Questions to Be Answered by Bob Iger’s Return
Welcome back to your old job, Bob Iger! Now that you’ve been back long enough to unpack, it’s time to get serious!
Here are a few questions you need to answer and thereby reassure Disney fans!
Photo: CBR.com
Will Disney Roll Back Some of the Price Increases?
In less than three years, Bob Chapek somehow became the Disney equivalent of a Times Square mugger.
Every time Disney announced something, we cringed in fear that he was going to tell us about price increases.
Photo: Center Watch
Chapek went so far as to convert a formerly free amenity, the beloved FastPass, into a paid service Disney Genie+.
As if that indignity wasn’t enough, the fixed pricing structure of $15 daily lasted just a year.
Photo: Disney
One of Chapek’s final moves as CEO was to implement a tiered pricing strategy, which led to Disney Genie+ costing $29 per person on Monday.
When I think about that, I kinda want to take off my glove, slap him, and challenge him to a duel. Under Chapek, Disney increased the prices on everything from hotel stays to ticket prices to water bottles.
MickeyBlog recently busted Disney on its reduced salad portions. The whole thing under Chapek felt petty, cheap, and inconsiderate.
Photo: CNBC
Fans are incredibly loyal to Disney. Why would Chapek kick us so often?
To Iger’s credit, he reportedly bristled at some of these decisions and heavily campaigned against them.
Photo by Chip Somodevilla/Getty Images
So, I expect Iger to roll back the prices on some features, at least in the short term. It’s an easy win for him as a way to build goodwill with mistreated customers.
At this point, Disney needs to make some conciliatory gestures. Iger’s smart enough to know that.
Photo: AFP
Will Disney Still Perform Layoffs?
Here’s a challenging conversation.
Disney executives evaluated the company’s fiscal 2023 projections and panicked a bit, as did Wall Street.
Photo: History.com
In truth, Chapek no longer has a job because of those dreaded “headwinds” indicating impending financial peril for Disney.
Just before he left, Chapek announced a hiring freeze and impending layoffs.
Photo: Disney
The way he did it was infuriating, as he named a three-person panel to perform the cuts. And yes, Chapek was part of that committee, as was his CFO.
Nothing about this move seemed like it was on the up and up. However, Iger’s mere arrival won’t stop Disney from losing money immediately.
Photo Credit: ABCNews.go.com
Will Disney’s leader still perform layoffs, knowing how unpopular that decision will be?
To a larger point, how much extra runway does Iger get due to his reputation?
Photo:NYpost.com
Will Wall Street cut him a break with the balance sheets in a way they never would have with Chapek? I’m inclined to say yes.
For this reason, I don’t view layoffs as an immediate imperative. Iger will likely tip his hand during his Town Hall next week.
Photo: Getty Images
Will Magical Express Return?
As a fan, let me say that I really hope so.
Our most recent Disney trips felt so different for me. There we were, watching with envy as a limo driver picked up Cody Rhodes right beside us at Orlando International Airport (MCO).
Photo: OIA
Meanwhile, we had to order a Lyft to take us to our hotel. In the past, Magical Express would have acted as Cinderella’s Carriage for us.
The service extends the Disney Bubble to the airport, as Disney luxury starts the instant you check your bags.
Photo Credit: DVDRentalStore.com
Without Magical Express, you must wait for your bags at MCO and are completely on your own in terms of hotel transportation. It’s decidedly un-Disney.
Frankly, I’m not in good enough shape to become a famous professional wrestler like Cody Rhodes. I need Magical Express to come get me at the airport!
Photo: Disney
I’m being a bit facetious here, but all Disney fans who fly into MCO desperately miss Magical Express. Relative to its cost, it does more good for Disney than harm.
This amenity needs to return, and I’m confident Iger recognizes that.
Will Iger Stick with Park Passes?
We all hope the answer is no. But here’s the challenging portion of the matter.
Disney introduced Park Passes as a stopgap measure to ensure social distancing during the pandemic, particularly in the early days.
Then, Chapek and his team recognized a financial opportunity. By using Park Passes, Disney gained a more accurate headcount and could staff more efficiently.
With Disney facing significant financial challenges in 2023, would Iger eliminate a strategy that has worked so well for the company?
Photo: Pexel.com
The answer depends on how much Iger values customers. From a business perspective, there’s sadly little justification to drop Park Passes.
Since Disney fans hate them, Iger would be doing it just for us. I want Park Passes to go away, but I suspect they’re here for a while longer. Prove me wrong, Bob!
Photo: Attractions Magazine
When Will Disney Announce New Park Projects?
Something I hear regularly from other Disney analysts is how strangely Chapek behaved as CEO.
The man anchored the final stage of his career ascension on his achievements as the head of Disney’s theme parks.
Photo: orlandoattractions.com
Stuff we’ll love forever like Star Wars: Galaxy’s Edge happened because of Chapek.
That knowledge shows why the past few years have been so curious. As many of you know, I write about Disney Rumors each month.
That well dried up within a year after Chapek took over. He hand-picked the people running Walt Disney World, Disneyland Resort, and the entire Parks division.
With such a small circle of allies, Chapek controlled the conversation about Disney’s future park plans. Mostly, there weren’t any.
Photo: Disney
Yes, we’re getting Tiana’s Bayou Adventure and Journey of Water| Inspired by Moana plus the new Mickey’s Toontown in the United States.
Other than that, there simply isn’t any news about coming attractions.
Photo: D23
Disney oddly used D23 to talk about maybe/possibly/it could happen ideas for the future. What executives failed to do so was announce finite plans.
There’s a prevailing belief that movement is occurring behind the scenes at Disney’s Animal Kingdom, but even that feels tenuous.
The honest evaluation is that Chapek forgot the parks, which had been his bread and butter. Even worse, he ignored them at a time when he was asking guests to pay more.
I keep talking about easy wins that Iger could get during the early part of his tenure. Greenlighting a couple of park projects would be a HUGE one.
(Photo by Jemal Countess/Getty Images)
What’s the Succession Plan?
For all Iger’s many successes, he spit the bit on succession. Even his most ardent supporters must admit the truth of that statement.
Over the years, we’ve watched candidates with various merits like Jay Rasulo, Anne Sweeney, Thomas Staggs, John Skipper, and Kevin Mayer vanish.
Photo: CNBC/ Getty
Only Skipper’s situation was beyond Iger’s control. Everyone else’s candidacy came down to Iger thinking they weren’t the person.
When Iger finally did choose someone, it was Chapek. Do I even need to finish that thought?
Photo: CNBC
Now, Iger only has two years to determine who should lead the new Disney with its strong technological/digital credentials.
Will Iger try to bring back someone he previously dismissed, will he find an internal candidate worthy of being CEO, or will he stay for longer than he has indicated?
Photo: Playbuzz.com
What’s the plan here? Does Iger even have one yet? If not, how long will it take him to create one?
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Feature Photo by Chip Somodevilla/Getty Images
