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Wednesday, November 30, 2022

From Chapek to Iger, and Disney’s Road Ahead

 by Ray Keating

Analysis

DisneyBizJournal.com

November 30, 2022

 

More than a week after the surprise move of the Disney board in firing Bob Chapek as CEO, and bringing back Bob Iger, a great deal of ink, as we used to say in the newspaper business, has been spilled on what Iger and Disney now face.

 

Reviewing a host of reporting by, for example, The Wall Street JournalThe New York Times, CNBC, The Hollywood Reporter, and the Orlando Sentinel, there are some points worth noting and a few questions to ponder. However, there also seems to be a firm-grasp-of-the-obvious running through many of these reports.



Profits? What a Crazy Idea

 

One of the big firm-grasp-of-the-obvious points being repeated is that Iger will have to figure out how to make the Disney streaming services profitable, while also not undercutting, or accelerating the decline of, television and movie theater revenues and profits. Well, yeah. We’ve known this for a while, and Disney isn’t the only company dealing with this challenge.

 

Part of that story also is supposedly switching the emphasis in streaming from increasing subscriptions to moving from losses to profitability. Again, this has been the discussion since Disney+ was first launched, and the point long has been that Disney+ would move to profitability sometime in 2024. Iger will now have his say as to how to get that done.

 

As for theme parks, The Wall Street Journal served up a report noting that the parks have been a profit generator post-pandemic, but that there are investor fears that profit margins might be shrinking, as market expectations were missed in the most recent earnings announcement. Profit margin issues aren’t surprising given inflation, the sluggish economy, and the fears of recession. The questions come when trying to figure out how much recent Disney price increases might contribute to margin problems looking ahead if guests react negatively to those price hikes. Add into these unknowns the fact that park profits have served as offsets to streaming losses. 

 

For good measure, Iger apparently is not changing Chapek’s announced hiring freeze and focus on cost cutting. Again, that’s not surprising given the economic climate.

 

Creative  Questions

 

On the movies-television-streaming front, there’s been a great deal of talk about how Iger disagreed with Chapek’s distribution structure, whereby Chapek had units such as Disney Animation and Pixar make production decisions, while the distribution strategies would be centralized with the Disney Media and Entertainment Distribution division. That apparently is being undone by Iger. Whether that makes sense or not is open for debate. 

 

But bigger issues arguably are rumbling in the distance, in particular, concerns about the quality of the creatives at Disney these days. For example, Lightyear and Strange World effectively have bombed. Among questions swirling: Is quality storytelling being sacrificed for a variety of political preferences? To the degree that might be the case, there’s no evidence in Iger’s record or in his latest statements that he even sees any such problems. 

 

In addition, is Marvel’s spotty record in recent times the result of a system that resists bringing in well-established, top-notch directors, for example? Sam Raimi at the helm of Doctor Strange in the Multiverse of Madness was a rarity at Marvel these days. And on the Star Wars front, it seems like a complete crapshoot as to what new projects will look like from a quality standpoint, and how audiences will react. The lackluster response to the well-done Andor on Disney+ is a puzzle that needs to be solved.

 

And if there is a problem on the creative front, is Iger the man to deal with it given that his final stretch before leaving the company was as executive chairman focused on, as he put it, “the creative side of our business”?

 

Dealing with Politics

 

Iger has explicit political issues to deal with as well. The Walt Disney World Reedy Creek controversy is a big unknown for Disney, and Iger doesn’t seem to be up-to-speed on that yet. The Hollywood Reporter noted Iger’s recent response to the situation: “‘I had no idea what its ramifications are in terms of the business itself,’ Iger said of the move to shutter Reedy Creek, adding that he needs to learn more. ‘The state of Florida has been very important to us for a long time, and we have been very important to the state of Florida.’”

 

As for political controversy, it was noted in the Reporter story: “‘Do I like the company being embroiled in controversy? Of course not,’ he added, noting that ‘to the extent that I can quiet things down,’ he will try to do so.”

 

But there’s more. Disney has two parks in China – Shanghai and Hong Kong – and China is a communist dictatorship increasingly immersed in major controversies, from harsh treatment of its own people to threats to others, such as Taiwan.

 

Successor, Again

 

Looking further down the road, Iger has returned as a kind of interim CEO for two years, and one of his key mandates is to find the right successor. He didn’t do too well the last time with that task. We’ll see if he has a new way of thinking this time around.

 

Iger to Chapek: Why Now?

 

Amongst all of the reporting that I’ve read about Iger replacing Chapek, one issue has nagged at me. The following small excerpt, pretty much buried in a Wall Street Journal story, raises a warning sign in my mind, especially given the speed at which this all happened:

 

“Disney is moving some shows that were supposed to be Disney+ originals and air them first on other networks including the Disney Channel, people familiar with the matter said. By doing so, the costs of production and marketing of the shows — which included mystery show ‘The Mysterious Benedict Society’ and medical drama ‘Doogie Kameāloha, M.D.’ — would be shifted away from the streaming service, making its financial performance look better, they said. Ms. [Disney CFO Christine] McCarthy was concerned about this strategy, the people said.”

 

Hmmm. If other decisions by Chapek along these lines come to light, we might have an even clearer view as to why Bob Chapek got the boot, paving the way for Bob Iger’s return.

 

Disney Dealing with Same Issues Other Companies Are

 

Finally, while Chapek had to deal with a pandemic when he took the CEO reins, now Iger faces stagflation and economic uncertainty as he retakes those reins. That’s a fundamental challenge for CEOs across industries. Disney is not immune, and amidst questions about technology and streaming, this is not a new challenge. Like other CEOs, Iger will need to do the grand balancing act of maintaining profitability, cutting costs, and continuing to invest and innovate in a tough economic climate. 

 

Iger’s reputation already has taken a hit with the failure of his handpicked successor. Now, he’ll need to navigate rough economic waters, keep customers and shareholders happy, and get the right person to be Disney’s next CEO. Just another day at the office?

 

__________

 

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, and the Alliance of Saint Michael novels; and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.

 

The views expressed here are his own – after all, no one else should be held responsible for this stuff, right? Also, Keating is a Disney shareholder.

 

Ray Keating is the author of the Pastor Stephen Grant thrillers and mysteries. Just published is Persecution: A Pastor Stephen Grant Novel. Keating says, “I think Persecution might be the most action-packed of any of the Pastor Stephen Grant books so far.”

Signed books at https://raykeatingonline.com/products/persecution  

Kindle edition at https://www.amazon.com/dp/B0BHHJNNB4

 

Two great ways to order Cathedral: An Alliance of Saint Michael Novel, which is the first in the Alliance of Saint Michael series. Signed paperbacks here and the Kindle edition here

 

Two great ways to order Ray Keating’s new nonfiction book – The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist. Signed paperbacks here, and paperbacks, hardcovers and Kindle editions here.  

 

Also, check out Ray’s podcasts – the Daily Dose of DisneyFree Enterprise in Three Minutes, and the PRESS CLUB C Podcast.

Thursday, November 24, 2022

Happy Thanksgiving to All DisneyBizJournal Readers!

 by Beth Keating

Lifestyle/News

DisneyBizJournal.com

November 24, 2022

 

At our house, we are a divided family when it comes to the holidays. A few family members have been playing Christmas music since late October, while others do not consider the Christmas season ushered in until Santa makes his way to Herald Square at the end of the Macy’s Thanksgiving Day Parade in New York.  Then, it is permissible to start putting the tree up.

 

However, as a Disney family, it takes some adjusting to the fact that the “Disney Holiday Schedule” is a few beats off from the rest of the world.  Halloween starts in August, Mickey’s Christmas parties have been firing off for several weeks now, towering trees and snowflakes have graced the parks since November 1st… you get the idea.  In the past few weeks, the holiday gingerbread displays have also begun assembling.



We’ve enjoyed the Gingerbread House at the Grand Floridian in past years, and the themed carousal at Beach Club is always fun, but this year we were especially impressed by the gingerbread building at the BoardWalk Inn.  The BoardWalk display had been missing for several years, and in addition to being glad to see it back, we offer up a hearty round of applause to the culinary team who created the new confection.  It is incredibly detailed!

 

The gingerbread building is a replica of the Resort’s newest restaurant, the BoardWalk Deli

 

A large window allows a peek into the deli, with Chefs Mickey and Minnie hard at work on teeny tiny little samples of the BoardWalk Deli’s menu offerings in a kitchen so sculpted that the itty bitty appliances and cooking utensils seem ready to start baking.  The petite dishes lined up on the deli counters are adorable, and we particularly got a chuckle out of the miniature Mickey Ear cakes lined up on a bakery shelf. (Not saying that we’ve ordered those cakes for family birthdays in the past or anything…) 

 

Outside the “building,” the deli’s red striped awnings overlook tiny Christmas trees and a selection of benches, tables and chairs for hungry guests to enjoy Chef Mickey’s culinary treats. There are even miniature ornaments on the trees!  Talk about attention to detail!

 

Like many of the gingerbread spots on Disney property, there’s a pop-up shop to purchase some yummy gingerbread goodies and other treats and libations (and themed holiday merch, including BoardWalk ornaments and collectible pins, as well).



Just outside this enormous gingerbread construct is a sign that lists all the hard work and sweet ingredients that went into baking this beauty, with 200 hours of decorating time by the bakery “elves.” In all,  21 gallons of honey, 182 pounds of whole wheat rye flour, 182 pounds of light rye flour, 168 pounds of bread flour, 168 eggs, 3 gallons of egg whites, 30 pounds of powdered sugar, 0.5 pound of Cream of Tartar, 140 pounds of granulated sugar, 20 pounds of fondant, 5 pounds of ammonium carbonate, 10.58 pounds of Lebkuchen, a “heaping teaspoon of magic,” and “a sprinkle of pixie dust” went into this enormous replica.


And if you have the time, you’ll find 26 different hidden Mickeys throughout the gingerbread.  It could be a nice Thanksgiving… or Christmas… scavenger hunt for your family.

 

_______________

 

Beth Keating is a theme parks, restaurant and entertainment reporter for DisneyBizJournal.

 

Wednesday, November 23, 2022

Disney To Air Holiday Special On November 27

 by Beth Keating

News

DisneyBizJournal.com

November 23, 2022

 

As you recover from the food fest that is Thanksgiving, you and your family will be able to enjoy Disney’s annual “The Wonderful World of Disney: Magical Holiday Celebration.” It airs this Sunday, November 27, 2022 from 8:00 p.m.-10 p.m. (eastern time), or stream it the next day on Hulu and Disney+.



If you’ve visited the Disney parks in the past few weeks, you might have been able to catch a glimpse of some of the celebrities recording their performances ahead of the big special.  The segments were filmed at Walt Disney Resort in Florida, the Disneyland Resort in California, and, for the first time, on board the Disney Cruise Line’s newest ship, the Disney Wish.

 

The performances will incorporate a mix of holiday classics as well as popular hits, and will also sneak in a promo for Avatar: The Way of Water, coming to theaters on December 16, 2022. A bevy of guests will also chat about some of their own family holiday traditions.

 

Brother-sister duo Derek and Julianne Hough of “Dancing With the Stars” fame (among other Disney productions) will return as hosts of the event, which will include musical numbers from a dozen other entertainers, including a performance by Trevor Jackson from “grown-ish” onboard the Disney Wish.


“The Wonderful World of Disney: Magical Holiday Celebration” will bring additional numbers from the following stars:

 

  • Derek Hough and Julianne Hough – “Such a Night,” “My Favorite Things,” “I Gotta Feeling” medley
  • Becky G – “Frosty The Snowman” and “What Christmas Means to Me” with Chloe Flower and Ne-Yo
  • Black Eyed Peas – “A Cold Christmas” and “I Gotta Feeling”
  • Chloe Flower – “Carol of the Bells” and “What Christmas Means to Me” with Ne-Yo andBecky G
  • David Foster and Katharine McPhee – “Jingle Bell Rock”
  • Il Volo – “Adeste Fideles (O Come, All Ye Faithful)”
  • Jordin Sparks – “Trapmas Medley”
  • Maren Morris – “Rockin’ Around the Christmas Tree”
  • Meghan Trainor – “Here Comes Santa Claus” and “Made You Look” medley
  • Ne-Yo – “The Christmas Song (Chestnuts Roasting on an Open Fire)” and “What Christmas Means to Me” with Chloe Flower and Becky G
  • Run DMC – “Christmas in Hollis”

 

You can also tune in to the “Disney Parks Magical Christmas Day Parade” on December 25, 2022, from 10 a.m.-noon (eastern time) on ABC (or stream live on Hulu to all subscribers), where many of the same artists will offer up Christmas Day performances, in addition to the beloved annual parade featuring a float with Santa himself.

 

_______________

 

Beth Keating is a theme parks, restaurant and entertainment reporter for DisneyBizJournal.

Sunday, November 20, 2022

Disney Shocker: The Firing of Chapek and Return of Iger

 by Ray Keating

News/ Analysis

DisneyBizJournal.com

November 20, 2022

 

Disney supposedly is the company that makes dreams come true. Well, for all those diehard Disney fans, for unhappy shareholders, and for CNBC’s Jim Cramer, the Walt Disney Company has created some magic by doing the unthinkable. Not only has the board fired Bob Chapek as CEO tonight, but they are bringing back Bob Iger, former chairman and CEO, to run the House of Mouse.



Iger, who was CEO for 15 years (2005 to 2020), according to Disney, has been given a two-year contract, “with a mandate from the Board to set the strategic direction for renewed growth and to work closely with the Board in developing a successor to lead the Company at the completion of his term.”

 

The market eventually will decide if this was an act of desperation, or a timely decision to cut its losses with Chapek. DisneyBizJournal recently raised questions regarding Chapek possessing the skillset needed to lead a company like Disney (see here). Either way, the process of developing a successor didn’t work the last time with Iger. We’ll have to see if the second time is the charm. By the way, CNBC's Jim Cramer was publicly calling for Chapek to be dumped.

 

Susan Arnold, chairman of the board, said, “We thank Bob Chapek for his service to Disney over his long career, including navigating the company through the unprecedented challenges of the pandemic. The Board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the Company through this pivotal period. Iger has the deep respect of Disney’s senior leadership team, most of whom he worked closely with until his departure as executive chairman 11 months ago, and he is greatly admired by Disney employees worldwide—all of which will allow for a seamless transition of leadership.” 

 

Iger declared, “I am extremely optimistic for the future of this great company and thrilled to be asked by the Board to return as its CEO. Disney and its incomparable brands and franchises hold a special place in the hearts of so many people around the globe – most especially in the hearts of our employees, whose dedication to this company and its mission is an inspiration. I am deeply honored to be asked to again lead this remarkable team, with a clear mission focused on creative excellence to inspire generations through unrivaled, bold storytelling.”

 

The hope obviously is that Iger will be able to put out assorted fires that Chapek either started or seemed clueless in handling. The Disney board is expecting that his experience with the company will allow Iger to right the ship, and set the company up with the right person going forward. At the same time, some have to be wondering about the board’s inability to get beyond Iger.

 

__________

 

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, and the Alliance of Saint Michael novels; and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.

 

The views expressed here are his own – after all, no one else should be held responsible for this stuff, right? Also, Keating is a Disney shareholder.

 

Ray Keating is the author of the Pastor Stephen Grant thrillers and mysteries. Just published is Persecution: A Pastor Stephen Grant Novel. Keating says, “I think Persecution might be the most action-packed of any of the Pastor Stephen Grant books so far.”

Signed books at https://raykeatingonline.com/products/persecution  

Kindle edition at https://www.amazon.com/dp/B0BHHJNNB4

 

Two great ways to order Cathedral: An Alliance of Saint Michael Novel, which is the first in the Alliance of Saint Michael series. Signed paperbacks here and the Kindle edition here

 

Two great ways to order Ray Keating’s new nonfiction book – The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist. Signed paperbacks here, and paperbacks, hardcovers and Kindle editions here.  

 

Also, check out Ray’s podcasts – the Daily Dose of DisneyFree Enterprise in Three Minutes, and the PRESS CLUB C Podcast.

Friday, November 18, 2022

Disney Cruise Line Acquires “Global Dream”

 by Beth Keating

News

DisneyBizJournal.com

November 18, 2022

 

Disney cruise fans all seem to have their favorite ship in Disney’s fleet, but they will soon have an even bigger ship to choose from. The Disney Cruise Line has announced that it will acquire the unfinished Global Dream cruise ship, bringing their future fleet to a total of eight ships.

 

The 208,000-gross-ton Global Dream has been under construction in Germany since 2018, and was being built for Genting Hong Kong (Dream Cruises), which filed for bankruptcy, forcing a court-ordered sale of its assets, including the Global Dream. According to Disney, they were then able to acquire the ship “at a favorable price.”


Source: Disney Cruise Line website


The Global Dream’s capacity is about 9,000 passengers, but Disney Cruise Line plans for a maximum capacity of about 6,000 guests along with 2,300 crew members.  Current Disney ships clock in at 4,000 guests or under, with the newest ship, Disney Wish (2022), at 1,254 staterooms for a 4,000-passenger capacity and 1,555 person crew.  Disney Magic (1998), the first ship in the fleet, was only 875 staterooms with a 2,713-passenger capacity and 950 person crew. The Disney Wonder (1999) had the same capacity as Disney Magic, and both the Disney Dream (2011) and Disney Fantasy (2012) have 1,250 staterooms for a 4,000-passenger capacity and 1,458 person crew. 

 

The Meyer Werft shipyard in Wismar, Germany, which built the Disney Wish, Disney Fantasy and Disney Dream, will continue construction on the Global Dream, which will be renamed as part of Disney’s fleet.  While the Global Dream is slated to take to the high seas in 2025, Disney is also expecting to receive delivery of the Disney Treasure in 2024.  The Treasure is the sister ship to the recently launched Disney Wish.  A third Trident Class ship for Disney’s fleet will head to the water in 2025 under a yet-to-be announced name, before bringing the Global Dream to the team. 

  

Global Dream will be based outside the United States, but its itinerary has not yet been announced. However, Disney Cruise Line plans to bring the ship to “new global destinations.” Disney has also indicated that the new ship will run on green methanol, one of the first in the cruise industry to use the low-emission fuel. 

_______________

 

Beth Keating is a theme parks, restaurant and entertainment reporter for DisneyBizJournal.

Thursday, November 17, 2022

Disneyland Resort Resumes Selling Three of the Four Magic Key Annual Passes

 by Beth Keating

News

DisneyBizJournal.com

November 17, 2022

 

(Update, November 18, 2022: One day after announcing that three of four Disneyland Magic Key annual passes went back on sale, Disney announced that those sales were stopped.)

 

Run – don’t walk – if you’ve been waiting to purchase annual passes to Disneyland’s theme parks in California. Three of the four Magic Key annual passes went back on sale yesterday, via either the Disneyland app or the Disneyland website, and one never knows when those sales will again come to an abrupt halt, as they did back in the spring. The last of the passes ceased sales in May, with the higher tiers unavailable since fall of 2021.



Disney warns that passes or certain pass types are subject to limited availability, so if you were planning on getting those passes as Christmas gifts, or heading to the parks for a 2023 vacation, get on your computer quickly. 

 

After a six-month drought, the passes are returning at the same prices they were previously offered. The only pass not currently for sale is the Enchant pass; however, those holding existing Enchant keys will be able to renew them as long as they renew BEFORE their passes expire.  

 

Magic Key prices are:

 

• Inspire: $1,599

• Believe: $1,099

• Enchant: $699 (only for renewals)

• Imagine: $449 (however, they are available to Southern California residents in certain zip codes only)

 

Each pass comes with its own set of block out dates, as well as differing “perks” per level, including varying numbers of reservations that can be held at one time; differing discounts on food and merchandise;  and varying inclusions on parking, PhotoPass offers, and Genie+ discounts.

 

Because of high demand, Disney has established a virtual queue for purchasing the Magic Keys; as of the writing of this article this morning, the wait time in the queue was estimated to be more than an hour before entering the actual purchase link.

 

Could the availability of the Magic Keys have something to do with Disney’s poor showing at last week’s Q4 earnings report?  With inflation looming, dips in stock prices, and news of layoffs and hiring freezes, Disney may be realizing they need the influx of cash from those annual pass holders after all.  There’s been no word yet as to whether annual pass sales will resume at Disney World in Florida.

 

_______________

 

Beth Keating is a theme parks, restaurant and entertainment reporter for DisneyBizJournal.

Sunday, November 13, 2022

Recent Disney News in Perspective: Earnings, the Cramer Rant, and the Chapek Cost Memo

 by Ray Keating

Analysis

DisneyBizJournal.com

November 13, 2022

 

The Walt Disney Company was in the news a great deal last week, and none of it was the type of news that pleases shareholders. At the same time, the realities, reports and reactions need to be put into proper perspective.



First, there was Disney’s disappointing earnings announcement for the fourth quarter 2022. The bottom line is that both earnings and revenues fell short of market expectations, and the Disney stock price was punished as a result. 

 

However, assorted talking heads and analysts focused on the losses at Disney+. That’s interesting because there really wasn’t anything all that new there. Disney noted that the fourth quarter loss for Disney+ would be the peak loss, followed by declining shortfalls, and then reaching profitability at some point in 2024. That all lined up with what the company reported previously. The only real difference was a warning that unforeseen economic woes could affect this scenario. That’s just common sense, and should have surprised no one.

 

Second, CNBC’s Jim Cramer called for the firing of Disney CEO Bob Chapek. Cramer has become a cartoonish character on a financial news network. So, do what you will with his Chapek call. At the same time, however, Cramer brings attention to an issue that is increasingly under serious consideration. Chapek obviously was dealt a brutal hand as former Disney CEO Bob Iger suddenly retired just before COVID-19 struck in the U.S. Indeed, though it has not received much attention, given Iger’s on-again-off-again retirement dance before that, one has to wonder if he had some vague idea of what was coming, given what already had been going on COVID-related beyond the U.S. at that point, and simply didn’t want to be in the CEO seat to deal with it. Having said all of this, two years and nine months into Chapek’s reign, it’s hard to find anything to give him a thumbs-up on as time passes. 



Most glaring, the CEO of Disney requires a public touch and a creative vision that do not seem to be in Chapek’s skillset.

 

Third, and finally, there’s the Chapek costs memo that was widely reported on on November 11. Let’s put aside the hyperbole shooting around the internet, and look at five key points that are actually in the memo that Chapek sent to top management.

 

• “I have established a cost structure taskforce of executive officers: our CFO, Christine McCarthy and General Counsel, Horacio Gutierrez. Along with me, this team will make the critical big picture decisions necessary to achieve our objectives.”

 

• “First, we have undertaken a rigorous review of the company’s content and marketing spending working with our content leaders and their teams. While we will not sacrifice quality or the strength of our unrivaled synergy machine, we must ensure our investments are both efficient and come with tangible benefits to both audiences and the company.”

 

• “Second, we are limiting headcount additions through a targeted hiring freeze. Hiring for the small subset of the most critical, business-driving positions will continue, but all other roles are on hold.”

 

• “Third, we are reviewing our SG&A [i.e., selling, general and administrative] costs and have determined that there is room for improved efficiency—as well as an opportunity to transform the organization to be more nimble. The taskforce will drive this work in partnership with segment teams to achieve both savings and organizational enhancements. As we work through this evaluation process, we will look at every avenue of operations and labor to find savings, and we do anticipate some staff reductions as part of this review.”

 

• “Our transformation is designed to ensure we thrive not just today, but well into the future—and you will hear more from our taskforce in the weeks and months ahead. I am fully aware this will be a difficult process for many of you and your teams. We are going to have to make tough and uncomfortable decisions. But that is just what leadership requires, and I thank you in advance for stepping up during this important time.”

 

These agenda items are far from what’s been said about the memo online. In fact, this is pretty standard stuff for large companies. 

 

No matter how good the management system, the sheer size of a company like Disney, for example, with some 190,000 employees, requires periodic evaluations of costs, and reining them in. Add in a poor economy – in particular, the current stagflation, that is, high inflation combined with recession or slow growth, and future uncertainties – and the reasons for such a review mount. 

 

At the same time, the question whenever such an endeavor is undertaken is: How will this affect the quality of the product? Chapek is right that such an effort should make the company “more efficient and nimble,” and “not sacrifice quality.” But there’s more. Quality and innovation must continue, even as costs are being evaluated and reduced. That will be critical for streaming, the parks, resorts, the cruise line, and so on. 

 

Make no mistake, creativity and innovation tend to thrive at smaller, entrepreneurial firms, while these critical activities become bigger and bigger challenges for large, long-established businesses. At nearly 100 years old, Disney has earned praise for doing so throughout much of its existence. But there have been times when creativity and innovation suffered at Disney, and there are no guarantees going forward.

 

Once again, serious questions and doubts now stand out as to whether or not Bob Chapek is up for handling all of this. Namely, is Chapek the right person to rein in costs while spurring creativity and innovation, and improving quality? Well, we know what Jim Cramer thinks.

 

__________

 

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, and the Alliance of Saint Michael novels; and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.

 

The views expressed here are his own – after all, no one else should be held responsible for this stuff, right? Also, Keating is a Disney shareholder.

 

Ray Keating is the author of the Pastor Stephen Grant thrillers and mysteries. Just published is Persecution: A Pastor Stephen Grant Novel. Keating says, “I think Persecution might be the most action-packed of any of the Pastor Stephen Grant books so far.”

Signed books at https://raykeatingonline.com/products/persecution  

Kindle edition at https://www.amazon.com/dp/B0BHHJNNB4

 

Two great ways to order Cathedral: An Alliance of Saint Michael Novel, which is the first in the Alliance of Saint Michael series. Signed paperbacks here and the Kindle edition here

 

Two great ways to order Ray Keating’s new nonfiction book – The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist. Signed paperbacks here, and paperbacks, hardcovers and Kindle editions here.  

 

Also, check out Ray’s podcasts – the Daily Dose of DisneyFree Enterprise in Three Minutes, and the PRESS CLUB C Podcast.