D'Amaro's Disney Priorities: Embrace Technology to Unlock New Possibilities
As Josh D’Amaro stepped into his role as CEO of The Walt Disney Company, he shared a letter with employees and cast members outlining three key priorities for the organization. In this series, we’ll explore each of those pillars, where they stand today, and what they could mean for Disney’s future. We continue with the second priority: “Embrace Technology to Unlock New Possibilities.”
While it is true that Disney has historically been a leader in innovation, its (in)ability to effectively deploy technology has been much maligned for decades. They can’t even get their system to send me luggage tags while their CMS apparently thinks that I barely engage with The Walt Disney Company. The Disney Parks apps often crash, while Disney+ took years to figure out how to remove things from “continue watching."
Disney faced even more technology challenges last week. First, Epic Games, which Disney has a partnership and investment, announced that they will need to undertake layoffs due to a downturn in Fortnite engagement. Later that same day, OpenAI announced that they will be shutting down its Sora video app just months after it announced a content partnership and investment from Disney. While the Hollywood narrative pitched this as a rough week for Josh D’Amaro, when you dig deeper you will notice more details than it may appear on first look.
With Epic Games, despite cutting 20% of their staff, they are proceeding with developing the interactive game and entertainment hub with Disney. In fact, few would be surprised if Disney acquired the games company once they right-sized their operation. While Fortnite's growth has stagnated, there have been event-driven spikes of engagement. Who is better at eventizing than Disney? The partnership with Disney, no matter what form it takes, would help both organizations. The platform is envisioned as a new way to deliver Disney-type storytelling in a form that is popular with the youngest generations.
The Sora situation is somewhat different. When it was announced, the deal was touted as a framework of creating a legitimate framework for AI generation to properly license content, while also allowing Disney to invest in the ever-increasing valuation of OpenAI. But the world of technology pivots quickly, and OpenAI realized that its investment and computing power are better served by other means. Unlike the Epic Games situation, the OpenAI partnership was reactive instead of proactive. Disney saw the popularity of Sora and the IP infringement of AI and developed a strategy to find a solution to the impact of these new technologies. Although the Sora partnership is dead, Disney is standing by their demand that Google not use its property in its AI tools.
One of the hallmarks of Disney history is the organization’s ability to enter and even create new businesses. But throughout history, when Disney entered new fields, they did it in a distinctly Disney way while striving for the highest quality. Snow White, Treasure Island, Disneyland, and the Disney Magic were not just trial balloons; they were big swings that delivered on the brand promise. When Disney launched Disney+, the quality of the content was there with titles such as The Mandalorian and WandaVision, but the technology left a bit to be desired. While the service is successful, technological limitations have caused frustrations. Even when technology has been brought to existing businesses, such as the parks, when it doesn’t work, it just results in consumer frustration and brand tarnishment.
Disney has the potential to create the next great product through their partnership with Epic Games, but for it to be successful, it will need to emulate Disney ideals while meeting the highest levels of technological excellence. In short, akin to the other great launches in Disney history, just make it great. While Disney is known for its creative excellence, the same care must be applied to its technological efforts. It is no longer how the product is delivered, but in many ways the product itself. In other words, Disney makes great products, and great products work.
Hopefully, Josh’s focus in this area will make Disney raise its expectations regarding their performance with technology. There are some early positive results from Walt Disney Imagineering. Despite a viral mishap, the robotic progression from the BD-X droids to Olaf was fast. Structural changes have made that organization more nimble and focused on putting its tech in front of guests. If that new spirit can be applied to existing technology as well as their upcoming partnership with Epic Games, perhaps Disney can finally be considered to have moved past their infamous technology woes. And perhaps I can finally get my luggage tags and Disney Rewards emails.