Disney invests in ‘the experience’ with its new CEO
That the company is appointing its head of experiences is a sign that it is investing in its “most durable moneymakers,” said Steve Granelli, a teaching professor of communications studies at Northeastern University
Disney’s new CEO, Josh D’Amaro, is a familiar face – especially to employees who work in the entertainment behemoth’s 12 theme parks and 31 resort hotels.
D’Amaro, the current chairman of Disney Experiences, will take over the leadership reins on March 18, replacing Bob Iger, who returned to the role in 2022.
That the company is appointing its head of experiences is a sign that it is investing in its “most durable moneymakers” —- namely its theme parks, hotels, and cruises, said Steve Granelli, a teaching professor of communications studies at Northeastern University
Indeed. The first fiscal quarter of this year the company’s experiences division brought in 38% of its total revenue, but accounted for 71% of its operating income.
While previous CEOs have publicly prioritized the company’s entertainment side, Granelli said he’s hopeful D’Amaro’s appointment will “reframe the discussion.”
“I think talking about this so much through the lens of entertainment over the past five or six years has harmed their brand ,” he said, noting that its streaming service offerings have been hit or miss.
For every “Andor,” the well-received Star War’s original series, there’s a “Secret Invasion,” a much less critically acclaimed Marvel original series.
Additionally, Disney Plus has been a known money sink, only reaching profitability for the first time in 2024 after billions of operating losses since its launch in 2019, according to reporting from Marketplace.
But the parks, while continuing to increase ticket and memorabilia costs, remain popular, with an estimated 50 million people visiting Disney World in Orlando, Florida every year.
Editor’s Picks
“When people think about Disney Plus, maybe all they’re thinking about is the next Disney Plus show or the last Disney Plus failure,” Granelli said. “Whereas when you go to the parks, you’re excited when there’s a Marvel experience or there’s a Star Wars experience.”
To be sure, D’Amaro will by no means be exiting Disney from the entertainment business, according to a press release announcing his new role.
Also appointed to a new position is former Disney Entertainment co-chairman Dana Walden, who will serve as Disney’s first President and Chief Creative Officer. In this new role, she will be responsible for assisting D’Amaro in shepherding the company’s “entertainment media, news and content business,” according to a statement from Disney.
Disney isn’t the only entertainment company investing heavily into its experiences business.
Last May, Universal Orlando opened the Universal Epic Universe, which brings together five distinct themed-worlds —- The Wizarding World of Harry Potter, Super Nintendo World, How to Train Your Dragon, Dark Universe, and Celestial Park.
The venture costs Universal approximately $7.7 billion to build over the course of eight years.
Granelli said it makes sense that companies continue to pump money into these attractions. Unlike a TV show or piece of media, which consumers largely experience once or twice, theme parks are always adding new and exciting entertainment to keep fans and their families engaged.
“If I want to have that next level of fandom, that next level experience, I’m going to have to go to the park,” Granelli said. That’s going to be more of a touchstone experience — something I’m going to share.”
