Disney’s new boss must rekindle its creative magic

As head of Disney’s “experiences” division, Josh D’Amaro is responsible for the theme parks that style themselves as the happiest places on Earth. Can he have the same cheering effect on investors? On February 3rd Disney’s board announced that Mr D’Amaro would be the entertainment giant’s next boss. He inherits a company whose rollercoaster share price is back to roughly where it was a decade ago (see chart).

Disney has taken its time to find a successor to Bob Iger. His first stint in the top job, from 2005 to 2020, was a blockbuster success, as Disney bought franchises such as Star Wars and Marvel and turned them into hit after hit. But his chosen successor, Bob Chapek, struggled in the job and within three years Mr Iger was back at the helm. His second act has been far less successful, as the 100-year-old company has grappled with digital disruption.

Mr D’Amaro has spent most of his career at Disney, and runs the division that in recent years has provided the bulk of the company’s profits. Yet even as Disney doubles down on its successful parks, it must not ignore the entertainment side of its business. Without Disney’s creative content, the parks will lose their magic—and their profitability.

In 1957 Walt Disney drew a diagram of his company’s business model, complete with drawings of Mickey Mouse, Donald Duck and other characters. At the centre of the diagram was the film studio, churning out movies. Around it were the various ways of monetising the studio’s creative output: from television to merchandise, publications, music and, at the bottom, the then-new Disneyland theme park.

More recently Disneyland and its five sister parks around the world have come to dominate Disney’s business. On February 2nd Disney announced that its experiences division—which includes cruises and merchandise as well as the parks—brought in 72% of its operating profit in the final three months of 2025. Only a decade ago television brought in the lion’s share. But entertainment has changed beyond recognition. Cable TV has collapsed. The cinema box office has taken a big hit. Streaming, which to a large extent has taken their place, is now profitable for Disney, but far less so than its old cable business was. And Disney+ faces new competition: not just from Netflix (which is trying to gobble up Warner Bros Discovery, another legacy giant), but from social platforms like YouTube and TikTok that absorb ever more of people’s waking hours.

Amid this devastation, parks have thrived. As people spend more time on screens, they also seem to be looking for new ways to enjoy themselves in real life. Disney has ruthlessly taken advantage of this: tickets for a single day at its California park on a summer weekend can cost a family of four more than $1,000; once inside, they have the option of paying extra to get to the front of queues. To keep up with demand, Disney is investing heavily in experiences. A new cruise ship, the Adventure, will set sail in March. A seventh park is being built in Abu Dhabi.

Mr D’Amaro, who takes charge next month, will face two big challenges. One is Donald Trump, whose presidency appears to be repelling foreign tourists. An even bigger risk concerns Disney’s creative magic, on which all of its businesses rely. Films no longer contribute much to Disney’s bottom line. But the ideas within them are what draw people to Disney’s experiences. Visitors pay through the nose to ride the Millennium Falcon or explore the Avengers Campus because they love the movies on which these are based. Yet the creative engines seem to be sputtering. “The Mandalorian and Grogu”, expected in May, will be the first Star Wars cinema release in nearly seven years. Fans seem to be cooling on the Marvel superhero franchise. And fresh ideas are scarce: this year’s slate of content includes a live-action remake of “Moana” and a fifth “Toy Story” flick.

Mr D’Amaro, who has little experience on the entertainment side of the business, will need to rekindle the creative brilliance at the centre of Walt Disney’s diagram. Parks may be where the profits are made these days. But you can only go on charging $275 (plus tax) for a light sabre if visitors love the films. ■