Disney CEO, Bob Chapek, just issued a statement regarding US Capitol January 6, 2021 events.
The following just shared via the Walt Disney Company Twitter account: “A message from CEO Bob Chapek” with the image text below:
Big news just announced! Disney’s CEO, Bob Chapek, announced during Disney investor call on November 12, that Disney will increase capacity to 35%.
Previously, Disney has been running at a 25% capacity window. During an interview on October 13, Chapek said Disney would remain capped at 25% for all of their theme parks. A month later and it looks like there will be a bump in capacity. Chapek did say on the call that 6-feet social distancing guidelines from the CDC will still be followed.
BlogMickey shared the quote from Chapek as follows:
…our operators, which you know are the best in the world are becoming much more efficient and effective in operating under COVID guidelines. And we’ve been able to pretty materially increase our capacity and still stay within the guidelines that local governments are giving us, for example, 6 foot be social distancing, and this is happening across our parks across the world. In fact, Walt Disney world, which was at a 25% capacity constraint which was our industrial engineering estimates to keep 6 foot social distancing, now has been able to increase to 35% of capacity. So, almost a 50% increase in the number of guests that we can allow in, and still adhere to the local guidelines and the guidelines that are stipulated by the CDC with the 6 foot social distancing.
The announcement follows the news that Disney Parks report a net loss of $2.4 billion in fourth quarter earnings.
As shared by TheDisInsider: “During a revealing interview with CNBC, Disney CEO Bob Chapek stated that the theme parks at the Walt Disney World Resort were capped at 25%.”
While wait times have seemed to soar recently and crowd levels are continuously growing, this may come as a surprise to many. We do believe however, that yes, the parks are at 25% capacity. So, why such a difference between now and when the parks first reopened with the same 25% capacity? We believe people are starting to feel comfortable enough amidst the COVID concerns to visit the parks once again. This is likely a sign that the first couple of months Disney was well under the 25%. We’re likely just now starting to see the full 25% capacity in each park as Disney goers head back to the most magical place on earth!
During the COVID-19 theme park shutdown, Disney announced that Senior Executives for The Walt Disney Company would be taking salary cuts to help in the midst of the unprecedented effects of the pandemic on the company. Now, their paychecks are being restored while thousands of Cast Members remain on furlough.
Back in March, Bob Chapek sent out an email stating all senior executives would have their pays reduced throughout the closure period. Chapek had his salary reduced by 50%. Bob Iger agreed to forgo 100% of his salary. Various decreases in pay for SVPs, EVPs, and VPs were also enacted: VP by 20%, SVPs by 25%, EVP by 30%. The salary cuts went into place on April 5th.
According to an exclusive from Deadline, salary reductions will be lifted starting August 23rd. Walt Disney Company employees were informed yesterday that the pay reduction period would be ending this Sunday. Changes will be reflected in the executives’ next paychecks. It is unclear whether the pay restoration would impact Iger and Chapek. The salary cuts were meant to be temporary, and were to remain in effect until the company saw “a substantive recovery in business.”
As expected due to the theme park shutdown, results from the company’s recent Q3 earnings call were bleak, with a historic $2 billion reported in revenue loss from the company’s Parks, Experiences and Products division. However, Walt Disney World is operating at a meager profit, or at the very least exceeding variable costs, according to CEO Bob Chapek. Still, thousands of Cast Members, including performers, events staff, and more, are still furloughed at this time due to limited park hours and operations.
Today, Disney CEO Bob Chapek gave an exclusive interview to CNBC just hours after Shanghai Disneyland closed after its first historic day back in operation in the aftermath of the COVID-19 pandemic. The market generally looks towards Disney as the proxy on how to carry out phased reopenings on a large scale, so not only are Disney Parks fans following reopening guidelines, but the general public is interested in just how Disney is going to manage the reopening.
Currently, “stay-at-home” stocks for companies that specialize in video conferencing, broadband, and online gaming (like Zoom and Blizzard) are on the up and up, with Disney still struggling to keep their parks, cruise line, and film studio afloat during the extended, unprecedented closures. Not surprisingly, Disney+ has been the company’s saving grace, with the streaming service surpassing 54.5 million subscribers this past week.
Watch the whole interview here:
https://www.cnbc.com/video/2020/05/11/watch-cnbcs-full-interview-with-disney-ceo-bob-chapek.html
Earlier today, former Disney Imagineer Bill Coan, now CEO of ITEC Entertainment also spoke to CNBC regarding the Disney model for reopenings. Given that Disney Parks are essentially small cities in and of themselves, adapting things such as public transit, restaurants, and entertainment to new health and safety guidelines will take some time as they face the same challenges as the rest of the world does in reopening. Coan stressed the importance of cleanliness, or at least “the perception of cleanliness”, as the company’s reputation precedes them, and guests anticipate a high level of safety within Disney Parks. Coan believes Disney’s reopening will still rely on state and federal regulations, but once they are able to reopen, business will be back up very quickly.
Chapek referred to Shanghai as a short-book market, where typically tickets are sold on a week-by-week basis. The phased reopening was controlled through the sale of “significantly constrained” ticket quantities. Nearly all advance reservations have been booked, with the exception of a few weekday slots, which speaks to the love that consumers have for the brand across the world. Chapek stressed the fact that fans can’t wait for the parks to reopen, as many look to it as the return to “some semblance” of normal. While the company is looking to reopen the parks as soon as possible, they also need to ensure that they do so in a responsible way. The company is excited to welcome back guests and Cast Members, and they’re encouraged by what they’ve seen in Shanghai so far, as “a first step.”
In terms of furthering the current phased reopening, Chapek remarked that the company needs to be “very conservative, very prudent” in moving forward. At Shanghai Disneyland, the plan is to increase the amount of guests by 5,000 each week, with the government’s permission.
When asked whether the parks can potentially manage 100% capacity while maintaining social distancing guidelines, Chapek answered that it really “depends on the guests.” He emphasized the need for guests to be diligent about maintaining social distancing:
“If guests continue to behave in the way that they have, we may be able to approach that… We’re all playing our part in this ecosystem of safety, if you will, and we’re going to do our part and we need our guests need to do their part, too.”
When asked about a potential July reopening date, Chapek declined to comment on any specific dates, as he stated that it will depend on state and local government regulations, plus hospital capacity at medical centers near the Disney Parks. With Disney Springs reopening on May 20, they’re looking to test protocols much like they did with Disneytown in Shanghai Disney Resort.
CNBC asked the key components needed to get the parks to reopen. To that, Chapek responded that social distancing, as well as masks, will be required for all Cast Members and guests. While masks are a cultural norm across parks in Asia, he also recognized that guests across U.S. parks will have to adapt to wearing masks in hot, humid environments (like Walt Disney World.)
As the conversation shifted to movies, Chapek stated that limited capacity across movie theaters moving forward will mainly be an issue on Friday evenings and weekends, and can be something that is managed by the exhibitors the company partners with.
“At Disney, we’re a bunch of optimists. We have to manage people’s anxieties with people’s demands. If you do it in a relatively smart, responsible way, it’s possible.”
Big, tentpole films will continue to go to theaters, but they’ll continue to look at Disney+ for releases on a case-by-case basis in order to remain flexible with theatrical releases.
Finally, Chapek was asked about his ongoing tenure as CEO, where former CEO Bob Iger has had to notably step in at various stages throughout the health crisis:
“This is an unprecedented situation… I knew there would be disruption in my tenure as CEO. What I didn’t realize––it would happen that fast or that profoundly.”
Chapek mentioned that the company is wholeheartedly embracing a team approach to figure out what’s best for investors, guests, and Cast Members alike. In closing the series of questions regarding parks, films, and his tenure as CEO, Chapek said, “Disney will be back stronger than ever.”