brentm77
DIS Veteran
- Joined
- Jan 17, 2013
Chapek's presence has made little to deter the growth in the parks and resorts division (which includes DCL). In fact, revenues in that division have been pretty solid considering COVID.
Anyone celebrating in this specific forum won't see much of a change under Iger.
It's the media and studio divisions that have really struggled under Chapek. Disney+ content has become meh, and the big blockbusters are far and few in between. There's a whole lot more competition as well. Chapek was an easy head to roll, but bringing back Iger isn't a solution. It's a stop gap at the moment.
You are absolutely right that, on a balance sheet, the parks were not the problem for Disney, and that Iger's focus will be on the entertainment/Disney+ side. However, here are my arguments for why the change will be good for the parks and even a little for the DCL side:
1) The company culture is set from the top down, and Chapek was setting the wrong culture for Disney to be successful. Namely, his approach was one of cost cutting to increase profits. It started with him and flowed down through the entire company. Disney isn't the type of company where you can cut your way to huge profits.
2) Chapek made a few critical missteps, including his attempt to move the creative divisions to Orlando, causing the loss of key talent and unhappiness among many employees who work on projects related to the parks and cruise line. Furthermore, Chapek wasn't even able to fully execute the move, which means they took a huge loss for nothing so far. He also potentially damaged WDW with the looming loss of its self-governance.
3) Iger is widely described from insiders as someone who was interested in the creative side of the company, while Chapek wasn't. That lack of caring bleeds down to the parks and even shows up in how the parks handle problems and initiatives, since the only thing that matters is the bottom line.
4) The employee reception to Iger coming back seems to be widely positive, which can only help improve the customer service experience, and the quality of employees it retains and recruits.
5) Iger seems to care about the perception of the Disney brand, Chapek not so much. I genuinely think Iger was very proud of Disney and his association with it in a way Chapek never was. That has to give Iger some interest in the parks and the negative feedback coming from both media and customers. I think Iger also appreciates the synergies between the parks and entertainment, which aren't good when your customers are hating the park experience.
All that said, I agree that it won't be his focus. I think it is more of the idea that he will have a positive effect on the company as a whole and it signals the company will go in a different direction. Admittedly, it could all be wishful thinking and confirmation bias. Iger certainly made some major missteps, including what he paid for Fox and the drag that is causing the company.
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