Disney Appoints Josh D’Amaro as New CEO, Eyes Fresh Leadership

Disney has announced the appointment of Josh D’Amaro as its new CEO, succeeding Bob Iger, who will retire for the second time later this year. D’Amaro, a seasoned executive with 28 years at Disney, has led the company’s experiences division since 2020 and is set to take the helm as CEO in March 2024. The announcement was made in a filing with the U.S. Securities and Exchange Commission on Tuesday.

In a competitive selection process, D’Amaro emerged as the preferred candidate over Dana Walden, who oversees Disney’s entertainment and television operations. Following D’Amaro’s promotion, Walden will assume the role of president and chief creative officer at Disney. The leadership change comes as the company seeks to navigate a challenging landscape, marked by fluctuating stock prices and evolving consumer preferences.

D’Amaro’s appointment raises concerns due to the tumultuous tenure of his predecessor, Bob Chapek, who also transitioned from the parks division to the CEO position in early 2020. Chapek’s leadership faced scrutiny, and Iger reportedly expressed regret over his selection. The succession process this time was notably more thorough, led by James Gorman, the former CEO of Morgan Stanley, who successfully managed his own leadership transition.

Under D’Amaro’s guidance, Disney’s experiences division has seen record revenues and earnings, contributing significantly to the company’s overall profit. The growth has been driven by nearly annual price increases at Disney parks, which have raised revenue per guest. Despite these hikes, D’Amaro remains popular among Disney fans, many of whom believe that higher prices could enhance their park experience by reducing crowds.

Nevertheless, some long-time Disney enthusiasts express skepticism about D’Amaro’s suitability for the CEO role. Critics argue that there are limits to how much revenue can be generated from park operations. Lucas Lozano, a Disney fan from Texas, remarked, “You can only extract so much out of the parks,” highlighting concerns about the sustainability of growth.

D’Amaro will also face scrutiny from Wall Street, which has shown lukewarm support for Disney’s stock in recent years. The company’s shares have declined by 1% over the past year and have lost one-third of their value since reaching a peak five years ago. While the experiences division flourishes, there are questions about how much further price increases can be pushed without alienating guests.

Disney’s direct-to-consumer segment presents a mixed picture. Although streaming platforms like Disney+ and Hulu have gained profitability and subscriber numbers, their share of U.S. television viewership has stagnated, according to Nielsen data. The company is exploring strategies to boost engagement, including the integration of artificial intelligence and short-form video content following a partnership with OpenAI, the creator of ChatGPT. Additionally, Disney is working to adapt ESPN to a streaming-focused future.

As D’Amaro steps into his new role, he will need to broaden his focus beyond the parks to ensure Disney thrives in the post-Iger era. His leadership will be critical in addressing both the challenges and opportunities that lie ahead for the iconic entertainment giant.