Challenges Facing Disney’s New CEO

Josh D’Amaro is set to take over as CEO of Disney next month, replacing Bob Iger. This leadership change comes amid a mix of challenges and opportunities for the entertainment giant.

Challenges Facing Disney’s New CEO

Earnings Report Overview

On the day of D’Amaro’s announcement, Disney reported earnings that, while solid, did not meet all investor expectations. Despite an impressive 70% year-over-year rise in streaming profits from Disney+, Hulu, and ESPN, Disney’s shares fell by 7%. The company’s theme park and cruise segments reported record revenues of $10 billion for the quarter, indicating strong consumer demand for experiences.

Struggles with Linear TV

• The decline of traditional television is a significant concern for Disney.
• They own major linear TV assets, including ABC and ESPN, which face dwindling viewership.
• While competing media companies like Comcast are opting for spin-offs, D’Amaro will need to decide whether to maintain or divest linear assets.

Competitive Streaming Landscape

Disney is among the leaders in the streaming battle, reporting $450 million in profit from its platforms last quarter. However, rising subscription prices may alienate customers, especially during economic downturns. Recent events, such as the backlash over the firing of Jimmy Kimmel from ABC, highlight the fickle nature of subscriber retention.

Pandemic Impact on Box Office

Disney had a strong presence at the domestic box office in 2025 with hits like “Zootopia 2” and “Lilo & Stitch.” However, several high-budget films failed to perform well, demonstrating a shift in audience behavior towards home viewing. American box office revenues have not yet returned to pre-pandemic levels.

Emerging Competition from Tech Companies

Competitors like YouTube and TikTok have transformed the media landscape, capturing significant audience attention. As part of its strategy, Disney formed a licensing partnership with OpenAI to integrate its characters into AI-generated content, a decision that carries risks of brand dilution.

Leading in Bob Iger’s Shadow

D’Amaro’s appointment comes with the challenge of stepping into Bob Iger’s substantial legacy. Iger, who ruled Disney for over two decades, returned to the CEO role during crises but faced backlash and significant challenges during his tenure. D’Amaro must navigate company expectations while ensuring stabilizing leadership.

Looking Ahead

The path forward for Disney involves carefully managing its traditional media assets while fostering innovative growth in streaming and new technologies. D’Amaro’s experience in the parks sector could be vital as Disney seeks to adapt to a rapidly evolving entertainment landscape.