A Spirited Perfect Ten

[clsteve]

PwC, but that's not the point.

I think you're thinking about things correctly but I believe you're assuming that the project was somehow "complete" and then all of these changes were made subsequent to that. I think it's much more likely that the expenditures along the way have all been tweaks to make the product function as designed in the initial scope. So it's not like some final product was accepted months ago that they're now tweaking with no new functionality. They're still implementing the initial functionality.

The fact that it's an over-run is not relevant. In other words, your ability to estimate does not affect that amount of costs that are capitalized. Actual costs either meet the criteria or don't, and those criteria do not involve whether the costs were more or less than estimated.

Costs that are necessary to "get something to work" sound like capital expenditures to me. For example, if you buy a piece of machinery, the costs of installing it are capital expenditures, even if it costs more to install than you thought it would. Costs of modifying the "true environment" to work with the software, however, are not capitalizable as software costs, but might be capitalizable in their own right. Costs of training are not capitalizable.

I really don't think we're that far off at all. I just think there's a piece missing which is causing the back and forth - the diff between internally developed by the company versus internally developed contractually with a Provider.

With a Provider, each phase must be specifically spelled out contractually and signed off by both parties - deliverable by deliverable, milestone by milestone. That especially includes the Acceptance components of each milestone in the project and for any delivered product-ized code components. The project would not move into the next phases without both the Provider and Disney signing off on acceptance all the way into production. If that didn't happen, projects would never end with the Provider still accountable.

But, they both recognize that the real project costs start after acceptance and testing and often during and after the production implementation of the "code" - of which there are many phases. You try to budget and negotiate them as best you can, of course, and segment them into contracted phases under the Project like data migration and conversion, P&T, or into an estimated and budgeted allocation of man days into a ""Project Support and Implementation" bucket.

But, they're T&M contracts that unfortunately, often blow right through the budgeted allocations.

To the Provider, it's still a change request and enhancement (from their view) , but post implementation maintenance (and enhancement) of the solution from the customers view. No new functionality, just getting it to work - fixing errors - much like a complex series of maintenance releases

We can debate the merits of where things should fall based on each of our experiences. But, let's bring it back to Disney and NextGen. That sure seems to be what happened with seemingly a lot more falling into opex than capex as the project moved into it's later stages FY's '13 and 14.

 

[FrankLapidus]

The ride never ends. Live-Action Pinocchio is now in development

http://deadline.com/2015/04/pinocch...on-film-being-developed-at-disney-1201406564/

Who else is starting to miss the Direct to Video Sequels?

Another one? Its like a bad joke that shows no sign of ending.

Its really quite sad that this is the best Disney's live-action studio can do. Scratch that, its pathetic. Is this really the best they can come up with? Disney, one of the world's biggest media conglomerates, cannot come up with a better strategy than remaking their animated classics into live-action films? Is there anyone with an original idea left at the studio?

 

[The Empress Lilly]

And yet not 1 hand drawn feature on the horizon.

"This isn't your Grandad's Disney"- Bob Iger.


I give up. Disney is artistically bankrupt.

I'm sorry, but if you think that picture is beautiful, you only have taste in your mouth.

The destruction of the hub and of World Showcase are every bit as disastrous as the War on Future World in the nineties. To think a few years ago I had moments were I thought the pendulum would swing. :'(

All that's missing is stinkin' Toy Story Playland replacing the once great Backlot Tour and all parks will be actually worse than they were even last year. Well maybe not DAK, hurrah.

 

[Nubs70]

And yet not 1 hand drawn feature on the horizon.

"This isn't your Grandad's Disney"- Bob Iger.


I give up. Disney is artistically bankrupt.

I'm sorry, but if you think that picture is beautiful, you only have taste in your mouth.

How long before those bushes die from people peeing in the planter?

 

[WDW1974]

Spirited China Musings (Character Dim Sum available for extra cost):

One of HKDL's original attractions/shows will be going away late this summer to make way for something new. The Golden Mickeys (a true E-Ticket stage show if there ever was one) will be ending its run from 2005 to make way for a new 10th anniversary spectacular that will be taking over the theater later this fall. I don't know specifics of the new show, but I'd expect to see lots of recent characters (Frozen, Frozen, Frozen ... and some of the other films like Tangled, Princess and Frog, Wreck it Ralph, Brave etc may have appearances).

Because of its popularity, this is a very risky move. The show is considered one of the top attractions in the park, rated by guests ahead of attractions like Mystic Manor and Space Mountain.

To be clear, this show is not a copy of the Once Upon a Time show debuting in Shanghai (you know, the place Bob Iger can't be shown at in a photo!) which is more of an introduction to the world of Disney type show.

New daytime parade will also be debuting only five years after the last (they clearly don't know that parades are supposed to go on forever as they do in FL!)

There has been a delay in announcing next attraction (after Iron Man) for HKDL, and it may have something to do with larger long term plans. Developing ...

Bob Iger's biggest fan in the Redstone family, Gary Snyder, (he of the censored Disney CEO Fumbles Entry to China HuffPo piece) was spotted out at Lantau Island's Disney outpost multiple times in the last week according to a top source. Once he was seen with two Chinese businessmen (not dressed for a theme park ... i.e. Party types) and another Westerner walking and ''engrossed in serious conversation'' from Fantasyland to Tomorrowland and, apparently, again on Easter Sunday drinking at Disney's Hollywood Hotel.

And speaking of drinking at HKDL ...

I must have missed it, but apparently there is no real bar at the HKDL Hotel. I wasn't aware of it because of the lounge like area next to the lobby, which I had assumed was a bar. It's not, it was formally used as a Tea Room. And the small bar in the Crystal Lotus is used for show only according to a top CM friend/source (who has no idea why this is the case!) Of course, Walt's Cafe is apparently a hidden in plain sight gem, which I believe @WDWFigment has pigged out on non In-N-Out burger food. (BTW, very glad to see you finally made it to Knott's. It really is a fun quality piece of California history that had bottomed out about 5-6 years ago and has rediscovered its heritage ... amazing how people respond to that!)

No, the Chinese all know Disney characters. That's why ever since I started going, the CMs are constantly giving out kewl stickers (I am sure 33-year-old fanbois buy them on eBay!) of usually 15-20 characters with their names prominently displayed. That isn't because Disney is as well known as Bob Iger wants you to believe. I'm sure.

There are plans to replace the tired Disney in the Stars nightly pyro and projection show on Lantau and the replacement will likely be more projection based due to pyro limits that I don't quite understand.

NON-China Spirited Musings (Food not included here, either):

So, the tiger tale was a totally bizarre make up deal with about 10% truth and the rest made up? Hmm ... sounds like a few Disney online personalities that I know (of).

Seems like O-Town parks have picked up a bit (I have heard both MK and EPCOT and both UNI parks have been quite crowded the last two days). I wonder if they all have wicked Massachusetts accents!

Can you be an O-Town blogger/podcaster/Lifestyler and NOT be at the kick-off to DL's 60th next month? Nah, didn't think so.

I know there's been plenty of NGE talk (largely on the numbers side, which is a place I don't dwell much -- but have enjoyed reading), but you notice how NONE of it has yet made it to Anaheim and/or Paris where certain aspects were supposed to be in place by ... 2015.

Oh, back to the Bloggers. Again, Dr. Blondie (my good friend, Jen!) and the DPB 'team' is hosting a meet-up to show off some new productions on DCL ships (basically the new Tangled show on the Disney Magic, which will likely come to the park without a name in the not too distant future ... I say that because I said it was coming like two years ago or more now and it hasn't yet!) You look at the list and again, most of the folks are O-Town Lifestylers. Disney is refusing to give anyone a chance to get it by not saying you can only attend one of these events a year or every six months (and that includes as someone's plus one!)

I know I rip Disney (and UNI, a little less), but I'd like y'all to know that I generally have disgust for 97% of American corporations based upon the way they treat their consumers and workers. Disney just used to be better. They used to actually care. They are no different than the others now, except they still revel in this PR lie that they are something special.

Love that monorail thread here. They have been ghetto for years now. They simply are not maintained and are filthy all the time and usually have barely functioning AC when I'm riding what once was The Highway in the Sky. I'd join that thread, but I just can't deal with apologists. Things are either acceptable or they aren't. And you don't make excuses for a multi-billion dollar corporation that produces record profits every quarter and built a reputation for the opposite of how they maintain things today. There is no good excuse and explanations don't count either, because people spend ridiculous sums of money for quality. Disney transport is anything but.

So, are the UNI fanbois hating on me because I've pointed out what hypocrites they are for not ripping Gringotts as much as they rip EE when they both destroy the climax by having non-functioning effects?

 

[Nubs70]

Quick math based on wildly rough estimates.

10 cast member per park per shift
2 shifts
4 parks
8 hours per shift
$10 per hour
365 days per year

$2.3M

Just a minor suggestion,

While the hourly rate stated is $10, is costs more to employ a person than the actual wage. A factor for cost of employment is 1.4. So incorporating the 1.4 factor yields a cost of $3.27MM

 

[CaptainAmerica]

I really don't think we're that far off at all. I just think there's a piece missing which is causing the back and forth - the diff between internally developed by the company versus internally developed contractually with a Provider.

With a Provider, each phase must be specifically spelled out contractually and signed off by both parties - deliverable by deliverable, milestone by milestone. That especially includes the Acceptance components of each milestone in the project and for any delivered product-ized code components. The project would not move into the next phases without both the Provider and Disney signing off on acceptance all the way into production. If that didn't happen, projects would never end with the Provider still accountable.

But, they both recognize that the real project costs start after acceptance and testing and often during and after the production implementation of the "code" - of which there are many phases. You try to budget and negotiate them as best you can, of course, and segment them into contracted phases under the Project like data migration and conversion, P&T, or into an estimated and budgeted allocation of man days into a ""Project Support and Implementation" bucket.

But, they're T&M contracts that unfortunately, often blow right through the budgeted allocations.

To the Provider, it's still a change request and enhancement (from their view) , but post implementation maintenance (and enhancement) of the solution from the customers view. No new functionality, just getting it to work - fixing errors - much like a complex series of maintenance releases

We can debate the merits of where things should fall based on each of our experiences. But, let's bring it back to Disney and NextGen. That sure seems to be what happened with seemingly a lot more falling into opex than capex as the project moved into it's later stages FY's '13 and 14.

There's absolutely no difference in the accounting if the work is done by regular employees or consultants.

 

[flynnibus]

disney builds park like setting....people get mad that people sit down on it.

These are parks..

Turf on concrete with some fences... where everywhere around is lush BUT this area... not much of a park.

I'm not against people taking a break on the ground - its what people do in city parks. But we aren't in an urban common where there are no other recreation outlets... and even tiny city parks have trees.

 

[the.dreamfinder]

Martin on numerous occasions has said that they can fix the yeti without even taking the ride offline. So even that excuse doesn't work.

I believe either Martin or @Lee said the real problem with fixing the yeti is convincing someone to pay for it. While departments bicker over who has to take the hit, we have had a critical show element in disrepair for almost ten years.

From Foxxy's blog:
http://passport2dreams.blogspot.com/2012/09/how-it-was-done-part-two.html
Walt was not only a dreamer and a gambler, he was a perfectionist. He put his show business ideas into foodservice - even at a price no normal Operator would pay. Prime example: The Blue Bayou Restaurant (the elegant swamp, replete with flashing fireflies, frog "gribbits" and even a pleasant "swampy" smell) was opened five months before its accompanying ride, "The Pirates of the Caribbean," was completed. The Blue Bayou was a smashing success and highly profitable. Walt walked in one day and demanded that the restaurant be closed until the Pirates ride was ready to operate. "The restaurant complements the ride and the ride complements the restaurant. We can't have one without the other. It's the total show. Total entertainment." The Blue Bayou was closed.

Card Walker, president of Disney Productions, emphasizes, "We don't have profit centers. We have experience centers. Profit comes if the experience is right." That's why Disney can afford to build a restaurant with a million-dollar interior and charge a guest $1.00 for a good meal. Jack Lindquist, VP of marketing, explains, "We look at Disneyland or WDW on the bottom line. The total. If a restaurant doesn't make it but a customer needs it, we'll make up for the loss somewhere else."

Part of the reason is the nature of the Disney experience. The average kid on the street isn't aware that his hot dog isn't prepared by Mickey Mouse. And if that hot dog is bad, it reflects on the entire Disney operation.

 

[the.dreamfinder]

Bob Iger may not have been publicly shown at the SDL worksite, but you know who has been? An 18-meter Chinese Oak tree!

Also, a really good shot of SDL's Fantasyland behind the generic Disney Princess castle from the guys at the ThemeParx construction forum.

 

[bhg469]

I will be buying tickets for both events tomorrow as my wife and I will be at WDW for our spring visit. We love both events and find them well worth the cost. Price increases are a fact of life, just like tax increases.

And im sure disney loves you for it.

 

[flynnibus]

I love construction pron....

 

[Hakunamatata]

I believe either Martin or @Lee said the real problem with fixing the yeti is convincing someone to pay for it. While departments bicker over who has to take the hit, we have had a critical show element in disrepair for almost ten years.

From Foxxy's blog:
http://passport2dreams.blogspot.com/2012/09/how-it-was-done-part-two.html
Walt was not only a dreamer and a gambler, he was a perfectionist. He put his show business ideas into foodservice - even at a price no normal Operator would pay. Prime example: The Blue Bayou Restaurant (the elegant swamp, replete with flashing fireflies, frog "gribbits" and even a pleasant "swampy" smell) was opened five months before its accompanying ride, "The Pirates of the Caribbean," was completed. The Blue Bayou was a smashing success and highly profitable. Walt walked in one day and demanded that the restaurant be closed until the Pirates ride was ready to operate. "The restaurant complements the ride and the ride complements the restaurant. We can't have one without the other. It's the total show. Total entertainment." The Blue Bayou was closed.

Card Walker, president of Disney Productions, emphasizes, "We don't have profit centers. We have experience centers. Profit comes if the experience is right." That's why Disney can afford to build a restaurant with a million-dollar interior and charge a guest $1.00 for a good meal. Jack Lindquist, VP of marketing, explains, "We look at Disneyland or WDW on the bottom line. The total. If a restaurant doesn't make it but a customer needs it, we'll make up for the loss somewhere else."

Part of the reason is the nature of the Disney experience. The average kid on the street isn't aware that his hot dog isn't prepared by Mickey Mouse. And if that hot dog is bad, it reflects on the entire Disney operation.

Don't you think it odd Walt didn't know that Blue Bayou was being opened early?

 

[Goofyernmost]

so you just accept the government taxing you for anything...its ok its part of life.

You say that as if you have any control of that! The only control you have is to move out of the country. Costs continue to rise for everyday living so if you no longer want to pay it... you have to move. Disney not only is different, it is vastly different and I am not going to waste my time explaining it. If you cannot see it yourself, nothing I can say will alter that. What one person feels is overpriced another might find worth it. Each can make the choice to pay it or stay away. We don't control everything, especially private enterprise with anything except our wallets.

Don't you think it odd Walt didn't know that Blue Bayou was being opened early?

Yea, that thought crossed my mind as well. Me thinks we are being spun a line here! Disney PR has always had the ability to promote the alleged words and actions of Walt. That was made a lot easier after he died and could no longer contradict it. Disneyland was his baby and all he could think about for a number of years. There would be no way that he wouldn't have known that was happening. Half the time he lived on the grounds for heavens sake!

 

[MarkTwain]

Also, a really good shot of SDL's Fantasyland behind the generic Disney Princess castle from the guys at the ThemeParx construction forum.
View attachment 89374

I'm glad someone said it. So incredibly bland for something with such big intentions.

 

[Funmeister]

Love that monorail thread here. They have been ghetto for years now. They simply are not maintained and are filthy all the time and usually have barely functioning AC when I'm riding what once was The Highway in the Sky. I'd join that thread, but I just can't deal with apologists. Things are either acceptable or they aren't. And you don't make excuses for a multi-billion dollar corporation that produces record profits every quarter and built a reputation for the opposite of how they maintain things today. There is no good excuse and explanations don't count either, because people spend ridiculous sums of money for quality. Disney transport is anything but.

Do you know what happened to Sam? I mean he was brought in from San Fran (I believe) to fix the system...nothing happened for a long time. Then all of a sudden he was shipped off to Epcot in a non-transportation roll?!?!????

There has to be a story behind that...any insight?

 

[the.dreamfinder]

I'm glad someone said it. So incredibly bland for something with such big intentions.

Sounds right for a Bob Iger joint.

 

[PhotoDave219]

Wow.
I just hate that so much...

Needs more trees.

 

[RandySavage]

From what I've seen, no Chinese higher-ups at Shanghai Shendi or the Govt. have been posing for media shots around the park of which they are the majority owner... and they live a lot closer than Iger. It's not a terribly photogenic place at the moment.

The last time the Chinese media covered a milestone at the park with a close-up of people was the topping off of the Rapids mountain with the western management/designers up front:

Regarding the castle... it's going to have fully carven stone swans above its windows:

It may not be beyond criticism, but I don't think 'bland' will be one of its faults.

 

[Cesar R M]

And yet not 1 hand drawn feature on the horizon.

"This isn't your Grandad's Disney"- Bob Iger.


I give up. Disney is artistically bankrupt.

I'm sorry, but if you think that picture is beautiful, you only have taste in your mouth.

at least the trees are finally getting some leaves.. right? RIIGHT?