Can New CEO Josh D’Amaro Break Disney’s Bob Chapek Curse?

Josh D’Amaro’s World of Tomorrow is borrowing a page from Disney’s yesteryear. 

At the Walt Disney Annual Shareholder meeting on Wednesday, D’Amaro kicked off his first official day as the CEO of the House of Mouse. He faces a tall task. The veteran executive from Disney’s parks and cruises division finds himself at the head of one of the biggest film and TV studios in the world, at a critical and rapidly changing time for the entertainment industry. Meanwhile, his predecessor and longtime CEO Bob Iger will continue to hang around the company in a special advisory capacity and as a member of the board. For longtime Disney observers, it may all feel like a case of Bob Chapek-esque déjà vu. But Disney swears its second take on appointing an Iger successor will be different.

We Don’t Talk About Chapek, No, No

Chapek, like D’Amaro, made his bones in Disney’s parks and cruises division, which continues to be the major profit driver of the company (in fact, D’Amaro stepped in as Chapek’s direct successor when Chapek took over Iger’s job in 2020). But D’Amaro is surely hoping his next chapter is unlike Chapek’s, who was effectively pushed out after roughly two years for his perceived inability to run the creative TV and film side of the company, which generates less profit than parks and cruises but tends to drive interest in those experiences. After all, fans go to Disney World to get a real-life taste of their favorite Disney movies.

On Wednesday, D’Amaro went to great lengths to make clear he understood not to put the pumpkin carriage before the creative horses:

• During the shareholder event, Disney announced that TV and streaming executive Dana Walden, one of D’Amaro’s chief rivals in the running for Iger’s job, will be elevated to the company’s first president and chief creative officer.
• The elevated role places significant responsibility on Walden at a critical time for the entertainment division. While Disney’s streaming unit has recently turned the corner into profitability, sector-wide growth appears to be slowing (Disney recently stopped reporting subscriber figures) at a time when crucial live sports rights values are ballooning and fan interest in key Disney franchises such as Marvel and Star Wars appears to be waning.

The Big Picture: “The fact that they opted for the parks head again, I think it’s an acknowledgement of the challenges in the entertainment business,” Third Bridge sector analyst John Conca told The Daily Upside, and added that the biggest challenge for Disney moving forward will be breaking down operational siloes and reinvigorating its entertainment unit. In his remarks Wednesday, D’Amaro said he plans to do just that, promising a unified vision of the wide-ranging company. “Our greatest advantage is not any one business, but how our global businesses come together,” he wrote in a memo to employees. Hopefully, various stakeholders stay unified in their belief that it’s finally time for Iger to pass the baton.