Boardwalk Times: Stories from the Seashore - Disney's Wild March
Where do we even begin? March was a wild month for The Walt Disney Company.
Welcome back to Boardwalk Times: Stories from the Seashore! In this month’s newsletter, we will be discussing Disney’s wild month of March, Disney+ growing up, a quick look back at a previous newsletter, and as always LINKS OF THE MONTH.
Disney’s Wild March
March was Mr. Chapek’s Wild Ride.
On March 7, Disney CEO Bob Chapek would send a memo to employees addressing Florida’s “Don’t Say Gay” bill. Chapek in his memo mentioned that Disney didn’t put out a statement against the bill as they didn’t want it to be weaponized by the other side. Disney would also announce they would be reassessing its political giving in light of the legislation.
Two days later was Disney’s Annual Shareholders Meeting. The only meeting where you can go from rants about Disney’s relationship with China to seeing the first trailer for Obi-Wan Kenobi. In this meeting, Chapek addressed the bill and Disney’s lack of statement yet again. Chapek thought Disney could create effective change from the background, and Chapek said that strategy was unsuccessful. Chapek also said that he would meet with Florida Governor Ron DeSantis to discuss the bill and its impact on the LGBTQ+ community. Disney would also make a pledge to donate $5 million to the HRC (Human Rights Campaign).
Later that day, the HRC would decline Disney’s donation. “Today they (Disney) took a step in the right direction. But it was merely the first step,” said Joni Madison, Interim President, Human Rights Campaign. The HRC will refuse money from Disney until they take meaningful action to combat anti-LGBTQ+ legislation.
One day after the meeting, Florida Governor Ron DeSantis would rip Disney at a private event. DeSantis criticized Disney for being woke and questioned their business interests in China.
Chapek did what he feared the most. He angered both sides of the aisle.
As if the criticism mounting wasn’t enough. Pixar accused Disney of censorship in their films in regards to LGBTQ+ characters and moments. It doesn’t take a rocket scientist to figure out that Pixar has been frustrated with Chapek’s leadership. After all his administration has sent three of Pixar’s films (Soul, Luca, and Turning Red) straight to Disney+. So, when staff members at Pixar saw that Chapek was using “content” to help fight present issues they were offended. Pixar wasn’t the last of the studios to come out against Disney and its stance on the bill.
Disney Television Animation would speak out against Disney due to the bill. This was also followed by supportive tweets from Lucasfilm, Walt Disney Animation Studio, and Marvel Studios backing the LGBTQ+ community.
Amidst Disney’s PR nightmare in Florida, the company would also have to address the war in Ukraine. Disney announced it would pause all business in Russia. Which includes content and product licensing, Disney Cruise Line activities, National Geographic magazine and tours, local content productions, and linear channels. Disney will work with its NGO partners to assist refugees and provide urgent aid. Disney CFO Christine McCarthy also revealed 2% of Disney’s operating income comes from Ukraine and Russia. With 10% of that 2% coming directly from Ukraine.
On March 11, Disney CEO Bob Chapek would release another statement in support of the LGBTQ+ community. “You needed me to be a stronger ally in the fight for equal rights and I let you down. I am sorry,” said Chapek. The statement also announced that Disney would be pausing all political donations in the state of Florida pending a review.
According to the Wall Street Journal, Chapek’s apology did cool down some of the animosity between executives and employees. Some employees however started to do 15-minute walkouts in protest leading up to a full-fledged walkout on March 22. Ahead of the major walkout, Chapek held a virtual town hall and postponed a Disney executives retreat.
Chapek’s lack of statement on the Don’t Say Gay bill wasn’t the only unpopular decision he made with Disney’s storied creatives. In 2021, Disney announced it was moving a good portion of Disney Parks, Experiences, and Products (including Disney’s famed Imagineers) to Lake Nona, Florida.
Now Walt Disney Imagineers want Chapek to reverse the move to Lake Nona. The Florida move has cut the Imagineering team in half. The Imagineers seek Disney to either stop the relocation or give Imagineers assurances that they will have a job if they decide not to move to Florida. Could Chapek’s recent blunders actually affect Disney’s Lake Nona move? Something that has been set in stone for a while? Unlikely unless things escalate even further. All of a sudden California Governor Gavin Newsom wants Disney to keep the jobs in California. Pretty odd that he waited for this moment to say that?
The Lake Nona move will be a long process and will happen at the earliest in 2023. Imagineers and other DPEP cast members were given 90 days to decide on the move. Some Imagineers decided to leave the company or opted for early retirement. Many Imagineers are grappling with the move and the fear that it will make Imagineering lose its institutional knowledge. The Lake Nona move will bring $580 million in tax breaks for Disney.
As the Chapek/Florida saga unfolded, another key storyline developed in the background. Bob Chapek’s relationship with his extremely liked predecessor Bob Iger. Their fractured relationship would come into focus. CNBC’s Alex Sherman wrote an excellent piece on the unraveling of Chapek and Iger’s relationship.
The piece highlights the move that soured the relationship and the things that Chapek has done that have made Iger embarrassed. You can tell there is tension and differences in business and leadership strategy. One of the biggest differences has been Disney’s communication under Chapek (Don’t Say Gay, ScarJo). Both of those events wouldn’t have happened under Iger.
It just makes you wonder if Chapek will ever have the opportunity to escape from the shadow of Iger?
On March 22, the Disney Walkout would happen. FX, ESPN, Hulu, Disney+, Walt Disney World, and others would post in support of the LGBTQ+ community. Only an estimated 75-100 employees participated in the walkouts but we will have to wait a bit to see the ramifications of these walkouts. The bill was officially signed this past Monday, and Disney reacted promptly.
February 2023 is when Chapek’s contract is up. Could this mean we see a new CEO by this time next year? Will it be Disney Parks Chairman Josh D’Amaro? Disney General Entertainment Content Chairman Peter Rice? What about this farfetched blockbuster thought? Candle Media Co-CEO’s Kevin Mayer and Tom Staggs return to the Mouse House as Co-CEO’s. Hey, it works for Netflix!
Disney+ Grows Up?
Disney+ this month added Daredevil, The Defenders, Jessica Jones, Luke Cage, Agents of SHIELD, Iron Fist, and The Punisher. This prompted Disney+ to update its parental controls as well. In other countries, Disney+ has the Star banner to put any explicit or more adult content. Disney+ in America doesn’t have that yet. We have Hulu. Yet this move to put multiple series on Disney+ doesn’t bode well for the future of Hulu.
Disney+ up until this point has been a family entertainment streaming service. Where you can pick out any show or movie, and know that it would be appropriate for kids or your mother who can’t stand swearing or excessive violence. Friend of the site Josh M. Shepherd did an excellent write-up about how this is a drastic departure for Disney and how it may affect parents who have kids watching Disney+.
After the Daredevil arrival, I expect more general and adult content to come to the service. We see Disney+ continuing to add ESPN 30 for 30s and more ABC series. I expect we see that uptick in that style of content in the coming months.
LINKS OF THE MONTH
—From Dole Whip to Blue Milk: How Disney has used food to elevate its theme parks (CNBC)
— Industry News: TAIT acquires Thinkwell
— More Industry News: AREA15, award-winning immersive art and entertainment destination, is coming to Orlando. (Boardwalk Times)
— Boardwalk Times launched a new podcast this month called Composing Culture, hosted by Boardwalk Times columnist Giovanni Delgadillo about the music behind some of our favorite things. Episode one is awesome.
— If you liked my newsletter last month about 20th Century Studios. You’re going to enjoy this interview with 20th Century Studio President Steve Asbell. (The Hollywood Reporter)
—The Untold Story of Disney’s $307 Million Bomb ‘John Carter': ‘It’s a Disaster’ (TheWrap)
— Bob Iger joins the Board of Directors for the metaverse avatar company Genies (Boardwalk Times)
— Speaking of Iger, he will be speaking at NBCUniversal’s Annual Strategy Meeting in Florida. No way Chapek is happy about this. (Business Insider)
—MCU: 24 Upcoming Movies & Shows Marvel Is Hiding From Fans (The Direct)
—Galactic Starcruiser Is Basically Star Wars: Choose Your Own Adventure (Sort Of) (Gizmoodo)
Thank you all for reading and supporting Boardwalk Times: Stories from the Seashore.
We will see you next month! Please follow us on social media @BoardwalkTimes and visit boardwalktimes.net for more commentary, news, and opinions on the worlds of Disney and themed entertainment.