A New CEO, a Familiar Face
Josh D'Amaro took over as Disney's CEO in March, replacing Bob Iger after a long and public succession race. This week, at the D23 fan event, he sat down with CNBC to talk about his first few months on the job. His message was steady: the company knows what it is doing, and the team is stable.
One area of the business surprised him. D'Amaro said Disney's parks division was a "big surprise" last quarter. That might sound like a small thing, but theme parks are a huge profit driver for Disney.
Before taking the top job, D'Amaro ran Disney Experiences, which includes the parks, cruise ships, and consumer products. So he knows that part of the business well.
His appointment came after a lengthy and public search for a successor to Iger, and D'Amaro has tried to project stability since taking charge. That stability matters because Disney is navigating pressure from Wall Street, Washington, and the wider entertainment industry.
Parks and the Stock Price
D'Amaro did not hide his feelings about the stock. "I'm not happy with where the stock is right now. Our shareholders aren't either, but I think we're in a really strong position relative to the rest of the entertainment industry," he said.
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D'Amaro said Disney will continue spending on its parks, though he did not answer whether guests might face higher admission prices. For now, the focus is on giving visitors a reason to keep coming back.
Streaming's Next Chapter
On the streaming side, D'Amaro described a free, ad-supported tier as a "front porch" for the service. The idea is to bring in viewers who might not want to pay yet, then convince them to upgrade to a paid plan. He also suggested that shopping could be woven into the streaming experience, allowing viewers to buy items such as toys or costumes without leaving the app.
D'Amaro also said he is comfortable with Disney+ in its current form. "We have tremendous scale, and growing scale internationally. I feel really good about where Disney+ is," D'Amaro said.
What It Means for Your Portfolio
For investors, the big takeaway is that Disney is not planning any huge, dramatic moves. D'Amaro dismissed the idea of a merger or a spinoff like other media companies have tried. He is also keeping ESPN, saying the sports rights and ratings are too strong to give up.
Layoffs have already started. Weeks after he took over, the company cut nearly 1,000 jobs, with more cuts following at ESPN, Pixar, and National Geographic. That is never fun, but it shows Disney is serious about cutting costs.
The company is also facing political pressure, including an FCC review of Disney's broadcast licenses and scrutiny over shows like "Jimmy Kimmel Live!" D'Amaro said Disney would not change its stance or let outside voices dictate its news coverage.
The bottom line for your money? Disney is betting on its parks and its streaming service to carry growth, while trimming costs and ignoring the noise. If you own Disney stock, you are along for the ride.
If you are thinking about buying, the company is cheaper than it was a year ago. Whether that is a bargain or a trap is only something time will tell.
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