MagicRat
Well-Known Member
The board could give this site the full $60 Billion to design the parks and 85 percent of the members would still complain about it. This place truly is one sad and angry bunch!
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News Disney plans to accelerate Parks investment to $60 billion over 10 years
- Thread starter CaptainAmerica
- Start date
I like tots.
The skepticism is warranted, whether people choose to believe it or not. They did absolutely nothing after the last MAJOR announcement of $17 billion. They haven't put a shovel in the ground on anything except Tiana's Salt Mine in over a year, but yet them throwing out an even bigger number means they are going to MAGICALLY!!! build all kinds of stuff in Florida? Yeah, I have a bridge in Brooklyn for sale, are you interested in buying it?
WoundedDreamer
Well-Known Member
Well, this pretty much is it. In ten years the parks will be unrecognizable. It's all over. 60 Billion dollars is a lot of money to spend on the Parks and Resorts. Even if a few billion of that is diverted to Disney Cruise Line, it's still going to be massive for the parks. This gives them the scope to continue the entropy. There will be more Pixar Piers, San Fransokyos, and Toy Story Playlands. This is pretty much the end of coherent design at the parks. Never had I wanted them to just stop investing in the parks. Now that's what I dream of. This is the equivalent of handing a toddler a jar of paint. You know what's about to happen. It's going to be messy.
On the bright side, if you have enjoyed the things Disney has built recently, then you're in for more of the same. And the fact some group of people is happy about this perhaps is some consolation. I'm defeated. I'm not the mainstream. And it's time for me to accept that things have changed and there's no u-turn forthcoming.
Oh well.
On the bright side, if you have enjoyed the things Disney has built recently, then you're in for more of the same. And the fact some group of people is happy about this perhaps is some consolation. I'm defeated. I'm not the mainstream. And it's time for me to accept that things have changed and there's no u-turn forthcoming.
Oh well.
networkpro
Well-Known Member
- In the Parks
- Yes
I'm concerned for the Disney Company if they target a substantial amount of the investment into the two parks they are minority owners in, especially as that particular economy is becoming more closed and other companies are leqving.
WoundedDreamer
Well-Known Member
While I'm sympathetic to retaining a dose of skepticism, Disney NEEDS a growth a story. One that has strong margins and shareholder returns. It also needs a replacement for the crumbling linear channels. Disney's feet are to the fire. Short of a recession/depression, Disney is moving forward with this. Parks and Resorts is Iger's one bright spot to Wall Street. It needs to keep growing. And that takes investment.
Disstevefan1
Well-Known Member
This fake announcement didn't help the stock price today:
TheIceBaron
Well-Known Member
They have made this commitment in prior earnings calls as well, these are statements to investors and are not Josh level blue sky announcements. I suggest you both research the consequences for making false statements to investors. While the dollar amount may change, and macro economic factors may impact the true number, the investment is more likely than not in the ballpark of what they have said to investors.
And that was my point of the cost of even a scaled back galaxy's edge is still rather small compared to the enormous amount of what will be invested.
I really don't understand the pessimism.
Despite his best efforts to destroy them. He should have been dumped on his cardigan-wearing butt and told never to return, but the BoD won't do that because they are all loyal to him.
Tony the Tigger
Well-Known Member
How long ago was that?
WoundedDreamer
Well-Known Member
This is tricky NGL. This obviously is not the forum for geopolitical discussions, so I'll just say that Disney is taking a calculated gamble. Not investing there means potentially missing out on a great avenue for growth and expansion. Investing there does increase their exposure to geopolitical tensions. I'm hopeful that their decision to invest indicates an increasing openness with China. Shortly after Iger returned, movie releases began to happen again in China. So that was instant boon. But Disney has lots of work to do to repair their presence in China. It's tricky tricky business. One of a multitude of challenges Disney faces.
You won't get any argument from me there. The man is torching one of the things I love. I find him odious as both an executive and a human being. The fact that he considered selling the parks years ago is the icing on the cake in this cruel irony.
Show us the SEC documents filed that lock them into spending this alleged $60 billion.
I know some people are dense when Bob and Josh speak but...
SplashJacket
Well-Known Member
Back of napkin math for you.
Take a new ride like Guardians. Assume a capacity of 2000 an hour. Assume half of distribution goes to $20 individual Lightning lane. Assume 14 hours. Of operation. Simple math.
1000(14)(20)(365)=$102,200,000.
That’s a hundred million dollars in free revenue (you have 98% or similar margins).
If you can sustain those prices or similar for 4 years, you generate $400,000,000 in free revenue, which likely pays for the entire ride construction. The ILL revenue cycle will force them to build new rides frequently (and at every park) to ensure they’re keeping up up demand, and the revenue generated will ensure those rides are paid for.
The new attraction will bring other guests which will increase tickets and pay for labor elsewhere and generate additional revenue. Prevents the works from getting stale, etc.
Both major players in the theme park industry realized the goldmine they’ve been sitting on, and we’re officially in the arms race. It’s exciting for fans, and everyone in the industry.
Take a new ride like Guardians. Assume a capacity of 2000 an hour. Assume half of distribution goes to $20 individual Lightning lane. Assume 14 hours. Of operation. Simple math.
1000(14)(20)(365)=$102,200,000.
That’s a hundred million dollars in free revenue (you have 98% or similar margins).
If you can sustain those prices or similar for 4 years, you generate $400,000,000 in free revenue, which likely pays for the entire ride construction. The ILL revenue cycle will force them to build new rides frequently (and at every park) to ensure they’re keeping up up demand, and the revenue generated will ensure those rides are paid for.
The new attraction will bring other guests which will increase tickets and pay for labor elsewhere and generate additional revenue. Prevents the works from getting stale, etc.
Both major players in the theme park industry realized the goldmine they’ve been sitting on, and we’re officially in the arms race. It’s exciting for fans, and everyone in the industry.
TheIceBaron
Well-Known Member
Show us the SEC documents filed that lock them into spending this alleged $60 billion.
I know some people are dense when Bob and Josh speak but...
April of this year (but you already knew that). You'd think that making such an announcement would have come with relatively firm plans on where some of that money was going to be spent, particularly in Florida. Nah. More blue sky. Par for Iger and D'Amaro's course.
flynnibus
Premium Member
That depends - are you willing to pay more for a separate gate?
Other issues:
Cannibalization of yourself
Higher fixed operating costs
People aren't getting more money and more vacation time
Overbuilding and being stuck with it is a real issue (See DLP History)
More parks competing with your own product isn't necessarily a good thing especially if guests don't think they need to pay separately for the new thing
neo999955
Well-Known Member
- In the Parks
- No
I get being a skeptic or pointing out issues, but you're being rather unreasonable.
They only announced that 17 billion a few months ago. We all know we're unlikely to see any actual construction kick off until next fall after D23. I agree with the thought that they know they can't compete with the opening of Epic U, so they might as well go hard starting late 2025 into 2026.
You can't say they're clearly going to do nothing when in the past decade they've built three new lands, a bunch of rides (including some truly great e tickets) and tons of other notable changes. Someone else here said it might not be the right choices (or at the least ones you may want) - but a lot has happened. Are we in a multi-year drought right now? For sure and it's a bummer, but it's clear serious money is going to be spent and we'll be getting new lands and rides over the next decade.
flynnibus
Premium Member
Remember when people were saying Disney has been ruining it's good will all these years? Well... that's what happens.
SplashJacket
Well-Known Member
This is literally what’s happening, and as someone who’s loyalty lies with the parks (and not necessarily Disney), I’m all for it.
So ripping and replacing, along with under-building and over-spending on what they did do, after a decade of not building a damn thing somehow warrants celebration? How much net-new has happened under Iger?
You can't expect that the same person who created the problem is going to fix it.
drnilescrane
Well-Known Member
That lesson was learned back in 1998 when DAK didn't materially extend the average length of a trip to WDW.
Most on property guests either plan a 4 night trip, a 3 night long weekend or a 7 night trip. The later are coming anyway and the former literally don't have more time.
It's the same reason we haven't seen a material growth in non-DVC hotel keys at WDW. Adding more rooms is just going to cannibalize the low end of the market, push rates down (see Caribbean Beach) and become a liability during the next recessionary event.
These things go in cycles - maybe in the future WDW will get to the point DLR is now at where capacity isn't servicing demand. But I don't think we're there yet. WDW needs more optimization, along with some targeted growth (i.e. MK).
I'd also make the argument that DCL out of Canaveral is WDW's pseudo 5th gate. They're adding the FLL port to capture pure play cruisers so they can free up Port Canaveral capacity for WDW land+sea travelers.