Disney CEO Bob Chapek spoke today on the Wall Street Journal’s signature technology conference in Laguna Beach, California. The event is billed as probably the most exclusive technology “where headlines and deals are made.”
Chapek did exactly that in his interview with Matt Murray, Editor in Chief of the WSJ. During that, Chapek explained how the world’s largest entertainment company is doubling down on its streaming, film and theme park businesses. Chapek also outlined his vision for the long run, including what to anticipate from Disney+ and the corporate’s film pipeline on the box office.
Most notable for our Walt Disney World and Disneyland-centric audience, Chapek discussed “how innovations inside its theme parks have enhanced the client experience.” (Wall Street Journal’s words, not mine.) You’ll be able to watch the total interview for yourself below–we’ll be covering the “highlights” that follow…
A lot of the session focused on Disney+ and the corporate’s mental property, so not much of relevance there. (Chapek did appear to suggest that Disney will refocus on creating content in-house somewhat than leaning on acquisitions, in order that’s good!)
Certainly one of the massive non-parks things that has overlapping relevance with Walt Disney World got here when Chapek was asked about controversial content that was banned in some markets. He noted that “We live in a world now where all the things appears to be polarized, but we wish Disney to face for bringing people together.”
Chapek pushed back on the notion that Disney is ‘too woke’ by saying that “Disney is an organization that has survived 100 years by catering to its audience, and it should survive one other 100 years by catering to its audience.”
Turning to Walt Disney World and Disneyland, there have been questions on how the corporate has successfully navigated reopening. When asked about high demand for the theme parks, and whether that meant Disney would construct more parks, Chapek said that “parks were very successful before the pandemic, as , and we shut them down for a 12 months or two years in some parts of the world.
Chapek said the corporate was “more than happy” by how consumers got here back to its theme parks, attributing that to “trust” people had within the brand–consumers knew Disney would open in a responsible way. “Things just like the NBA bubble…brought us a number of confidence in people’s minds.” He indicated that since then, “business has been strong,” and that so long as Disney continues to do things the way in which it does, it should have robust demand.
On the subject of price increases, the interviewer noted that there have been online debates amongst “passionate” Disney fans about price increases, with some that love them and a few who hate the ever-increasing costs. The interviewer asked balance this without alienating Disney’s passionate fans.
Chapek answered, “we wish to ensure an amazing guest experience regardless of when people come. In the event that they come the second week of September, we wish them to have an amazing experience. Possibly that’s not so hard then, but it surely is [during the week of] Thanksgiving.” He further said that the first goal is ensuring guests have a magical experience and memories that last a lifetime.
“In a world where we don’t control demand, we’re left with one in every of two situations. You either let way too many individuals into the park, where they don’t have an amazing experience, otherwise you manage it by turning people away on the gate.”
With that in mind, Chapek explained that the the reservation system was developed to make things predictable for “families from Seattle” that might need previously come to Disneyland around Thanksgiving at 10 am and previously been turned away. He indicated that this was done in a way just like other businesses world wide, including airlines. (Note: airlines still overbook and bump people from flights, and don’t require a separate airline reservation to be booked after airfare is purchased. Probably a foul example.)
Chapek struck a defiant tone, which is pretty consistent with past interviews I’ve seen where this comes up. He noted that the reservation system is “heresy” to some Walt Disney World and Disneyland fans, but not unlike anything other businesses do. He also stated that yield management is something all good businesses do, and it’s something analysts and investors expect. Chapek indicated that, essentially, pricing is a mirrored image of demand–a great business practice and good for the guest experience.
Furthermore, he reiterated that it’s done to guard the guest experience to ensure admission on busy days and be sure that the parks usually are not too crowded. He steadfastly stuck to the script that may sound familiar to anyone who read our recent post, Disney Doesn’t Want Lower Crowds. Actually, much of the commentary there could function a direct rebuttal to Chapek’s contentions throughout the WSJ interview.
Towards the top of the interview, Chapek was asked to reflect upon the Reedy Creek controversy and fallout between the corporate and the State of Florida “with a bit time and distance” about what he did right and unsuitable, whether he’d do anything in another way looking back, and what lessons he learned.
Presumably not wanting to stay his head back into that exact hornet’s nest, Chapek gave a comparatively diplomatic non-answer. He didn’t say the governor’s name nor did he mention the piece of laws. There have been a number of specific “red flag” words–and he didn’t utter any of them. So on the very least, his recent corporate comms team has coached him on what to not say.
As a substitute, Chapek said that “the lesson, and what we all the time should’ve known, is that Disney is all concerning the Forged.” He noted that folks might remember the castle and churros, but the explanation people have magical memories that last a lifetime is the guest-cast interactions. He called Forged Members the “secret sauce” and the important thing to an amazing guest experience at Walt Disney World.
He said that the overwhelming majority–around 99%–of the positive guest feedback he received when running Parks & Resorts was about Forged Members. Chapek said that he was “reminded” concerning the sentiment of Forged Members and the importance of them feeling valued and as in the event that they could relate to the corporate. “You may have to make certain the Forged is at the middle of all the things you do,” Chapek concluded.
Chapek was also asked concerning the personal criticism and attacks he’s received from outraged fans, with the interviewer mentioning forums and the web community. Chapek mostly brushing this off, saying that he ran parks for a few decade, and knew just how “passionate” Walt Disney World and Disneyland fans may be. He mentioned decisions that were unpopular with fans, saying “if we move a churro cart 10 feet, it’s a giant deal.”
Chapek also mentioned the reimagining Tower of Terror into Mission Breakout, “while the lines went from half-hour long to six hours long.” (He was interrupted at this point by the interviewer, however the implication was that it was an unpopular decision with fans, but vindicated by the final park-going public.)
Either way, Chapek previously had this to say about long lines when Star Wars Galaxy’s Edge opened: “The deep secret is that we don’t intend to have lines. In case you construct in enough capability, the rides don’t go down and it operates at 99% efficiency, you shouldn’t have 10-hour lines…So, 10-hour lines usually are not an indication of success,” he said. “It needs to be seen as an indication of, frankly, failure.”
It’s also a bit amusing that earlier in the identical interview, Chapek talked up the importance of a guaranteeing a great experience for guests who’re “actually contained in the parks.” It’s like he forgot all about that when boasting concerning the decision to remodel Tower of Terror into Mission Breakout. To his credit, that reimagining was the best call–and I can admit being unsuitable about it in hindsight. But I’m undecided how 6-hour long lines and a great experience experience are consistent messaging.
Certainly one of the things I find interesting about hearing Chapek speak is how he oscillates between sticking to the script and candid comments. On the subject of Disney’s “passionate” fans, he often has a glib and almost defensive tone with an “I’m right, you’re unsuitable…and here’s why” subtext. With other more mainstream topics and controversies, he’s far more diplomatic and deferential, fastidiously selecting his words in a way that’s (correctly) evasive.
I can’t say I necessarily blame him, and truthfully, I appreciate Chapek speaking his mind even when he has something negative to say about fans like us. It’s just such a stark contrast to Iger, who was meticulous and purposeful with each word he selected–although he probably thought a number of the identical things as Chapek. (Regardless that I’m personally advantageous with this, I don’t think this standoffish tone is savvy or plays well with most fans.)
To his credit, Chapek also indicated that he can shoulder the criticism if it meant doing the best thing for the Walt Disney Company and its long-term repute. “All of us have the desire to make everyone completely happy on a regular basis. I’m undecided that’s possible on this world. So again, we’ve to distill this down and say, ‘Who do we wish to be? Who do we wish the corporate to be?’ By the way in which, my very own persona feelings aren’t really necessary. What’s necessary is how people feel concerning the company.”
Chapek closed by saying that “he takes himself out of it, and that form of surprises…Everyone desires to be loved and to love them, but on this world, that’s not all the time essential. I wash all of that away and say, ‘what do we wish the capital ‘D’ Disney company to face for?’ If we’re doing right by the corporate and might sleep at night, then…I may be teflon and know we’re doing the best thing.”
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YOUR THOUGHTS
Did you watch Disney CEO Bob Chapek’s interview in the course of the Wall Street Journal technology conference? Thoughts on anything he said–or didn’t say? Thoughts on his comments about crowds, price increases, high demand, reservations, Forged Members, or anything? Are you frightened concerning the way forward for Walt Disney World, Disneyland, or the corporate generally? Think things will improve or worsen throughout this 12 months? Do you agree or disagree with our assessment? Any questions we are able to provide help to answer? Hearing your feedback–even while you disagree with us–is each interesting to us and helpful to other readers, so please share your thoughts below within the comments!