Disney’s Problems Go Way Beyond Feud With DeSantis

By any measurement, the Walt Disney Company has some serious problems. The last two years have not been kind to Disney films, with a series of flops, including losing over $900 million over 12 months. Disney’s television division has lost millions as viewers move away from cable. And even Disney Plus is falling behind, losing more than four million subscribers in the last quarter.

And come August 9, Disney CEO Bob Iger has to face investors and explain what is going wrong with Disney. But just like the last earnings call, Iger always had the Parks division to fall back on. Josh D’Amaro, head of Disney Parks, Experiences, and Products, could stand in the front of the class, like a star pupil, and tell the investors how great things were going at the Parks.

But now there’s a problem. Walt Disney World, Disney’s flagship Theme Park, has had underwhelming attendance over the past few months. Over the Fourth of July weekend, Disney World is usually packed; reports suggest the Magic Kingdom and the other Parks were ghost towns. So, what has gone wrong with Disney World?

There are several theories as to why Disney World is empty this summer. The apparent reason is that people are protesting the Parks because of the feud with Florida Governor Ron DeSantis. While that might be true for some people, it wouldn’t move the needle like this. Other protests against Disney in the past have fallen flat.

The Street has come up with an answer that is probably closest to being correct: Disney World is just too expensive. During the tenure of former CEO Bob Chapek, Disney World prioritized profit over affordability, and now, for many families, Disney World is just too far out of reach.

For five-day tickets for three adults and one child (and remember, all kids over ten count as adults), the price is $2,188. That does not include the Park Hopper option. In 2024, for a week at a Disney moderate Resort, including tickets and the Disney Dining Plan, the cost is between $7,000-$10,000, depending on the Resort. For a one-bedroom room, that cost can skyrocket to more than $12,000 a week. And that doesn’t include any add-ons like Disney Genie Plus.

Iger acknowledged that Disney has an affordability problem but has done little to change it. While the Disney World Resort does offer discounts, most of those are during the school year when it’s difficult for a family.

When Bob Iger returned, he promised to put creativity and Guests first. So far, Walt Disney World has been the only shining star, but this ride isn’t over yet. Iger can still change Theme Park prices to make it more affordable and bring everyone back.

But for now, Iger must explain this giant crack in his Disney Park firewall to investors. Good luck, Bob.