Is Disney really hurting that bad financially?

[PokoFive5]

I’m a long time lurker here but after D23 I have to wonder, are they TRUELY hurting that bad financially? And I don’t mean in a way of getting answers of “they have so much money”. Has their cost to run the parks just put a hurting on them? I’m sitting here just pondering. They’re letting Universal get ahead of them by building Epic Universe with zero solid new announcements from Disney World. You’d think they’d be chomping at the bit to stay ahead. Do they just not want to or is it that they can’t? The Blue Sky stuff made me go ‘is this what we want to do or is this what we want to do but can’t because we don’t have the money currently.’ Don’t know, just thinking out loud, looking for opinions.

 

[OKW Lover]

No, they are not truly hurting bad financially. They may not be doing as well financially as the markets want them to do, but they are still doing pretty well now that things are returning to normal.

 

[drenalin'junkie]

They've lost more value % over the last year than the 2008 financial meltdown. Certainly not a stellar fiscal report card. With interest rates projected to increase even more than the last 4 recent rate hikes, entertainment spending money is certain to decrease. Will we get used to it and spend anyway is yet to be seen.

 

[KayMichigan]

They don't see any need to try to stay ahead of Universal since the parks are still packed to the gills despite higher prices and scaled back offerings. As long as they're still making tons of money offering less, that's what they'll continue to do.

 

[Upatnoon]

I’m a long time lurker here but after D23 I have to wonder, are they TRUELY hurting that bad financially? And I don’t mean in a way of getting answers of “they have so much money”. Has their cost to run the parks just put a hurting on them? I’m sitting here just pondering. They’re letting Universal get ahead of them by building Epic Universe with zero solid new announcements from Disney World. You’d think they’d be chomping at the bit to stay ahead. Do they just not want to or is it that they can’t? The Blue Sky stuff made me go ‘is this what we want to do or is this what we want to do but can’t because we don’t have the money currently.’ Don’t know, just thinking out loud, looking for opinions.

Disney has new attractions coming. They are building up staff just to get things back to where they were before the pandemic so they can operate new things.

Meantime, they have to keep making more money, which they have done by focusing on bringing people to the parks that spend more money.

There is plenty of room in Orlando for more theme parks, but much harder to find the low-cost workers to operate them. Right now, that is the challenge, anyway.

Disney has plenty of money to add attractions if it wants, but it will do it in a way that maximizes the impact for marketing, advertising and attention.

Floating out "blue sky" ideas are a way for Disney to get an early read on how the public will react to something. It also creates free publicity. The step of actually spending the money to build a "blue sky" attraction is another matter. That requires a lot of study and work.

In the end, I don't think Disney or Universal "lose" when more tourists come to Orlando. Sure, they compete, but in the end they are helping each other because many people will do both, or plan more trips to Orlando to "do it all."

 

[BaybeeYoda]

Usually when they are hurting they incentivize ppl to come: that’s not happening.

I recall the days of discount annual passes and special deals on multi day passes…..

 

[bbeagle]

They’re letting Universal get ahead of them by building Epic Universe with zero solid new announcements from Disney World. You’d think they’d be chomping at the bit to stay ahead. Do they just not want to or is it that they can’t?

Since 2018, the past 5 years....

What has Universal done?
2019 - Hagrid's Motorbike ride (which replaced another ride called Dragon Challenge)
2021 - Velocicoaster

What has Disney done?
Opened 2 new lands -
2018 - Toy Story Playland with 3 rides (Slinky Dog Dash, Alien Swirling Saucers, Toy Story Mania)
2019 - Star Wars Galaxy's Edge with 2 major rides (Rise of the Resistance and Smuggler's Run)

2019 - Skyliner,
2020 - Mickey's Runaway Railway (which replaced the Great Movie Ride)
2021 - Remy's Ratatouille Adventure
2022 - Guardians of the Galaxy: Cosmic Rewind

Coming in 2023:
Universal - nothing
Disney -
Tron
Celebration area of EPCOT
Moana's Journey of Water

(I'm not including anything in Disney Springs or new Hotels or new Restaurants or new shows, which are very numerous)

Disney is NOT sitting down doing 'nothing'. They're continuing to do things. I'm sure there will be more that's opened in 2024 and 2025 before Universal does anything new. Universal has a long way to catch-up.

 

[bbeagle]

[deleted]

 

[bbeagle]

[deleted]

 

[bbeagle]

[deleted]

 

[Obi-J Kenobi]

In 2019, Bob Iger (not Bob Chapek) spent $71 billion to purchase 20th Century Fox. Why? To help with Disney+. Just take a moment to consider the billions in dollars that TWDC has to pay just to service this debt. TWDC isn't insolvent, but it definitely has some significant debt to pay. 20th Century Fox isn't the only debt remember.

 

[bbeagle]

Since 2018, the past 5 years....

What has Universal done?

2019 - Hagrid's Motorbike ride (which replaced another ride called Dragon Challenge), TODAY Cafe
2021 - Velocicoaster

What has Disney done?

Opened 2 new lands -
2018 - Toy Story Playland with 3 rides (Slinky Dog Dash, Alien Swirling Saucers, Toy Story Mania)
2019 - Star Wars Galaxy's Edge with 2 major rides (Rise of the Resistance and Smuggler's Run)

2019 - Skyliner, Riviera, Topolino’s Terrace Character Dining, Olga’s Cantina, Savi’s Workshop, Droid Depot, Docking Bay 7, Ronto Roasters
2020 - Mickey's Runaway Railway (which replaced the Great Movie Ride)
2021 - Remy's Ratatouille Adventure, Space 220
2022 - Guardians of the Galaxy: Cosmic Rewind, Star Wars Galactic Starcruiser, MagicBand+ (interaction with statues, shows, and game in Galaxy’s Edge)

Coming in 2022:
Universal - Universal’s Great Movie Escape (Escape Room in CityWalk)
Disney - Toy Story Roundup Rodeo BBQ Restaurant

Coming in 2023:
Universal - nothing
Disney -
Tron Lightcycle Power Run
Celebration area of EPCOT
Moana's Journey of Water

(I'm not including anything in Disney Springs or new shows or refurbishments, which are very numerous)

Disney is NOT sitting down doing 'nothing'. They're continuing to do things. I'm sure there will be more that's opened in 2024 and 2025 before Universal does anything new. Universal has a long way to catch-up.

 

[k5xs]

I’m a long time lurker here but after D23 I have to wonder, are they TRUELY hurting that bad financially? And I don’t mean in a way of getting answers of “they have so much money”. Has their cost to run the parks just put a hurting on them? I’m sitting here just pondering. They’re letting Universal get ahead of them by building Epic Universe with zero solid new announcements from Disney World. You’d think they’d be chomping at the bit to stay ahead. Do they just not want to or is it that they can’t? The Blue Sky stuff made me go ‘is this what we want to do or is this what we want to do but can’t because we don’t have the money currently.’ Don’t know, just thinking out loud, looking for opinions.

Disney Parks, Experiences and Products in August reported quarterly revenue of $7.4 billion, up from $4.3 billion a year earlier, and an operating profit of $2.2 billion, up from $356 million.

$2.2 billion profit. Billion, with a "b."

 

[OKW Lover]

In 2019, Bob Iger (not Bob Chapek) spent $71 billion to purchase 20th Century Fox. Why? To help with Disney+. Just take a moment to consider the billions in dollars that TWDC has to pay just to service this debt. TWDC isn't insolvent, but it definitely has some significant debt to pay. 20th Century Fox isn't the only debt remember.

Sigh. So many look at transactions like this and just see how much the company paid for the asset. They don't look at what that asset brings in.

 

[Jrb1979]

Since 2018, the past 5 years....

What has Universal done?

2019 - Hagrid's Motorbike ride (which replaced another ride called Dragon Challenge), TODAY Cafe
2021 - Velocicoaster

What has Disney done?

Opened 2 new lands -
2018 - Toy Story Playland with 3 rides (Slinky Dog Dash, Alien Swirling Saucers, Toy Story Mania)
2019 - Star Wars Galaxy's Edge with 2 major rides (Rise of the Resistance and Smuggler's Run)

2019 - Skyliner, Riviera, Topolino’s Terrace Character Dining, Olga’s Cantina, Savi’s Workshop, Droid Depot, Docking Bay 7, Ronto Roasters
2020 - Mickey's Runaway Railway (which replaced the Great Movie Ride)
2021 - Remy's Ratatouille Adventure, Space 220
2022 - Guardians of the Galaxy: Cosmic Rewind, Star Wars Galactic Starcruiser, MagicBand+ (interaction with statues, shows, and game in Galaxy’s Edge)

Coming in 2022:
Universal - Universal’s Great Movie Escape (Escape Room in CityWalk)
Disney - Toy Story Roundup Rodeo BBQ Restaurant

Coming in 2023:
Universal - nothing
Disney -
Tron Lightcycle Power Run
Celebration area of EPCOT
Moana's Journey of Water

(I'm not including anything in Disney Springs or new shows or refurbishments, which are very numerous)

Disney is NOT sitting down doing 'nothing'. They're continuing to do things. I'm sure there will be more that's opened in 2024 and 2025 before Universal does anything new. Universal has a long way to catch-up.

Coming in 2025
Universal - brand new theme park with at least 11 new attractions
Disney some more blue sky stuff.

 

[bbeagle]

Coming in 2025
Universal - brand new theme park with at least 11 new attractions
Disney some more blue sky stuff

There doesn’t seem to be a track record at Universal to getting much done. Harry Potter part 2 back in 2016 when Disney came out with Avatar land.

9 years later, Universal will finally do 'something' - while Disney will have opened 3 new lands and a dozen rides in those 9 years.

 

[Jrb1979]

There doesn’t seem to be a track record at Universal to getting much done. Harry Potter part 2 back in 2016 when Disney came out with Avatar land.

9 years later, Universal will finally do 'something' - while Disney will have opened 3 new lands and a dozen rides in those 9 years.

Avatar was a response to Harry Potter. They have been adding new things. Now Comcast views the parks differently. They want to put more into them.

 

[RivShore]

Sigh. So many look at transactions like this and just see how much the company paid for the asset. They don't look at what that asset brings in.

And so many, including professionals quote that $71B buy number, without taking into account all the parts they sold off after closing the deal. They sold the regional sports networks for $15B, 8-12 overseas entities probably totaling close to $10B, and there is the 1/3rd of Hulu that that came over that is worth well over $10B. That knocks the purchase price in half. Heck the 100 seasons of the Simpsons and It's Always Sunny are worth at least that much. LOL

 

[ChipnDale79]

I’m a long time lurker here but after D23 I have to wonder, are they TRUELY hurting that bad financially? And I don’t mean in a way of getting answers of “they have so much money”. Has their cost to run the parks just put a hurting on them? I’m sitting here just pondering. They’re letting Universal get ahead of them by building Epic Universe with zero solid new announcements from Disney World. You’d think they’d be chomping at the bit to stay ahead. Do they just not want to or is it that they can’t? The Blue Sky stuff made me go ‘is this what we want to do or is this what we want to do but can’t because we don’t have the money currently.’ Don’t know, just thinking out loud, looking for opinions.

They're not hurting, in fact the opposite. I dont think they see Universal as a threat.

Disney parks are full, and people are spending money left and right.

 

[ChipnDale79]

There doesn’t seem to be a track record at Universal to getting much done. Harry Potter part 2 back in 2016 when Disney came out with Avatar land.

9 years later, Universal will finally do 'something' - while Disney will have opened 3 new lands and a dozen rides in those 9 years.

ehhhh..Universal is building a brand new park thought. I'm willing to cut them some slack.