Disney Feeding the Beast
Shortly after the start of a new fiscal year, businesses typically initiate new strategies to springboard the company forward and to demonstrate that decision makers are listening to investors.
Disney's fiscal year started just a few weeks ago, and we're starting to see some of what things will look like in the company's first full year under Josh D'Amaro.
1. Hundreds of employees are being let go after a large number of staff were jettisoned mere weeks after D'Amaro being named CEO. The names catching headlines are long-time personalities at ESPN (Karl Ravech, who started in the 90's, and multiple NFL analysts like Stephania Bell and Ryan Clark, who was let go in the middle of a live show taping) along with a significant number of layoffs at Pixar, this despite Toy Story 5 being the biggest domestic grossing film of 2026. D'Amaro avoided criticism when layoffs were announced just after him becoming CEO (primarily hit in-park and other customer service staffing), but these are clearly on him and seem to cut the most lucrative parts of the business (NFL analysts at ESPN and Pixar). There's always attrition, and businesses are always looking to find efficiencies in their labor costs, particularly on the high-end of the spectrum, but this type of publicity is never great, particularly at a time where there's an overall shortage of labor.
2. Avengers: Doomsday released its first big trailer, which is conveniently timed just ahead of D23, where the film will likely be given a big platform, and Marvel will probably feature the film in its main presentation at SDCC. However, it's come to light that Disney is spending upwards of $700 million ($400 million to make and $300 for marketing) on the film, meaning it would need to gross $2 BILLION before Disney makes a penny. For reference, Avengers: Endgame grossed nearly $2.8 billion worldwide in 2019 (probably closer to $3 billion adjusted for inflation), so it's not out of the realm of possibility for Doomsday to score a major win for Disney/Marvel. However, the theatric market has changed a lot since 2019, and Doomsday is the first "team up" of the current MCU phase 6, while Endgame was the conclusion of Phase 3 that was bumped by the cliffhanger of Infinity War. Marvel has typically surpassed expectations with the Avengers, but will fatigue finally catch up with the Golden Goose?
3. Disney is digging deep into fans' pockets with their latest initiatives that will launch at D23. First is their new Imagineer-inspired clothing line, YNSD (yes, spell it backwards). This is essentially a fashion line for Disney nerds who think they're too cool for school and don't mind paying $100 for a t-shirt with an Easter Egg on it that only other Disney nerds will understand. The second initiative is Disney Experiences Auction where D23 attendees will have a chance to bid on "rare" props, artwork, and themed items used in the parks. Some of the examples of these "rare" collectibles include Bug-eyed 3-D glasses, resort room artwork, and signs/banners used in the parks. I mean nothing screams Disney fan more than watching a solar eclipse with a $200 pair of polarized glasses from It's Tough to be a Bug that you probably could have stashed in your kid's backpack a decade ago. Disney sure knows their fans and the lengths they will go, or the depths of financial despair they will put themselves through to feel like they're in the parks 24/7 - and TH wonders why I have coined the term "Drones".
4. Disney has been pretty hush hush regarding in-park developments after playing "small ball" for much of 2026, but the biggest leak has been that MK's Space Mountain might be going under the knife to do a full retracking (and consolidation to a single track provided by Vekoma similar to Disneyland's coaster). I, for one, think this is a long overdue development, and is feasible because Tron exists next door. However, it's concerning to me that Disney is going to invest even more into renovating attractions when recently completed additions are already falling into disrepair. For instance, TBA at Disneyland is literally being held together by duct tape and chicken wire (not to mention the recent videos released that showed the lack of care shown to animatronics and props removed to make way for Tiana). There's also the brand new skeleton pirate effect on PotC that has been put into B-mode, and the woeful state of the queue at Rock n' Rollercoaster with peeling paint and the Scooter animatronic accounted for about as frequently as the Na'Vi Shamen. Maintenance is tough work, but it does feel like many of these "small ball" additions are already showing warts because Disney did not devote enough resources and foresight into their development and installation.
Replies (26)
What no mention of Kraft Heinz deal.....?
If they really wanted to save monies - dump Steepen A Big mouth Smith
My understanding is the ESPN layoffs are a direct result of the NFL Network acquisition, so this was always going to be part of the deal. (I think that is bad, to be clear, but it's the normal, rational bad that defines these corporations)
You're right MyHandsDontScan, I thought Disney ran on the same fiscal calendar as the Feds, but they do run 10/1 through 9/30. Nonetheless, the TV cuts do seems to be a direct result of the NFL deal since a number of NFL Network personalities are also being released. It still doesn't explain the deep cuts over at Pixar, particularly given the performance of TS5, and the studio's earlier release this year that TH couldn't stop raving about a few months ago.
@Brian - The Heinz thing is a big ole nothing to me. Do people really make travel decisions based on the number and brand of condiments available? I mean I do know of situations where customers have put up a snuff when venues have changed partners (and I know there would be riots if Disney ever switched from Coke to Pepsi), but people are not spending money based on ketchup. And yes, I think there are plenty of sports fans that would have gladly traded Stephen A (or McAfee, who reportedly makes $60 million/year which is 3x what Stephen A makes) for all of the folks that ESPN/NFL let go.
Russell: "Do people really make travel decisions based on the number and brand of condiments available"?
Me: Nope. They also don't make travel decisions based on Disney deciding to layoff studio or ESPN employees.
Russell: "TH wonders why I have coined the term "Drones'".
Me: When have I ever wondered "why" you have coined the term "Disney Drones"? The entire premise surrounding Disney's theme park "Small Ball" strategy is rooted in the belief that Disney "fans" (which is short for "fanatics") will spend money to experience/see minor additions to the parks -- regardless of condiments or workforce decisions. Honestly, I believe you use the term "drones" as a means of disparaging folks who happen to enjoy something so much that, for some reason, it annoys you. That might say more about you than it does about them.
Disney is leaning very hard on the Drone audience they have going for them, and it's very annoying as a consumer who doesn't go very often/ doesn't pour a lot of money into trips when I do go. The new strategy is "do something very small to keep everybody happy for long enough to renew their annual pass". At least Galaxy's Edge was a phenomenon in the industry when it came out, even if it has kind of revealed itself to be somewhat mediocre. What happened to their ambition?
Can Disney rely on the diehard fans? Because when a family is trying to plan a trip to Orlando, is any of the small ball going to entice them, even if they have small kids? Or is a brand new theme park as well as major upcoming additions to the other two parks over at Universal more bang for their buck?
I can very easily envision a future where Disney loses a significant chunk of their audience, the people who never had much loyalty to Disney in the first place, and Disney is forces to leech more and more off of the Drones with DVC and collectibles.
Also, TH, I love the term "Drones". It perfectly encapsulates the type of artless and shallow consumer who will buy anything from a brand just for status and comfort.
"Nope. They also don't make travel decisions based on Disney deciding to layoff studio or ESPN employees."
Nor do they make travel decisions based who the parent company is of the theme park they want to visit.
When it comes to Disney, it's more about the symbiotic relationship between Disney and its hard core fans that makes them inseparable and borderline unsufferable to me. Every business/company has its fans/fanatics, but Disney seems to have an inordinate percentage of people who will cash in their 401ks to feel infinitesimally closer to the company. Disney feeds into this by constantly capitalizing on the folks who will ask as "how high" every single time Disney asks them to jump. I certainly don't blame them, but it becomes a tiring refrain that takes fanaticism to new heights and frustrates those of us that take a more measured approach when it comes to supporting our favorite companies/products.
And yes, it does bother me, because it means that Disney is focused on trying to milk its biggest fans dry instead of simply making smart, sustainable business decisions that will make enjoying Disney products viable for the majority in the long term.
Russell: "When it comes to Disney, it's more about the symbiotic relationship between Disney and its hard core fans that makes them inseparable and borderline unsufferable to me".
Me: Why?
Russell: "I certainly don't blame them, but it becomes a tiring refrain that takes fanaticism to new heights and frustrates those of us that take a more measured approach when it comes to supporting our favorite companies/products".
Me: why do you care?
Russell: "And yes, it does bother me ..."
Me: Keeps you up at night, eh?
Russell: "... Disney is focused on trying to milk its biggest fans dry instead of simply making smart, sustainable business decisions that will make enjoying Disney products viable for the majority in the long term."
Me: Academic Question: Do you have an example of this? An example of the company taking an initiative, and developing a park experience that substantially that supplanted smarter "Disney is focused on trying to milk its biggest fans dry instead of simply making smart, "sustainable business decisions that will make enjoying Disney products viable for the majority in the long term"?
I'll give you a very recent example, the new YNSD fashion line that was announced this week. This new initiative is specifically targeted at the uber-fans who have no problem dropping hundreds of dollars on t-shirts that proclaim their love for Disney with "style". The line itself is not my issue, though it's crazy to me that there is any kind of demand for something so ridiculous. The issue is that Imagineers are being utilized to develop pieces for the YNSD. So instead of fixing broken animatronics, peeling paint, and making sure rides operate in "A mode", they're having Imagineers design clothes and fabric patterns for a new fashion label. That bothers me, and should bother every theme park fan on the planet to see a company shift resources from park-focused R&D into fashion.
Disney got to where it's at today because of its attention to detail and high quality experiences. Their performance over the past 7 decades has put them into a position where they can charge a low wage earner week's pay to spend a single day in one of their theme parks, but instead of continuing to invest in that experience so it continues to meet and exceed expectations, Disney is instead trying to find more ways to extract any remaining spare change and pocket lint out of guests' pockets. Every move Disney has made since the Pandemic has been about optimizing revenue, with little attention being paid to maintaining standards and ensuring guests feel like they're still getting value for their ever-increasing cost to visit. It's no longer about giving guests the best experience possible, it's just about getting them through the gate and spending money, which is exactly why this "small ball" approach may be successful in the short term, but could come back to bite them as attractions that were lightly refreshed or rethemed on a shoestring budget deteriorate rapidly and have started to show warts mere months after debuting, undermining fans' trust that the big projects on the horizon will be delivered at the same high standards that are expected from Disney.
It really pains me to say this but I agree with Russel the business model of the Disney Parks has definitely changed for the worse. I personally sat in meetings with the "old guard" (the George K's and Jim McPhee's) who would get asked questions about things like charging for line skipping, replacing EMH time with upcharge EMH, etc, and they said "that's never going to happen as long as i'm here." Disney has always been expensive, however it was a much more egalitarian expensive, there was a certain attitude of "we don't do low-class things because we're Disney, we're not Busch Gardens or Six Flags."
Well eventually these types of leaders saw the writing on the wall and were basically forced into retirement. The people who came after them busted down all the walls and went full-on, I believe what the kids call "late-stage capitalism." The people who run the place now are like savages, every last drop must be squeezed from the turnip.
@Russell: Where is there any evidence that the Imagineers who are involved in the creation of the YNSD products are the same people who would normally be involved in managing maintenance of existing attractions?
And by the way Russell, you seem to ignore my observation about your disdain for the people ("drones") that patronize the Disney despite the parks' shortcomings -- peeling paint, B-modes et al. You resent the fact that people continue to show up. You find people who enjoy themselves at the parks contemptable.
So it's not just the company's park management that offends you ... it's the people who have the temerity to visit the parks and have the audacity to enjoy themselves.
Wow.
Is there (or has there ever been) a division of WDI that has been responsible for designing clothes beyond animatronic and CM costumes? When Disney launched YNSD this week, they described it as "Imagineer-created streetwear and lifestyle brand". So either Disney hired new WDI staff specifically to work on YNSD or they've shifted current WDI staff or given additional responsibility to Imagineers to work on this new fashion line. Given the recent layoffs, I highly doubt Disney hired new staff specifically to work on YNSD, so this has to be getting support by shifted staff or Imagineers taking on additional responsibilities. Maybe you have some insight into this, but the way this is described, it certainly sounds like Imagineers spending time on YNSD that probably would have otherwise been spent on more traditional WDI projects - all for the sake of Disney trying to directly monetize the R&D division. D23 running auctions of ITtbaB 3-D glasses is even further proof of Disney trying to squeeze every penny they can out of the system, and the "drones" keep feeding the beast. And yes, those folks are part of the problem, because they are rewarding and supporting mediocrity. As long as people are willing to spending money on substandard products, Disney will continue to be encouraged to lower standards. I'm not saying that people can't have fun and enjoy what is still a good experience in the parks, it's more about the oneupsmanship of fans trying to proclaim themselves as the most devoted or having the most exclusive experience. That perceived exclusivity has caused Disney to alter their strategies and devote an increasing number of resources catering to the minority instead of maintaining standards that impact everyone.
Russell: "... it certainly sounds like Imagineers spending time on YNSD that probably would have otherwise been spent on more traditional WDI projects".
Me: Yeah ... "sounds like". There's a something solid to lean on ... "sounds like".
Russell: "I'm not saying that people can't have fun and enjoy what is still a good experience in the parks ..."
Me: And just so we're all clear, your opinion about "what is still a good experience" in the Disney parks sets the standard that people should follow -- otherwise those people are a (your word) "problem"?
Well - the Kraft Heinz deal I mentioned was funny to me since Bobby Niles made a whole article about it.... Like I care about what mustard goes on a Pretzel
HAHAHAHAHAHAHAA
Then the fight started between TH and Russell...
YNSD is stupid... Disney stores are already overpriced.
Try UNIQLO in Disney Springs instead..
Last time I was at Blackpool pleasure Beach I did see they were selling old parts of rides, some used parts from active ones, others spares and bits of forgotten ones. Struck me as a brilliant idea - it’s essentially money for rubbish from the parks view, and a super rare souvenir from the customers view. I’m surprised it took Disney this long tbh.
I digress from the thread but regarding Chad's comment I once paid £400 for Albert Pierrepont's last noose at auction and thought I had got a good deal only for Mrs Plum to ruin the moment by telling me "It was money for old rope".
And here I thought Disney drones were those things that light up in the sky.
I'd like to pull on a string in this thread:
"The entire premise surrounding Disney's theme park "Small Ball" strategy is rooted in the belief that Disney "fans" (which is short for "fanatics") will spend money to experience/see minor additions to the parks..."
To me this discourse can be heuristicized with Figment. Figment merch sells well! Figment is used as the unofficial mascot to many Epcot festivals. The fans love Figment!
But the fans will engage with this character no matter what. His popularity sells. Does Disney have a financial incentive to redesign and plus up Journey into Imagination? Will they sell more merch? More Lightning Lanes? Probably not -- the fans are already buying the merch even with the ride on life support. There's simply no need to revamp -- if you don't build it, they'll still come.
The same can be applied to this "small ball" strategy. Call it what you want (nostalgia, escapism, arrested development), but most of the fans will go to Disney with or without the enhancements. So why make these investments?
To be sure, all of these small ball offerings opening around the same time probably contributed incrementally for Annual Passholders and surprised and delighted guests who already had a trip booked around this time, but I don't think even all these offerings combined contributed to any meaningful additional bookings or visits.
I guess what I'm trying to get at is: why should Disney shoot for the moon when the bare minimum is enough to get fans in the door spending money hand over fist?
MyHandsDontScan - That exactly what I'm outlining. Sure, Disney has committed to pouring billions into the parks over the next decade with major additions occurring across the parks in both Florida and California. However, at what point do bean counters at Disney see these massive investments have about the same impact on attendance and revenue as the recent "small ball" additions, and that guests acceptance of peeling paint, broken animatronics, and rides consistently operating in B-mode emboldens executives to maintain reduced maintenance schedules and to cut corners or utilize cheaper materials to trim costs?
MyHandsDontScan - exactly. I also had to look-up "heuristicized" as I had never heard that word before.
@Russell -- completely agree. I think it's likely bean counters in the future will be willing to ride the long slog down into mediocrity until things finally reach a breaking point and the Disney Parks go back to first principles and start reinvesting in the basics.
Weirdly, I could see a full-circle moment in 20-30 years where OLC trains Disney on service, ops, maintenance, etc. Just like how Disney originally trained OLC all those decades ago.
Um ... "peeling paint"?
Laughing my ass off.
Among the thousands of buildings, hotel rooms, restaurants, attractions and retail outlets exactly what percentage are suffering from substantial quantities of "peeling paint".
Russell has dropped this horrible situation more than once. Surely he can show that the "peeling paint" crisis is unique to Disney and is so great that it will have a substantial, quantifiable impact on the Disney model.
(Chuckle)
Peeling paint is not unique to Disney, but to see paint peeling on an attraction that reopened just a couple of months ago shows a recent lack of care and diminished quality (either in materials or application) from the company. Couple this with other observations of recently renovated/opened attractions and effects either failing or rapidly degrading, and it suggests that standards for quality and reliability have slipped, or Disney's "small ball" strategy is being done as a compromise to the company's normal expected standards in order to recognize time/budget savings.
There's another article in the Daily Mail again today where something has gone viral on X about a guest taking a photo of a strip of black masking tape on the car at Tiana's Bayou Adventure. The poster has said that masking tape was not invented in the 1920s period of the car and attraction so it ruined the whole experience for them. The Daily Mail even contacted Disney to comment. The single strip of masking tape then descended into Disney assassination of how standards are slipping across WDW. I had to look, nee, squint intensely to see it on the photo. There is a growing percentage of theme park attendees who are living in a parallel universe along with media outlets who think this is news.
**Disclaimer: Present TPIers exempt ***
I'm pretty sure Disney's fiscal year starts in October, no?
Historically, their Q4 would end the FY with a bang between summer tentpole blockbusters & summer theme park performance. This has softened recently as the summer blockbuster season shifts earlier & earlier + the parks experience relatively slower summer than in years past.