The only Disney news you’re likely to see today is about Josh D’Amaro, the guy replacing Bob Iger next month as the CEO of Disney. But before that announcement came out, the company reported earnings Monday morning. (Which I agree sounds boring, but bear with me.)
Those earnings reflect the black-and-white reality of the Magic Kingdom that D’Amaro is taking over. In short: it was a solid quarter, beating most Wall Street expectations, and Disney’s shares still fell 7% Monday.
Streaming profits from Hulu, ESPN and Disney+ were up more the 70% year-over-year. And the theme-parks-and-cruises unit — D’Amaro’s own “experiences” fiefdom — reported a record $10 billion in quarterly revenue.
Those are the kinds of numbers most media companies would kill for. But Disney is graded on a curve, and investors have kept the stock in neutral since 2022, anxiously awaiting the Next Great Era of Disney that Bob Iger’s return to the helm promised.
Now, all eyes are on D’Amaro to finish what Iger started. But it won’t be easy, and there are at least five things he’s got take care of in short order.
1. TV is dying
No, not all TV, obviously, but the kind most of us grew up on, where you park yourself in front of a screen and take in whatever’s on? That’s a dying medium. And that remains a giant puzzle for not only Disney, which owns so-called linear TV assets including ABC, ESPN, FX and the Disney Channel, but virtually all major media companies.
The challenge is you can’t just abandon the linear side and move everything onto streaming — there are lucrative advertising deals and network contracts to maneuver. But the glory days of fat margins from a hit TV show are long gone, and it’s not yet clear the streaming model — where competition is fiercer and audience attention more fractured — can make up the shortfall.
Iger had said Disney would explore a sale of its linear networks, only to reverse course and argue for keeping them. On the other hand, Comcast and CNN parent company Warner Bros. Discovery chose the spin-off route. When D’Amaro’s in charge, he’ll have to choose: beat ‘em or join ‘em.
2. Streaming remains cutthroat
It’s only been in the last year that any streamer besides Netflix could reliably turn a profit. Disney is now among streaming leaders, with Disney+, Hulu and ESPN raking in $450 million in profit last quarter. Part of that is a result of jacking up prices, which works until it doesn’t — an economic downturn, especially among lower-income households, could quickly send people to the “cancel subscription” page.
This past fall, Disney got a glimpse of how willing customers can be to cancel when ABC abruptly fired Jimmy Kimmel. The apparent capitulation to the Trump administration’s desire to yank Kimmel off the air didn’t sit well with a lot of folks, and millions of people canceled their Hulu and Disney+ subscriptions in protest.
ABC ultimately returned Kimmel to the air a few days later, potentially stoking counter-protests from conservatives who saw that as a capitulation to the liberal backlash.
It’s not clear if they came back – Disney has stopped providing subscriber numbers.
3. Box office blues
Disney dominated the domestic box office in 2025 with hits such as “Zootopia 2“ and “Lilo & Stitch.” But the company also notched some notable flops. Like, did you catch that live-action Snow White in the theater? How about Pixar’s “Elio?” Yeah, neither did anyone else. How about “Tron: Ares?”
Movies cost as much as ever to make, but are not bringing in the kinds of returns they used to. American box-office sales have yet to rebound to their pre-pandemic levels, as more folks opt to skip the $20 popcorn and watch movies at home.
Meanwhile, two of Disney’s biggest competitors — Warner Bros. Discovery and Netflix — are merging, potentially creating a Hollywood behemoth that could further eat into Disney’s market share.
4. AI and the attention economy
Disney’s competition for our collective attention used to be limited to other movie studios and streamers. But the world’s attention is increasingly fractured, and media companies are now going head to head with tech companies like YouTube and TikTok that are able to capture hours upon hours of viewing content that the platforms don’t even have to pay for.
In December, Disney attempted to get a toehold in that new media ecosystem by striking a three-year licensing deal with OpenAI, which will allow users of its Sora app to incorporate beloved characters into AI-generated videos.
The OpenAI deal will end up being one of the last partnerships negotiated by Bob Iger, who is responsible for some of Disney’s best-known and most lucrative deals, including the acquisitions of Pixar and LucasFilm. (It’s not without risk, though. Allowing your most valuable IP to enter the world of AI slop risks diluting the brand and alienating the human creators who have built Disney’s empire.)
5. Iger’s shadow
As if leading one of the biggest entertainment conglomerates on the planet weren’t enough, D’Amaro will be doing it all in the shadow of the Bob Iger, the executive who’s been synonymous with Disney for a quarter-century.
He’s also an executive who didn’t take well to retirement the first time around. The last time Iger stepped down, he left the keys to the Happiest Place on Earth in the hands of Bob Chapek (who, like D’Amaro, had succesfully overseen Disney’s all-important parks and cruises unit).
For a number of reasons, it didn’t go great. The pandemic closed Disney parks around the world and slammed the brakes on TV and movie production. Iger didn’t help Chapek on the PR front, either, when Iger decided to tweet his criticisms of a Florida bill that opponents dubbed “Don’t Say Gay.” Chapek had initially avoided wading into the discourse, taking a neutral position that became untenable after Iger drew a line in the sand. Chapek bungled the fallout, and as Disney’s business got hammered by the pandemic, the board ultimately brought Iger back in to steady the ship.
That cautionary tale would hardly be lost on D’Amaro, who’s been at the company for nearly 30 years, and firmly embedded in the parks division since 2010.
Disney has sought to ensure fans and investors that this time is different. In an interview with CNBC, board chair James Gorman said the CEO succession planning since Iger return has been a “very disciplined, structured process,” and the past stumbles are behind the company.
“We won’t have the drama we had last time,” Gorman said. “That I can assure you.”