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Credit: Inside the MagicFlorida Governor Ron DeSantis has become “just a lot of unnecessary noise” for The Walt Disney Company as it sets to “reclaim the magic.”
A year after Florida Governor Ron DeSantis signed the divisive Parental Rights in Education bill — commonly known as “Don’t Say Gay” — into law and longer since he kicked off his legal crusade against The Walt Disney Company, the House of Mouse is ready to reclaim its magic with a massive comeback.
With 2023 being a year packed with ups and downs for Disney, regaining its pristine reputation and gearing up to bounce back has not been an easy task for the theme park and entertainment giant. But according to analysts, Disney could quickly turn the tables in the second half of the year, getting the company’s growth back on track just in time for the Disney100 celebrations — commemorating the company’s 100th-anniversary.
What problems has The Walt Disney Company faced recently?
From Gov. Ron DeSantis’ political tug-war to global bans, boycotts, fan backlash, and aggressive manifestations against Disney with racists, homophobes, and other hate groups campaigning outside Disney World, 2023 has not been the kindest year to The Walt Disney Company.
However, apart from political and social issues putting Disney in a tight spot, analysts listed three significant problems the company faces during a recent Fox Business round table.
Stock value plummeting
The Walt Disney Company’s performance on Wall Street has not been exceptional these past years. The stock value has trended negatively since 2021 and recently plummeted following unsuccessful movie releases from the company’s portfolio of studios, including Walt Disney Studios, Pixar, Marvel Studios, Lucasfilm, and 20th Century Studios.
Some of these flops include the underwhelming performance of the latest installment in the Indiana Jones Franchise, Indiana Jones and the Dial of Destiny, the criticism Pixar’s Elemental received, and the slow opening Disney’s Haunted Mansion (2023) is having — despite Johnny Depp’s involvement in the movie.
Media causing troubles for Disney
Shockingly, movies and series are also causing Disney problems. Some of the most recent media projects have received severe backlash for several reasons, particularly Disney+ original content. However, Disney’s media problem comes primarily from its linear tv branch, Disney Channel.
Decreasing viewership and increasing costs represent a challenge for the company. Disney CEO Bob Iger recently stated, “Linear and satellite TV is marching toward a great precipice, and it will be pushed off. … I can’t tell you when, but it goes away.” The bold statement makes it easier to understand why Disney decided to introduce an international cease to all Disney Channel broadcasts last year. And while Disney has not announced any official plans to enforce this cutting measure in America, some are preparing for the worse regarding Disney Channel.
Streaming losing billions of dollars
Despite substantial investments in original movies and series exclusive to Disney+ and multi-million-dollar financial decisions to boost the streaming platform, Disney has reported a loss of over 4 million subscribers this year, multi-million-dollar financial choices to boost the streaming platform, Disney has reported a loss of over 4 million subscribers this year, evidently costing the company billions of dollars.
In a bold move to reverse this negative trend, the company is analyzing strategies to battle password sharing on its streaming services, reportedly going into effect this year. The drastic measures aim to increase the number of subscribers to Disney’s streaming platform, but results will only be seen once the measures are enforced.
Ron DeSantis, Disney’s “unnecessary noise”
The legal battle between Florida Governor Ron DeSantis and The Walt Disney Company is far from over. And while both parties’ public image is being significantly affected by the conflict, Disney and DeSantis’ tug-war is considered “just a lot of unnecessary noise” for the theme park and entertainment giant.
Despite DeSantis’ continuous efforts to retaliate against Disney World, including the defunding of Disney World police and the takeover of Disney’s former Reedy Creek Improvement District (now Central Florida Tourism Oversight District), Disney is expected to bounce back, both from the conflict and the negative trend in its stock performance, in the coming months.
Bob Iger’s return to The Walt Disney Company
Despite bold statements from a Disney executive mentioning that positive changes made across the company were unrelated to Iger’s takeover, millions of fans worldwide applauded Bob Iger’s return to The Walt Disney Company last year, replacing former Disney CEO Bob Chapek.
Since his return in November 2022, Bob Iger has tried to shift the company’s focus, enforcing new strategies and aiming to regain the favor of Disney fans worldwide. However, some of these strategies haven’t had the expected results, including the company’s cost-cutting focus.
Cost-cutting focus across the company
While Bob Iger decided to reverse divisive upcharges at the Parks, which was applauded by fans worldwide, some of his decisions have received backlash online, including massive layoffs affecting several branches of the company in an effort to reduce expenses and increase the profitability of the theme park and entertainment giant.
Another extreme cost-cutting measure was purging multiple titles from Disney+, Hulu, and other Disney-owned streaming platforms, canceling upcoming projects, and removing just-released content from the platform, including the new Disney+ original series Willow. Unfortunately, the bold move was counterproductive for the company, costing it $1.5B.
While Disney+ and its catalog are continuously changing, Bob Iger’s confidence in the long-term profitability of Walt Disney’s streaming platform and theme parks is fundamental, as analysts say these branches are the new pillars of the company.
Theme Parks and streaming, Disney’s new pillars
While Walt Disney World Resort is seeing unsettling low crowds this summer, “theme parks are doing great,” according to Barron’s senior writer, Nicholas Jasinski. “It’s record revenue, record earning, record per capita spending,” Jasinski added, pointing at a positive trend in Disney Park’s earnings. And with seasonal events quickly selling out in Florida — and at Disneyland Resort in California, despite controversy — fans fighting to get their hands on the latest Disney Parks merchandise and going to extreme lengths to get a Disney World Annual Pass, it’s safe to say that Nicholas Jasinski is right about Disney bouncing back in the second half of the year.
Related: Move Over Orlando, Disney Ready to Set Multi-Million-Dollar Project in Motion
Additionally, Disney continues to push forward with a multi-million-dollar project outside Florida and upcoming improvements to the Parks worldwide — although some of these projects may be considered a swing and a miss.
Regarding Disney+, Jasinski added that the streaming platform is projected to break even in 2024. And while the growth of Disney+ has been a rocky road for the company, its continuous changes and growing content catalog could finally provide the stability needed to rely on the platform, increasing the stock value for Disney and attracting more investors.
ESPN was also mentioned in the round table, stating that what was once Disney’s crown jewel is now a problematic asset with increasing costs and a decreasing audience. While analysts speculated on the future of the branch, Disney CEO Bob Iger recently clarified that the company is seeking solutions and strategic options to handle ESPN.
Clearly, Bob Iger and Disney executives are actively seeking the best alternatives to help Disney regain its magic, along with its position in the stock market and stability. And while “Disney vs. DeSantis” is likely something we’ll continue to hear for a long time, the company won’t let the political battle hold it back in its efforts to bounce back.
Has your concept about The Walt Disney Company and Walt Disney World Resort changed in recent years? Share your thoughts with Inside the Magic in the comments below!