Disney CEO Josh D’Amaro takes over as company leans on theme parks, faces AI disruption
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Josh D’Amaro officially took over as Disney’s chief executive on Wednesday, leading the company as it faces a rapidly changing entertainment landscape marked by artificial intelligence, changing consumer behavior and pressure on all of its media businesses.
Bob Iger’s succession follows a successful run of Disney’s parks, experiences and products – an area that has become central to the company’s financial performance. The division accounted for 57% of Disney’s $17.5 billion in revenue last year, highlighting a growing reliance on theme parks and tourism as other areas deal with storms.
That shift is expected to set investor expectations for the start of D’Amaro’s tenure. Market participants want clarity on how Disney plans to adapt to AI developments, poised to change content production, distribution and monetization, while strengthening competition from digital startups.
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Josh D’Amaro officially took over as CEO on Wednesday. (David Paul Morris/Bloomberg via Getty Images)
At the same time, Disney continues to face internal pressures. Its traditional television networks continue to falter, and some of its biggest films have delivered lackluster results at the box office. The company also competes directly with platforms such as YouTube and TikTok for viewership, forcing it to take a closer look at its content strategy.
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D’Amaro’s appointment also reignites comparisons with former CEO Bob Chapek, another executive who joined the parks division before a short stint that ended with Iger returning to the role in late 2022.
Iger will remain on Disney’s board until the end of the year. His return comes at a time of turmoil, with Disney shares falling sharply amid concerns about the loss of its streaming business and broader questions about its long-term strategy.
Former CEO Bob Iger will remain on Disney’s board until the end of 2026. (David Paul Morris/Bloomberg via Getty Images)
In his second term as CEO, Iger restructured the company to give greater authority to creative leaders and worked to improve the economics of Disney’s streaming operations. His leadership is credited with helping Disney stay competitive in a rapidly evolving media environment.
Operationally, Disney increased its investment in its parks and cruise businesses with a $60 billion commitment, while also advancing its direct-to-consumer strategy by launching an ESPN streaming service and partnering with OpenAI. The company also produced multi-billion dollar box office releases during that time.
D’Amaro previously led Disney’s parks, experiences and products. (Patrick T. Fallon/AFP via Getty Images)
However, Disney’s financial performance has trailed the broader market. The company’s return on investment during Iger’s tenure was about 11%, compared to 77% for the S&P 500, according to LSEG data. Its valuation remains below recent estimates, reflecting the continued vigilance of investors.
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D’Amaro now inherits that strategic framework at a time when those priorities are being tested by artificial intelligence and changing consumer behavior. His ability to balance the Disney parks business with the demands of a changing media ecosystem may define the company’s next phase of growth.
Reuters contributed to this report.
