen may be what the park needed but it's not what the fans wanted.

 

[Reddog1134]

It's true, he hasn't neglected WDW, but he HAS neglected the WDW fans.

 

[ChipnDale79]

He's not neglected Walt Disney World. He's simply focused his massive expenditures elsewhere. If he was neglecting WDW they wouldn't have sunk a couple hundred million on next gen and NF, and continued to upkeep the parks at current current level. Neglect would imply that the Resort is not getting what is necessary to continue to meet and exceed guest expectations. Judging by the Record Attendance I would be hard pressed to say he's neglecting Buena Vista. New attractions are like dessert. Not really necessary (in most cases) but still pretty great!

A lot of people would argue next gen wasn't wanted. NFL isn't a grand success in a lot of people's eyes. If you want to see how neglected WDW, then walk around EPCOT and dhs, it's pretty easy to see. It's obvious we have a difference of opinion.

From what I saw the first 5 years he was in charge, prices were raised at WDW and less up keep and attractions were offered at WDW.

He may have done a lot in other places, but I can't agree about WDW.

I'm excited about what's happening at WDW now and in the future, but it's been a long time coming.

 

[DDLand]

It's true, he hasn't neglected WDW, but he HAS neglected the WDW fans.

100%

As a consistent WDW guest I think that this is pretty spot on. It's sucked for us regulars. Has the product gone down in quality? No. Has it met our arbitrary standards of what is acceptable? No. Has he however focused the money in all the right places from a long term global perspective? I think it's pretty clearly yes.

 

[rteetz]

A lot of people would argue next gen wasn't wanted. NFL isn't a grand success in a lot of people's eyes. If you want to see how neglected WDW, then walk around EPCOT and dhs, it's pretty easy to see. It's obvious we have a difference of opinion.

From what I saw the first 5 years he was in charge, prices were raised at WDW and less up keep and attractions were offered at WDW.

He may have done a lot in other places, but I can't agree about WDW.

I'm excited about what's happening at WDW now and in the future, but it's been a long time coming.

Many call MyMagic+ a project that fixed something that didn't need to be fixed. I agree DHS and Epcot definitely neglected and even in many cases the older MK attractions.

Completely agree Iger really did absolute bare minimum for the first five years.

 

[rteetz]

100%

As a consistent WDW guest I think that this is pretty spot on. It's sucked for us regulars. Has the product gone down in quality? No. Has it met our arbitrary standards of what is acceptable? No. Has he however focused the money in all the right places from a long term global perspective? I think it's pretty clearly yes.

I would beg to differ that quality has changed. You used to go in every shop and see something different. Now i can go get my walt disney world shirt anywhere and online. Also some older attractions need refurbs and they aren't getting them thats not good quality. Now I still have a great time but quality definitely has changed over the years there is no doubt about that.

Iger has thought globally but with that he should think domestically. WDW is one of the top destinations in the world. It is the most attended resort in the world. IF Iger wants to think globally he has to include WDW.

 

[DDLand]

A lot of people would argue next gen wasn't wanted. NFL isn't a grand success in a lot of people's eyes. If you want to see how neglected WDW, then walk around EPCOT and dhs, it's pretty easy to see. It's obvious we have a difference of opinion.

From what I saw the first 5 years he was in charge, prices were raised at WDW and less up keep and attractions were offered at WDW.

He may have done a lot in other places, but I can't agree about WDW.

I'm excited about what's happening at WDW now and in the future, but it's been a long time coming.

You may not like or see the need in both of those projects; but they've boosted guest spending and created positive buzz. Even if they haven't, it proves there has been no neglect. Was the money spent where you want it? Nope.

Those theme parks are peddling the same product they have since the Eisner era with minimal change. Is that a problem? Yes, but not really. The difference is those two theme parks are pulling in tens of millions a year. Compare that to the pressing needs of HKD and DCA which were pulling in the same attendance of just one of those theme parks. These two are problems! So thinking pragmatically Burbank chose to work on those two first. Sorry. The ones losing the most got the money. Now their moving onto the broken theme parks that aren't really broken financially.

Less up keep? Do you remember Eisner? Iger did create that new healthy menu which was terrible...

The facts are not on your side. During that time Walt Disney World had record profit and attendance. Neglect would be reflected in financials and attendance.

 

[lockedoutlogic]

It actually breaks out to two simple philosophies...

Do you trust that quality parks will "self themselves" and the investment will always be a money maker long term?

Or

Do you feel that the parks are merely just a platform for content and the physical reality to them are no longer important?

Walt Disney's Disneyland and original wdw was clearly the former...Eisners early reinvestments, Paris, and animal kingdom were also of that ilk.

Then the worm turned and Eisner shifted to the other method...reducing quality and throwing open the gates to try and capitalize on shortened budgets...

And Iger has more or less been driving what was long established like his grandpa's Oldsmobile...staying away from investment that isn't specifically tied to pushing large amount of mass produced retail for the expanding IP library.

It's really a spectrum and the "good approach" is meshed in their somewhere.

Do you find it ironic... However...that the two greatest periods in park construction where when there were TWO heads (or a 1 and a 1A) at the top?

Because themeparks on the level of Disney need a variety of opinions to take different veiwpoints...a foil.

One dude or dudette can build a six flags

 

[DDLand]

Many call MyMagic+ a project that fixed something that didn't need to be fixed. I agree DHS and Epcot definitely neglected and even in many cases the older MK attractions.

Completely agree Iger really did absolute bare minimum for the first five years.

Sure, many call it that. I may be the only one who likes it. Call me crazy but I always found it stressful having my ticket and my key pass separate and potentially getting lost. Pulling out my valuable pass everytime I wanted a fastpass was a risk as well. Now it's on your wrist. Simple and secure all in one place. Is it perfect? No. Is it the best answer? Maybe. Does it get the job done in a better then before? Yep!


Of course the boosted guest spending in your eyes doesn't matter...

I addressed most of these points in my other post. Sure some rides are in bad shape, but that started in the 2000's post 9/11. Not Iger's fault. Has he taken action to address the issues? Nope. That is a problem. I can't say the product has gotten any worse since he took over and in many ways it's gotten better.

 

[rteetz]

Sure, many call it that. I may be the only one who likes it. Call me crazy but I always found it stressful having my ticket and my key pass separate and potentially getting lost. Pulling out my valuable pass everytime I wanted a fastpass was a risk as well. Now it's on your wrist. Simple and secure all in one place. Is it perfect? No. Is it the best answer? Maybe. Does it get the job done in a better then before? Yep!


Of course the boosted guest spending in your eyes doesn't matter...

I addressed most of these points in my other post. Sure some rides are in bad shape, but that started in the 2000's post 9/11. Not Iger's fault. Has he taken action to address the issues? Nope. That is a problem. I can't say the product has gotten any worse since he took over and in many ways it's gotten better.

I didn't say I didn't like it because I do I don't have any problems with it. I actually use FP more because of it.

But see thats one of the problems, Iger hasn't done anything about it. I don't necessarily see how the product has gotten better really. I only know Disney from the 2000s anyways I never experienced it before then. Also what about the gift shops, its basically the same over priced, mugs and shirts in every one. Food quality is also questionable sometimes (that is directed at Disney owned restaurants mostly quick services). Iger in many ways has been good but also in many ways bad there is no doubting that plain and simple.

 

[ChipnDale79]

You may not like or see the need in both of those projects; but they've boosted guest spending and created positive buzz. Even if they haven't, it proves there has been no neglect. Was the money spent where you want it? Nope.

Those theme parks are peddling the same product they have since the Eisner era with minimal change. Is that a problem? Yes, but not really. The difference is those two theme parks are pulling in tens of millions a year. Compare that to the pressing needs of HKD and DCA which were pulling in the same attendance of just one of those theme parks. These two are problems! So thinking pragmatically Burbank chose to work on those two first. Sorry. The ones losing the most got the money. Now their moving onto the broken theme parks that aren't really broken financially.

Less up keep? Do you remember Eisner? Iger did create that new healthy menu which was terrible...

The facts are not on your side. During that time Walt Disney World had record profit and attendance. Neglect would be reflected in financials and attendance.

This will be the last comment I make towards you on this subject, we just don't agree.

For me personally, the value of a vacation to WDW has dropped since he's been ceo.

When I say that, I mean the price has skyrocketed throughout a bad economy and very little has changed at WDW. Hence you pay more for the same or less product in some cases. They've become very lazy in ways to "better the experiance", by that I mean they've been offering low overhead, high profit desert parties instead of trying to be imaginative.

For what was spent on my magic plus, I think many of us can agree we would have liked to see that billion plus spent on somethjng else. Like fixing EPCOT and DHS. Remember, both of these parks have numerous buildings sitting empty.


I love WDW and love taking my kids, don't get me wrong. I just think for WDW, Bob Iger hasn't been the knight in shining armor that he has been for some other areas of the company.

 

[DDLand]

It actually breaks out to two simple philosophies...

Do you trust that quality parks will "self themselves" and the investment will always be a money maker long term?

Or

Do you feel that the parks are merely just a platform for content and the physical reality to them are no longer important?

Walt Disney's Disneyland and original wdw was clearly the former...Eisners early reinvestments, Paris, and animal kingdom were also of that ilk.

Then the worm turned and Eisner shifted to the other method...reducing quality and throwing open the gates to try and capitalize on shortened budgets...

And Iger has more or less been driving what was long established like his grandpa's Oldsmobile...staying away from investment that isn't specifically tied to pushing large amount of mass produced retail for the expanding IP library.

It's really a spectrum and the "good approach" is meshed in their somewhere.

Do you find it ironic... However...that the two greatest periods in park construction where when there were TWO heads (or a 1 and a 1A) at the top?

Because themeparks on the level of Disney need a variety of opinions to take different veiwpoints...a foil.

One dude or dudette can build a six flags

I'm not going to jump into the two leaders debate. It's a little messy. What's often forgotten is perhaps one of Eisner's greatest failures Euro Disney took place when Wells was alive. Where was he? Though there's much evidence backing up what you're saying too. Messy.

Now to what you're saying about IP I think you're pretty spot on. I've written previously that I feel like the Walt Disney Company is healthiest when animation, the studios, and Imagineering are creating quality content. One or two of these working creatively is not enough to have WDC working at maximum effectiveness. Right now Animation and Studios are working effectively while Imagineering is dead. They still know how to bring people into a different world, but the story part is dead. Grizzly Gulch, a bear messes up our train ride. Cool... (Now Mystic Manner is reason to hope) Can any of us see them creating a brand new Pirates of the Carribean style ride without IP? Nope! That's scary and sad. At the same time they're sacrificing the story part, they're also focusing on more simulation type rides (Ratatouille Ride is the best example) giving up their lead in robotics illusion, robotics, and ride system.

You guys want to know what is bringing down Movie Theaters? Consumer electronics at home playing the same thing. If they continue the path of literally cutting and pasting from movies and playing them on a big screen with a car moving people are gonna start wondering why they should pay so much money for the same experience they can get at home. Especially with new Virtual Reality stuff coming. Disney can't compete with Apple, Microsoft, and Google. They can compete in their own sphere. Creating amazing original stories in the physical world.

For whatever reason they're to stubborn to do that. I don't blame that on Iger. Lasseter is the one I'm ticked at. He worked on Jungle Cruise for pete's sake!
You'd think he's understand original work but no...

 

[DDLand]

I didn't say I didn't like it because I do I don't have any problems with it. I actually use FP more because of it.

But see thats one of the problems, Iger hasn't done anything about it. I don't necessarily see how the product has gotten better really. I only know Disney from the 2000s anyways I never experienced it before then. Also what about the gift shops, its basically the same over priced, mugs and shirts in every one. Food quality is also questionable sometimes (that is directed at Disney owned restaurants mostly quick services). Iger in many ways has been good but also in many ways bad there is no doubting that plain and simple.

So why are you buying into the consensus rteetz? Why are you attacking something you just said you liked? Instead of the negative attitude that keeps getting pushed around you should aknowledge you like it! That's how we get more projects like My Magic! By giving positive feedback! Just a thought...

Staggs is starting to act with Crofton the wicked witch out. The POTC refurb is signs that change is coming. He's kept quality at Eisner levels. No better no worse. I do agree it can improve, but in this forums call for CEO more like Eisner I wouldn't expect much...

Is this your example of bad managment?

I think that the merchandise at individual locations was something that we Walt Disney World guests really loved but was not mainstream. For frequent repeat guests it really matters but for most they weren't interested. They just wanted a t-shirt with the Castle on it. Is that neglect? No. Is it common sense? Yep. I too was distraught with certain items being pulled (I still miss the massive monorail collection...) but it's business and does not reflect neglect.

 

[rteetz]

I'm not going to jump into the two leaders debate. It's a little messy. What's often forgotten is perhaps one of Eisner's greatest failures Euro Disney took place when Wells was alive. Where was he? Though there's much evidence backing up what you're saying too. Messy.

Now to what you're saying about IP I think you're pretty spot on. I've written previously that I feel like the Walt Disney Company is healthiest when animation, the studios, and Imagineering are creating quality content. One or two of these working creatively is not enough to have WDC working at maximum effectiveness. Right now Animation and Studios are working effectively while Imagineering is dead. They still know how to bring people into a different world, but the story part is dead. Grizzly Gulch, a bear messes up our train ride. Cool... (Now Mystic Manner is reason to hope) Can any of us see them creating a brand new Pirates of the Carribean style ride without IP? Nope! That's scary and sad. At the same time they're sacrificing the story part, they're also focusing on more simulation type rides (Ratatouille Ride is the best example) giving up their lead in robotics illusion, robotics, and ride system.

You guys want to know what is bringing down Movie Theaters? Consumer electronics at home playing the same thing. If they continue the path of literally cutting and pasting from movies and playing them on a big screen with a car moving people are gonna start wondering why they should pay so much money for the same experience they can get at home. Especially with new Virtual Reality stuff coming. Disney can't compete with Apple, Microsoft, and Google. They can compete in their own sphere. Creating amazing original stories in the physical world.

For whatever reason they're to stubborn to do that. I don't blame that on Iger. Lasseter is the one I'm ticked at. He worked on Jungle Cruise for pete's sake!
You'd think he's understand original work but no...

I would say ratatouille is something imagineering should be proud of it uses a newly developed trackless ride system. Similar to mystic manor but still different. Yes it uses screens that's a downside but doesn't mean it can't be good. I would also say that the new animatronics in mine train are very well done. Imagineering is currently taking on the feat of floating mountains if they can make that work well I think we could see one of the best things to ever come out of that part of the company. I wouldnt say that it's dead just stagnant.

 

[rteetz]

So why are you buying into the consensus rteetz? Why are you attacking something you just said you liked? Instead of the negative attitude that keeps getting pushed around you should aknowledge you like it! That's how we get more projects like My Magic! By giving positive feedback! Just a thought...

Staggs is starting to act with Crofton the wicked witch out. The POTC refurb is signs that change is coming. He's kept quality at Eisner levels. No better no worse. I do agree it can improve, but in this forums call for CEO more like Eisner I wouldn't expect much...

Is this your example of bad managment?

I think that the merchandise at individual locations was something that we Walt Disney World guests really loved but was not mainstream. For frequent repeat guests it really matters but for most they weren't interested. They just wanted a t-shirt with the Castle on it. Is that neglect? No. Is it common sense? Yep. I too was distraught with certain items being pulled (I still miss the massive monorail collection...) but it's business and does not reflect neglect.

I didn't bash MyMagic+ I really haven't ever I do say I like it.

The POTC refurb isn't confirmed and it doesn't have anything to do with staggs it's all Phil Holmes and Kaligridis. Holmes doesn't want the ride down more than 4 months when it really needs 6 or more. That shows you right there that Disney execs would rather sacrifice quality for quantity.

I didn't say neglect I said quality when it comes to merchandise.

 

[DDLand]

This will be the last comment I make towards you on this subject, we just don't agree.

For me personally, the value of a vacation to WDW has dropped since he's been ceo.

When I say that, I mean the price has skyrocketed throughout a bad economy and very little has changed at WDW. Hence you pay more for the same or less product in some cases. They've become very lazy in ways to "better the experiance", by that I mean they've been offering low overhead, high profit desert parties instead of trying to be imaginative.

For what was spent on my magic plus, I think many of us can agree we would have liked to see that billion plus spent on somethjng else. Like fixing EPCOT and DHS. Remember, both of these parks have numerous buildings sitting empty.


I love WDW and love taking my kids, don't get me wrong. I just think for WDW, Bob Iger hasn't been the knight in shining armor that he has been for some other areas of the company.

Alright. We can leave it at this. I honestly don't see how it's gotten worse. 2004 was like the worst year ever. It improved since then. Of course everything changed when My Magic came out. I think guest experience has improved greatly since then.

We'll agree to disagree about My Magic. Though as I said before those two parks money wise are not broken by any means. It would be silly to pour money into assets already making returns when there is a different place they can devote the cash with better results. My Magic has boosted guest spending in a real way. They made the right decision.

He hasn't done anything great there, but he sure hasn't made it worse then his predecessor.