Bob Iger Returns to Running Disney; Expects Operational Changes & Leaner Company
DisneyWar is well overdue for a sequel or two at this point. The original book chronicled the rise and fall of CEO Michael Eisner, but didn’t really capture the ascension of CEO Bob Iger. There’s been plenty of material in the decade and a half since “Volume I” was published.
The negotiations and internal strife over acquisitions of Pixar, Marvel, Lucasfilm, and 20th Century Fox would make for a fascinating read. As would the trials and tribulations of Walt Disney World’s NextGen initiative. Ditto the struggles in bringing Shanghai Disneyland to fruition.
Or perhaps Disney needs its own version of Succession, but as a Disney+ documentary. Start with the carefully choreographed process of making Tom Staggs the heir apparent to the throne, only to see his sudden departure. Or the ouster of John Lasseter plus the fallout and baggage therefrom. Then there’s the roller coaster career of Bob Chapek, who suddenly went from head of Parks, Experiences & Products to CEO when Bob Iger abruptly stepped down about a month ago. Now, add a new chapter to this saga…
To recap, Bob Iger stepped down as the Walt Disney Company’s CEO, and assumed the role of Executive Chairman. In that newly-established role, Iger was to direct creative endeavors, lead the Board of Directors, provide the full benefit of his experience, and work towards ensuring a smooth and successful transition for the next two years—through the end of his contract on December 31, 2021.
At the time, we offered extensive commentary about Bob Iger stepping down to the Executive Chairman role and Chapek ascending to the CEO position. We remarked that the news struck us as odd, and that there’s almost certainly more to this story than what had thus far been revealed. Now, we have some more of the story…
In an incredibly fascinating read, the New York Times is reporting that Bob Iger “thought he was riding into the sunset. Now he’s reasserting control and reimagining Disney as a company with fewer employees and more thermometers.” And that’s just the opening line.
It’s worth reading the entire article, but the most pertinent aspect to Walt Disney World fans concerns the likely Health Safety & Operational Changes Likely Coming to the Parks that we covered last week:
“The mood at Disney is ‘dire,’ said a person who has done projects with the company. ‘They’re covering the mirrors and ripping clothes.’
Mr. Iger, meanwhile, is trying to figure out what the company will look like after the crisis. One central challenge is to establish best practices for the company and the industry on how to bring people back to the parks and rides while avoiding the virus’s spread – using measures like taking visitors’ temperatures.
Mr. Iger also sees this as a moment, he has told associates, to look across the business and permanently change how it operates. He’s told them that he anticipates ending expensive old-school television practices like advertising upfronts and producing pilots for programs that may never air. Disney is also likely to reopen with less office space. He’s also told two people that he anticipated the company having fewer employees.”
Then there are the aspects about leadership and succession. The article paints a clear picture:
“Mr. Iger has effectively returned to running the company. After a few weeks of letting Mr. Chapek take charge, Mr. Iger smoothly reasserted control, BlueJeans video call by BlueJeans video call. (Disney does not use Zoom for its meetings for security reasons.)
The new, nominal chief executive is referred to, almost kindergarten style, as “Bob C,” while Mr. Iger is still just “Bob.” And his title is “executive chairman” – emphasis on the first word.”
The New York Times piece is a really fascinating read, but also an awkward one. Iger was quoted directly for the piece, so clearly Disney cooperated (but conspicuously declined to make Chapek available for comment). It has elements of palace intrigue, but that’s relatively minor. The overall tone and point is to establish Bob Iger as Disney’s former and future savior, as he struggles to steer the metaphorical ship to safer waters.
It does note that Bob Iger “has always carefully managed his image.” Yet, it does little to scrutinize claims that Disney’s succession plan was set into motion late last year and finalized even after the closure of Shanghai Disneyland and Hong Kong Disneyland, or as the company’s stock began to plummet. It oddly takes Disney’s claims about the timeline at face value.
I’m more skeptical. The Walt Disney Company is also very brand conscious, and “sudden and immediate shakeup” does not comport with that. When Tom Staggs was being groomed to take the mantle as CEO, it was carefully orchestrated. There were puff profiles in major publications, and establishing him as the future of the company was telegraphed and heavily foreshadowed.
Anyone who closely follows the business side of Disney knows that this is the company’s modus operandi. Disney is masterful at corporate communications and public relations, and never passes up the opportunity to take control of and manipulate the narrative. When Iger suddenly stepped down, there was an atypical chaos to the news, which is why (as the NYT notes) so many in Hollywood questioned what was the real story.
It’s hard to believe the Walt Disney Company’s senior management did not have some foresight about the economic dire straits on the horizon. Again, two of the company’s parks had already been closed for a month at that point, as had all theaters in the world’s second-largest economy.
Given that, it’s almost implausible that there had not been internal discussion of worst-case scenarios. What if the domestic theme parks had to modify or suspend operations? What if movie theaters temporarily closed? What if future productions shut down? What if ESPN had no live sports to air?
What seems most plausible is that Bob Iger expressed an intention to Disney’s board of directors to step down, and those plans were accelerated suddenly and dramatically after these potentialities were gamed out.
It would’ve been reasonably opportune timing for both Iger and Chapek–Iger leaves with his legacy of growth and success cemented, while Chapek takes the helm during a tough time, but also one beyond his control and with lowered expectations.
The twist, it would seem, is that no one foresaw the full toll the current crisis would take on the Walt Disney Company.
It’s not just a minor economic blip, but a confluence of circumstances that is heavily hitting multiple divisions and causing the company to hemorrhage more than $30 million per day.
In such a devastating scenario, Disney needs the steady hand of a venerable leader. That would explain why Bob Iger has reemerged to run the company–and why Disney cooperated with the New York Times. Bob Iger is fairly beloved, and his presence is reassuring to employees, investors, and fans alike. The NYT piece ends with a cliffhanger, leaving questions unanswered about who emerges as the Walt Disney Company’s next CEO after this is all said and done. We’d put even odds on it being Bob–and not with a C.
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YOUR THOUGHTS
What do you think of the reporting that Bob Iger has effectively returned to running the Walt Disney Company? Do you find this news reassuring? Think his steady hand and proven track record of success makes him better poised to handle the current crisis? Do you take the NYT piece at face value, or think there’s probably still more to the story? Thoughts on Bob Chapek being sidelined while remaining in the CEO role? Who would you like to see be Disney’s next CEO or Chairman of Parks, Resorts & Experiences? Any questions? We love hearing from readers, so please share any other thoughts or questions you have in the comments below!
If we are going to suggest waiting for there to be zero chance of getting Coronavirus before Disney should re-open, then they should just keep the doors locked forever. There will never be a time when there is zero chance of anyone getting ill from a particular virus. It’s simply not possible. At some point, you accept a level of risk and get on with living your life.
Agreed. Stay home if you want to, go to Disney if you want to, but above all, don’t try to dictate how others live.
I think now is the time to bring in the robots…80% of the jobs at theme parks can be done by robots and things will run much more efficiently as well as be more sanitary.
Disney could cut the number of Cast Members in half, keep the best ones who genuinely care about giving great Guest Service, pay them a true living wage ($30-$35/hr) and have them be friendly “helpers” who make sure Guests are having a great experience. Those Cast Members who don’t make the cut can take advantage of Disney’s education program and learn how to program/take care of the robots and will then be moved to that division of theme park operations…or they can find a job elsewhere. It’s going to be the new reality of the world. Be prepared.
Life existed before there were any Disney parks and life is existing now with no Disney parks. I am as big a fan of Disney as the next person, but in the bigger picture, if life has to go on without a Disney trip, it will.
We would have been leaving for our trip two weeks from today. Our next is booked for November, which I doubt we’ll make. Sure I’m disappointed, but today we have a different set of problems, problems that are conducive to daily living. I’m wondering how I will get my next food delivery. I’m wondering when I’ll be able to spend time with my family. The handle on my toilet broke the other day. I’m wondering when that will be fixed. Problems, big or small, are taking precedence over any vacation, even Disney ones. People are going to have find another way to escape the world. And for how long, no one knows.
Looking for follow-up (sequel kind-of) to Stewart’s Disney? Read Iger’s 2019 memoir:
Ride of a Lifetime.
Stewart’s DisneyWar (sorry-typo)
Time will tell. Worth noting … WDW has not been accepting new MagicBand orders for the past few weeks. It appears that today they began accepting orders again. Perhaps, internally, things are coming into focus.
These will be very interesting times for the Disney parks system. Actually, it will be a very good time to reboot or rethink business and entertainment practices. Just a few random thoughts:
1. Taking temperatures must have some value in detecting the virus otherwise it wouldn’t be done on such a widespread basis. While at a Disney location, it would be very easy to take temperatures just about anywhere in the parks/hotels. Postive/negative or refusals to be tested could be input to the magic band. Entrance into the parks or on transportation would depend upon your scan. If you don’t want your temperature taken, don’t bother going to a Disney location.
2. Being vaccinated for the virus, even if not 100% effective, should be mandatory to enter Disney properties. I have gotten a flu shot for the last 20+ years and haven’t gotten the flu once. If you’re an anti-vaccer, fine, but, you won’t be able to get into the property.
3. These requirements would apply to visitors from other countries, too.
4. If people do not perceive the same “value” for their money, they will stay home. I personally would not visit if fireworks, parades, character interactions, etc. were curtailed.
5. Demographic studies need to be done to see how much of the attendance can be curtailed to ensure some degree of customer/employee safety while ensuring some type of monetary profit.
6. In an effort to decrease the costs of the visitor, some realistic levels of salary for management needs to be considered; some of the salaries I’ve seen are downright greedy.
7. I remember reading somewhere in this blog that Disney is losing $30 million per day. That may mean profits they may have been making if the parks were open buy I highly doubt that Disney is simply losing $30 million per day just because they’re not operating. Don’t forget, if you’re not open, you’re not incurring the same costs…even car insurance companies have bowed to the fact that there are less people driving, therefore there are less claims resulting from accidents so cash rebates or lower premiums are in the works…sure, the car insurance companies have some static expenses, like Disney does, BUT, those expenses must be lower.
8. In some respects, airlines, restaurants, public transportation and theater/music venues are in the same boat as Disney. As soon as these businesses AND customers are reasonably comfortable that they’re not risking their health each time they use these opportunities, business will not return to “normal” regardless of wishful thinking.
Just my 5 cents…
The precautions after 9/11 caused me to change my behavior.
Wait in a long bag-line while people with strollers and multiple bags get searched?
Or stop bringing a bag?
I stopped bringing a bag. Just my cell phone which holds ID and credit card.
I’m not sure I’d stand in a line to have my temperature taken.
I love Disney – but not enough to submit to a quasi-medical exam to get inside the parks.
my two cents- i thought this back when iger initially stepped down. he wanted everything in his tenure to look as rosy as possible and have nothing but positive accolades on his resume (i’ve long read rumors he wants to get into politics, but take those for what they are). he’s not stupid- the virus was already well on it’s way to becoming a pandemic, if not yet in name, and the asia parks were already heavily affected. he saw what was coming and fastracked his departure, which had been tried a couple time previous. i think the board at this point probably begged him to return to his role as face of the company to try and navigate this (a sign bob c was not doing well perhaps?) i see this purely as a PR move to see this through, and with a familiar face at the helm, when prices inevitably increase and layoffs occur in the next few years to try and recover, people aren’t as likely to get upset at the familiar face they see.
Good to have have Iger back I guess, although he is grossly over paid at this point of the game.
COVID-19 continues to evolve and from what we know now, temperature taking is not going to do squat. We have thousands if not millions of people the world over that have it but show zero symptoms. But they are still spreading it to others. So really then the question becomes what is the lowest number of guests can be admitted whereby it is still economically viable to open?
Until we have full blown vaccines, and successful treatments for COVID-19, stuff like this is basically gone.
Even if/when the US gets this planked, how you going to control people coming in from all over? Close the borders? Sure. You think there will be enough Americans to keep the parks afloat? Highly unlikely.
i agree. i’m not opposed to having my temp taken, but i think it’s a wasted effort. so many other things can cause a spike in temp (a child’s ear infection or teething as an example, or a woman’s cycle)- are those things going to cause a family be denied entry to the parks, while this covid virus often is contagious with no symptoms allow someone in who doesn’t even know they have it and potentially infect dozens of other people?
Good timing for Disney to get that pipeline directly into homes. Why with the huge problems in theme parks, movie theaters, Broadway theaters would Disney even consider Bob C. while Kevin Mayer was the best choice for the new business model, the production of product with direct to home delivery.
Not only that but it is so easy to pop a few ibuprofen and bring a high temperature down. Worthless exercise in the end.
John, i agree with you 100%. There is no way for anyone to feel safe with a mere temperature test. I don’t see Disney opening it’s doors until people are vaccinated. There is little to no room for error. Getting it right the first time is a prerequisite for succeeding.
Just remember who cut 100% pay cut Without complaining and who complained about cuts
Pay close attention to the words and run the numbers. Iger gets tens of million of his COMPENSATION in incentives, bonuses, stock, etc and the SALARY that he’s giving up is a very small percentage of his total compensation. He’ll still make many millions in compensation. Those “complaining” are complaining more about the fact that there is no end date to the cuts to their compensation as well as the fact that the percentage of their total compensation is significantly higher. Eiger now saying he wants to make Disney a “leaner” company is code for permanent salary cuts and employee # cuts. They should be concerned.
Rather than think in extremes about temperature taking (it doesn’t work in every case so it’s WORTHLESS!!!) it would be prudent to think of it as just one of many steps to keep all people in the parks safe.
Bob Iger is currently being paid $0 (voluntarily) for all of his efforts — saying he’s “grossly overpaid” is a pretty sick burn!
I hope they don’t stop investing in the parks and don’t cut down a ton on entertainment – I would love for the parks to reopen but not if they charge the same prices for a very inferior experience. (And I worry that they’d just use Covid as an excuse to cut entertainment because then parks are cheaper for them to operate).
I do think this article is a bit sensationalized. Author was at Buzzfeed until 2020. So not sure it’s particularly excellent reporting and there’s a lot of speculation in it. I’d take with a grain of salt.
My thoughts are the only way he opens the parks for now, and by now I mean October at the earliest, is to limit the attendence and not have any parades, shows, or fireworks or character meet and greets as it would be impossible to do social distancing at those type of activities. But you could do it for rides and attractions by spacing out lines and spacing out how people sit on ride vehicles. But as far as a normal Disney experience, that will not come until a vaccine comes and most of the USA and the world is vaccinated.
I’m more surprised by the fact that my gossip site I read foretold this back in March. This is what the site posted-
“ March 19, 2020
When this CEO stepped down, it sent shockwaves through the business and entertainment community. It was immediate and unprecedented. It also came after a meeting with a global security firm advising him what to do in regards to the foreign money makers he was forced to shut down. He concluded things were going to hell in a hurry and he didn’t want to be associated with the company when it crashed and burned. He will be ready to be its Phoenix though after it is all over.
Bob Iger/Disney”
Food for thought if it’s posted on a Hollywood/celebrity gossip site, my thoughts are it’s obvious this was all preplanned and orchestrated from the beginning to play out this way.
My only hesitation for going to Disney again is and always has been, the cost. Not worried about health at all.
I can only hope this leads to less people in the parks overall.
For me, I would still pay the same ticket price if I knew the capacity was lowered.
Maybe someday it will be a reservation process like the Disney Flex pass in CA.
But they probably kind goofed up with building all those hotel rooms…
(Is it published anywhere how many hotel rooms/DVC rooms Disney owns-either currently or including those under construction?)
If people thought the parks were too crowded even before all this happened, they aren’t going to be comfortable in going, especially traveling with grandparents, those at risk, etc.
Not to forget those large crowds really dilute the Disney magic….
I’ve long said they could double ticket prices and it wouldn’t cause a blip in attendance. And I’d pay it if crowds went back to 90s levels. But I don’t see it happening…
The crowds will never go down until a third park is built or the next generation finds a new brand of entertainment to enjoy.
I still think a third park in Texas could significantly lower the crowds and keep profits coming in. Imagine a new Magic Kingdom in TX, but with a Marvel park and water park.
Great article.
I have serious doubts that Disney, movies, beaches, sports, concerts, cruises, tourism in general will be shuttered for much longer past this summer. These are huge sectors of the economy in which many people’s livelihood is at stake. The airline industry alone has catastrophic economic consequences if things remain the way they are. Can the US government support this many people out of work for this long? Not to mention the billions of international dollars the US will be losing.
I do not want to down play COVID-19, but it is important to know that a huge portion of people with this virus either have no symptoms at all or only mild common cold like symptoms. The media enjoys publishing the few stories about a young person who may have died from catching it, but the data throughout the world shows that this is fatal for people with other conditions and over 65 years of age.
What may end up bringing normalcy back is widespread testing and some sort of ‘immunity’ or proof of recent test that people can keep on them or their phone. I read an article that Disney’s approach at their parks may be more for show than anything else, as guests will feel more comfortable seeing temperature checks and people wearing masks. This is no easy time for Iger, but I have faith that he can get these parks back online within a reasonable time frame.
I for one would welcome catching COVID-19 and taking my chances to build an immunity, as the alternative of being stuck at home for 2 years is just as bad as getting strapped to a ventilator in a hospital, with a .05 % chance of death. Then again, I’m nuts and I love my annual Disneyland / WDW trip!!
Yeah, look at what is happening in New York. China is now into their second wave. There is no guarantee of building immunity. Until there is a vaccine, this whole conversation is a moot point.
I don’t want to discredit COVID-19. When I see the data, I see half a million cases in the US with 22k deaths + 11k in critical condition. Dive into the demographic data further, and a huge chunk of those deaths and hospitalizations are people over 65 years old and/or have underlying conditions.
I will take those odds any day if given the choice. And if I could test regularly, I would be willing to self quarantine if I knew I tested positive. There is no guarantee a vaccine will exist in 2 years. That all said, i am fully supportive of how the US and other countries are managing this right now. All I am saying is the data does not support locking our society down for 1 to 2 years. I think the impacts from said lock down would be greater than the impacts we have now.
If some want to stay locked down until they feel safe that’s fine by me. Life will have to resume in some form sooner than later. The economy cannot run on a printing press and for those who say that human life has no price, the airlines, auto manufacturers, insurance companies and many other institutions including governments, not only disagree but have actually set prices on it.
But if some stay home there’ll be less traffic, less crowding more room for those who don’t. Reasonable precautions are fine and welcome, just remember there is no such thing as a “Sure Thing.”
Well said. The media needs to stop just trying to make people afraid. Yes, one may be alive staying safe in your house for the next two years, however one’s mental health is important as well. Are we all going to go through life wearing masks and not getting close to others out of fear? how many of us may already have an immunity and not know it?
Kayla, open your eyes dear. Good ol’ Americans are dying en masse right in front of you. Go on out and take your chances. When you are fighting for your last breath, you will have nobody to blame but yourself. It is called a new world and you better be read to adapt. 😉
the problem is not you catching it and being fine- it’s who you pass it along to while you have it. and who they pass it to, etc etc. children show almost no symptoms, but pass it around like wildfire. then it gets passed to grandpa, who is high risk. the general populous not dying is not the point- it’s how contagious it is and how dangerous is is for those who ARE high risk (the elderly, those with diabetes, those with respiratory issues, etc, do you know anyone like that??). i’m sorry but every time i read this argument it makes me mad, as someone with a parent who is high risk. i cannot be flippant about catching it. and quite frankly, enough middle aged people who have contracted it and told their story say they wouldn’t wish it on their worst enemy, so be careful what you wish for. you do not want this virus. there is also debate whether immunity from contracting it is long-lasting. some say yes, you can build immunity, others say you can recatch it (the debate lies in the 30% chance of tests giving a false negative). so i wouldn’t be so bold.
to piggy back on my last comment, I should have explained that any sort of freedoms experienced by non high risk people would still require regular testing of those individuals or voluntary self quarantine. everyone in the world probably has a high risk individual they care about, myself included. i just think it is important to look at some of the incredible consequences that will start to have their toll on the US (and world) if we completely shut down in hopes of the virus just going away or waiting for a vaccine that may not be effective.
So stay home. Nobody is forcing you to go anywhere.
i’m glad so many commenting here don’t have anyone high risk in their lives that they have to worry about passing the virus to. that must be so nice. i’m not sure what it must be like to not take shelter-in-place mandates seriously.
Yes I am “high risk” I have one lung, one kidney and just finished 7 months of treatment for aggressive breast cancer. BUT I have been “high risk” for the last 35 years with one lung & kidney every year during flu season while the rest of you go on your merry way spreading it unchecked so no I’m not more concerned this year over any other year and am totally shaking my head at this all.
US 2018 -2019 flu season
42.9 million people got sick
647,000 people were hospitalized
61,200 died
US 2017-2018 flu season
48.8 million illnesses
959,000 hospitalizations
79,400 deaths
well know that everyone in my family gets a flu shot annually, so we’re not out there spreading it around. well wishes on your journey. those out there so flippant about covid are likely not getting an annual flu shot either.
COVID-19 is already the leading cause of death in this country after a period of unprecedented changes to our daily behaviors.
One of the issues with authors that suggest things are overblown, it only impacts the elderly, those with pre-existing conditions, etc. is that individuals are assuming the impacts of the pandemic are linear; they are not. When you assume a linear impact it hides how bad things would get, and why returning to “normal” early will make things worse. How grossly assuming a linear impact to the healthcare system downplays the threat cannot be overemphasized.
The impacts of the pandemic have a nexus to analyzing Disney as well: Queuing theory, capacity, and saturation (i.e. demand exceeding capacity).
Think of everyone who gets sick enough with COVID-19 as entering a queue for care. The queue can expand, but the capacity is largely fixed. As the spread of the disease is non-linear, imagine that every two days the demand (i.e. # of people entering the queue doubles).
The healthcare system can’t increase in size at the same rate as the number of new patients in the queue; they are constantly falling behind. The system can’t maintain a first in, first out service system and has to begin triaging (servicing the sickest first). Meanwhile, those on “hold” suffer from worse conditions, effectively getting pushed to the front of the line. More and more people become critically ill because of their long wait in the queue.
It’s important to remember, this whole time the disease is spreading in a non-linear fashion, so the queue just develops a backlog that is impossible to work off. The length of the queue begins to impact the mortality rate.
The dynamics of queuing during a pandemic are very different (exponential growth!), and in a class by themselves. You have to seek out analysis that takes the time to appreciate why the pandemics impact on the healthcare system is unique. Most people don’t appreciate (or care to learn) about the dynamics of this situation.
@drew, thank you.
Drew, Covid-19 is still not near the leading cause of death in the US. HEart Disease and Cancer still have it handily beaten
And actually it has had a linear spread for the past couple weeks.
The leading cause of death? You mean among preventable diseases or total? I do not doubt that with the daily death rate being 2000 people in the US, but I do question how many of these deaths are due to other conditions where a patient tested positive for COVID-19. I would assume they are the result of COVID-19, but how do you really know? Do you die 60% heart failure and 40% COVID-19? Is that logged as a COVID-19 related death or a heart failure death… or both?
I understand the logic behind impacts to the healthcare system and how diminished healthcare capacity have their own set of consequences, as I believe most people do by now.
I do not want to disrespect people who believe this is a bigger issue because I agree with the points made. While many may be underscoring the severity of this virus, there may be more who are underscoring the severity to society as a whole for what could be coming as a result of long term economic shut down.
Covid-19 is not the leading cause of death in the US, these are CDC numbers:
US 2018 -2019 flu season
42.9 million people got sick
647,000 people were hospitalized
61,200 died
US 2017-2018 flu season
48.8 million illnesses
959,000 hospitalizations
79,400 deaths
2018 US deaths
Drug overdose – 67,000
Suicide – 50,000
Alcohol abuse – 88,000
Diabetes – 83,000
Cancer – 606,000
I don’t want to turn this into a political discussion, but as a cancer nurse who is working through this pandemic, IT IS SERIOUS. Yes, you yourself may survive COVID-19 infection, perhaps with few or no symptoms. But this is a VERY CONTAGIOUS virus, and maybe you unknowingly infect 100 other people, and maybe one person who you pass the virus onto works in a nursing home and infects 100 elderly or immunocompromised people who can die from it.
In our country we are accustomed to hearing, “You need to do this to protect yourself.” This case is different. We are saying “You need to do this to protect OTHER PEOPLE.” This is what the kids in Florida for spring break were not getting. Yes, as young healthy people, maybe they are at less personal risk. But they contribute to spreading the virus to other people who will have much more serious health consequences. This is why there was a spike of COVID cases in Louisiana in the weeks following Mardi Gras.
I hate that my travel plans have been impacted too. But 40% of my colleagues are on sick leave due to COVID-related concerns. This is serious business. We cannot allow hundreds of thousands of our fellow Americans to die just because we want to go to WDW.
@stu, thank you for all that you and your colleagues are doing to keep us all safe!! nurses are the unsung heroes in all of this. and thank you for your post, although sadly it will fall on many willfully ignorant ears.
@Stu Goldstone
As noted two or three other times already, I am very much aware (and likely, most of the country is by now) of how this can spread to vulnerable populations and how this is a virus that can show no symptoms in people. No need to bring up the obvious every time someone needs to weigh in. Thank you for the work you’re doing.
This is not just about WDW being closed. We’re talking about the airline industry, any large gatherings, travel in general, restaurants, bars, conferences, etc. There is even concerns the very hospitals in this fight could go bankrupt. Whether we like it or not, this country is a capitalism and ill equipped for the government to step and and subsidize all of these sectors all at once. I am merely suggesting (already full aware of the impacts to health care, vulnerable populations, etc.) that a shelter in place probably isn’t going to be sustainable for the long term. Since this is a Disney forum, I spoke about my willingness to go to the parks.
If you are so willing to get it to build an immunity why don’t you try your luck out and just go into a hospital ward treating Covid-19 patients? Deeply inhale if you hear someone coughing. Let me guess- you are one of those people not wanting to stay home to slow the spread? Herd immunity is better? Lots of statistics to report, too- think the media hyped all this… Please try your luck so you can be one of the people they use as guinea pigs for treatments… Thanks to people like you, this will take much longer to end.
@AthomeinFL
thanks for whatever that was…. I was basing my comments on the statistics, at least the ones published online from worldmeter. The media can still hype things because that is what they are in the business of. I would very much welcome contracting the virus. For all I know I have had it already, being that anywhere from 25 to 50 percent of carriers are asymptomatic. No need to blame people “like me”, being that I have been at home for a month already doing my part. I just thought I would add my two cents on a WDW forum of all places.
I’m just not going to sit back and pretend this virus is going to go away or things as a whole will get any better with this current approach without some hefty costs. The longer we put our economy on hold, the higher risk of unforeseen impacts will creep into our society. Is alcohol consumption up? Are suicides up? Are domestic violence calls up? Are people losing their pensions, businesses, and homes? Will crime increase? Will our government be bankrupt and unable to provide welfare and other safety net programs to people in need?
You take away the livelihood of a quarter of the US along with the amount of money the government needs to shell out, things have the potential to be substantially worse than the alternative. There are no easy choices, but assuming everyone stays inside and waits for this to blow over during the next two years is naive.
DLaw,
The problem with the numbers you quote are the statistics for other diseases are for a full year.
No one knows what the C-19 stats will be after a full year. We have projections based on models but with such a small number of people being tested we really don’t have good data to use in the models. Also, it’s pretty clear that people are dying from C-19 without ever being tested, and thus the death toll is under-reported. (This isn’t a conspiracy- with not enough tests for the living, they need priority over the dead who are now beyond benefiting.)
So, who knows, maybe you’re right, but don’t act like you can prove it today. None of us knows the future.
For diehard Disney fans and locals they’ll return to the parks as soon as they are opened with or without virus procedures, but for the one off and occasional (the majority and biggest spenders) of Disney fans, they won’t return until a vaccine is released to the public.
I have to disagree that the “One off nod occasional visitors” are the biggest spenders at WDW. We fall into your “Diehard Disney Fans” catagory and we pay thousands in DVC dues yearly, as well as having season passes and dining at Victoria and Albert’s every time we go. If we aren’t among Disney’s bigger spenders I’d love to see how much a typical “One Off” visit costs. Oh yeah, and we usually bring anywhere from 5 to 11 family members with us. Grand Villa anyone? Twice a year.
Anyway, we have reservations for October for the Food and Wine Festival. And here you are right. If they have it, we’re going. Hope they figure out a way to do the Party for the Senses! Love it! And if we go we’ll take reasonable precautions, not only for ourselves but to protect others, but we won’t let this keep us home. Finally, I also hope you are right about less crowds. That would be welcome.
We recently cancelled our Disney “land and sea” for October. For us, its not about COVID, or fear of catching it. My wife and I are both career Fire Dept. / EMS. To us, its just another day.
Our concern is, that all the things we love about Disney, fireworks, Fantasmic, parades. The possibility of a staggered re-opening and continued closures. The things that are quint essential Disney, will either be gone or altered to a point that its no longer “Disney”. So, we are just going to let this play out for a while, see how the chips fall and plan from there.
I also expect a huge impact on Disney parks, cruises, etc. from the financial impact of the massive unemployment, businesses going broke, stock market decline, etc.
I of course don’t know what the economic impact will be, no more than I know what the final death toll will be, but my guess is that it will be huge. I doubt there are enough people who come through this period with the disposable income to fill the parks and boats to anywhere near the prior levels.
Additionally, lots of people visit from overseas and in addition to economic impacts in their own country, I’m guessing they may be reluctant to visit the U.S., where the outbreak appears to be the worst.
When Disney opens up again, after at most a brief surge, my guess (again, I know I don’t know) we’ll be getting a lot of reports about how wonderful the parks are with waits so short due to so few people there. For a lot of us, we’ll either be unable to afford to attend, at jobs where we can’t take time off, or too concerned about the dangers of catching C-19 (I’m assuming no vaccine at first) that all we can do is wish we could go.
I was shocked when they announced that Iger was stepping down. He’s been CEO of Disney for the entire time I’ve been interested in the company itself not just going to the parks. It seemed very abrupt. I read the NYT piece and feel like there is still something they aren’t broadcasting in terms of internal affairs. I like your idea that they saw hard times were coming and this would give Chapek a chance to have lowered expectations regarding his performance.
I think a lot is going to change in our entire world not just at Disney parks. People are underestimating what impact this is having and how “quickly” we are going to get back to “normal”. Australia has closed their borders until January next year. This isn’t going to get better anytime soon.
I agree with almost everything you said, but wanted to note that as far as I can tell Australia has closed its borders essentially indefinitely (they initially said for 6 months starting 3/20/20, but later clarified this timeframe was not fixed and could be shorter – or longer – depending on the status of the virus elsewhere in the world). Basically, their borders (and I think New Zealand too) have been declared closed until it is safe for these restrictions to be lifted. But yeah, I fear this is going to get worse before it gets better. So far, between 16-17M people have filed for unemployment in the last 3 week. It seems to me that the country won’t be in a position to just re-hire 16-17M people with the snap of a finger when/if this gets under control. I hope I’m wrong though and the government can provide stimulus to businesses in the short- to medium-term to avoid any further mass layoffs like we’ve seen so far. It’s much easier to resume life as normal if everyone remains gainfully employed, even if they haven’t been doing anything since this whole thing began!
I see our shutting off pretty much all foreign aid until the US economy is running and stabilized again. That ‘money’ needs to be used here, whether through tax breaks, credits, etc. to help folks through this debacle. No one in Congress should be paid until this is all cleaned up either.
Iger’s return to the helm isn’t a real surprise to me. He seems like the kind of guy who couldn’t allow the company to falter without trying to save it. If he thinks he can help, he will. Maybe not quite as much as Roy did, but close dedication. The resulting return to prominence might be an even bigger save than Eisner fending off two LBOs.
Interesting post. To quote Elmer Fudd “There’s something awfully screwy going on around here!”
From what I’ve seen of what I consider the headlong rush to concurrently inject new upgrades and attractions into multiple parks of WDW, I don’t have much faith in Iger coming to the rescue, if indeed that is the reason for his reinstatement.
One interesting thought. Considering how, under Iger, there was / is a frenzy of what I consider overly disruptive, very un-Disney-like building in all of WDW, might he somehow attempt to translate this “Damn the torpedoes!” attitude to reopening the parks?
I think the next few months are going to be very interesting.
It will be interesting to see how the parks come back and if any “old school” theme park practices are removed, especially at WDW.
Do the parks return to what made them great (Longer operating hours, less crowded feeling parks, engaged cast members) or continue pinching pennies and going after the big one time spenders?
It will be a delicate balancing act but one that will shape the future.
Really good post, thanks for sharing.
I read a piece over the weekend title, “Experts fear ‘national naivete’ on COVID optimism”, which I thought painted a decent picture of what might be to come, and how unwilling we are to accept it.
As a result of this being a slowly emerging crisis, it seems like we are having a hard time coming to grips how big of a deal this is, and how (potentially) slow the return to ‘normal’ might be.
I don’t want to be overly negative, and I am trying to keep my head up. But I don’t think all these rosy predictions, and all the Polly Anna’s out there are doing us any good.
The Iger story is telling, as they offer a glimpse into just how bad things really are/could get…
This article? https://thehill.com/homenews/state-watch/492258-experts-fear-national-naivete-on-covid-optimism
I’d largely agree with the notion of national naïveté about what life in America looks like for the next couple of years. I think a large part of that is national leadership not bracing us for that coming realities. Optimism is great, but delusions are not.
I was surprised by the number of comments on our article about operational changes that pushed back against temperature checks and other track/trace measures. People will complain at first, but that’s going to be the new normal everywhere–not just Disney.
That’s the one. I’m always hesitant to include links on someone’s blog. I thought The Hill article was well done, and painted a fair picture of what we might need to brace for.
You nailed it right here: “Optimism is great, but delusions are not.”
I’m still going to be hopeful about taking the family to the beach this summer. I will still logon early to do ADRs for December in June. That being said, if it all falls through I’m not going to be upset about it. It is what it is at this point.
A great disservice happened to us all when the early narrative was, “this is like the flu”. My wife is at the hospital nearly every day now…this isn’t some variation of the seasonal flu.
I *think* in your article about operational changes you referenced Mr. Iger drawing parallels to security changes after 9/11 and what is coming for Covid-19. That seems apt. I have questions about the efficacy of temperature checks, but that doesn’t mean I would throw my hands up and turn away if it was required. You should get a trademark on “Health Theater” (vs. Security Theater) before its too late.
Keep up the great writing!
“Any society willing to sacrifice a little essential liberty for security deserves neither and will lose both”. Benjamin Franklin. Being a free society has always come with risk. I guess it will be up to the individual to determine how much over reaching invasion of your privacy and rights is acceptable by a Disney. There will be a definitive loss of “the magic” at some point, but I guess that point will be different for each of us. Bob Iger praising the tracking and tracing of different individual according to their health status is unnerving to me! Maybe if you have high cholesterol, heart disease , diabetes, you will not be able to partake in those delectable Disney snacks such as. Churros, Mickey waffles and ice cream, dole whips, or fried food, because your health QR code won’t allow it, vegan and no fat low sugar choices for you! It will be attached to your meal plan!!! At least for now we still live in a country where you are free to choose to participate or not!
I’ll check out the Hill article. But this almost total economic shutdown will not endure through summer. It cannot. There would be heads on pikes lining roadways, figuratively at least.
It IS like the flu, in that it is spread by fluid spray of an infectious agent. And can be spread by those not entirely symptomatic. And in how a significant portion of people are largely unaffected or just mildly so. But the way it attacks the lungs ferociously in that high risk segment of the population is what scares people and is a legitimate cause for concern. But Disney (nor most businesses) cannot simply wait for a viable, effective vaccine to reopen the cash cow, I mean the parks.
We should worry about the general ignorance and naivete of the population. Combined with the incredibly bleak and overbearing news media constantly telling everyone the sky is falling, the lemmings will sit and shudder. But at some point they are going to be hungry, and that is dangerous. Many of us are not ready to sit back and watch a fundamental change to our nation be slipped in under the guise of safety.
Mrnico,
Stop trying to inject logic into carefUK lly nurtured semi-panic. Most people are convinced not only that the sky is falling but that there is a Deus Ex Machina on the horizon if only they wait long enough.
I’ve said it before and I’ll say it again: If, when Disney reopens you aren’t comfortable with the methodology then stay home! And speaking of delusions, checking temperatures is one of the biggest. It won’t catch all of the possible carriers but it will surely make the naive feel better, just like the pre virus “security” did. Anyone with a military background knows how really ineffective they were, but . . . .
What scares me lots is that now that the lemmings have jumped over one cliff, what is going to happen next flu season when millions get sick, vaccine or no, and people start dying as they do every time. Now that national shutdowns have become part of the “New Normal” are we in for more?
The national leadership is trying to make the country aware of what happens if this shut down drags on and on and on. The naïveté lies with those who view a months long shutdown as optimal, virtually cost-free, and sustainable. Unfortunately, physicians frequently employ poor reasoning, even when evaluating medical options. And economic analysis and planning is not part of their training. Listening to physicians uncritically, and in isolation is a large part of what got the world into this mess.
It is hard to believe Iger would return without a solid plan in hand to save the parks. It will be interesting to see what that is.
I may be projecting on the quotes, but I feel there’s a sense of restrained panic to them. The unspoken underlying theme is “What does Disney do if everything outside of Disney+ is essentially shuttered to revenue generation for another 12-18 months?” I suppose Bob I’s presence at the wheel may give investor’s a sense of ease as Disney navigates these rough seas.
I think that’s it. Iger cannot personally change the fundamental structure of Disney and how vulnerable it is right now, but he projects confidence. If TWDC needs to do another debt offering, perhaps that helps?
I think it’s gonna be time for Disney to lower their prices in everything they do, if they want you get up and running back to normal. People had a hard time going there,unless you have a lot of extra money. Now is the time to reflect really lower prices.
the only “lower” prices you’ll see are hotel packages. tom just released an article about prices having INCREASED for the christmas party this year. food, extra ticket events, gates prices, will all go up. they’ll try to entice people with a hotel deal, then raise prices everywhere else they possibly can to recoup.
i amend my comment regarding the christmas party, as i commented here before reading the other article in depth. that may have been released in error and the prices may change, but it wouldn’t surprise me if they don’t.