Cleaning Up Chapek’s Costly Catastrophes
Walt Disney World’s 2023 is the year of cleaning up Chapek’s costly catastrophes. We’re not even halfway through, and arguably the biggest announcements and changes have all been about “undoing” damage done by Umbrella Bob during his reign of terror.
Okay, that is slight hyperbole. Not every single decision that’s now being corrected was made exclusively by Bob Chapek. Zero of the design work was done by Bob Chapek. He didn’t single handedly make every mistake, bungle any creative decisions, or create the catastrophes all by himself. If he were that efficient at wreaking havoc, we’d be calling him BobZilla instead!
Of course, much of this is reductionist. We don’t know who is to blame, fans want easy answers, and Chapek never minded being viewed as the villain. If anything, he seemed to relish the role–harboring hostility towards fans and offering openly antagonistic answers when interviewed. Not only that, but he was in the driver’s seat when many bad moves were made, and if any person is mostly responsible for the woes of Walt Disney World, it is Bob Chapek.
Bob Chapek was the Chairman of Disney Parks, Experiences and Products when many of these misguided moves were made, and he was CEO when a variety of unpopular changes were implemented. It’s possible to hold Bob Iger or Josh D’Amaro partially–or even almost equally–responsible, but in our view, the buck largely stops with Chapek.
To that point, one of the stories that has stuck in my head while writing this article is the board pitch for the NextGen initiative from the prior development cycle, as retold in The Messy Business of Reinventing Happiness from 2015. An article that, with the benefit of hindsight, paints a clearer picture of why Tom Staggs was forced out and did not become Disney CEO:
“Iger himself talked about how important MyMagic+ will be for the company, according to people familiar with the meeting—how it will change the fundamental nature of Disney’s park experiences and have implications for the company’s broader businesses.”
“The board broke into applause, and the meeting came to its close. The directors were chatting and readying to leave when Iger, aware of the challenges still ahead for MyMagic+, regained the attention of the small room. He looked directly at Staggs. ‘This better work,’ he said, bluntly and sternly. ‘This better work.’ The theater was quiet, the elation gone. Iger repeated, ‘This better work.'”
The above-referenced article an interesting, albeit incomplete, history of the NextGen initiative, documenting its successes and failures up until then. It’s also a rare glimpse behind the curtain at corporate politics, turf wars, and how the blame game is played internally.
After reading that and other articles, it’s possible to view Iger, Staggs, or both as primarily responsible for the NextGen boondoggle. The point is that it’s a matter of perspective, and that’s true even with greater knowledge of the underlying circumstances and decision-making calculus.
NextGen also offers an interesting frame of reference since it should have served as a cautionary tale about spending hundreds of millions–or billions–of dollars and having almost nothing to show for it. Anyone who claims that the company under-invests in Walt Disney World is wrong. That’s not the problem at all.
The real issue is that company invests irresponsibly in Walt Disney World, overspending on some projects and flat-out throwing money away on others. Guardians of the Galaxy: Cosmic Rewind–a roller coaster rumored to cost $500 million–is (rightly) viewed as a success story of Chapek’s tenure, and that alone should say something given its astronomical price tag.
For a more measured business spending carefully to address as many needs as possible, Cosmic Rewind might be viewed as a misallocation of funds. Here? At least they didn’t blow the money on something that’s awful or already gone! Cosmic Rewind and Remy’s Ratatouille Adventure are basically the two bright spots in an EPCOT overhaul filled with unrealized potential and unfulfilled promise.
With that said, let’s take a look at the clean-up of Chapek catastrophes…
Star Wars: Galactic Starcruiser – Walt Disney World announced this week that Star Wars: Galactic Starcruiser will permanently close in Fall 2023, after being open for fewer than 600 days. It was under construction for far longer than it’ll be operational.
On the one hand, Chapek deserves credit for championing an envelope-pushing product. He was head of DPEP when Starcruiser was announced, providing the resources and freedom that empowered Imagineering to create an innovative experience. His gamble on Starcruiser is probably the best rebuttal against his beancounter reputation.
On the other hand, perhaps this is a scenario where Chapek should have counted those beans a little better. That same creative latitude resulted in an ambitious but operationally-expensive experience, and one with a limited pool of potential guests. Star Wars: Galactic Starcruiser’s failure was something that many saw coming, and it’s curious that this improbable and unsustainable experience ever came to fruition. (Fans love to knock the accountants, but there’d be no Walt without Roy; no Eisner without Wells. Starcruiser feels very much like a project gone off the rails because there was no check on the creatives worst whims and expensive impulses.)
We’re glad that we got to partake in this unique offering, and that Chapek allowed Imagineering to swing for the fences with Star Wars: Galactic Starcruiser. Conversely, we’re frustrated that nothing was done to pivot the product (definitely not Chapek’s fault) and we’re confused that proper market research seemingly was not performed in the first place to ensure long-term viability. Regardless, this is the first of multiple $100+ million Chapek initiatives to be abandoned. (The exact cost of the loss is difficult to assess since the R&D can be put to use elsewhere, but it’s still probably north of $200 million.)
Harmonious – ‘Mistake on the Lake’ is already taken by a literal water fire, but ‘Water Taco Debacle’ has a certain ring to it for this figurative dumpster fire on World Showcase Lagoon. (On a positive note, the last of the Water Tacos was removed this week, and World Showcase Lagoon is once again looking mostly clean!)
The decision to spend World of Color level money to build a nighttime spectacular consisting of a giant Stargate and water tacos permanently present in the water with limited viewing angles is truly baffling. They literally would’ve been better off upgrading everything from IllumiNations and just building a bigger globe.
The Harmonious infrastructure came across as a solution in search of a problem, or a contrivance. An instance of the tail wagging the dog, with technology unnecessarily dictating the show presentation. There was no good explanation for opting to use Water Tacos and a Stargate with Kang & Kodos arms for an EPCOT nighttime spectacular. It was unintuitive and unnecessarily limiting, feeling like something aliens who had never seen a nighttime spectacular would build. Just a totally nonsensical look that didn’t serve any practical purpose.
To Chapek’s credit, he was still around when the decision was made to undo this. But he was also the one who made the decision in the first place, flushing a rumored $100 million down the toilet on a permanent nighttime spectacular that actually lasted less than 2 years.
Enchantment – Honestly, I don’t view Enchantment as a true catastrophe. To be sure, I think it was bad and I’m still bitter that this, of all things, was the Magic Kingdom 50th Anniversary fireworks show. Until the belated addition of the Walt Disney introduction, it was essentially just a glorified sizzle reel for ‘what’s new & hot on Disney+, our flagship streaming service.‘ It was not a love letter to 50 Years of the Vacation Kingdom of the World. As a longtime fan, that made Enchantment feel like a slap in the face.
With that said, had Disney Enchantment debuted this summer as a limited time offering to entice people to visit, my take would’ve been dramatically different. Enchantment still would’ve missed the mark for me, but it wouldn’t have been offensive. In general, I think Walt Disney World should try more things with Magic Kingdom nighttime spectaculars (a la Disneyland), and this fits the bill there. Not all entertainment works for everyone, so it would’ve been a no harm, no foul scenario if it debuted anytime except for Walt Disney World’s 50th.
There’s also the reality that Enchantment had tumultuous origins, being created in the early days of work-from-home and against the backdrop of every media company doubling down on streaming. It’s unfortunate that those were the circumstances, but Enchantment was set up for failure from day one as a result. Being a huge champion of streaming (and sensibly so–it was the one thing that was working and driving the stock price in his early tenure as CEO), Chapek likely mandated that Enchantment feature popular Disney+ IP.
Chapek was also still around when the decision was made to bring back Happily Ever After. A decision that was inevitable unless its 50th Anniversary replacement somehow surpassed Happily Ever After’s superb satisfaction scores. So not a true catastrophe and only partially Chapek’s fault. Enchantment likely wasn’t too expensive of a lesson, and the infrastructure improvements will outlast it and are already being put to use for Happily Ever After.
Guest Satisfaction – It doesn’t take much reading between the lines to surmise that Chapek didn’t care much about guest satisfaction at Walt Disney World. Per guest spending was his favorite metric, boasting about it being up ~40% as compared to 2019 on a multitude of occasions.
When it came to indirectly addressing guest satisfaction, he hand-waved it away on more than one occasion, bluntly stating that demand was the driver and consumers were voting with their wallets. “It’s all up to the consumer. If consumer demand keeps up, we’ll act accordingly. If we see a softening, which we don’t think we’re going to see, then we can act accordingly as well,” he told CNBC.
Based on “leaks” or planted stories in the media, it was pretty clear upon returning that Bob Iger wasn’t wild about how things had gone under Chapek and the degree to which there was disillusionment among fans. And, a little over a month after returning, he started moving on that sentiment by announcing 3 Big Changes at Walt Disney World to Improve Guest Experience & Value. A few months later came the announcement of 5 Major Improvements for 2024 at Walt Disney World.
All of this is what we’ve been expecting and hoping to see for a while. Part of this is undoubtedly an operation Chapek cleanup, and another part is a drop in demand necessitating guest-friendly changes. Pent-up demand lasted longer than anticipated, and frankly, it was a distortion that had unhealthy consequences at Walt Disney World and beyond.
Putting that in the rearview mirror is good for consumers and the long-term health of the company–especially its reputation and guest goodwill. Walt Disney World not doing record-breaking numbers regardless of the guest-unfriendly decisions and changes they make–and instead having to actually compete for customers–is a good thing. Chapek would’ve been well-advised to appreciate that even as “revenge travel” created so much success. (Notably, “revenge travel” also created similar success for other travel companies without so much self-inflicted damage. That 40% increase in per caps was not the result of novel or clever Chapekian initiatives–it was the natural consequence of economic stimulus and pent-up demand.)
Imagineering Relocation – Another announcement made this week is that Disney cancelled the creation of a creative campus in Lake Nona that would’ve moved Imagineering and other DPEP employees from Southern California to Central Florida. This has been widely reported as Iger following through on his “threat” during the earnings call to withhold future investments in Florida due to the ongoing standoff with the state.
Between credible info I’ve since received paired with public statements, I’m now confident that is not the actual explanation. The decision to relocate Imagineering from Glendale, California to Lake Nona, Florida was a Chapek move. Not one for frivolities such as “history,” “legacy,” or “sentimentality” (attributes a company such as Walt Disney certainly should not possess), Chapek made the unpopular decision in 2021 when employee morale was already low. “Hold my beer,” he said, when challenged to somehow make a bad situation worse.
The reversal of the decision was set in motion in November 2022. That’s when Bob Iger returned as CEO, and although he hasn’t publicly spoken (yet) about cancelled move, our understanding is that it has more to do with the aforementioned attributes and morale than anything else. To be sure, there were likely aggravating factors including “evolving economic and business conditions” as well as upfront costs of construction. Iger also probably does not mind the media inferences that it’s a checkmate move in the ongoing battle with Governor DeSantis. However, from what we understand, this decision became an inevitability last holiday season.
Whether this is better characterized as cleaning up a catastrophe or a short-sighted decision in light of Central Florida’s tourism boom is likely a matter of personal perspective and priorities. As fans the company’s rich history and creative legacy, as well as regular visitors to both Walt Disney World and Disneyland, we’re mixed on the cancelled Lake Nona campus–but believe it was bungled (and possibly doomed) from the beginning.
It’s difficult to quantify the damage done here. The hit to morale and the institutional knowledge losses resulting from WDI departures are incalculable. Money was also likely spent on design and development, as well as prepping for the relocation. More will be spent to move impacted families from Florida back to California. However, much of the money spent on land can be recouped–Disney might even see a windfall there, as Central Florida property values have increased since 2021.
Reedy Creek – No matter where you stand on the DeSantis vs. DeSantis battle, you probably think Bob Chapek bungled his initial response, follow-up, follow-up to the follow-up, and whatever else it was that he was trying to accomplish. No one listened to what Chapek had to say and thought, “he articulated the company’s perspective eloquently and handled a tricky situation well.” To his credit, Chapek was highly successful in uniting both sides in disdain for him. A rare and impressive feat, to be sure!
Chapek’s whole approach to the controversy was comedy of errors, remedying mistakes with even more mistakes, and managing to alienate literally everyone on the political spectrum in the process. Chapek’s blundering of this situation will be studied in political science textbooks in the decades to come as a lesson in what not to do.
Whether you’ve agreed or disagreed with Bob Iger’s approach and subsequent escalations and moves, it’s also fair to say that he’s essentially playing the bad hand that got dealt to him by Chapek. This is another one that’s impossible to quantify, but there has undoubtedly been a degree of brand damage as Disney has become a central figure in the culture wars.
Giant EPCOT Dirt Pit – Congratulations Disney, you’ve worn me down! As much as I wanted an ambitious new central spine that replaced the dead 1990s mall vibes with something ambitious, energetic, and innovative…I’m just ready for this to be finished at this point.
Once everything is finally said and done, it’ll have been 4 years that the central spine of EPCOT has been torn up and behind construction walls. That’s a ridiculous amount of time to have the main corridor of the park out of commission. The pace of the project has been too slow from the outset, but it’s only gotten worse post-reopening. At least it was going to be ambitious at one point, overhauling a park that had been stagnating for far too long while adding unique architecture and interactive features.
What’s discouraging is to go through 3 rounds of redesigns and end up with this. It seems incredibly short-sighted to build something roughly equivalent to what they tore down (minus the symmetry). It’s a tremendous waste of time and money for a before and after difference amounting to “more trees!” and “one fewer fountain!” This is going to be around for decades to come, and looks wholly unambitious and uninspired. Whatever, though. It’s not like this is the park dedicated to the spirit of human innovation and imagination. Oh wait.
I have zero insight into how much money has been blown on the various iterations of the design, construction delays, and unrealized revenue resulting from so much of EPCOT being out of commission. Probably safe to say it would’ve cost far less money (and taken 2-3 fewer years) to simply build the current design in the first place. My guess is that this is pretty close to another $100 million down the drain.
Suffice to say, a lot of money has been wasted as the company has cleaned up the mess left by Chapek-era ideas or gone in different directions. Admittedly, not all of the blame rests squarely on the shoulders of Bob Chapek. He’s just one person, and he didn’t singlehandedly make all of these decisions while head of DPEP or CEO of Disney.
With that said, these aren’t the only abandoned ideas of the last several years–add the Mary Poppins expansion at EPCOT, Reflections Lakeside Lodge, Play Pavilion, Spaceship Earth reimagining, and more to that list. Some of that could certainly be blamed on COVID, but it also could be attributed to leadership lacking confidence and foresight to see past the closures to future dynamics and demand. (Same goes for the entirety of EPCOT, for that matter. There’s absolutely no good reason why that project isn’t done.)
While it might be fun to play the blame game, who’s at fault doesn’t really matter (well…it sorta does if the individual(s) mostly responsible are now gone and can’t make the same mistake(s) again!). Although this article is critical, we also appreciate that Walt Disney World has so quickly pivoted on some of these things, essentially admitting a mistake and moving on rather than trying to save face. That’s laudable and refreshing. But it’s also not the main takeaway here.
The most salient point is just how many hundreds of millions of dollars have been wasted in the last 5+ years on projects that never came to fruition, were follies from day one, or short-lived and subsequently abandoned additions. We’re talking about at least $500 million, and possibly more. That’s approximately another New Fantasyland, Pandora, Toy Story Land, or even Cars Land that could’ve been added to Walt Disney World.
Hopefully an important lesson has been learned. Bob Iger has already revealed and reiterated (several times) a plan to invest $17 billion on Walt Disney World expansion over the course of a decade. Now, that won’t start until after streaming is sorted out and the standoff with Florida winds down (so, 2025), but it is real and it is a lot of money that could result in significant and meaningful expansions in all four parks.
However, that requires no boondoggles like the NextGen initiative or so much of what has been done over the last several years that cost a lot but bore little fruit. Disney Parks & Resorts projects have inflated budgets and prolonged timelines. That’s just a fact of life, and it comes with both good and bad. We aren’t expecting Walt Disney World to be as nimble and economical as Universal or regional amusement parks; that’s unrealistic.
On the other hand, Disney will have invested more in Florida over the course of the last decade than Universal Orlando after Epic Universe opens (2015-2025). That almost certainly won’t be apparent to the average guest in comparing the recent and new additions of each. Here’s hoping that Walt Disney World’s next development boom has a better batting average, with far less money wasted. We appreciate Iger and D’Amaro cleaning up Chapek’s costly catastrophes…but hopefully we’re not writing a similar article 5 years from now about the next CEO and DPEP Chairman undoing D’Amaro’s damage and Iger issues!
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YOUR THOUGHTS
What do you think about the company cleaning up Chapek’s costly catastrophes? Think Umbrella Bob is mostly to blame for these failures, or were they a “group effort” with blame to go around for OG Bob and Josh D’Amaro? Wish Walt Disney World would’ve built Cars Land or another new land instead of Galactic Starcruiser, Harmonious, etc? What is your reaction to Bob Iger’s announcement that the company plans to invest $17 billion on Walt Disney World in the next decade? What potential plans or projects have you most and least excited? Anything you’re hoping does not end up coming to fruition? Do you agree or disagree with our assessments? Any questions we can help you answer? Hearing your feedback–even when you disagree with us–is both interesting to us and helpful to other readers, so please share your thoughts below in the comments!
Disney has merch but is mostly a company built on brand and Fandom, which Iger has failed miserable at understanding. I think D’Amaro seems to be a timid little follower, instead of a visionary. Iger and whoever replaces him should befriend Jeff Vinik and maybe even Abramovich (I know Roman is very controversial) to understand their customer demand, when your brand is Fandom they have both successfully nailed it and maintained it. The Lightning has routinely been voted the best fan experience in all of U.S. sports, same with Man United. The take away, you throw a ton of money at customer services and guest experiences when your business is fan based and they will remain loyal. I don’t like sports but even I can observe the abysmal failure of Iger, Chapek, D’Amaro and Mark Parker (Nike, cheap overpriced product) when compared to Vinik and Abramovich (I still think he will continue to own Man United, just waiting it out).
What a sad waste of major money. I wish a fraction would be spent on just upkeep/cleaning/renovations of the great rides already in place. The difference in the condition of rides in the Magic Kingdom vs Disneyland is huge.
I agree with you. We just returned from a family trip to WDW and noticed some of the rides seemed darker (as in lighting). Pirates of the Caribbean was very dark in places like the battle area between the 2 ships. We could hardly see the scene. And why is Disneyland’s ride over 15 minutes vs Disney World at just over 8 minutes? It’s a Small World is also longer and prettier at Disneyland. DL has added characters from Disney movies embedded in the scenes and a makeover for the holidays.I’ve always wondered why they don’t put the names of the countries hidden in the scenes either. Over 100 countries are featured in the ride and we are always trying to figure out who the dolls represent.
The Haunted Mansion gets a really fun Nightmare Before Christmas makeover at Disneyland which DW does not. We even noticed last week at WDW, that there used to be instruments swirling around Madam Leota, She even mentions her tambourine and you hear it shake…. but no instruments. Where did they go? WDW could definitely improve/refresh on some already existing rides.
@ Lynn A,
To be fair, DL’s PoC has always been longer and more detailed than the WDW version since the WDW version opened. It was never part of the initial plan to bring PoC to WDW in the first place since they thought Florida was too close to the Caribbean. Only after popular demand did they change their minds, but at that point they decided to wedge it into a much smaller space in the MK than the DL version resulting in the truncated experience. The lighting issues are one thing, but Chapek/Iger aren’t to blame for the layout.
“The exact cost of the loss is difficult to assess since the R&D can be put to use elsewhere, but it’s still probably north of $200 million.”
On the Disney Dish (Len Testa podcast), they stated the development cost of the Starcruiser was 250m with the total cost approaching 1b.
Like you said, some of it will be salvaged, but that’s a crazy amount of money for 18 months.
Great analysis and article, Tom. However, a big mistake WDW has recently made is not mentioned; I’m not sure if it should also be attributed to Chapek or not: IMHO, the reimagining of Splash Mountain is WRONG. Tons of Disney fans will never recover from losing Brer Rabbitt’s adventures in search of the Happy Place. If this is also Chapek to blame, then besides from the money issues, from which WDW will eventually recover, the loss of an irreplaceable Disney Icon is truly pricelsss and he definitely will be remembered as a true monster that has damaged WDW irreparably.
It is not discussed because it is hardly a mistake, let alone a catastrophe. The majority of people are capable of understanding why Disney is re-imagining the ride, and are withholding judgement on its ‘success’ until after the new attraction debuts. If there is anyone out there ‘unable to recover’ from the loss, they are welcome to visit Japan (and should do so anyway) to ride the attraction there. However, so long as Disney does a respectful and innovative overlay, I imagine the vast majority will keep their fond memories of the old attraction, and make wonderful new memories with Tiana.
“This is another one that’s impossible to quantify, but there has undoubtedly been a degree of brand damage as Disney has become a central figure in the culture wars.”
100% Yes it is anecdotal, but I know several people who loved Disney who have sworn it off for the past few years. Cancelled Disney+, have not gone back to WDW since, etc. Whether you agree with their stance or not, it undoubtedly cost Disney money and reputation. For the life of me I will never understand why companies throw their hat in the ring on political issues and alienate a large portion of their fan base no matter which side they choose…
Hi Tom,
I must beg to differ concerning Chapek’s mistakes. Chapek did not make any mistakes that isn’t handed down by Iger, being that Chapek was only in power briefly, and everything he did was left to him by Iger, the most important one being Disney+, the biggest money loser for Disney at the moment.
Chapek is unpopular because of the “Paycheck” situation: how he raised prices and cut costs on many aspects of Disney. But being that he had to deal with the covid shutdown, there was nothing wrong with his approach, especially if you consider how park attendance remains strong. He made hay while the sun shined for a couple of years there. In the future, as the market returns to normal, he could simply give discounts, and people would come rushing back. Imagine how full the WDW would have been the last couple of years without Chapek’s price raises. I have enjoyed the free dining for years, so it’s not like I personally love all the price hikes, but I do believe Chapek saved WDW from the covid loss.
The one thing I disagree with Chapek the most is his support of streaming, including Disney+, which he spent 30 billion last year and 25 billion before that. As a stockholder, I am scared of Disney+ and I never could see how it could ever turn a profit in 2024 like Chapek thought. But Disney+ started with Iger and Chapek was just trying to make it succeed. I was against Disney have their own platform rather than simply using Netflix, but obviously Disney thought they would never fail at anything they tried.
The ultimate blame rests on the Disney Board. Remember how Iger stepped down suddenly within a day, with no ceremony and no goodbye party? And now Chapek got canned in exactly the same way, even though just few months before, his contract was renewed by unanimous vote. And now they brought Iger back because out of the zillion employees of Disney, they couldn’t find one to be the next CEO. Even though Chapek was hand picked by Iger and the two Bobs are in totally agreement.
I’m so happy the “Mistake on the Lake” has been removed. I agree spending some money to upgrade IllumiNations would have been a better decision. It was a great show that just could have used a little sprucing up.
The Water Taco Fiasco was a huge abomination in multiple ways. Illuminations had become stale and boring and needed a rework with more pyro, of course, but could’ve been done while keeping the old show operational. I have high hopes for the next version to be bigger and better, with double the pyro. Or better, triple!
Just bring back wishes, the best pyro display I have ever seen in my life. Yet another economy too far.
An ad popped up and cost me to lose my comment and jumped to the top. This is my 3rd attempt :(. The ads are even humping into my comment! I always read on the phone but I may have to go to the computer to comment on this one. Trying one last time. Usually not even close to this bad. I will keep this short:
Iger not perfect (hired Chapek), but way better than Chapek.
Dirt Pit. Totally agree. Very sad.
Money – they need to refurb It’s a Small World. I won’t ride again until they do. It’s been my favorite since I was 3! Hope it’s in the 10-yr plan.
D vs D – WDW will win in court, but I hate to say DeSantis kind of has them over a barrel. What can Disney do? They can’t pick up WDW and move it and I don’t see them doing an extended shutdown tho that might work…
The whole EPCOT thing breaks my heart. My favorite park gutted for little gain. I’m more sad than I have any business being over it.
I am a Disney Parks fan. Hugely. I just don’t feel comfortable with woke culture that was expressed by them last year.
I think a lot of people don’t either.
Bring back the magic, that is what WDW needs. Still gonna go to WDW or DLP in 2024.
YvonneMarie,
I agree. We were going twice a year and just canceled a 10 day Grand Floridian trip. Too much change in the parks – lack of a proper dress code is one of my major complaints. Children shouldn’t be eye level with butt cheeks while in line but we had that happen. Twice. Don’t get me started on the pool. Felt more like Cancun than a family resort.
Just plain sad.
Curious as to the Disneyland Resort side to this article (if there is anything to report). It would seem DW gets a lot of the expansion budget and subsequent mismanagement. Understandably since they have the room to keep expanding and changing attractions and shows. It took years for DLR to get the modified MagicBands from DW.
Disney patrons have been clamoring for an extended monorail system for many years. All the money spent could have, at least, contributed to a Disney Studios/ Animal Kingdom extension.
It would cost way too much to extend the monorail system there and believe it or not, the Skyliner can carry more passengers. A lot more.
It would cost way too much to keep Iger and the current Board (I’d like a peek at their expense reports). Investment in the brand produces more ROI in the long run than quarterly reports and stockholder wealth. The Skyline is great, my little one loves it but that isn’t the point. There needs to be a total connectivity to all the parks. The Skyliner nor Monorail does that, but clawing back Iger’s ridiculous salary and Board perks would.
A lot of people seem to have a weird disconnect with reality when it comes to Iger’s or anyone else C-level salaries, claiming a massive cut would solve all the company’s problems instantly. Some of this is from folks who are really, really bad at simple math, like the ones saying Bob’s bonus could give all CMs a huge raise (it wouldn’t). Others involve new attraction construction, etc. Even back when Splash was built for $36M in 1992 (or so they told us as CMs) you couldn’t fund that with Eisner’s salary and bonuses from then.
I can’t help but feel that Bob Iger gets a pass on a lot of mistakes and missteps too. Bland resort designs, Spectromagic rotted, date based tickets, Epcot ignored throughout his tenure, monorails, and the emergence of a woke culture started under him. I’m not apologizing for Chapek, but he just was not around long enough to be held responsible for alot of what is now missing or wrong with Disney. When it comes to irresponsible spending, you are right on the money. Imagine if the money spent on the Galactic Starcruiser and the water tacos was allocated to the monorails or spaceship earth.
I forgot to mention the elephant in the room that seems to be ignored: the whole reason we had Chapek as CEO is because of Iger and the Board of Directors and their lack of planning and a poor succession plan.
Some of the stuff that you’re naming–SpectroMagic or monorails, for instance–would be below the pay grade of the CEO. SpectroMagic decaying is the fault of Magic Kingdom’s VP, not every the Parks Chairman.
Agreed that succession planning was a massive failure, and that Iger has had plenty of major missteps. I just find it fascinating when we’re looking specifically at hundreds of millions of wasted dollars that could’ve been better allocated, there’s a clear pattern with Chapek (seemingly) the one to blame. That’s not to say there aren’t other issues.
The failures in the Parks during the Chapek tenure are his fault. He was in charge of Parks before being promoted to CEO. Therefore, the negative impacts that have lowered guest satisfaction are all on Chapek. Further, his devil-may-care attitude towards both guest satisfaction and calibrating a workable political calculus damaged the Disney brand. He’s earned the derision.
However, the biggest negative financial problem for Disney is streaming, and much of that falls to Iger paying $70B+ for 21st Century. And because of streaming in general, the math for owning movie studios, TV stations, & sports channels has changed too. Chapek was no neophyte, since he ran video before Parks, but he was out of his element managing the creative aspects (see: Scarlett Johansen).
Tom,
The one thing you keep overlooking in the decision to no longer move to Lake Nona is the change in political climate in FL for the LGBTQ community (and other changes in state laws, i.e., open carry). I’m guessing there are at least a few creative-types who will not move to Florida because their child cannot talk in school about having 2-mommies or 2-daddies. I can tell you with certainty that plenty of people don’t want to visit Florida because of the vitriol, so it’s not a leap to suggest that many Californians don’t want to move to Florida. That’s not on either Chapek or Iger. So no matter how much you brush off the minutiae of what stopped the move to Lake Nona – the reason is not internal to Disney, the reason is the current Governor of Florida (who seemingly gains pleasure dissing the largest employer in FL that drives upwards of 50% of every tourist dollar in the state).
Totally agree on Iger overpaying for Fox, and that debt being an albatross. I think the jury is still out on streaming. It was always going to lose money for several years, and those losses accelerated under Chapek due to more content production. But also, what other card did he have to play at the time when the world was shut down and streaming was the thing? I think it’s premature to judge that. (I do think some companies will lose their shirts on streaming as the market is already overcrowded–I suspect Disney will emerge as one of the victors, though.)
As for the DPEP move, I don’t think that’s much of a motivator in the decision because it’s nothing new–it’s just gotten worse. This all started over a year ago, and California-based employees were very vocal then. Many didn’t want to move to Florida because they’ve planted roots in California, but plenty of others said they didn’t want to move due to DeSantis and public policy. Maybe DPEP would’ve lost a few more people in the move if it happened now, but the company is already undertaking layoffs. Like the return-to-office mandate, this was going to be a layoff in disguise.
I do agree that recent legislation will negatively impact tourism to the state, and is being pursued for the sake of bolstering a presidential run, rather than what’s best for the economy of Florida.
The problem wasn’t that Chapek came up with a plan to increase streaming when Wall Street was punishing companies who weren’t losing money, the problem was that he didn’t appear to have a plan for when that changed. That’s why I assume he “apparently lied but did not commit fraud” at the quarterly report.
For what it’s worth, no obvious Plan B when it seems obvious there should be a Plan B sums up my feelings about the Starcruiser, as well. Those are management decisions to not have alternatives ahead of time.
Just stop it with the ridiculous blaming of 2 mommy crap, that has nothing to do with it and is immature just bringing it up. The reason Nona was cancelled is cause they couldn’t get enough Imagineers to commit to moving and it has ZERO to do with schools. Trust me, in my little one’s school drop off and pick up line I see more California license plates than Florida ones some days, especially during 2020, 2021 and 2023. It is rooted in that Florida has NEVER subsidized the movie industry. It’s why the Walking Dead chose Georgia over Florida for filming. Because we don’t pay the film industry to be here so there is no film industry infrastructure, that is all in California, Montreal and now Georgia. Since California has a longer history of subsidizing the film industry, generations have gravitated to California. Elon Musk tried to relocate tech talent to Texas and struggled to find talent there and offered generous relocation bonuses, and in the end he now plans to reopen back in California in a split scenario of CA and TX. The lesson learned should be relocation is a slow and gradual process, not a “move within 2 years or you’re gone.” It has zero to do with culture wars.
It’s pretty clear you guys are Bob Iger fans. Thank god for YouTube with more creditable sources and better information than you guys. Here we go with let’s blame the other bob. This article is missing so much more truth.
Bob is that you??? Wow, I’m in awe. And as a parent of teens and pre-teens I am totally with you in believing YouTube being the best place for accurate, journalistically sound reporting. The things they learn from YouTube always seem sketchy/implausible but who am I to question YouTubers’ immaculate reputation for bringing unvarnished TRUTH to the world!
Disney have hugely out priced regular visitors such as myself, such a disappointment for nothing other than greed.
It’s so sad that TWDC makes costly mistakes that the average Joe, or at least the average blog-reading ardent fan, could see a mile away. Your description of Galactic Starcruiser is a great example. But surely the execs read that fans hate Genie+ but like UO Express Pass. Universal understand that making guests jump through hoops just to help with scheduling is unpopular, and they have seen that the unpredictability of letting riders choose their ride time can be managed. Why must Disney throw more money at tweaking their fundamentally unpopular system?
There are enough non-Disney theme parks around the world to invest in quality research before spending $100M+. Even if Disney hand-picked a hundred “consultants” and paid them $100 per survey, with an NDA, they could get a balanced view of future plans and spot the duds far sooner. Hey, I’ll give them an idea for free to electrify Tomorrowland Speedway and ask the motor companies to sponsor it. A fleet of miniature Ford Mustang Mach-E cars (with easily-replaceable shells as new models are released) would remove petrol fumes and noise, give Marketing a green attraction to shout about, require less ongoing maintenance, and bring in the sponsor dollars. Swappable batteries remove the range issues, or enough cars to leave some on charge during the day. On second thoughts, I’d like some of the sponsor dollars please. Shall we round it to $1M? Based on TWDC’s recent track record, I just saved them a fortune.
I’m honestly surprised a modernization of Tomorrowland Speedway didn’t happen pre-TRON.
That’s a scenario where they could get a sponsor to actually foot the entire bill (or close to it) as there plenty of companies that wanted to gain a toehold and brand awareness in the EV space. I think that window is closing a bit, but might still be possible.
Disney would never be able to implement an equivalent to the Universal Express Pass as a full scale replacement for Genie+ or FP. For one thing, it only works at Universal because they both cap the number of people who can buy it and charge a lot for it (even if it’s a relative deal when included with the top tier resorts especially when those resorts charge less and are nicer than Disney Deluxes, that is still cost prohibitive for anyone not in the Deluxe market, aka most people). Yes, Disney’s attempts all had/have certain inequities (knowledge/planning based for FP+ and price based for Genie/LL), but you are looking at $100 minimum per person for a once per ride pass and at least $300-400 per night at a top tier UO resort for the cheapest way to get an unlimited pass. Furthermore, given the number of rooms at Deluxe/DVC/Swolphin resorts at WDW compared to UO (even given the greater capacity at WDW parks overall) those guests could overwhelm the system at WDW if they all got something akin to the Universal Express Pass.
Your idea is brilliant. It is so unpleasant to be near the Speedway—the noise and fumes are disgusting. Switching to EVs would fit in with Walt’s embracing of forward technology while adding to and updating a fan favorite ride. Get on it, Bob!
BTW I have a Mustang Mach E. I love it.
Err….and Test Track not being a GM dealership lot when you get off the ride. What a let down to the original Motorola sponsorship with open wheel racing theme and “behind the scenes pit access” as before. Boring.
Ever since Josh from EasyWDW passed I’ve been hitting your site daily- DVC member since 2001, yadda yadda, you get the gist. The last few posts ( I suspect most of your other daily readers would agree) have been your most well-written- full of the love of your job, minus what occasionally sounds like verbiage from Disney Central- keep up the good work!
Thanks. I still miss and think about Josh regularly. This is the type of article that I would’ve loved arguing with him about first to better refine.
The verbiage from Disney Central either is that (literally) when it comes to announcements, or is a result of the reality that you don’t do something like this for years if you’re purely cynical. That was very much true even of Josh–he just didn’t show it as much!
Pour one out for Josh. Truly one of a kind.
Good article!
That said, do you ever look at your site on a phone? I usually read on a computer but on a phone it is a MySpace page. I understand you have to pay the bills but it is borderline unreadable with the text moving up and down, or the whole page reloading, ads appearing over top of the text, etc. Please make it more readable. Thanks!
I’ve noticed that too from time to time and there are certain ad types that I’ve blocked as a result. Unfortunately, some still get miscategorized or do unpredictable things–I’ll talk to the ad network more and see what else can be done. I agree that it’s often ‘too much.’
Today, we were in Hollywood Studios. We arrived just before noon. On a Saturday, in May, with blue sunny skies, albeit pretty hot. Upon entering the park, I checked ride wait times. Rise of the Resistance was at 35 minutes. Slinky Dog was 45. Smuggler’s Run – 15. Tower of Terror – 13 (walk on), and Runaway Railway – 35. Toy Story Land is normally shoulder to shoulder, but it looked barren. There were no lines in the usual places, like Epic Eats or Baseline Taphouse. We did all the things we normally do, including a two hour meal at Roundup Rodeo, and were done by 6:00.
The revenge travel is done. Soon, Disney will be bleeding money at the parks. Will they ever start listening to the guests and take heed of what WE want? Or are they willing to bet that we will keep on spending money on subpar entertainment that costs more every year?
Funny, when I do the next wait times report pointing out all of the 1/10 days in the last month, dozens of Facebook commenters will claim they were just there and it was “busier than ever.”
As for listening to guests and taking heed of what we want…I think that’s already starting to happen with the recently-announced changes. It’s not everything and it’s not fast, but it’s a start and will continue to be a trend. Unfortunately, nothing Disney does is fast.
My big fear is that they will also cut costs (hours, entertainment, etc) in an attempt to maintain margins. They need to do the opposite, adding entertainment and offerings to entice more visitors and lure back disillusioned fans.