A Spirited Perfect Ten

[Cesar R M]

You forgot the KHAAAAAANNNNNN...

I did.. the second image is khan's

 

[the.dreamfinder]

I'm surprised you (or no one else) has chimed in about Tokyo Disneyland (TDL) ticket prices yet.

I just did a quick conversion. A 1-day ticket at TDL is $53.12. A 4-day hopper ticket is $136.95.

Of course, Disney just raised the price of a 1-day ticket to the Magic Kingdom to $105. A 4-day hopper MYW ticket is $369.

"But Disney is a business ..." blah, blah, blah.

To be fair, the Disney branded hotels are just as stupid expensive as WDW's deluxe hotels. However, the Tokyo hotels can better justify those prices because they are four and five star hotels.

 

[WDW1974]

Over the last few years, WDW has become horribly crowded.

Increasing TSM and Soarin' capacity is not sexy.

Instead, it's like the doubling up of Dumbo, the new bus stops at MK, or the hub redesign; it helps address overcrowding.

The capex being spent on these projects are 2 drops in a very large bucket. This is not stealing investment in new attractions because the amount being spent on these 2 projects is barely going to register. It's certainly not going to be enough to build something new, at least not something that's worth getting excited about.

If you want to beat up Disney for spending only 7.4% of domestic P&R revenue on domestic capex last quarter while Universal spent 25.6% and even the lowly Six Flags spent 9.2% in 2014, then I'm all for it.

However, please recognize that adding capacity to any ride, even if its schedule is ridiculously long, even if it's to address a FP+ deficiency, is a good thing.

I agree that spending on domestic capex is absolutely the larger issue, BUT you are still lauding Disney for putting a bandage on gaping wounds. Wounds that were greedy and self-inflicted.

And acting like more busses or Double Dumbos or the Soarin and TSMM moves are commendable just helps perpetuate the TDO cycle of abuse with WDW Guests, fans , consumers.

You add attractions/capacity at all four parks (and I do NOT mean replacing capacity that you removed before) and suddenly you'll see waits go down at those other attractions without adding tracks and theaters.

#firewillowbay #disneycensors

 

[WDW1974]

So, did anyone here who had posts removed from the DPB and Propaganda Machine actually contact Dr. Blondie or Bland Tommy to demand answers?

#firewillowbay #disneycensors

 

[Darth Sidious]

So, did anyone here who had posts removed from the DPB and Propaganda Machine actually contact Dr. Blondie or Bland Tommy to demand answers?

#firewillowbay #disneycensors

#heywhatstheweather

 

[WDW1974]

Anyone want to talk about HKDL? I do, so I will.

Understand that the park was built as the first MK with an expandable railroad. Don't ask me exactly how it works (or is supposed to) but it was compared to me to be like a gastric banding procedure (yep, one that most WDW Guests could use).

Basically, the park was supposed to move outward so much expansion would happen within the berm.

So, how come you have three oddly placed mini-lands that don't really make much sense from thematic and operational standpoints? Why do you step outside the berm from a detailed and realistic looking Adventureland into a largely toonish take on Frontierland into a slightly more realistic Mystic Point only to then wander into the land of Woody and Buzz and Rex and Potato Head and Co?

Seems odd, yes?

Well, that is what happens when you are taking orders from people who have no experience running theme parks, let alone Disney ones. When despite your 'managerial control' (and in this case paying the entire close to a billion dollar cost), you don't dictate how things go into 'your' park or how. But folks in the local government make those decisions.

That's why your darker and more realistic take on Mystic Manor and Lord Henry Mystic are made more toony and why you get cute 'little Albert thrown in. The original concepts were viewed as too dark and WDI was sent back to the drawing board.

You want to know why Bob Iger and Co are so sensitive over SDL? Well, it starts a long time ago in HK.

We'll get back to that shortly ... But realize this: the reason no deal was reached for a resort in the mainland while Michael Eisner was running Disney was because he wouldn't capitulate to terms like this. Control in name only. He also steadfastly refused to sign any deal that didn't include the Disney Channel coming to China to get people up on the BRAND and sell it many years ahead of a resort opening. He may have had his issues, but being a top-notch negotiator wasn't one of them.

I am sure the Twits will tweet up good, old HKDL based Imagineer Andy Sinclair Harris about this post. Sure.

maybe you can ask him when the much-delayed TSMM announcement will be made, not that he'll answer.

#firewillowbay #disneycensors

 

[WDW1974]

Didn't they also shut down factorys for a week or two to make for a "cleaner air" Olympics?

Yes, they absolutely did. Amazing what a difference and a fast one that made.

Do you think they will for Shanghai's debut just because Bob Iger wants 'Walt Weather' for the opening?
More to the point, do you think thee will be many (any?) smog-free days at the resort?

#firewillowbay #disneycensors

 

[WDW1974]

Back in 1970 while in Osaka at the Worlds Fair and then in Tokyo that was the scene while in transit from Osaka to Tokyo. I was in line to buy a ticket for the Bullet Train and tiny little old (and I do mean old) men and women were constantly shoving me out of the way so they could get ahead of me in line. How they have managed to control that impulse at TDL is a mystery. Seems to be quite traditional on the Asian Continent.

Not that way in Japan now at all. I'm guessing that you were dealing with the lingering effects of a country that just 25 years prior had been decimated in a huge way, including having two of its cities wiped out by atomic weapons. They had just rebuilt and were about go become a huge economic power, but they weren't there yet. Many people likely had the mob mentality from those grim Post-WWII days. The Japanese are some of the most orderly people you'll find on this spinning globe.

I really think it its no different from China now. It wasn't all that long ago that a middle class didn't exist and people had to battle for food and resources. Even though that is no longer the case, the behaviors are still hard to let go. I bet they are mostly gone in many places in China in 15 years time.

#firewillowbay #disneycensors

 

[Excitable Boy]

Yes, they absolutely did. Amazing what a difference and a fast one that made.

Do you think they will for Shanghai's debut just because Bob Iger wants 'Walt Weather' for the opening?
More to the point, do you think thee will be many (any?) smog-free days at the resort?

#firewillowbay #disneycensors

But think of the possibilities to sell Disney themed smog masks with Vinylmation type graphics!

 

[WDW1974]

Uni is doing a great job adding compelling reasons to visit. I've dropped hundreds of bucks to see Potter alone. As for the rest of the resort—I kind of hate it. I have no love for the Simpsons. I hate the loud, teen-friendly music blasting in common areas. I hate how cheap Toon Lagoon and most of Marvel Superhero Island look; and I hate anything that reminds me of Michael Bay's bloated Transformers franchise. But I keep going to Uni because the attractions I like (Potter, Spidey, the Hulk, DM) really are THAT good!

I like much more than you, but I think your Pixie Dust quotient is higher than mine!

As to those islands, um ... Um ... I'd expect significant changes to both in the years ahead!

#firewillowbay #disneycensors

 

[BrerJon]

You add attractions/capacity at all four parks (and I do NOT mean replacing capacity that you removed before) and suddenly you'll see waits go down at those other attractions without adding tracks and theaters.

#firewillowbay #disneycensors

I'm pretty sure that a large percentage of the guests in line for Soarin's and Toy Story are repeat riders - especially the latter where the whole thing is designed to get you to ride again to beat your score.

Why is this not an issue in Disneyland? Because there's so much to do that few would go on Soarin' Over California or Toy Story Mania twice in one day - why would you when there's so much else? So lines are a lot shorter.

If DHS built new attractions that diverted the attention of repeat riders, you'd see huge drops in TSMM wait times and suddenly you have lots of extra capacity for guests that currently miss out, without any kind of expansion needed.

Look at any other park, Busch for example - Sheikra used to have huge wait times - then Cheetah Hunt opened and Sheikra's line plummeted but Cheetah's were huge. Now Falcon's Fury is open, Cheetah's line have eased a little. But Sheikra would still have the same lines it did in 2008 if they hadn't built anything new since.

The latest thing will always have the longest lines, but if the latest thing is 2008's latest thing, those lines aren't going anywhere.

 

[Goofyernmost]

Not that way in Japan now at all. I'm guessing that you were dealing with the lingering effects of a country that just 25 years prior had been decimated in a huge way, including having two of its cities wiped out by atomic weapons. They had just rebuilt and were about go become a huge economic power, but they weren't there yet. Many people likely had the mob mentality from those grim Post-WWII days. The Japanese are some of the most orderly people you'll find on this spinning globe.

I really think it its no different from China now. It wasn't all that long ago that a middle class didn't exist and people had to battle for food and resources. Even though that is no longer the case, the behaviors are still hard to let go. I bet they are mostly gone in many places in China in 15 years time.

#firewillowbay #disneycensors

To be honest, there was a drastic difference between the streets and the Worlds Fair Grounds. In there they were all orderly and polite. Nicely dressed in matching clothing. Men.. Black pants, white shirts and black narrow tie and little kids all in uniform but still all black and white. For some reason, I don't remember what the women wore. I only met one person that felt obligated to let me know how many relatives of theirs were killed in Nagasaki. They didn't seem happy about it. I guess I can understand that even though I was in the Military at the time. Then there was the nightclub where we were told that we could drink all the Sake that we wanted and we wouldn't get drunk, sick or have a hangover. Those little guys could sure lie big.

 

[The Empress Lilly]

I'm surprised you (or no one else) has chimed in about Tokyo Disneyland (TDL) ticket prices yet.

I just did a quick conversion. A 1-day ticket at TDL is $53.12. A 4-day hopper ticket is $136.95.

Of course, Disney just raised the price of a 1-day ticket to the Magic Kingdom to $105. A 4-day hopper MYW ticket is $369.

"But Disney is a business ..." blah, blah, blah.

A Tokyo two park annual passport is five times (!) the price of my DLP passport.

As for WDW, who goes there for a day? And a 10-day ticket for WDW is cheaper than ten days TDL.

 

[The Empress Lilly]

You've been having an interesting discussion about Disney and Universal operating margins on another thread, but since that other thread is specific to the Toy Story Mania expansion, I thought I'd reply over here instead.

After all, we discussed margin on this thread before and, besides, everyone expects a Spirit thread to drift.

Unlike other amusement park companies, Disney's Parks & Resorts (P&R) and Universal's Theme Parks are business units within larger multifaceted corporations. Neither The Walt Disney Company nor Comcast report net income for their respective business units. However, they do report operating income. As a result, it's possible to compare their theme park operating margins (operating income / revenue) with other companies.

Operating margin is interesting because it indicates how efficient an organization is at making money. It’s like a pretax rate of return; the higher the return, the better the investment.

The following graphs operating margin over the last 5 years for several major amusement park companies:

View attachment 86009


Universal has had the highest operating margin for years.

SeaWorld and Six Flags are at the bottom. SeaWorld includes Busch Gardens.

Disney is towards the lower end but has been climbing steadily.

Cedar Fair operates about a dozen well-known theme parks in North America, including Cedar Point in Ohio, Knott's Berry Farm in California, and Kings Dominion in Virginia.

The Oriental Land Company ("OLC" in the graph) owns and operates Tokyo Disney Resort through a licensing agreement with Disney. Presumably, their operating income would be appreciably higher if not for the royalties they pay to Disney, and their margin would be closer to Universal's if not for this fee. It's an interest topic since it hints at what Disney's margins could be if they operated their theme parks as efficiently as OLC. I'm sure someone will chime in about ticket prices at Tokyo Disneyland.

Merlin operates in Europe.

Focusing on Disney and Universal, there are some points to consider:

1. Disney's domestic operations (mostly WDW and DLR) have much better margins than Disney's international operations (mostly DLP & HKDL). Disney's domestic margin is lower than Universal's but the single largest factor dragging down Disney’s margin is what's happening overseas. It's one of the reasons investors are worried about a big project in Shanghai. Disney's overseas P&R track record is not particularly good.
2. Because of its size, WDW is more expensive to operate but this is offset by the hotels. Disney's hotels are significantly overpriced for what they are. Disney collects roughly $2.4 billion from its domestic hotels, whereas Universal's total revenue is only about $2.6 billion. Between the theme parks, hotels, Downtown Disney, and other facilities, WDW really is an incredible money making machine.
3. Disney's theme parks have higher attendance than Universal. It's more efficient to run a theme park with 50,000 daily guests than 25,000 daily Guests. Similarly, the cost of food generally is higher at WDW. Some TS meals at WDW are obscenely overpriced. You'd think WDW theme parks would have better margins, but Universal might generate a larger percentage of revenue through licensing agreements, lowering operating costs.
4. Disney used to have higher margins than they do today, even though WDW is basically the same size it was years ago. Disney's margins fell apart when P&R leadership were replaced by executives who managed the theme parks 'by the numbers'. In the past, Disney frequently went against conventional business wisdom and its margins were better for it. As Disney executives who cut their teeth using Disney's unconventional style of theme park management were replaced by executives with more conventional thinking, margins suffered. Good instincts often are more important than numbers on a spreadsheet. Backed by data, Disney executives considered Orlando to be a mature market, not worthy of major investment, and were content to stand pat. Universal executives went against this thinking and invested in Orlando, growing both revenue and margin as a result. Sometimes, managing is art.
5. Disney appears to be significantly more bureaucratic than most of its competitors, which might partially explain why its margin is towards the low end. In 2014, the only 2 companies with lower margins were struggling whereas Disney experienced record attendance.

The good news for Disney is that its domestic margin has rebounded nicely in recent years. Those price increases, delayed projects, and quality cuts that drive WDW fans crazy are paying off. IMO, Disney's domestic margin is good now, even if it doesn't quite match Universal's. Domestically, I believe it's time for Disney to focus on growing revenue rather than improving margin. It's time for Pandora. It's time for Star Wars Land.

Overseas, it's a different matter. Overseas, Disney P&R still has a lot of work to do.

Fun numbers, thanks!

Disney's overseas P&R margins are not clear cut. Disney artificially keeps its foreign Park and Resorts margin low for tax evasive reasons.

Starbucks doesn't turn a profit in Europe. Google Europe doesn't either. Despite both being used daily by every European below 55. DLP doesn't turn a profit in Europe either, despite operating the largest and most successful tourist attraction in Europe.

The European tax landscape is complex, infinitely more so than America's. For example, Disney operates several holding companies in Amsterdam that license Disney to Disney in Paris. Because of the Netherlands being an intellectual property tax evasion haven (The Rolling Stones and U2 are officially registered as Amsterdam acts too...) DLP pays vast license agreement fees for IP and ride development to these holding companies, which are simply Disney itself. Some of these holdings in turn are then owned by holdings in Luxembourg, where tax rates for capital gains run as low 0%.

The French government agreed to plain evasive ownership structures because it satisfied itself with employment and secondary tourism income. The tax havens that Disney uses, the UK, Luxembourg, the Netherlands, do it because they are, well, crooks who would 'beggar their neighbours' for a few pennies and would acquiesce to any large business shafting their tax payers, or, more neutrally put, because their politics are the most neo-liberal.

Basically, DLP's European shareholders, who forked up 49% of DLP investment, saw their shares plummet to just 5% of their value. The European taxpayer does not even get that five percent of what is owed to him/her.

Disney has won a foothold in Europe, a storefront for its merchandise and media properties, and prime access to 500 million consumers.

The U.S. parent company has also made money from its French adventure. Since 1992, royalty and management fees have added up to 975.69 million euros for the Walt Disney Company, according to Reuters calculations based on financial reports. Euro Disney said 285 million euros of that was not paid as of 2014, but still owed to Disney.

Add to that other Related-Party Transactions such as those for developing and building rides, other services and financial charges, and total charges reach at least 1.481 billion euros. Most of that revenue goes to other holding firms in the Netherlands, which has a tax-friendly policy for intellectual property. Disney says such services are crucial to maintain high and consistent standards at Euro Disney.

Over the same period, Euro Disney has incurred total net losses attributable to shareholders of more than 2 billion euros. As a result, it has paid no corporate taxes. Even in its profitable years, Euro Disney used “tax loss carry forwards,” which allow firms that have incurred losses to avoid taxes.
[...]
The U.S. parent firm uses a corporate structure known as the "societe en commandite par actions," or SCA. This set-up, used by a handful of firms in France, allows Disney to manage Euro Disney via a 100-percent-owned subsidiary. It charges what Leroy and others call "enormous" fees for Related-Party Transactions including royalties, management, development, maintenance and other services.
[...]
All the fees add up to around 10 percent of Euro Disney’s revenue. And that’s set to climb even further. As part of Euro Disney’s turnaround plans, one of those charges, the management fee, will rise to 6 percent on Oct. 1, 2018 from 1 percent now.
http://www.reuters.com/article/2015...reholders-specialreport-idUSKBN0L60UU20150202
​

 

[The Empress Lilly]

Anyone want to talk about HKDL? I do, so I will.

Understand that the park was built as the first MK with an expandable railroad. Don't ask me exactly how it works (or is supposed to) but it was compared to me to be like a gastric banding procedure (yep, one that most WDW Guests could use).

Basically, the park was supposed to move outward so much expansion would happen within the berm.

If not designed as such, DL has repeatedly moved its railroad outwards to keep expansion within the berm.

 

[truecoat]

Spirit Innoventions/Carousel theater is closing at the end of the month at Disneyland. Is it becoming a 60th. Museum or being prepped for demolition for Star Wars land?

Pretty sure Star Wars land will be where toontown is. Sounds like they ditched the plan that would have taken out the subs, tomorrow land speedway and innoventions.

 

[Darth Sidious]

Yes, they absolutely did. Amazing what a difference and a fast one that made.

Do you think they will for Shanghai's debut just because Bob Iger wants 'Walt Weather' for the opening?
More to the point, do you think thee will be many (any?) smog-free days at the resort?

#firewillowbay #disneycensors

The real question is could Bob predict said weather?

 

[The Empress Lilly]

Spirited Weekend Quickees:

A late Happy Birthday to the best leader TWDC has ever had who isn't named Walt. Many more, MDE!!!

Is it true Willow Bay is under so much pressure at USC that she considered bailing out of Thursday night's Women in Leadership event? I hear she has to had to answer tough questions. So sorry. #firewillowbay #disneycensors #IgerpowerlessinChina

I appreciate that you want to cause as much damage to Eisner's successor as possible, but I'm afraid you are barking up the wrong tree.

Here's a thought: if poor billionaire Gary Snyder was censored, then why isn't he screaming murder? That's right. Why is he silent? He is still sitting on those 'censored' articles (that he retracted...). If he wants them out in the open, why doesn't he distribute them?

It takes five seconds to put them on a blog, so the world can read his poor 'censored' words. Five minutes if he needs to rephrase to avoid rights issues with his publisher.

None of that though.

Not even any threats of sueing, despite playboy Snyder having a history of unleashing his shark lawyers on everybody who looks at him funny.

Because Gary 'flashy' Snyder simply overplayed his hand. As an advisor and large owner of Disney competitor stock, he needs to be prudent in what he writes professionally. He needs to be able to back up his assertions with facts when writing as a business advisor in manners pertaining to his competitors. It is fine for you and I to write nonsense about Disney on a cult fan forum, but not for somebody with competing business interests in a negative published article. When TWDC threatened libel - as they should, they are supposed and expected to protect their shareholders' interests - it turned out billionaire baby Snyder couldn't put his money where his mouth was. He had published unsubstantiable allegations for or at least with private gain, leaving Huff no option but to withdraw. Like a petulant child throwing the entire Monopoly board from the table, Snyder then withdrew all his articles and went sulking in the corner.

 

[Mike S]

I like much more than you, but I think your Pixie Dust quotient is higher than mine!

As to those islands, um ... Um ... I'd expect significant changes to both in the years ahead!

#firewillowbay #disneycensors

Spider-Man is safe though, right? If you can answer that.

 

[lobelia]

If you could link...

Good.

And it isn't just pot stirring that's going on.
An investigation is under way, on some level, at USC.

There should be. What university appoints someone without a PhD to be Director of their School of Journalism? If this is not a quid pro quo arrangement I'm turning in my credentials. Imagine years of legitimate research and publication and teaching to have someone with an MBA with modeling and sportscasting experience be your supervisor. Most university deans need to have a vote of confidence and tenure.