News Disney’s Fiscal Full Year and Q4 2025 Earnings Results Webcast

[Basil of Baker Street]

What confuses me is if Disney wants Less people who spend more, why all of the discounts lately?

 

[JD80]

Pan Am, Sears, Kodak...an assumption of invulnerability is unwise, for a business leader and investor..


It's also complicated and stressful.


The long game is to create great entertainment, on screens in theaters, at home, and in the parks. They need to figure out how to do that across every segment, more reliably. Do they have the right people working under the right management in the right culture with the right resources?

Would park attendance be higher if they actually made a Star Wars land that felt like Star Wars, or a Marvel land that felt like being in a comic book or movie (instead if an industrial park) or a Princess and the Frog attraction that felt like it was made by people who liked -- not despised -- the movie? Over, and over, and over, they have been squandering opportunities and making disappointing entertainment.


Is your theory that they are raising prices to decrease attendance? Then why spend billions to increase park capacity with net increases in numbers of attractions and amenities and guest-accessible square-footage?


Demand for Disney Parks has been relatively inelastic. Changes in pricing will have a negligible negative impact on attendance...for a while. That's because Disney Parks are historically unique and dominant in the industry. There's a lot of cultural and consumer behavior pattern protection (families that go to Disney Parks by tradition).

But customer resentment, changing tastes, and competitive offerings all work against them. It's like in the 1990s and early 2000s when the cable companies kept ratcheting up monthly rates and treating customers terribly -- why not? They essentially had a monopoly. All of a sudden a viable alternative comes along and "see ya!" customer jumped at the opportunity to dump cable.

And once you lose a customer it can be hard to get them back. They find alternatives they like as much or better. They retain their resentment. Family travel traditions change.

1. Disney is not KODAK.
2. Disney is still the leader in creating great entertainment. Consistently over the last decade.
3. They don't want higher park attendance, they want higher per guest spend. They are succeeding.
4. They are spending billions to increase park capacity because if you stay still you will end up losing guest spend because you aren't offering anything new. People will stop coming.

 

[JD80]

What confuses me is if Disney wants Less people who spend more, why all of the discounts lately?

They aren't offering any more or less discount than they have historically. You'll know they're desperate when they start offering free (adult) park tickets attached to some promo.

 

[Basil of Baker Street]

They aren't offering any more or less discount than they have historically. You'll know they're desperate when they start offering free (adult) park tickets attached to some promo.

But you just said they want higher guest spend. Take away discounts right?

 

[Sirwalterraleigh]

What confuses me is if Disney wants Less people who spend more, why all of the discounts lately?

Nothing says “control attendance” like massive discounts not seen in decades - if ever? - and overpromoting a hurry up massive spending plan…

 

[DrStarlander]

It could be. But one of the key reasons people go to a resort like WDW is its all-in-one-place nature and its appeal to multi-generational families vacationing for a week or more.

None of what you suggest comes close to replacing what WDW has to offer.

All-in-one will always have an appeal to some travellers. But meanwhile the next generation -- exposed to easy global travel and social media feeds filled with incredible overseas adventures -- may see a WDW vacation as fake, corporate, and repetitive. For example, my teenage boys would rather go to Tokyo or Iceland over WDW because the places and adventures are real.

Disney is not KODAK.

Kodak went from 90% market share of film and cameras to filing for bankruptcy. Times changed. Technology and consumer tastes changed. A once dominant business becomes irrelevant. Something that was probably unimaginable years earlier. What's your point, specifically?

They don't want higher park attendance, they want higher per guest spend. They are succeeding.

Then why do they need more square-footage of park space?

 

[Sirwalterraleigh]

They aren't offering any more or less discount than they have historically. You'll know they're desperate when they start offering free (adult) park tickets attached to some promo.

Did you hear that on some crappy podcast? It’s wrong

 

[JD80]

But you just said they want higher guest spend. Take away discounts right?

That's a pretty simple view of a massive pricing and marketing strategy.

They have the data for stuff like offering a 25% discount on an overpriced Deluxe room is often enough to get someone to book a 5 day vacation and spend substantially more than $200 a night savings.

Hotel discounts are basically like Kohls discounts these days. Have been for a while.

 

[JD80]

Kodak went from 90% market share of film and cameras to filing for bankruptcy. Times changed. Technology and consumer tastes changed. A once dominant business becomes irrelevant. Something that was probably unimaginable years earlier. What's your point, specifically?

Then why do they need more square-footage of park space?

KODAK also had the opportunity to change with the times with digital technology and chose not to invest in it. It's an incredible bad comparison. Disney is also just not a theme park company either.

Because even in the not so busy days, MK needs more space. They also need to constantly be adding new things to the parks to maintain what they have.

 

[Mr. Sullivan]

Pretty clear Wall Street wants Disney out of the movie business. I don’t know what they’re going to do.

They’re not going to do anything because Wall Street is responding to something that isn’t going to matter once the fad ends

 

[Sirwalterraleigh]

Then why do they need more square-footage of park space?

This is where some fool says:

“To enhance the guest experience…cause never “luxury” now”

 

[Basil of Baker Street]

My simple brain just tells me if they are offering as many discounts as they are, they are below target on the number of bodies they want in the parks. And I'm also sure they want more money per person. I mean who doesn't?

 

[Sirwalterraleigh]

They’re not going to do anything because Wall Street is responding to something that isn’t going to matter once the fad ends

Which fad?

Lighting lane?

 

[MisterPenguin]

The stock is down 9%.

And it hit a floor of 104. It's back up to 108. A three and half point rally!!!

And when D+ was announced, it went from 110 to 150 in an exuberance bubble.

And when the pandemic hit, dropped to 95, but then shot up to 190. During the shutdown. 190. During a shutdown.

Then dropped to 80 under Chapek.

Then 120 this Summer.

Then to 104 and back up to 108 today.

So, when you say "The stock is down 9%," all I hear is "what's a stock market?"

 

[MisterPenguin]

This has been going on for the past decade.

So why hasn't it all collapsed already?

We haven't experienced an economic downturn in that time.

Did you land on Earth in 2022?

 

[el_super]

For my family in particular the only viable alternative is a cruise. In fact, we have started alternating between cruises and WDW.

FWIW I do think that cruising is becoming a competitive alternative to the traditional theme park experience. I also think Disney knows this and that's why they are investing so heavily in this area.

For example, my teenage boys would rather go to Tokyo or Iceland over WDW because the places and adventures are real.

And they would change their mind if MagicalExpress came back? Or the rooms were 10% off? Probably not.

 

[Serpico Jones]

And it hit a floor of 104. It's back up to 108. A three and half point rally!!!

And when D+ was announced, it went from 110 to 150 in an exuberance bubble.

And when the pandemic hit, dropped to 95, but then shot up to 190. During the shutdown. 190. During a shutdown.

Then dropped to 80 under Chapek.

Then 120 this Summer.

Then to 104 and back up to 108 today.

So, when you say "The stock is down 9%," all I hear is "what's a stock market?"

D+ was the reason it shot up during the pandemic. It’s also the reason why it’s back down to where it was ten years ago.

 

[MisterPenguin]

3 =/= 0

 

[MisterPenguin]

What confuses me is if Disney wants Less people who spend more, why all of the discounts lately?

As mentioned above, Disney gives discounts regularly throughout the year.

Discounts sell out the last of inventory that hasn't been sold out yet.

The whales pay rack up front. The little fish get the scraps.

If discounts are a sign of imminent failure, then I guess every retail venue is also about to crash out.

 

[Sirwalterraleigh]

My simple brain just tells me if they are offering as many discounts as they are, they are below target on the number of bodies they want in the parks. And I'm also sure they want more money per person. I mean who doesn't?

Losing customers is more than just one less body from all the “upper crust” at port Orleans that go twice a year…

Disneys customer based was built on a ridiculously strong pull over 4+ generations.

There are a lot of signs that those bonds are eroding. You drive families away? It’s not one person on a given day at DAK