CHALLENGES FACING NEW CEO
But a decline in international visitors to the US is weighing on the parks business, with Disney shares falling more than 7 on Monday after the company flagged the “headwind” even as its overall sales and profit exceeded expectations.
While D’Amaro is a familiar face for visitors to Walt Disney World in Florida, analysts have said he is little known in Hollywood. That could pose a challenge as he confronts an entertainment industry that generative AI tools threaten to reshape by automating writing, editing and visual effects.
The timing is particularly high-stakes as the announcement comes just months before the industry’s major guild contracts – including those for writers and actors – expire in May and June, setting the stage for a new round of labour negotiations.
A breakdown in talks, partially over the use of AI, had led to dual strikes in 2023 by the unions that hobbled much of Hollywood production and cost around US$6 billion in lost output.
Disney is especially under scrutiny after it agreed late last year to let OpenAI use characters from its Star Wars, Pixar and Marvel franchises in the startup’s Sora AI video generator. It has also agreed to invest US$1 billion in the startup.
Chapek, another parks veteran turned CEO, had struggled with talent relations and bungled a dispute with Scarlett Johansson over the simultaneous streaming and theatrical release of Black Widow, which resulted in a lawsuit and eventual settlement.
Competition is also heating up as Netflix and Paramount try to bulk up by buying Warner Bros assets, with either combination expected to result in a major streaming and studio rival.
D’Amaro will also have to navigate political pressure as the Trump administration has criticised Disney over its programming.
In September, the company pulled Jimmy Kimmel Live after the host’s remarks about the assassination of conservative activist Charlie Kirk drew a threat from the communications regulator. It quickly reinstated the late-night show following backlash over the decision.
President Donald Trump said in November that licenses used by affiliates of Disney-owned ABC should be “taken away” after a reporter for the network questioned him about the Jeffrey Epstein political scandal.
