Disney CEO Bob Iger spoke on the Morgan Stanley Know-how, Media & Telecom Convention in March 2024. It’s the second consecutive 12 months he’s achieved an interview on the occasion, which options developments within the media business–that was Iger’s main focus, however he additionally mentioned just a few newsworthy issues about Walt Disney World and Disneyland.
In the course of the interview, Iger defined how the world’s largest leisure firm is evolving its strategy to streaming and movie-making. He spent the majority of the interview discussing Disney+ and the Hulu acquisition; the corporate’s fantastic relationship with the NBA, worth of ESPN and sports activities betting; plus a bunch of different issues.
Most of this was a retread of what Iger has mentioned throughout different latest interviews or throughout earnings calls, however one new tidbit was Iger’s concession that it had been a difficult 12 months for Disney on the field workplace, and that main efforts have been being undertaken to deal with the “arduous occasions” for the movie enterprise. Whereas Iger had beforehand made oblique feedback suggesting an consciousness of those points, he tackled them extra head-on throughout this interview.
“It’s a must to kill belongings you not consider in, and that’s not straightforward on this enterprise…you’ve acquired to make robust calls,” Iger mentioned. He famous that regardless of not being public about it, he has achieved exactly that, making these robust calls. “We’ve killed just a few initiatives already, that we simply didn’t really feel have been sturdy sufficient,” Iger indicated.
Iger added that he has been spending loads of time with the creatives, watching movies, giving detailed notes, and interesting in a respectful course of that ends in enchancment. “Not solely do you have a look at the movies you’re making, you you have a look at each a part of that course of, who the administrators are, who’s being solid, and studying scripts. I personally watch movies three to 5 occasions with the group and simply create a tradition of excellence and respect which is basically necessary within the inventive neighborhood,” he added. “Once more, [Disney’s] monitor file speaks for itself.”
This comes at a time when rival studios have been scrapping initiatives (most infamously, Batgirl and Coyote vs. Acme over at Warner Bros.) and reducing again on content material, a pattern that’s solely prone to proceed as streaming companies pivot to profitability. The extent to which Iger has nixed initiatives is unknown, however Disney did have a few initiatives with Jonathan Majors which have been faraway from the discharge schedule.
It was misplaced amidst the noise of the Iger vs. Elon feud, however final November through the New York Occasions DealBook Summit, Iger additionally admitted that Disney’s creators “overlooked what their primary goal wanted to be. We have now to entertain first. It’s not about messages.” Based on Iger, Disney’s prioritization of messaging over storytelling peaked whereas he was gone final 12 months.
“We have now entertained with values and with having a optimistic impression on the world in many various methods. ‘Black Panther’ is a superb instance of that,” Iger mentioned. “I like with the ability to entertain should you can infuse it with optimistic messages and have impression on the world. Incredible. However that shouldn’t be the target. After I got here again, what I’ve actually tried to do is to return to our roots.”
So clearly Bob Iger is aware of they’ve a difficulty with the studio output and is aware of among the supply of the issue, and is actively addressing it.
In the course of the March 2024 Morgan Stanley interview, Iger additionally pushed again on the widespread notion of superhero fatigue, pointedly saying that it was “not an accident” that the Marvel Cinematic Universe’s first 33 movies have been like a license to print cash on the field workplace.
“It’s not viewers fatigue. They need nice movies, and should you construct it nice, they’ll come. There are numerous examples of that. Some are ours and a few are others,” Iger mentioned. “We diminished the output of Marvel. Each the variety of movies and tv reveals they make, and that has crucial, however I be ok with the group. I be ok with the IP we’re making. I talked about loads of the initiatives. We glance years forward, actually. And it’s iterative.”
Iger additionally highlighted Disney’s upcoming 2024 movie slate, calling Kingdom of the Planet of the Apes “one of many higher movies within the franchise.” He additionally pointed to Inside Out 2 and Moana 2, and the large Marvel launch of the 12 months, Deadpool & Wolverine, which Iger predicted “might be one of the profitable Marvel motion pictures we’ve had in a very long time.”
I’ll solely add fast commentary right here, since movie-making isn’t the main target of this website, however he’s proper. With that mentioned, should you’ve learn Disney’s Fame Falls Additional, you already know my perspective on “motion pictures with messages.” That it doesn’t a lot better. High quality will win out, no matter all else. Numerous vapid blockbusters have been flops; loads of motion pictures that would have been the topic of tradition wars have succeeded. (For those who suppose Barbie or Dune or Avatar didn’t have messages…oh boy.)
However, Iger’s earlier feedback about “messaging over storytelling” or messaging on the expense of storytelling lower to the center of the particular subject. If the film is entertaining or pleasant, most audiences care if there’s a subtext–even one with which they could disagree. That’s been a key function of artwork for millennia, it’s solely now develop into a difficulty in our hyper-polarized occasions that additionally, not so coincidentally, function a cottage business for fanning the flames on tradition wars. But when the film sucks and it’s preachy…effectively, that’s an issue.
For me, the larger subject is whether or not Iger is true within the sense that he really “will get it” or simply is saying the proper issues. It seems like he understands the studio output has been low-quality, a bunch of superfluous and soulless big-budget motion pictures.
Nonetheless, Iger particularly cited Oppenheimer as a unbelievable movie and excellent instance of audiences not having tremendous hero or franchise fatigue. The one drawback? Oppenheimer is neither of these issues! It’s an unbelievable success story and does converse to his, “should you construct it nice, they’ll come” assertion, nevertheless it doesn’t precisely rebut the notion of hero or franchise fatigue.
And truthfully, it’s considerably regarding that the ‘response’ to final 12 months’s field workplace meltdown through the precise movie slate is a bunch extra sequels. Possibly it’s purely coincidental, however extra Moana, Frozen, Toy Story look like the ‘break glass in case of emergency’ franchises. It sorta says to me that they know these movies might be field workplace gold, not essentially that they’re main with high-quality or creatively-compelling concepts.
Anyway, I actually hope Iger will get it and isn’t simply saying the proper issues whereas nonetheless not placing precise creativity and storytelling first. I’m actually excited for Kingdom of the Planet of the Apes, and cautiously optimistic concerning the Inside Out and Moana sequels. Oh, and Shogun has been phenomenal to this point. So Disney hasn’t utterly misplaced its contact!
Turning to what most of you really care about, theme parks, Bob Iger additionally had an honest quantity to say about Walt Disney World and Disneyland. I’m simply undecided how a lot of it’s scorching off the presses information. He began by touting Disney Parks as a “fantastic story” and overestimated the anticipated monetary outcomes that Walt Disney World and Disneyland would proceed to ship, outperforming just about all different features of the corporate.
Iger mentioned that Disney Parks has “entered right into a section the place we will begin constructing.” These remarks echoed these from Disney’s company-wide city corridor late final 12 months and most up-to-date two earnings calls, so not precisely a brand new revelation. Iger mentioned the corporate is poised to start constructing its enterprise once more, after a 12 months of restructuring to responded to wrenching modifications within the business brought on by streaming.
You may recall Iger laying out 4 constructing alternatives for the corporate that included “turbocharging” progress in Parks & Resorts. That was this. (We lined that beforehand in What Bob Iger Must Repair at Walt Disney World & Past in 2024.)
Throughout this Morgan Stanley convention, Iger’s remark about Parks & Resorts that has obtained essentially the most consideration from the media and followers was saying that Disney has “1000’s of acres of lands to develop, and we might really construct seven new full lands if we wished to around the globe.”
That is the headline quote that everybody is reporting, however the factor is, Iger butchered it! Everyone seems to be specializing in the non-committal nature (that Disney might construct in the event that they wished) quite than that he misspoke! How did nobody discover this? The assertion is concerning the potential for that land–1000’s of acres–would you actually be impressed by all of that land going solely to seven new lands?! Granted, Imagineering has gotten the behavior of constructing completely large lands with solely 1-2 rides, so perhaps that tracks. However anyway, I do know Iger misspoke as a result of that is additionally one thing he and D’Amaro have touted earlier than!
From the announcement of investing $60 billion in Parks & Resorts from final September: “In truth, Disney Parks has over 1,000 acres of land for attainable future improvement to develop theme park area throughout its present websites – the equal of about seven new Disneyland Parks.”
That’s proper, it’s the equal of seven new Disneylands, not seven new Disney lands. One little area, however a world of distinction! Clearly the corporate might construct 7 new lands–there’s sufficient area for that in Walt Disney World alone, and doubtless each different vacation spot as soon as DisneylandForward is permitted. (Minus Tokyo, however that doesn’t rely because it’s not Disney’s land.)
Anyway, just a bit little bit of proof that Bob Iger is human, and he doesn’t at all times rigorously persist with the script.
Iger added: “This contains the power to extend the scale of Disneyland in California–which everyone thinks is landlocked–by 50%.” (That final bit is a reference to DisneylandForward–see the above idea artwork that reveals how each gates may very well be expanded into the leisure and resort district.)
“You’ll be able to have a look at each single location that we’ve acquired–there’s land, however most significantly, we’ve got a lot IP [intellectual property] to mine that there’s alternative there to create experiences that we all know individuals will like to have in our parks,” Iger mentioned.
He continued: “For those who have a look at our IP, you have a look at the land that we’ve got, you have a look at the mathematics and demand that exists within the market, and also you have a look at the return on funding capital. It’s a no brainer to speculate that method…rising Parks and Resorts past the place it already is.”
Then got here the portion that can also be acquainted to followers, the place Iger spitballed about what a few of these lands may very well be. He referenced the success of Star Wars: Galaxy’s Edge, Zootopia at Shanghai Disneyland, and World of Frozen at Hong Kong Disneyland. This isn’t the primary time these single-franchise lands have been highlighted as blueprints for the long run.
You may recall that through the grand opening celebration of World of Frozen, D’Amaro made related feedback: “We have now a wealth of untapped tales to deliver to life throughout our enterprise. Frozen, one of the profitable and fashionable animated franchises of all time, might have a presence on the Disneyland Resort. Wakanda has but to be dropped at life. The world of Coco is simply ready to be explored. There’s loads of storytelling alternative.”
The massive twist right here was that Iger additionally revealed that (perhaps, presumably) Pandora at Disneyland might be a fully-fledged land as an alternative of simply an “expertise.” (Our up to date submit on the Avatar Expertise Coming to Disneyland particulars why that’s most likely nonetheless tentative, regardless of Iger’s offhand, announcement-adjacent feedback.)
It’s additionally value noting that finally 12 months’s Morgan Stanley convention, Iger made practically an identical feedback about “mining IP extra successfully,” and talked about constructing out new capability as a way to service extra company. I point out this to not underscore that not a lot has modified or occurred since (even when true), however as a result of he additionally added this final 12 months: “alternative that’s nearly countless, however we clearly don’t have countless quantities of capital.”
Disney not having countless quantities of capital is the crux of all of this. It’s why Walt Disney World followers have been handled to 2 years of blue sky daydreaming classes at D23 occasions, why there’s been no motion on Tropical Americas and doubtless received’t till the top of this 12 months or early 2025 when DINOSAUR lastly closes.
We’ve emphasised repeatedly how checking out streaming, linear tv, ESPN, and so forth. are obligatory conditions to precise funding and building commencing at Walt Disney World and Disneyland. (Lesser issues are additionally the political standoff with the state of Florida and DisneylandForward’s approval.) The excellent news, as Iger indicated above, is that’s all lastly beginning to be settled. He’s able to develop into Bob the Builder once more!
Look, there’s each purpose to be skeptical that’ll really occur and this isn’t simply extra empty guarantees. I get it and don’t blame anybody who has a ‘wait and see’ angle or indifference. However earlier than doubling down on cynicism, have a look at it this manner: Wall Avenue desires theme park investments. Disney Parks is the one massive shiny spot. The division has been resilient, at the same time as actually every part else has faltered.
The corporate has each monetary incentive to wager massive and make investments that $60 billion on theme parks! (And by theme parks, I imply theme parks. Disney Cruise Line is winding down an enlargement cycle and given how shipbuilding commitments work, Disney couldn’t spend a lot of that on new ships even when they wished.)
The difficulty isn’t a want to really spend cash on theme parks. They’ve that! The issue has been the cash a part of the equation. They didn’t have the free money movement. They do now, or quite, will by the top of this fiscal 12 months. They’re not simply making these enlargement teases for the halibut, which accomplishes completely nothing. Followers aren’t spending cash at nonexistent parks, and traders aren’t getting excited over them. As one clever CEO just lately put it, “should you construct it nice, they’ll come.”
That’s the one factor that really issues–not the speak, however what they’ll really do. It’s additionally why I’m so bullish on the 2024 D23 Expo, and the probability of concrete information for Walt Disney World and Disneyland, and never simply extra “what ifs” and so forth. From my perspective, Iger and Josh D’Amaro each saying the identical issues about enlargement and future developments for over a 12 months now reinforces that there are substantive plans, and it’s not simply posturing or hole hype. The cash has been the problem, not the urge for food for enlargement.
Nothing new got here out of this convention, however constantly repeating the identical targets, ambitions, and willingness to wager massive on constructing new lands actually means that there’s one thing on the horizon. My solely hope at this level is that Iger and D’Amaro attend the opening of Fantasy Springs at Tokyo DisneySea earlier than firming up the plans for Walt Disney World and Disneyland. I might like to see that be the blueprint for the long run, as an alternative of single IP lands.
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YOUR THOUGHTS
What do you consider Disney CEO Bob Iger’s feedback through the Morgan Stanley convention? Ideas on something he mentioned–or didn’t say? Ideas on his feedback about motion pictures or theme parks? Are you excited for the return of Bob the Builder and main investments in Walt Disney World and Disneyland, or nonetheless in ‘wait and see’ mode? Do you agree or disagree with our evaluation? Any questions we can assist you reply? Listening to your suggestions–even if you disagree with us–is each attention-grabbing to us and useful to different readers, so please share your ideas under within the feedback!
