Disney's new CEO is stepping in during a wild time for media
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There's a new top mouse in the Magic Kingdom.
Today marks Josh D'Amaro's first day as CEO at Disney. The longtime parks guru is no stranger to the Mouse House, having spent nearly three decades there. But stepping into Bob Iger's shoes is a whole different story, even if he's dressed the part for a while.
It's not just the fact that Iger's already proven to be a hard guy to replace. (Just ask Bob Chapek.) D'Amaro is taking over a business that could use a refresh, writes BI's James Faris.
Some of Disney's issues stem from the big and small screens. The box office hasn't been kind to Disney when it comes to new franchises. And its streamers' US viewership share and watch time have recently stagnated.
It's a unique challenge for D'Amaro since the entertainment side of the business is outside his wheelhouse. But it's not something he can ignore.
Franchises often serve as the basis for new park attractions. And with Disney parks consistently hiking prices, it's unclear how much more juice is left to squeeze.
D'Amaro's success with parks also hasn't been enough to sway investors' broader view of Disney. The stock is almost 50% below its 2021 peak and down 10% this year alone.
Disney's problems aren't just internal.
The media industry is in the middle of some serious shake-ups that D'Amaro will need to contend with.
The Netflix factor. You can't talk about the entertainment industry without mentioning the dominant player. Netflix missed out on Warner Bros., but it's still the de facto cable of the cord-cutting era.
The new kid on the block. As a former media titan, Paramount is hardly "new." But David Ellison has breathed life into Paramount after a string of deals, most recently beating out the aforementioned Netflix for WBD. Can he pull it all together, though?
Sports! ESPN's "Worldwide Leader in Sports" moniker feels less accurate these days, as more streamers are getting into live sports. The rising price for league rights has also become a pain for Disney, as evidenced by last year's YouTube dispute. And the jury's still out on ESPN's streaming service.
AI killed the Hollywood star. "BLANK is worried about AI" works for almost any industry, but the impact on Tinseltown already feels very real. Disney has big plans to leverage AI through a deal with OpenAI. Successfully executing on that strategy when rivals are looking to do the same won't be so easy.