Bob Iger Returns/Disney CEO Thread (2022)

[UniversalRBLX]

Anyone expecting prices to drop is delusional. Discounts and promotions sure, but pricing will never decline.

The problem with Chapek is that he looked for every potential up charge they could do… parking at hotels, paid lightning lanes, more after hour events, etc. The other problem was the lack of whimsy in their hotels, restaurants, shops, etc.

D’maro won’t make the parks cheaper, but he can certainly make the overall experience better.

 

[MAC]

Anyone expecting prices to drop is delusional. Discounts and promotions sure, but pricing will never decline.

The problem with Chapek is that he looked for every potential up charge they could do… parking at hotels, paid lightning lanes, more after hour events, etc. The other problem was the lack of whimsy in their hotels, restaurants, shops, etc.

D’maro won’t make the parks cheaper, but he can certainly make the overall experience better.

I think most people wouldn't mind the prices if they felt like they were getting a comparable value in return. Each person is different in that regards (in terms of what value they receive and what 'price tag' they put that value at). If all the little things were there, it would go a long way to adding to that value for minimal costs (when compared to a new attraction). Street entertainment, varied offerings, etc. can truly make something feel unique instead of spending hundreds of millions on a new attraction.

 

[Jerroddragon]

Disneyland to me is the best example of

I think most people wouldn't mind the prices if they felt like they were getting a comparable value in return. Each person is different in that regards (in terms of what value they receive and what 'price tag' they put that value at). If all the little things were there, it would go a long way to adding to that value for minimal costs (when compared to a new attraction). Street entertainment, varied offerings, etc. can truly make something feel unique instead of spending hundreds of millions on a new attraction.

I just want new shows

Six Flags FF made 4 (5 if you count the new Scaremoney) shows and Disney is out here being like....next year for Disneyland we have no new rides and we have shows from 10-15 years ago returning

Like WTF are we doing here, and I love Bluey the show but very surprised they didn't have a Halloween and Holiday version ready to go...its like made for that

Its just insane to me that OBBB sells out everyone night like people can complaing about HHN repeating a house or two but they at least try, Disneyland replaced two villains which really isn't much of an investment and even having to take the parade way they had nothing new to show for it...sure they do the dance party with the HM characters but thats all things they already owned

Its really insane to me people pay 200 bucks for the same event or park that we had a year ago, I know Disneyland is the best but everything keeps costing more and just not enough new for me to be interested without a discount Ticket

 

[deadbydawn]

Iger using Chapek as a fall guy for the implementation of anti-consumer practices only can do so much to cover for why Chapek was bad

The guy was not just uncharismatic in his demeanor, but routinely said and did things that made fans and people within the company dislike him

I have zero doubt that Disney would have suffered similarly had Iger not stepped down, but even if I don't like the guy, he still has had some positive contributions to the company. I can not say the same for the other Bob. And based on what we know, had he been in charge pre-COVID it would have likely been much worse

This is sort of where my thinking has been on the entire situation.

I believe Iger had/has a very difficult time with the idea of stepping down (which seems to be a theme among Disney CEOs) and I think that he was laser focused on his legacy the last couple of years almost to a fault. I have never really bought into the "he set Chapek up to fail" thing, I think he made a quick decision, it was the wrong move, and he used the opportunity to come back and "right the ship" to win fans back, secure his legacy, and then pick another successor and sail off into the sunset (purchase an NBA team). It's not really that different from when he became CEO after Michael Eisner. All he had to do was the opposite of everything Eisner had done the last handful of years. That isn't to discredit the great things he did do as CEO, I am just making the comparison.

Bob Chapek writing a book about his life or career isn't really shocking to me - what is interesting is digging up all this stuff again and just reminding everyone about it. I see very little gain in the court of public opinion happening. Not really sure what the endgame is.

I have mentioned this several times, but anyone who hasn't yet read DisneyWar should absolutely do that. I promise it is worth your time.

 

[HandsomePete]

Bob Chapek writing a book about his life or career isn't really shocking to me - what is interesting is digging up all this stuff again and just reminding everyone about it. I see very little gain in the court of public opinion happening. Not really sure what the endgame is.

It’s pretty clear that his ego is bruised. I go back and forth on how much sympathy I have for him - on one hand, the company could have handled his firing in a way that gave him a bit softer landing and Iger was clearly hovering in an unhealthy way. But on the other hand, he was also not good at the job and - while I haven’t read the book - the excerpts make it look like he doesn’t take accountability for mistakes.

The bit about the Starcruiser is completely unhinged. First, the statement that “it’s a known fact that no hotel is ever profitable in the first year” is plainly false. Even in a traditional context where a developer has to take out a loan to build a hotel, there’s nothing in the first year that makes it intrinsically less profitable than year two, three, four, etc.

The problem with the Starcruiser was:

It was basically a “Chapek says this is happening” project.

That’s you bud. Was the data you looked at great? Clearly not. But did you know what questions to ask your team before you signed off on the investment? Also clearly not. Did you understand that building a bad attraction can just sort of disappear into the P&L but there’s nowhere to hide the P&L when you build a bad hotel? Obviously not.

It was inevitable that he was going to get a deal to write a book, but this has to damage his ability to get another job… unless his payoff was good enough that he doesn’t need another one.

 

[MAC]

It was inevitable that he was going to get a deal to write a book, but this has to damage his ability to get another job… unless his payoff was good enough that he doesn’t need another one.

It's been almost 4 years. Is anyone clamoring to hire him? And he got $7-8 million in cash, plus another $12 million in stocks (plus whatever he already had). If I was him, I'd be enjoying my life instead of dealing with corporate BS.

 

[Jerroddragon]

Sorry if someone else pointed this out but if Bob Chapek is so bad then why are so many of his policies still happening? Like Disney is like this guy sucks as they still sell single LL, Disney plus coast like 200% more then when it launched and what not....once again both Bobs but it is funny how he was bad yet they still do many of the things be brought to the company

 

[rageofthegods]

Part of Chapek's legacy is probably going to be as a sin eater for a lot of unpopular but profitable policies that were either in the works before or that Disney is in no hurry to reverse right now.

In terms of stuff he did that was bad and got reversed, he did make a bunch of unpopular organizational moves that got nixed the second he got shoved out out (e.g. Disney's media & distribution department which took budgetary and operational control away from creatives).

 

[Parkscope Joe]

It’s pretty clear that his ego is bruised. I go back and forth on how much sympathy I have for him - on one hand, the company could have handled his firing in a way that gave him a bit softer landing and Iger was clearly hovering in an unhealthy way. But on the other hand, he was also not good at the job and - while I haven’t read the book - the excerpts make it look like he doesn’t take accountability for mistakes.

The bit about the Starcruiser is completely unhinged. First, the statement that “it’s a known fact that no hotel is ever profitable in the first year” is plainly false. Even in a traditional context where a developer has to take out a loan to build a hotel, there’s nothing in the first year that makes it intrinsically less profitable than year two, three, four, etc.

The problem with the Starcruiser was:

That’s you bud. Was the data you looked at great? Clearly not. But did you know what questions to ask your team before you signed off on the investment? Also clearly not. Did you understand that building a bad attraction can just sort of disappear into the P&L but there’s nowhere to hide the P&L when you build a bad hotel? Obviously not.

It was inevitable that he was going to get a deal to write a book, but this has to damage his ability to get another job… unless his payoff was good enough that he doesn’t need another one.

I've had two people I trust tell me opposite things on the Starcruise being profitable. That plus some other things leade me to belive that this was pretty fly-by-the-seat-of-your-pants operation (the hotel GM was doing house keeping turn-over!) that if it was operating smoothly was likely to cost even MORE money to operate. I think a Star Wars hotel is a hit idea, I think an immersive Star Wars adventure a la LARPing is a great idea, I just don't think putting them together was smart (also you could probably price them separately higher than the combined cost for the SWGS!) But immersive shows running expensive and barely being profitable isn't new (looks at Emursive).

It's been almost 4 years. Is anyone clamoring to hire him? And he got $7-8 million in cash, plus another $12 million in stocks (plus whatever he already had). If I was him, I'd be enjoying my life instead of dealing with corporate BS.

He was appointed to the board of Masimo, best known for being a patent troll and suing Apple to stop blood pressure redings on their watches.

Sorry if someone else pointed this out but if Bob Chapek is so bad then why are so many of his policies still happening? Like Disney is like this guy sucks as they still sell single LL, Disney plus coast like 200% more then when it launched and what not....once again both Bobs but it is funny how he was bad yet they still do many of the things be brought to the company

"First one's free", hard to cut the habbit once you start it. My eyes wattered looking at the LLMP and LLSP prices for my Dec trip.

 

[UniversalRBLX]

Sorry if someone else pointed this out but if Bob Chapek is so bad then why are so many of his policies still happening? Like Disney is like this guy sucks as they still sell single LL, Disney plus coast like 200% more then when it launched and what not....once again both Bobs but it is funny how he was bad yet they still do many of the things be brought to the company

Once a revenue driver is proven, nobody is willing to step up to the plate and remove it, no matter the goodwill it loses a company. A large public company like Disney is not going to remove a large revenue driver without either a replacement or justification.

And to be fair, they did remove paid parking at resorts… which likely had data to prove that it was either costing them in dropped reservations or brand reputation.

Disney+ was always expected to increase in price. The business model was built around making it cheaper at the start to draw people in and then capitalize once they had enough content to justify price increases.

Disney will always look for additional revenue streams, the problem was that the Chapek era did it too often and in poor taste.

 

[Jerroddragon]

Once a revenue driver is proven, nobody is willing to step up to the plate and remove it, no matter the goodwill it loses a company. A large public company like Disney is not going to remove a large revenue driver without either a replacement or justification.

And to be fair, they did remove paid parking at resorts… which likely had data to prove that it was either costing them in dropped reservations or brand reputation.

Disney+ was always expected to increase in price. The business model was built around making it cheaper at the start to draw people in and then capitalize once they had enough content to justify price increases.

Disney will always look for additional revenue streams, the problem was that the Chapek era did it too often and in poor taste.

I mean I think its just packaged differently

Not only is Disney plus more money then ever they also removed language that says the top tier won't have ads....so thats pretty dam bad in my books

I know not all things are the same but like I said, its just funny he was so bad then they kept more then half the stuff he did....so just pointing it out as funny

 

[HandsomePete]

I've had two people I trust tell me opposite things on the Starcruise being profitable. That plus some other things leade me to belive that this was pretty fly-by-the-seat-of-your-pants operation (the hotel GM was doing house keeping turn-over!) that if it was operating smoothly was likely to cost even MORE money to operate. I think a Star Wars hotel is a hit idea, I think an immersive Star Wars adventure a la LARPing is a great idea, I just don't think putting them together was smart (also you could probably price them separately higher than the combined cost for the SWGS!) But immersive shows running expensive and barely being profitable isn't new (looks at Emursive).

That’s not surprising - I have no doubt that the revenues of the hotel were higher than the operating costs. But it needs to do a lot better than just profitable on paper to actually be worth what they spent on it. That $200M hole is not going to show up on the P&L that Ops Finance is managing, nor will things like the $1.2M property tax bill.

I think immersive experiences/art/etc do a lot better as passion projects where everyone knows the point isn’t to make piles of money, but when you put something like Starcruiser next to the piles of money the other hotels generate it doesn’t look so great. I have a hypothesis that an experience like this would be feasible at WDW, but when the theme park side was tepid on it WDI found some naive people on the resorts side who leaned too hard on “wouldn’t it be cool if” instead of critically evaluating the idea.

 

[UniversalRBLX]

Finished reading Chapek’s book, and he does nothing but boast his allegiance to financial earnings and shareholder growth.

Across the book he doesn’t appear charismatic, just the typical bottom-line focused executive. Not necessarily a bad individual to have for your consumer products driven department, but as the face of a media empire it was a horrendous choice.

It was odd, yet expected, to see him paint passholders and locals as a nuisance. I thought he would lighten up on the subject, but continued his charade of blaming them for the increased attendance at the parks and ruining the experience (never mentioned the lack of proper capacity additions, reduced entertainment offerings, increase in upcharge dessert parties, cabanas, etc.). He also gloated about taking advantage of additions previously approved during the Staggs era.

I don’t think the company (specifically Iger) handled the transition situation very well and I can’t blame Chapek for feeling as the scape-goat for the poor decision to purchase Fox and Covid downfall.

Overall, it’s a hit on Iger that falls flat. Iger made questionable decisions, but the book doesn’t make you feel any sympathy for Chapek. He’s a good business executive, but not a great face for Disney.

 

[Mad Dog]

Finished reading Chapek’s book, and he does nothing but boast his allegiance to financial earnings and shareholder growth.

Across the book he doesn’t appear charismatic, just the typical bottom-line focused executive. Not necessarily a bad individual to have for your consumer products driven department, but as the face of a media empire it was a horrendous choice.

It was odd, yet expected, to see him paint passholders and locals as a nuisance. I thought he would lighten up on the subject, but continued his charade of blaming them for the increased attendance at the parks and ruining the experience (never mentioned the lack of proper capacity additions, reduced entertainment offerings, increase in upcharge dessert parties, cabanas, etc.). He also gloated about taking advantage of additions previously approved during the Staggs era.

I don’t think the company (specifically Iger) handled the transition situation very well and I can’t blame Chapek for feeling as the scape-goat for the poor decision to purchase Fox and Covid downfall.

Overall, it’s a hit on Iger that falls flat. Iger made questionable decisions, but the book doesn’t make you feel any sympathy for Chapek. He’s a good business executive, but not a great face for Disney.

Yeah. Maybe Chapek would have been OK for some other type of corporation. But his ways were a real negative for Disney, especially their theme parks. Disney is a company that depends on its 'brand', more than anything else. Chapek was a detriment to the brand. And from what I've read about his book, he just 'doesn't get it', even after he was unceremoniously whacked.

 

[Skold]

Finished reading Chapek’s book, and he does nothing but boast his allegiance to financial earnings and shareholder growth.

Across the book he doesn’t appear charismatic, just the typical bottom-line focused executive. Not necessarily a bad individual to have for your consumer products driven department, but as the face of a media empire it was a horrendous choice.

It was odd, yet expected, to see him paint passholders and locals as a nuisance. I thought he would lighten up on the subject, but continued his charade of blaming them for the increased attendance at the parks and ruining the experience (never mentioned the lack of proper capacity additions, reduced entertainment offerings, increase in upcharge dessert parties, cabanas, etc.). He also gloated about taking advantage of additions previously approved during the Staggs era.

I don’t think the company (specifically Iger) handled the transition situation very well and I can’t blame Chapek for feeling as the scape-goat for the poor decision to purchase Fox and Covid downfall.

Overall, it’s a hit on Iger that falls flat. Iger made questionable decisions, but the book doesn’t make you feel any sympathy for Chapek. He’s a good business executive, but not a great face for Disney.

Yeah. Maybe Chapek would have been OK for some other type of corporation. But his ways were a real negative for Disney, especially their theme parks. Disney is a company that depends on its 'brand', more than anything else. Chapek was a detriment to the brand. And from what I've read about his book, he just 'doesn't get it', even after he was unceremoniously whacked.

 

[belloq87]

Overall, it’s a hit on Iger that falls flat.

There's another book coming in December -- THE HOUSE OF MOUSE -- that may provide more fireworks in this regard.

Disney's apparently hired an outside lawyer/consultant specifically to mount a response once the book is published.

Note: I don't expect it to be a "hit" piece, as that implies a level of unfairness in approach. But I'm expecting it to be highly unflattering.

 

[TheGentTrent]

The problem with Chapek is that he looked for every potential up charge they could do… parking at hotels, paid lightning lanes, more after hour events, etc. The other problem was the lack of whimsy in their hotels, restaurants, shops, etc.

Outside of the hotel parking (which started during Iger’s reign), all of the stuff you listed is still in place today.

 

[UniversalRBLX]

Outside of the hotel parking (which started during Iger’s reign), all of the stuff you listed is still in place today.

Yes, because it’s difficult to pull away from those proven revenue streams. The amount generated by these things is too significant to ignore unfortunately.

I mentioned in the past that you shouldn’t expect the D’maro era to make the parks cheaper and expect the return of free fastpass, but at least we are getting new experiences now. There was nothing in the works under Chapek.

 

[Skold]

Chappy was put in place to be the fall guy for these upcharges and new revenue streams. Bobby then swoops in to save the day, changes one of them, and the quarterly reports live on happily ever after. It was the plan the whole time.

 

[deadbydawn]

There's another book coming in December -- THE HOUSE OF MOUSE -- that may provide more fireworks in this regard.

Disney's apparently hired an outside lawyer/consultant specifically to mount a response once the book is published.

Note: I don't expect it to be a "hit" piece, as that implies a level of unfairness in approach. But I'm expecting it to be highly unflattering.

I am intrigued by The House of Mouse, and will definitely pick it up. It sounds like the closest thing we will get to DisneyWar for this leadership era.