BrianLo
Well-Known Member
I think Universal is playing it safe because this is 100% their project. They own this thing. Disney and Universal's international expansion strategy has centered around licensing deals and partnerships with governments. The last time Disney opened a theme park in an entirely new geography that was 100% owned by Disney was in 1971. Euro Disney was something of a middle ground, but even there they were insulated by the licensing deal with Euro Disney SCA. Euro Disney SCA could post losses year after year even as licensing and management fees kept coming Disney's way. Then we have the three Asian resorts all based on licensing deals and two of them relying on government largess.
Universal has been no different. Both Universal Studios Beijing and Universal Studios Japan launched with government investment. Universal Studios Singapore is a franchisee. The pattern is well established. Strictly speaking, Universal Kids Resort will be the first 100% wholly owned new theme park Universal has ever launched in a new geography after Universal Studios Hollywood. All their other parks have had some partner, including Universal Studios Florida.
Universal can be a little more daring when they're investing 30% of the capital and walking away with 30% of the profits, merchandise revenue, licensing fees based on revenue, and management fees based on revenue. Even if the park is breaking even or losing money they're still probably making money. Universal Studios Great Britain is 100% Universal's. That means no aid from governments or private equity. It's similar to what Disney did years ago when they decided to self finance all their movies. You increase your exposure to your own product for better or for worse.
My criticism isn’t one of spend, I’m sure this resort will still be very expensive. It’s one of scaling and design philosophies.
Neither major operator knows how to build Disneyland or Efteling anymore. It puts you in an awkward position when you only want to build 75% of Beijing, which obviously was not very good to begin with. Large scale with wedges cut out, quite literally in this case.
Maybe I’m way off the mark with my opinions, but does anyone actually like Beijing?