CNBC on Chapek & Iger’s falling out

[starlite_]

It's fascinating to me how a company this big can make so many bad decisions. It's been 100 years Disney, you should have your **** together by now.

 

[Dis Dragon]

They should go back to two captains on the ship, like Walt was the creative and Roy was the business minded. You need both qualities for this company, but to find that in one, is extremely rare. Even more rare is finding two that can work together like clockwork without ego getting in the way.

True, who knows where things would be today if Frank Wells never crashed - that relationship ushered in a golden age for Disney.

I don't believe Chapek falls into either of those categories though...

 

[brightlined]

they were cutting back hours in 2018 and 2019 or around there and adding the paid after hours events. That was 100% on igers watch. The cutting and maybe even elimination of extra magic hours was pretty much done under the iger regime. I can’t stand chapek, and I don’t think he’s a good person to be quite honest. But he gets scapegoated for things without other people, whether it be iger or d’amaro, taking any flack

Iger was terrible for domestic parks and resorts but his legacy was his acquisitions.

I think people forget: Chapek became the head of Disney Parks in 2015. Iger had a heavy hand in the redevelopment of DCA (ie, Cars Land) and the development of Galaxy's Edge. Even if the 2018 and 2019 stuff happened under Iger's watch, Chapek would have been the one to make that call. (And he seems to pride himself on his money management.)

I don't think Iger is entirely blame-free, but the consistent variable here is Chapek.

 

[umichigan10]

I think people forget: Chapek became the head of Disney Parks in 2015. Iger had a heavy hand in the redevelopment of DCA (ie, Cars Land) and the development of Galaxy's Edge. Even if the 2018 and 2019 stuff happened under Iger's watch, Chapek would have been the one to make that call. (And he seems to pride himself on his money management.)

I don't think Iger is entirely blame-free, but the consistent variable here is Chapek.

Then with that line of thinking, D’Amaro should be getting flack for what’s happening now. But he isn’t. Believe me, I’m not fan of chapek, but the blame needs to go to all parties, and not just one guy

 

[BrianL]

Then with that line of thinking, D’Amaro should be getting flack for what’s happening now. But he isn’t. Believe me, I’m not fan of chapek, but the blame needs to go to all parties, and not just one guy

But when reportedly Iger let his department heads have some autonomy and Chapek doesnt, it seems like there is one element that is the real source. Certainly Josh is complicit, but he can't just go against Chapek though, unless he wants to lose his job. Things might be very different under a different CEO.

 

[vincep]

Just because Paycheck has been a lifer it doesn't mean he has any great love for Disney. The company has treated him very well over many years. He's made a lot of money and had great benefits. Why move? And why listen to Disney park lovers when they make up a comparatively small number of people?

What is so galling now is his catering to the woke diversity crowd who are on a ridiculous power trip and whose basic purpose is to prevent the move to Florida under the guise of caring about others.

The man is really one of those dolts who through shear determination has failed upwards their whole lives. Just like Igor, Joshing and Vampira.

 

[AnnabelleTheTalkingTree]

Disney has a PR problem right now, and I think Chapek is a HUGE contributor to that issue. Disney has traditionally been a family-friendly company and was marketed as such, where Chapek is very blatantly going in a new and different direction. Maybe new and different works for Disney and Disney shareholders, or maybe not. I realize it's working in the moment - Disney+ is a success and yes, the parks are full. But how much of those crowds are actually BECAUSE of anything Chapek has done? I think the crowds are largely due to revenge travel/heightened demand on the back end of the pandemic. The crowds aren't a testament to a job well done by Chapek. Rather, I think those crowds are *despite* his unpopular choices (and flat out mistakes, in my opinion). And while people may put up with it for now, because we've all been cooped up forever and are dying to get out and do something fun, I'm not sure the masses are going to be taking the bait in the long term, especially if priority is going to be going to "tech" (Disney+ among other endeavors) over park experience. Disney parks are not known for thrill ride, but for experience, theming and outstanding customer service. This is what people pay the big bucks for, this is what keeps people coming back. If the theming, the details, the experience and the service go downhill, then Disney may as well be your local Six Flags, just without the thrill rides that make Six Flags fun, and with a steeper price tag. I am super interested to see what happens when his contract comes up next year. If it's renewed, I think we all know the direction Disney is headed, because that means that the board supports his choices and likes what they're seeing. At that point, I think a return to the Disney I used to love is rather unlikely.

 

[dd316]

The customer right now is clearly not happy.

Difficult to say customer unhappiness is "clear" when they're showing profits. If people are that unhappy, why do they keep giving them money? Every trip reports ends with "This will be our last Disney trip for a while". I truly find that hard to believe. We're all addicted!

 

[AnnabelleTheTalkingTree]

Difficult to say customer unhappiness is "clear" when they're showing profits. If people are that unhappy, why do they keep giving them money? Every trip reports ends with "This will be our last Disney trip for a while". I truly find that hard to believe. We're all addicted!

I wouldn't be so sure that Disney fans are all that dedicated. Some will be, for sure. And yes, the parks are still crowded. But who's to say that many of them aren't making trips NOW hoping to be proven wrong? Or hoping that the negative reviews are nonsense? I say this because it's literally where I'm at right now. I'm a loyal, longterm Disney fan. I'm a person who booked a trip for my family a year out, before Genie+ became a thing. I'm going on this vacation in a couple of weeks with an optimistic outlook and hoping that I'll be proven wrong, that Disney will be just as great as ever. So yes, RIGHT NOW, in the moment, Disney is getting my money. But if the vacation goes badly, or if the product I'm buying fails to deliver, I'm not going to be returning anytime soon. Disney has lots of loyal fans, but I think everyone draws a line in the sand at some point.

 

[AvidDisReader]

So much venom in this forum. For all those predicting gloom and doom, a little history lesson. At the end of Eisner's Disney career he gutted the animation department, cut the imagineers to a bear minimum, and stopped investing in the Parks. Disney came within a breath of being bought by Comcast. Disney survived this and reinvented itself in the years after. Disney will survive Chapek.

 

[ChipnDale79]

guise of caring about others.

I wonder if i'm the only one that read that and rolled my eyes.

 

[New Mouse]

But when reportedly Iger let his separtment heads have some autonomy and Chapek doesnt, it seems like there is one element that is the real source. Certainly Josh is complicit, but he can't just go against Chapek though, unless he wants to lose his job. Things might be very different under a different CEO.

Strong leaders would speak up if they cared.

 

[BrianL]

Strong leaders would speak up if they cared.

And we don't know that he doesn't inside the company. Doing so publicly though would be a quick way to lose one's job.

 

[Illinois76]

Difficult to say customer unhappiness is "clear" when they're showing profits. If people are that unhappy, why do they keep giving them money? Every trip reports ends with "This will be our last Disney trip for a while". I truly find that hard to believe. We're all addicted!

The bottom line is… the business results are actuals, the angst is proforma.

Disney fans want to be able to will catastrophe into existence… ‘sure the parks are doing great, but trust me, it’ll get bad.’

 

[Jwaire]

Strong leaders would speak up if they cared.

And we don't know that he doesn't inside the company. Doing so publicly though would be a quick way to lose one's job.

I personally think D'Amaro gets away with too much from Disney fans and media because of his likable personality. But to be fair, he did issue a personal video alluding to the legislation before it passed.

But now the leaks begin ...

"Leaders at the Disney Parks, Experiences and Products division urged action: Disney’s name should be on the list.
They were rebuffed, according to three people briefed on the matter, who spoke on the condition of anonymity to comply with company strictures about speaking to reporters. Disney’s newly hired corporate affairs chief, Geoff Morrell, and Disney legislative affairs executives — guided by the general desire of Bob Chapek, the chief executive, to avoid publicly weighing in on state political battles — decided that continuing to work behind the scenes had a better chance of a payoff."

https://www.nytimes.com/2022/03/22/business/media/disney-florida-employee-protests.html
This will continue to snowball for Chapek.

 

[starlite_]

Strong leaders would speak up if they cared.

You overestimate how much people are willing to risk their jobs. At the end of the day it's a very first world problem, no one's life depends on a "strong leader" to save the poor lil Disney Company. So why would anyone risk their very-hard-to-get jobs to go against their boss when they can ride it out for a few years, so to speak?

 

[New Mouse]

And we don't know that he doesn't inside the company. Doing so publicly though would be a quick way to lose one's job.

Strong leaders also wouldn't have a problem getting a new job or a fear of losing a job with someone who didn't care about their opinions.

 

[BrianL]

Strong leaders also wouldn't have a problem getting a new job or a fear of losing a job with someone who didn't care about their opinions.

That's a gross oversimplification. The fact is that we really don't know what's going on behind the scenes at the company. I think we all agree that we don't love the outcome, but it does land squarely on Chapek.

 

[AnnabelleTheTalkingTree]

The bottom line is… the business results are actuals, the angst is proforma.

Disney fans want to be able to will catastrophe into existence… ‘sure the parks are doing great, but trust me, it’ll get bad.’

I don't think anyone wants to will catastrophe. I think many Disney fans are change-resistant, I think some are afraid of being priced out. But I think a large majority are just concerned that the experience of Disney Parks is changing for the worse. People LOVE Disney parks - they love the feel, the excellent customer service, the wholesome vibe, the nostalgia, the fantasy of it all.

I think at the crux of it, most dedicated Disney park fans are less concerned with the price hikes (after all, those happen everywhere no matter what) than they are with the watering down of the product. At least, that's my feeling on it. I don't mind paying for a skip the line service. I do mind paying for a skip the line service that doesn't actually work or deliver. I don't mind paying higher hotel rates, as long as those hotels continue to deliver the theming and guest service I'm accustomed to (along with daily housekeeping). I don't mind paying more for park tickets as long as the experience inside of the parks is actually FUN. I don't mind paying slightly more for food/drinks as long as the quality matches the price. What we've been seeing is not JUST price hikes, but also a a stripping away of previous services/offerings/and quality.

I think the people voicing concern are the people who know that there is a limit for them in terms how far Disney can go in this stripping down of things before they decide they just won't return. I know that's the case for me. I love Disney, and I'd be super sad to see it go in a direction where it's just not fun anymore.

 

[Liquidice]

I don't think anyone wants to will catastrophe. I think many Disney fans are change-resistant, I think some are afraid of being priced out. But I think a large majority are just concerned that the experience of Disney Parks is changing for the worse. People LOVE Disney parks - they love the feel, the excellent customer service, the wholesome vibe, the nostalgia, the fantasy of it all.

I think at the crux of it, most dedicated Disney park fans are less concerned with the price hikes (after all, those happen everywhere no matter what) than they are with the watering down of the product. At least, that's my feeling on it. I don't mind paying for a skip the line service. I do mind paying for a skip the line service that doesn't actually work or deliver. I don't mind paying higher hotel rates, as long as those hotels continue to deliver the theming and guest service I'm accustomed to (along with daily housekeeping). I don't mind paying more for park tickets as long as the experience inside of the parks is actually FUN. I don't mind paying slightly more for food/drinks as long as the quality matches the price. What we've been seeing is not JUST price hikes, but also a a stripping away of previous services/offerings/and quality.

I think the people voicing concern are the people who know that there is a limit for them in terms how far Disney can go in this stripping down of things before they decide they just won't return. I know that's the case for me. I love Disney, and I'd be super sad to see it go in a direction where it's just not fun anymore.

Totally agree - it is all about the value you're getting. If things were exactly the same as before the pandemic with only higher prices - you'd definitely still hear complaints, but a lot less complaints imho.

Right now, it feels like we're paying more and getting less than prior to the pandemic. I think some of this is a side effect of not having enough CMs and some things will eventually return. But others are seemingly gone, watered down or now require an up-charge (Park Hopping, Magical Express, Magic Hours, FP/Genie+, Mousekeeping only every other day at best) - yet hotel prices are up (dramatically in some cases), ticket prices are up, APs aren't for sale ...

I'm not wishing for things to be bad - I can just see the writing on the wall. If you keep raising prices and offering less value for your customers, you eventually won't have customers.

On the flip side of this, on the entertainment side of the house - it sounds like Disney is also upsetting a lot of their employees. I used to think that perhaps Chapek was purposefully making the Parks side of the house worse so when they introduce the Metaverse version of Disney parks, it will look better and maybe drive people to the digital Disney parks. But Disney+ has been their focus - and this article suggests that Chapek has centralized his power to a few key people. If they start to lose a lot of their talent on the entertainment side, it will show imho that Chapek has a huge problem running the company.