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

[DDLand]

I agree that I think their will be big new things in Shanghai one being the new pirates ride they are building. Theming is never a problem with Disney really.

I get what your saying on the film strategy but innovation at least when I think about it is new tech, or the other things you listed.

They've pushed the bounds in 2001 with TDS (that was before they laid off most of their imagineers...) After that it was weaker. Everest was an example of cutting through the red tape and making an incredible ride. However aside from that for years thematically it was weak. Finally with Aulani and DCA they turned it around.

See it gets murky what's the definition. I'm completely satisfied with he's doing, and there other people like you who want more. Are either of us wrong? No. It's relative. It makes these forums fun, but we can never get to the bottom of things.

 

[rteetz]

They've pushed the bounds in 2001 with TDS (that was before they laid off most of their imagineers...) After that it was weaker. Everest was an example of cutting through the red tape and making an incredible ride. However aside from that for years thematically it was weak. Finally with Aulani and DCA they turned it around. See it gets murky what's the definition. I'm completely satisfied with he's doing, and there other people like you who want more. Are either of us wrong? No. It's relative. It makes these forums fun, but we can never get to the bottom of things.

But Everest was masted by imagineer under Eisner, it was green lighted before Iger became CEO.

I agree with the second part of what you said. I think he could've done more sooner.

 

[DDLand]

But Everest was masted by imagineer under Eisner, it was green lighted before Iger became CEO.

I agree with the second part of what you said. I think he could've done more sooner.

100% correct. Like I said it was a rare example of cutting through the red tape and doing something great. Besides that... Nothing. Rhode is pretty great. That guys knows his stuff.

Yeah, I just don't see how it would be possible. Who knows?

 

[rteetz]

100% correct. Like I said it was a rare example of cutting through the red tape and doing something great. Besides that... Nothing. Rhode is pretty great. That guys knows his stuff. Yeah, I just don't see how it would be possible. Who knows?

That might be the one good thing of Eisner's last years.

Joe Rohde is one of my favorite imagineers.

 

[ChipnDale79]

Iger has been fantastic for the studios, as for the parks and more specifically WDW, he's been horrible.

He's been ceo for 10 years now, we finally have things being done at WDW to fix some of the issues. Why has it taken so long? Why did he allow WDW to get so stagnant? Before anyone blames the economy, keep in mind prices continuously rose during the recession.

 

[rteetz]

Iger has been fantastic for the studios, as for the parks and more specifically WDW, he's been horrible.

He's been ceo for 10 years now, we finally have things being done at WDW to fix some of the issues. Why has it taken so long? Why did he allow WDW to get so stagnant? Before anyone blames the economy, keep in mind prices continuously rose during the recession.

Bingo!

 

[DDLand]

Iger has been fantastic for the studios, as for the parks and more specifically WDW, he's been horrible.

He's been ceo for 10 years now, we finally have things being done at WDW to fix some of the issues. Why has it taken so long? Why did he allow WDW to get so stagnant? Before anyone blames the economy, keep in mind prices continuously rose during the recession.

He hasn't focused most of the capital improvements on Disney World, that's true. A Disney Cruise Line, Disneyland, or Hong Kong Disneyland fan would probably disagree with you on being horrible for the parks. There were a lot of projects that were in need of being done all over the world. When Disney World is successful without needing big capacity capital improvements, that means it falls to the bottom of the totem pole on the new rides and attractions lineup. Disney wasn't entirely sure that the DCA upgrade would work, now that they've found incredible success they'll move forward with their plans in the other broken parks.

 

[rteetz]

He hasn't focused most of the capital improvements on Disney World, that's true. A Disney Cruise Line, Disneyland, or Hong Kong Disneyland fan would probably disagree with you on being horrible for the parks. There were a lot of projects that were in need of being done all over the world. When Disney World is successful without needing big capacity capital improvements, that means it falls to the bottom of the totem pole on the new rides and attractions lineup. Disney wasn't entirely sure that the DCA upgrade would work, now that they've found incredible success they'll move forward with their plans in the other broken parks.

Hong Kong I disagree because that park is not owned by Disney it's majority owned by China while Disney is partial owner. Disney does not put their money into it a lot of times. They do use WDI but Iger doesn't necessarily make those decisions.

 

[DDLand]

Hong Kong I disagree because that park is not owned by Disney it's majority owned by China while Disney is partial owner. Disney does not put their money into it a lot of times. They do use WDI but Iger doesn't necessarily make those decisions.

That's true about what you're saying about it not being a majority owned by Disney, but things got interesting over the last couple years rteetz.

When Disney and HK decided to open the park, Disney got really favorable terms. They had to put in their development teams and a small capital investment, while HK put up most of the capital themselves. Disney got 43% and HK 57%.

Limited investment, (assumed) high rewards, and unlocking D&R to millions of new guests. What could go wrong?

Well after years of underperforming HK was ticked at Disney because Public funds were being poured into this money sink. They basically were like you promised big, you fix it. So Disney Created an investment plan that boosted their exposure from 41% to 48%. Then Disney single handedly invested hundreds of millions into the park.

http://www.reuters.com/article/2009/06/30/disney-hongkong-idUSHKG5332920090630

They made a profit several years later, finally.

http://www.businessweek.com/articles/2013-02-19/disneys-hong-kong-theme-park-finally-turns-a-profit

Now it seems with the new hotel and Iron Man stuff Hong Kong is starting to boost investment again. However if you were wondering what your WDW ticket dollars were doing in 2009, this is something.

 

[lockedoutlogic]

Iger has been fantastic for the studios, as for the parks and more specifically WDW, he's been horrible.

He's been ceo for 10 years now, we finally have things being done at WDW to fix some of the issues. Why has it taken so long? Why did he allow WDW to get so stagnant? Before anyone blames the economy, keep in mind prices continuously rose during the recession.

You just stated my Magna Carta in 75 words of less

 

[ChipnDale79]

Bingo!

When it comes to WDW, I don't see how anyone can defend Iger for the lack of progress in the first 7 years or so of his leadership. I get scaling back to save money in a bad economy, but when you raise prices at the same time on just about every single thing, that argument goes out the window. He's a money grabber, and that doesn't sit right with me.

I love what he's done with the studios, but I loathe him as a leader as someone who loves WDW. Imo we need a mixture of Eisner and Iger.

 

[rteetz]

When it comes to WDW, I don't see how anyone can defend Iger for the lack of progress in the first 7 years or so of his leadership. I get scaling back to save money in a bad economy, but when you raise prices at the same time on just about every single thing, that argument goes out the window. He's a money grabber, and that doesn't sit right with me. I love what he's done with the studios, but I loathe him as a leader as someone who loves WDW. Imo we need a mixture of Eisner and Iger.

A mixture would be great but definitely hard to find. But really if you think about it Eisner wasn't necessarily bad for he studios either. He had why's many call the Disney Renaissance and purchased ABC. Iger definitely has instilled a money grabber look at WDW. Just lookalike at all the hard ticket add on events, prices on everything go up every year at least once. DVC I would think the biggest. DVC is pure short term money for Disney and they just keep building it.

 

[lockedoutlogic]

A mixture would be great but definitely hard to find. But really if you think about it Eisner wasn't necessarily bad for he studios either. He had why's many call the Disney Renaissance and purchased ABC. Iger definitely has instilled a money grabber look at WDW. Just lookalike at all the hard ticket add on events, prices on everything go up every year at least once. DVC I would think the biggest. DVC is pure short term money for Disney and they just keep building it.

DVC is not "short term money"

People have been all grumpy about the prices...

It is over double what I paid not too long ago...but that is just the sauce.

It's about locking those people into pouring money into tickets, food, and crap.

That's what it's about...longterm product you of have to "half sell"

 

[rteetz]

DVC is not "short term money" People have been all grumpy about the prices... It is over double what I paid not too long ago...but that is just the sauce. It's about locking those people into pouring money into tickets, food, and crap. That's what it's about...longterm product you of have to "half sell"

It's a long term product that brings in money in the short term. I agree it locks people in which automatically brings in money. Eisner started DVC but I highly doubt he would have taken where it is today.

 

[DDLand]

When it comes to WDW, I don't see how anyone can defend Iger for the lack of progress in the first 7 years or so of his leadership. I get scaling back to save money in a bad economy, but when you raise prices at the same time on just about every single thing, that argument goes out the window. He's a money grabber, and that doesn't sit right with me.

I love what he's done with the studios, but I loathe him as a leader as someone who loves WDW. Imo we need a mixture of Eisner and Iger.

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...

 

[DDLand]

DVC is not "short term money"

People have been all grumpy about the prices...

It is over double what I paid not too long ago...but that is just the sauce.

It's about locking those people into pouring money into tickets, food, and crap.

That's what it's about...longterm product you of have to "half sell"

There's a risk with the strategy though. The people they locked in the 90's were from a lower income bracket then they're selling to now. This means that people who could afford DVC and the ticket prices of yesterday might not be able to cough up the cash for tickets or as much merchandise. I have a hunch that the average spending rate of a DVC guest is considerably lower then that of the people who can pay $400 a night to stay at the deluxe hotels. They're out pricing common DVC members out of vacations (especially if they move to abolish AP discounts). Disney made a bet in the 90's that the people middle class people of the 90's would be basically the same type of person coming to Disney World today and tomorrow. That is sadly not the case anymore.

 

[DDLand]

Eisner started DVC but I highly doubt he would have taken where it is today.

You have no idea...

 

[lockedoutlogic]

There's a risk with the strategy though. The people they locked in the 90's were from a lower income bracket then they're selling to now. This means that people who could afford DVC and the ticket prices of yesterday might not be able to cough up the cash for tickets or as much merchandise. I have a hunch that the average spending rate of a DVC guest is considerably lower then that of the people who can pay $400 a night to stay at the deluxe hotels. They're out pricing common DVC members out of vacations (especially if they move to abolish AP discounts). Disney made a bet in the 90's that the people middle class people of the 90's would be basically the same type of person coming to Disney World today and tomorrow. That is sadly not the case anymore.

Granted... But the balance on the scales hasn't tipped yet...

And Disney's bet on the "middle class" being their backbone was one that was natural - it is the history of the parks since 1955. That's who loves it, that's who keeps coming back.

Until - as you say - the suits misread the tea leaves and price them out.
The destruction of the middle class is actually a societal/governmental failure...
In a couple of decades wdw might be a case study to illustrate just how wrong the forces of greed really were.

If they think that "upper class" - with real, truly disposable income - are gonna get enamoured with Le Cellier's $42 longhorn quality ribeye and keep coming 3x a year for more...then they really don't understand their targets.
But...those "90's" types do that on a ridiculous scale (I'm surrounded but them everyday)...and that's what has driven the membership.

 

[DDLand]

Granted... But the balance on the scales hasn't tipped yet...

And Disney's bet on the "middle class" being their backbone was one that was natural - it is the history of the parks since 1955. That's who loves it, that's who keeps coming back.

Until - as you say - the suits misread the tea leaves and price them out.
The destruction of the middle class is actually a societal/governmental failure...
In a couple of decades wdw might be a case study to illustrate just how wrong the forces of greed really were.

If they think that "upper class" - with real, truly disposable income - are gonna get enamoured with Le Cellier's $42 longhorn quality ribeye and keep coming 3x a year for more...then they really don't understand their targets.
But...those "90's" types do that on a ridiculous scale (I'm surrounded but them everyday)...and that's what has driven the membership.

True. Though it does seem like Disney has started specifically targeting that group. We 90's members (my family joined DVC very early 2000's but we still fall into this group) saved Disney during the recession by making sure the turnstiles kept moving. Now it almost feels like we're becoming the enemy...

I saw on another thread (talking about mugs and tickets) you said Disney not liking to sell lifetime anything. Thanks to inflation ultimately every deal they make is going to end up hurting them in the long run. DVC is the exception and Disney has learned their lesson. The high point prices are acting as not only a quick way to get profit, but also as essentially a Club bouncer. They don't want our kind of people that lack a significant ability to meet future ticket price increases entering.

I'd agree with everything you were saying if they weren't selling out each DVC addition. As strange as it may be (if I had money I'd do only cash rooms for flexibility) there must actually be enough rich people who think that buying a piece of the magic makes sense. Sad and scary at the same time...

I think you and I are basically on the same page on this issue. The one place we diverge is you think that this move away from the middle class is unplanned, by mistake, or suicidal. (If I follow correctly, if I'm not be aggressive about correcting me) I think they know exactly what they were doing. Why they were stubbornly willing to sit on AKL inventory for months when almost everyone acknowledged they were too expensive. They were conducting a financial background check on each buyer. Ensuring that this next generation of DVC buyers are well equipped to pay Disney's faster then inflation price increases.

 

[BigTigger]

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.