4 High-Stakes Hurdles Facing Disney’s New CEO Josh D’Amaro

When Josh D’Amaro takes over as the The Walt Disney Company’s next Disney CEO on March 18, 2026, he inherits a Disney that is vastly more complex than the one current CEO Bob Iger first led two decades ago. D’Amaro faces a high-stakes transition from a beloved “Parks President” to a global media titan, navigating hurdles that will define the company’s next century.

Here is a look at four immediate areas he will have to deal with:

1. The “Algorithm vs. Art” Crisis

The most immediate challenge is Hollywood’s massive technological shift. As of early 2026, Disney is moving forward with a high-stakes $1 billion equity investment in OpenAI. This landmark deal licenses over 200 iconic characters—from Mickey Mouse to the stars of Frozen and Star Wars—for use in OpenAI’s Sora video-generation platform.

D’Amaro must balance a delicate two-front war on AI:

• The talent revolt: He must convince the creative community that AI-generated 30-second clips are tools for “fan engagement” rather than a replacement for human animators and visual effects artists.
• Brand guardianship: D’Amaro faces the daunting task of curating Sora-generated content on Disney+ to ensure the platform isn’t diluted by “AI slop,” all while protecting the rights and likenesses of the company’s human stars.

2. The ESPN “Flagship” Gamble

D’Amaro’s tenure will be judged heavily by the success of the ESPN flagship direct-to-consumer app. Launched to bridge the gap as cable TV withers, the service carries a premium price tag (estimated at $30 per month) and a massive weight of expectation.

• The cord-cutting cliff: D’Amaro must manage the linear decay of ABC and FX while migrating millions of sports fans to the new ESPN Unlimited tier.
• Rights wars: With tech giants like Amazon and Google aggressively bidding for live sports, D’Amaro has to decide if Disney can still afford to be the “Home of Sports” when programming costs are spiraling.

3. The Theme Park Attendance and Pricing Threat

Despite record revenues of $10 billion in the first quarter of 2026, the Experiences division is entering its most competitive era yet. D’Amaro must navigate a growing public backlash against high prices as many families feel priced out of the magic.

• The Epic Universe impact: For the first time in decades, Disney faces a genuine existential threat in Orlando with the full-year operations of Universal’s Epic Universe. While Universal executives claim the new park “lifts all of Orlando,” Disney has already seen a shift in crowd dynamics and a 1% dip in domestic attendance.
• The pricing pivot: Critics argue that Disney’s focus on higher-end customers has alienated the middle-class families that are the company’s backbone. D’Amaro must balance his strategy of “extracting value” from loyalists with the need to keep pricing reasonable to avoid long-term brand damage.
• The $60 billion clock: He must ensure his massive expansion plan—including the newly announced Disneyland Abu Dhabi—moves fast enough to keep the product fresh while remaining mindful of the affordability threshold.

4. The Political Minefield

The “DeSantis Wars” might be in the rearview mirror, but D’Amaro is stepping into a political landscape that is arguably even more volatile. The recent fallout from the Jimmy Kimmel controversy—where Disney briefly suspended the late-night host following a clash with the FCC—served as a wake-up call that the company is still a favorite target for political “brand damage.”

D’Amaro’s biggest challenge won’t just be managing Washington regulators; it will be reclaiming Disney’s middle-of-the-road identity without losing its soul. He’ll have to be a deft diplomat to navigate a culture that is hyper-sensitive to:

• The “woke” debate: Whether it’s the acrimonious exit of Lucasfilm’s Kathleen Kennedy or the “anti-woke” backlash against recent Star Wars and Marvel projects, D’Amaro must find a way to prioritize great storytelling over the cultural lightning rod of modern politics.
• Corporate influence: In an era where everyone is looking for a hidden agenda, D’Amaro needs to prove Disney is a place for everyone—a tall order when even a deleted social media thread of movie quotes can spark accusations of censorship.