Entertainment
Succession, recession and DEI talk. What to expect from Disney’s annual meeting
Last year, Walt Disney Co.’s annual shareholder meeting was fraught with tension as a billionaire activist investor sought to shake up the boardroom and change the course of the company.
This year, by comparison, will be less charged.
The Burbank media and entertainment company is coming off a strong year for its studio business, with hit films “Inside Out 2,” “Deadpool & Wolverine” and “Moana 2” each grossing more than $1 billion globally. Disney movies grossed an overall worldwide box office of more than $5 billion in 2024.
Disney also reached profitability for the first time in its streaming businesses, which include Disney+, Hulu and ESPN+.
But the company faces questions about softer results in its theme parks division, which has become Disney’s main economic driver. Disney has also recently tried to stay out of political culture wars, particularly as the Trump administration has targeted diversity, equity and inclusion efforts within corporations.
Ahead of the company’s shareholder meeting Thursday morning, The Times spoke with analysts and investors about what they want the company to address.
The CEO succession plan
Though Disney has signaled it won’t name a successor to Chief Executive Bob Iger until early 2026, investors and analysts are eager for more details about how the search is progressing.
Disney Entertainment Co-Chair Dana Walden, fellow Entertainment Co-Chair Alan Bergman, parks, products and experiences Chair Josh D’Amaro and ESPN boss James Pitaro are all seen as potential internal successors.
Disney’s newly appointed chairman of the board, former Morgan Stanley executive chairman James P. Gorman, leads the CEO succession planning committee. The company said in its proxy statement that management succession planning “remains a top priority for the board.”
Finding the right successor for Iger, 74, is key to the company’s future stability. The firm fumbled in its last attempt to find a replacement for Iger; now-former CEO Bob Chapek lasted less than three years.
Brian Mulberry, client portfolio manager at Zacks Investment Management, began reducing the firm’s Disney shares after Iger’s departure. Though the firm’s portfolio does not currently include shares of Disney, Mulberry is keeping a close eye on the stock price and wants to get clarity on some of the company’s financial issues before coming to a new position.
“With Bob Iger on his way out, ‘Who’s going to right the ship’ is what we’re particularly looking for in the meeting,” he said.
The prolonged ambiguity about the succession plan is making investors antsy, said Laurent Yoon, senior analyst at Bernstein.
“Bob Iger already came back more than two years ago,” he said. “That uncertainty is not any clearer than before.”
Parks and recession fears
Disney’s experiences division, which includes its theme parks, cruise line and merchandise, ended 2024 with more muted growth due to inflation, expansion costs for the cruise line and softer results at its international parks.
The company will also face greater competition in Florida this summer when rival Comcast Corp. opens its Epic Universe theme park in Orlando — something analysts have frequently queried Disney executives about during earnings calls.
Disney said during its fourth-quarter earnings call in November that it expected to see 6% to 8% growth in operating income this year from its experiences division. But amid growing economic pessimism and fears of a recession, analysts and investors will be looking to see how the company addresses these potential threats to consumer spending.
“This summer is a very important season for Disney because [the parks business is] expected to recover, and if there’s a recession, then that’s a problem,” said Yoon, who maintains a “Buy” rating for the company’s stock. “There will be questions around what Disney would do in case there seems to be some macro headwinds.”
Even before concerns about an economic downturn took hold, there were growing questions about the affordability of a Disney vacation. Ticket prices at the parks have increased over the years.
Gavin Doyle, who has owned a small number of Disney shares since 2009, will be keeping an ear out for any mentions of discount offers, special promotions or even new details about expansions at the parks.
“There’s just a lot of levers they can pull … ways to bring people back in a time when demand may be softening,” said Doyle, founder of MickeyVisit.com, a parks affordability guide.
Handicapping ESPN’s flagship streamer
Live sports is a key attraction for consumers, and Disney has frequently mentioned its plans to launch its standalone ESPN flagship streaming product this summer.
But analysts and investors would like more information about pricing, the look of the product, how its experience will be different from the ESPN channel on linear television and how it will work with other services.
With Disney’s continued transition from linear television to streaming, the company will need to make sure “that transition is smooth,” said Yoon of Bernstein.
The company has already launched an ESPN tile on the Disney+ homepage to try to reduce churn and encourage new subscribers.
Culture wars
One proposal on the company’s proxy statement is an item from the National Center for Public Policy Research, a conservative think tank that is calling on Disney to reconsider its participation in the Human Rights Campaign’s corporate equality index.
The corporate equality index is an annual report that rates employers on their workplace inclusivity for LGBTQ+ workers.
The National Center for Public Policy Research, which often makes proposals at Disney’s shareholder meeting, said Disney’s participation in the index indicated that the company was involved in “partisan behavior” and that it should rethink that decision due to “fiduciary duty to its shareholders.”
Disney recommended its shareholders vote no on the proposal.
The proposal hints at the type of culture wars that Disney has recently started to shrink from. The company recently acknowledged that it removed a trans athlete storyline from a Pixar animated series, saying “many parents would prefer to discuss certain subjects with their children on their own terms and timeline.”
Disney has also softened some of its internal DEI policies, as have other Hollywood studios and businesses in other industries.
Movie Reviews
‘The Spongebob Movie: Search for Squarepants’ Review: Adventure Romp Soaks up a Good Time for SpongeBob Fans of All Ages
I’m convinced that each SpongeBob movie released on the big screen serves as a testament to the current state of the series. The 2004 film was a send-off for the early series run. Sponge Out of Water symbolized the Paul Tibbitt era, and Sponge on the Run served as a major transitional period between soft reboot and spin-off setup. The team responsible for Search for SquarePants, which consists of current showrunners Marc Ceccarelli and Vince Waller, as well as the seasoned Kaz, is showcasing their comedic and absurdist abilities. The sole purpose of the film is to elicit laughter with its distinctively silly and irreverent, whimsical humor. More so than its predecessor, it creates a mindless romp. Granted, there are far too many butt-related jokes, to a weird degree.
Truthfully, I am apprehensive about the insistence of each SpongeBob movie being CG-animated. However, Drymon, who directed the final Hotel Transylvania film, Transformania, brings the series’ quirky, outrageous 2D-influenced poses and expressive style into a 3D space. Its CG execution, done by Texas-based Reel FX (Book of Life, Rumble, Scoob), is far superior to Mikros Animation’s Sponge on the Run, which, despite its polish, has experimental frame rate issues with the comic timing and is influenced by The Spider-Verse. FX encapsulates the same fast, frenetic pace in its absurdist humor, which enables a significant number of the jokes to be effective and feel like classic SpongeBob.
With lovely touches like gorgeous 2D artwork in flashback scenes and mosaic backgrounds during multiple action shots, Drymon and co expand the cinematic scope, enhancing its theatrical space. Taking on a darker, if not more obscene, tone in the main underworld setting, the film’s purple- and green-infused visual palette adds a unique shine that sets it apart from other Sponge-features. Its strong visual aesthetic preserves the SpongeBob identity while capturing the spirit of swashbuckling and satisfying a Pirates of the Caribbean void in the heart.
The film’s slapstick energy is evident throughout, as it’s purposefully played as a romp. The animators’ hilarious antics, which make the most of each set piece to a comical degree, feel like the ideal old-fashioned love letter to the new adults who grew up with SpongeBob and are now introducing it to their kids. This is a perfect bridge. There’s a “Twelfth Street Rag” needle drop in a standout montage sequence that will have older viewers astral projecting with joy.
Search for SquarePants retreads water but with a charming swashbuckling freshness.
Entertainment
Latinos continue to be underrepresented in streaming shows, new UCLA report finds
Latinos remain severely underrepresented in the television industry, according to UCLA’s latest Hollywood Diversity Report.
Released Tuesday, the report examined the top 250 series available on streaming, including both library offerings and current titles. Overall, it revealed a steep fall in cultural diversity among 2024’s top comedies and dramas, as well as fewer projects created by people of color and women.
For Latinos, representation on screen and behind the camera is scarce. Only 1.1% of the top streaming scripted shows were created by Latinos. Of the top streaming comedies and dramas, 3.3% had Latino lead actors and 5.2% were co-led by Latino actors. When looking exclusively at current streaming shows (excluding library titles), 1.1% were created by Latinos and 6.2% were led by Latino actors.
UCLA’s Hollywood Diversity Report dates back to 2014. The first iteration of the study used data that had been collected since 2011. Ana-Christina Ramón, UCLA’s director of the Entertainment and Media Research Initiative, says that this level of underrepresentation across all kinds of media is nothing new.
“It’s a consistent finding in our reports. But the numbers are such a stark level of underrepresentation because of the fact that we’re almost 20% of the population,” said Ramón. “Even when the numbers are a little bit better, they’re never close to where they should be.”
This lack of representation isn’t exclusive to the Latino population. The report found that four out of five leads in the most-watched streaming comedies and dramas were white actors, and white men account for nearly 79% of all show creators — leaving nearly every other race and ethnicity severely marginalized.
The downward trend comes at a time when President Trump has consistently targeted and called to end all diversity, equity and inclusion efforts. As a result, much of Hollywood has followed his lead. Paramount Global changed its staffing goals related to gender, race, ethnicity and sex; Warner Bros. Discovery restated its DEI activities as “inclusion”; and Walt Disney Co. got rid of its “diversity and inclusion” performance standard used to calculate executive compensation.
These findings generally defy American audiences’ preference for diverse content. The research shows that “a relatively diverse cast and diverse credited writers often resulted in higher ratings,” especially when these stories from diverse communities are live-action and scripted.
This trend isn’t isolated to television — eight of 2024’s top 10 streaming films and 14 of the top 20 streaming films featured casts with more than 30% people of color, according to previous UCLA research.
Despite the lack of Latino representation, Netflix’s narco-drama starring Sofia Vergara, “Griselda,” was the fifth-most-streamed television of 2024. In Latino households specifically, it reached third place, behind children’s TV shows “Bluey” and “Bebefinn.”
“The silver lining is that [‘Griselda’] was very popular, and though it’s a stereotypical topic, because it was made by the same people that made ‘Narcos,’ it had a prestige factor that gets passed along,” said Ramón.
She finds that the shows that tend to do well have to have a well-known lead actor, be of an interesting topic and be attached to something that is already established or popular. In 2023, the report included Netflix’s “Wednesday” at the fourth-most-streamed show and “The Last of Us” at No. 7, both shows featuring Latino lead actors.
All three titles “have a high production value and are familiar stories” — as “Griselda” was based on a true story, “Wednesday” builds off the IP of “The Addams Family” and “The Last of Us” is based on a video game.
“Regardless of which [ethnic] group you’re talking about, it really has to do with these very specific pieces,” said Ramón. “The very promising finding is the fact that underrepresented stories, which include Latinx stories and other BIPOC stories, tend to do better than shows that don’t, in terms of reviews and ratings.”
Movie Reviews
Movie Review: ‘The SpongeBob Movie: Search for SquarePants’ – Catholic Review
NEW YORK (OSV News) – Cartoon characters can devolve into dullards over time. But some are more enduringly appealing than others, as the adventure “The SpongeBob Movie: Search for SquarePants” (Paramount) proves.
Yellow, absorbent and porous on the outside, unflaggingly upbeat SpongeBob (voice of Tom Kenny) is childlike and anxious to please within. He also displays the kind of eagerness for grown-up experiences that is often found in real-life youngsters but that gets him into trouble in this fourth big-screen outing for his character.
Initially, his yearning for maturity takes a relatively harmless form. Having learned that he is now exactly 36 clams tall, the requisite height to ride the immense roller coaster at Captain Booty Beard’s Fun Park, he determines to do so.
Predictably, perhaps, he finds the ride too scary for him. This prompts Mr. Krabs (voice of Clancy Brown), the owner of the Krusty Krab — the fast-food restaurant where SpongeBob works as a cook — to inform his chef that he is still an immature bubble-blowing boy who needs to be tested as a swashbuckling adventurer.
The opportunity for such a trial soon arises with the appearance of the ghostly green Flying Dutchman (voice of Mark Hamill), a pirate whose elaborately spooky lair, the Underworld, is adjacent to SpongeBob’s friendly neighborhood, Bikini Bottom. Subject to a curse, the Dutchman longs to lift it and return to human status.
To do so, he needs to find someone both innocent and gullible to whom he can transfer the spell. SpongeBob, of course, fits the bill.
So the buccaneer lures SpongeBob, accompanied by his naive starfish pal Patrick (voice of Bill Fagerbakke), into a series of challenges designed to prove that the lad has what it takes. Mr. Krabs, the restaurateur’s ill-tempered other employee, Squidward (voice of Rodger Bumpass), and SpongeBob’s pet snail, Gary, all follow in pursuit.
Along the way, SpongeBob and Patrick’s ingenuity and love of carefree play usually succeed in thwarting the Dutchman’s plans.
As with most episodes of the TV series, which premiered on Nickelodeon in 1999, there are sight gags intended either for adults or savvy older children. This time out, though, director Derek Drymon and screenwriters Pam Brady and Matt Lieberman produce mostly misfires.
These include an elaborate gag about Davy Jones’ legendary locker — which, after much buildup, turns out to be an ordinary gym locker. Additionally, in moments of high stress, SpongeBob expels what he calls “my lucky brick.” As euphemistic poop gags go, it’s more peculiar than naughty.
True to form, SpongeBob emerges from his latest escapades smarter, wiser, pleased with his newly acquired skills and with increased loyalty to his friends. So, although the script’s humor may often fall short, the franchise’s beguiling charm remains.
The film contains characters in cartoonish peril and occasional scatological humor. The OSV News classification is A-I – general patronage. The Motion Picture Association rating is PG — parental guidance suggested. Some material may not be suitable for children.
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