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October 03, 2005

Four hurdles for Disney's Iger

Two decades after Michael Eisner rescued a troubled Magic Kingdom, its new CEO must reshape it for a vastly different world. As Robert Iger begins his first business day as Walt Disney (DIS) CEO today, it represents the end of an era — and not just for Disney. The world that former chief Michael Eisner knew during his 21-year reign is undergoing a dramatic transformation. New technologies, including cable and satellite TV, fragment audiences among a vast array of news and entertainment options. Disney's core audience, kids, often become jaded before they leave kindergarten. And for theme park tourists, the threat of terrorism is a fact of life. "Twenty years ago, all Disney needed was a creative revival," says James Stewart, author of DisneyWar. "It was still a pretty simple world. Entertainment was dominated by a few TV networks and a few movie studios."

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