Disney's New CEO: Hollywood's Biggest Test?

Josh D'Amaro has taken the helm as Disney's new CEO, facing immediate scrutiny regarding his leadership approach and priorities. A key challenge involves endearing himself to Hollywood's power brokers, given his extensive experience in the company's lucrative parks division rather than film and television production. This necessitates a strategic 'listening tour' to build relationships with industry figures and stars crucial for franchise success.

Disney's market position is under pressure from evolving entertainment consumption habits and aggressive competition, particularly from streaming services like Netflix. The company must balance declining cinema attendance and cord-cutting with its own streaming ambitions on Disney+ and Hulu. Potential consolidation, such as Netflix acquiring Warner Bros., could introduce even more formidable rivals with vast content libraries.

Furthermore, D'Amaro is tasked with evaluating Disney's strategic investments, notably the $1.5 billion poured into Epic Games in 2024. Recognizing the substantial screen time Gen Z, Alpha, and Millennials dedicate to video games, Disney aims to establish a significant presence in this estimated $564 billion market.

Internally, D'Amaro must address concerns within the parks, including steady price increases since 2016 and the perceived diminishing value of park perks. The high-profile closure of the Star Wars: Galactic Starcruiser in Florida, criticized for its cost and perceived lack of value, remains a notable setback that D'Amaro will need to overcome.

Lastly, D'Amaro's leadership will be tested by potential political pressures, exemplified by past conflicts with President Trump and FCC Chairman Brendan Carr. The company's past decisions, such as suspending Jimmy Kimmel, highlight the delicate balance between artistic freedom and regulatory scrutiny, which could influence future strategic choices.