Disney CEO Josh D’Amaro said Friday that the company’s parks division was a ‘big surprise’ last quarter and that he feels confident about where the media giant is headed, almost six months into his tenure at the top.
D’Amaro, who took over from Bob Iger in March following a closely watched succession race and a period of turnaround, said the organization now has a clear sense of direction. “We’re delivering on everything that we said we’re going to deliver on,” he told CNBC’s Julia Boorstin. “I think there’s clarity inside of the organization in terms of where we need to to go next. A lot of stability with the the team. So you know, almost six months in, I’m feeling pretty good about where we are.”
Before becoming CEO, D’Amaro led Disney Experiences, the division encompassing theme parks, cruise lines and consumer products, which has been a key profit driver for the company. His immediate priorities have been maintaining momentum in those parks and in streaming, two areas that investors have been watching closely. Wall Street’s reception to Disney has been mixed in recent quarters, and the stock has fallen more than 8% over the past 12 months.
“I’m not happy with where the stock stands right now,” D’Amaro said Friday. “Our investors aren’t happy with that, but I do believe that we’re sitting in a very great space relative to the entertainment industry.”
Last week, Disney reported quarterly earnings that again highlighted the strength of its parks and streaming units. Investors appeared encouraged by theme park growth even as macroeconomic uncertainty weighs on consumers. D’Amaro acknowledged that Disney is not “immune” to the headwinds hitting theme parks, but said the company is prepared to respond if necessary. He stopped short of saying whether further price increases are planned for its destinations, instead pointing to additional investments in those properties.
He has previously said his leadership approach centers on investing in intellectual property. “This next chapter is about, No. 1, telling great stories. We’ll never forget that. We want to move with more speed and urgency than we have before,” D’Amaro said. “Embrace technology even more aggressively than we have in the past, and importantly, bring this company together to act like ‘One Disney,’ which you’ve heard me say before.”
He singled out Disney’s flagship streaming service, saying it has “tremendous scale, growing scale internationally. So as it is today, I feel very good about where Disney+ is. But there are opportunities, obviously, to keep growing it.” He also hinted at a future consumer experience that combines streaming with shopping, saying, “From a streaming perspective, instead of just being a streaming platform, why wouldn’t we have all of the elements of Disney come to life right there in front of you. Everyone may not participate in every part of the business. But certainly, if we put the right things in front of the consumer, if it’s a seamless fan experience, I think that lifetime value goes up.”
Meanwhile, Disney and its media peers are dealing with the steady decline of pay television bundle subscribers, which has reduced distribution and advertising revenue. Live sports remain a bright spot, with ESPN and ABC holding rights to the NFL and NBA, among other leagues. The cost of those rights, however, has risen sharply and could strain media companies.
D’Amaro dismissed suggestions that Disney might divest ESPN. “I’ve been clear that I’m not interested in spinning off ESPN,” he said, responding to ongoing rumors and investor pressure. “I think that anybody in the industry would look at our sports rights and the fandom associated with sports right now, and you can’t help but be jealous of what we have here. I mean, ratings are through the roof.”
His first months have not been without turbulence. Disney began a round of cost cuts shortly after he took over, with initial layoffs affecting nearly 1,000 employees. More recently, the company reportedly eliminated several hundred positions across ESPN, Pixar and National Geographic. The broader media landscape is also shifting, with a proposed tie-up between Paramount Skydance and Warner Bros. Discovery, and Comcast planning to spin out NBCUniversal. D’Amaro said he is not considering any comparable moves for Disney.
He also faces political scrutiny, particularly around ABC. The network has drawn criticism from the Trump administration and Federal Communications Commission Chairman Brendan Carr over “Jimmy Kimmel Live!” and “The View.” The FCC has opened an early review of Disney’s broadcast station licenses related to the company’s diversity, equity and inclusion efforts. Disney has pushed back, calling the order “unlawful, arbitrary, and unconstitutional.” D’Amaro defended the company’s stance: “I think you saw in our FCC filings our position on this is clear. We’re very principled on this. We’re going to stand up to what we believe is journalistic and integrity, and we’re not going to be told how to run that side of our business.”
In his comments Friday, D’Amaro emphasized that the company is focused on the long term, telling CNBC he feels “pretty good about where we are” and that Disney is positioned to respond to changing conditions.
