A Spirited Perfect Ten

[SpaceMountain75]

Honestly If i was going to blow out the budget, it wouldn't be with Frozen. It would be with Star Wars.

Here's hoping the Board of Directors gives a green light to all our limitless dreams....

I dream of there one day being a place where guests can meet their favorite characters, and then use lavishly-themed bathrooms. I know, I know, don't dream that big.

 

[mahnamahna101]

The complete opposite of the cheap refurd WDW is getting. Rumors say it'll be a top quality E-Ticket. I think trackless too and maybe on Mystic Manor's level.
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Hopefully Scandinavia has something akin to this:
Frozen mini-land with high-capacity dark ride, Junkyard Jamboree-style flat starring Olaf, M&G, restaurant
E-ticket coaster/boat ride through a Scandinavian mountain (what Everest wishes to be)
Scandinavian show/walkthrough (similar to EPCOT's edutainment showcasing various nations)

An even 50/50 would be about perfect... possibly 40/60 if OLC has enough ideas for the Scandinavian end

 

[ParentsOf4]

The 500 Billion Yen is their TEN YEAR DEVELOPMENT PLAN - not just these components... of which they are PART of the larger plan.

OLC spent ¥347 billion (about $3.4 billion) in capex over the last 10 years. Roughly ¥250 billion of that was maintenance capex, with the remaining ¥100 billion being growth capex.

This ¥500 billion appears to be above and beyond normal maintenance capex. As they announced in last year's annual report:

In 2014, the OLC Group and Tokyo Disney Resort took their first steps to an entirely new level. We decided to invest ¥500 billion in its theme park business over the next 10 years. Tokyo Disneyland’s initial investment was ¥180 billion, while Tokyo DisneySea’s initial investment was ¥335 billion. I think you all know what an enormous and unprecedented amount ¥500 billion is. Through this investment, the biggest ever, we aim to maximize our theme parks’ value. Our idea is to turn the Maihama area into an urban resort like no other in the world.​

For some perspective, Disney spent roughly $4 billion in domestic Parks & Resorts growth capex over the last 10 years, almost half of that on 2 cruise ships, another billion at DCA, with the rest distributed primarily among Disney's 5 other domestic theme parks.

 

[ParentsOf4]

For those of you interested in OLC's ¥500 billion investment over the next 10 years, it's informative to quote from last year's annual report, which presents a refreshingly coherent long-term business strategy:

During the next decade, we will invest a total of about ¥500 billion in our Theme Park Segment. I will now discuss this subject including the challenges that each theme park is facing.​

First, after analyzing this from a number of angles, more than 30 years have passed since the opening of Tokyo Disneyland and to achieve additional growth we have determined that investments that have a major impact on products and attracting Guests will be required. In the future, not only will we need the stand-alone attractions of recent years, but large-scale development at the theme land level, so that we continue to evolve.​

Next, Tokyo DisneySea has driven the recent growth in theme park attendance, but we think it is still growing. As land for development, we will conduct large-scale investment that utilizes a remaining area of land and achieve further growth.​

For shared investments in two theme parks, there are three things that must be done.​

First, create an environment in which Guests can be comfortable. The primary target of our theme parks in the future will remain the “family,” and even if the growing middle- and older-aged segment of the population necessitates a response, we will not change that target. However, considering the increase in the middle- and older-aged segment, it is essential that we create an environment that alleviates congestion and counteracts the heat and cold more than ever before to raise the Guests experience value at the theme parks. By combining higher capacity through large-scale investment in two theme parks, as explained earlier, with a created environment, we will raise the experience value of all Guests regardless of age or country of origin.​

Second, make large-scale upgrades and improvement. More than 30 years have passed since the opening of Tokyo Disneyland, while Tokyo DisneySea will mark its 20th Anniversary in 2021. To improve the safety and quality of each facility, we will continue to focus on maintenance-related investments, just as before.​

Third, further strengthen the operational base with a focus on raising future attendance levels. We will consider redeveloping merchandise and food/beverages support functions such as Logistics Center and Central Kitchen, and employee facilities, as well as building the operating platform needed to consistently welcome 30 million Guests.​

The ¥500 billion investment includes many investments that will not directly lead to profits such as upgrades and strengthening the operating platform. However, these have supported our growth for the past 30 years and are essential to the long-term sustainable growth of our theme parks.​

 

[asianway]

For those of you interested in OLC's ¥500 billion investment over the next 10 years, it's informative to quote from last year's annual report, which presents a refreshingly coherent long-term business strategy:

During the next decade, we will invest a total of about ¥500 billion in our Theme Park Segment. I will now discuss this subject including the challenges that each theme park is facing.​

First, after analyzing this from a number of angles, more than 30 years have passed since the opening of Tokyo Disneyland and to achieve additional growth we have determined that investments that have a major impact on products and attracting Guests will be required. In the future, not only will we need the stand-alone attractions of recent years, but large-scale development at the theme land level, so that we continue to evolve.​

Next, Tokyo DisneySea has driven the recent growth in theme park attendance, but we think it is still growing. As land for development, we will conduct large-scale investment that utilizes a remaining area of land and achieve further growth.​

For shared investments in two theme parks, there are three things that must be done.​

First, create an environment in which Guests can be comfortable. The primary target of our theme parks in the future will remain the “family,” and even if the growing middle- and older-aged segment of the population necessitates a response, we will not change that target. However, considering the increase in the middle- and older-aged segment, it is essential that we create an environment that alleviates congestion and counteracts the heat and cold more than ever before to raise the Guests experience value at the theme parks. By combining higher capacity through large-scale investment in two theme parks, as explained earlier, with a created environment, we will raise the experience value of all Guests regardless of age or country of origin.​

Second, make large-scale upgrades and improvement. More than 30 years have passed since the opening of Tokyo Disneyland, while Tokyo DisneySea will mark its 20th Anniversary in 2021. To improve the safety and quality of each facility, we will continue to focus on maintenance-related investments, just as before.​

Third, further strengthen the operational base with a focus on raising future attendance levels. We will consider redeveloping merchandise and food/beverages support functions such as Logistics Center and Central Kitchen, and employee facilities, as well as building the operating platform needed to consistently welcome 30 million Guests.​

The ¥500 billion investment includes many investments that will not directly lead to profits such as upgrades and strengthening the operating platform. However, these have supported our growth for the past 30 years and are essential to the long-term sustainable growth of our theme parks.​

View attachment 91168

Imagine that. A business who actually knows how to and likes to run theme parks

 

[ParentsOf4]

And since I'm quoting heavily from OLC's annual report, I just had to leave you with this one:

Theme park growth is the maximization of both revenues and Guest satisfaction. If either one of these decreases, it cannot be called growth.​

The old Disney company really used to think like this.

There is one Disney Resort that is head and shoulders above the rest, and it's the one that the current Disney company doesn't own or operate.

 

[RSoxNo1]

@ParentsOf4 can probably answer this better, but I suspect that Eisner levels of investment into WDW over the next 9 years would exceed $4.2 billion.

 

[BrerJon]

For shared investments in two theme parks, there are three things that must be done.​

First, create an environment in which Guests can be comfortable. The primary target of our theme parks in the future will remain the “family,” and even if the growing middle- and older-aged segment of the population necessitates a response, we will not change that target. However, considering the increase in the middle- and older-aged segment, it is essential that we create an environment that alleviates congestion and counteracts the heat and cold more than ever before to raise the Guests experience value at the theme parks. By combining higher capacity through large-scale investment in two theme parks, as explained earlier, with a created environment, we will raise the experience value of all Guests regardless of age or country of origin.​

Second, make large-scale upgrades and improvement. More than 30 years have passed since the opening of Tokyo Disneyland, while Tokyo DisneySea will mark its 20th Anniversary in 2021. To improve the safety and quality of each facility, we will continue to focus on maintenance-related investments, just as before.​

Third, further strengthen the operational base with a focus on raising future attendance levels. We will consider redeveloping merchandise and food/beverages support functions such as Logistics Center and Central Kitchen, and employee facilities, as well as building the operating platform needed to consistently welcome 30 million Guests.​

Here's the Orlando version of that memo, straight from Burbank:
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First, remove many trees to create an environment that will make many Guests uncomfortable. The primary target of our theme parks in the future will remain "families with young children", and even if the growing middle and older-aged segment of the population decide to visit, we must actively strive not to cater for them in any way. However, considering the increase in the middle- and older aged segment, it is essential that we remove benches, create congestion and reduce air conditioning more than ever before to raise the Guests desire to go inside a store and spend money.

By combining higher prices through white-elephant MyMagic-scale investment in four theme parks, as explained earlier, with a stripped down environment, we will raise the profit generated from all Guests regardless of age or country of origin.

Second, spread rumours of large-scale upgrades and improvement but never build anything. More than 40 years have passed since the opening of Walt Disney World, while Magic Kingdom will mark the 25th Anniversary of the last E-ticket ride in 2017. Because we have little interest in the safety and quality of each facility, we will continue to focus on cutting and stripping away maintenance-related investments, just as before.

Third, further prop up our house of cards with a singular focus on fiddling the revenue figures. We will consider redeveloping attractions into merchandise and food/beverages locations, cut back employee benefits and facilities, as well as constantly undermining the operating platform needed to consistently welcome 30 million Guests.
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[MerlinTheGoat]

Imagine that. A business who actually knows how to and likes to run theme parks

Nah they clearly are not a business. Guest satisfaction taken into account? ROFL! I'll only consider it a business when there are at least 5 animatronics missing on Splash Mountain for at least a week and a 2 inch layer of black mold and slime on every water ride. Until then, they'll never turn a profit! *snort*

 

[Cesar R M]

Honestly If i was going to blow out the budget, it wouldn't be with Frozen. It would be with Star Wars.

Here's hoping the Board of Directors gives a green light to all our limitless dreams....

Sorry Dave, they are busy with blue aliens that are falling fast from transcendence and popularity (aka Avatar ).

 

[Cesar R M]

I dream of there one day being a place where guests can meet their favorite characters, and then use lavishly-themed bathrooms. I know, I know, don't dream that big.

...meet and greet.. before entering the bathroom...

 

[asianway]

Here's the Orlando version of that memo, straight from Burbank:
-------------
First, remove many trees to create an environment that will make many Guests uncomfortable. The primary target of our theme parks in the future will remain "families with young children", and even if the growing middle and older-aged segment of the population decide to visit, we must actively strive not to cater for them in any way. However, considering the increase in the middle- and older aged segment, it is essential that we remove benches, create congestion and reduce air conditioning more than ever before to raise the Guests desire to go inside a store and spend money.

By combining higher prices through white-elephant MyMagic-scale investment in four theme parks, as explained earlier, with a stripped down environment, we will raise the profit generated from all Guests regardless of age or country of origin.

Second, spread rumours of large-scale upgrades and improvement but never build anything. More than 40 years have passed since the opening of Walt Disney World, while Magic Kingdom will mark the 25th Anniversary of the last E-ticket ride in 2017. Because we have little interest in the safety and quality of each facility, we will continue to focus on cutting and stripping away maintenance-related investments, just as before.

Third, further prop up our house of cards with a singular focus on fiddling the revenue figures. We will consider redeveloping attractions into merchandise and food/beverages locations, cut back employee benefits and facilities, as well as constantly undermining the operating platform needed to consistently welcome 30 million Guests.
------------

And remove all benches at all costs.

 

[ThemeParkTraveller]

Hopefully Scandinavia has something akin to this:
Frozen mini-land with high-capacity dark ride, Junkyard Jamboree-style flat starring Olaf, M&G, restaurant
E-ticket coaster/boat ride through a Scandinavian mountain (what Everest wishes to be)
Scandinavian show/walkthrough (similar to EPCOT's edutainment showcasing various nations)

An even 50/50 would be about perfect... possibly 40/60 if OLC has enough ideas for the Scandinavian end

@WDW1974 said the budget for the Frozen E-ticket/dark ride will be over $400 million because of the show building (similar to the $300 million Radiator Springs Racers), which would make it the most expensive attraction ever built by Disney. I'm guessing (but hoping to be proven wrong) that the rest of the attractions in the port will be much smaller because of this. I don't think there will be another E-ticket but a smaller D-ticket boat ride like Maelstrom seems quite plausible in addition to the flat ride.

 

[WDW1974]

There were cloth towels in the bathroom by beaches & cream.

Yes, there were last week. And the Beach Club and BW lobby restrooms. No idea why YC would pull them. Likely either a temp issue or another clueless $30,000 a year 'manager' type.

I'm surprised, speaking of the EPCOT resorts, that no one accused me of doing something wrong for walking into 15-20 resort rooms at the BC where the doors were propped open as they were likely awaiting final sign-offs before being put back into inventory after the re-dos. Worst thing? I didn't even take a bar of soap let alone a flat screen or lamp!

 

[TinkerBelle8878]

You forgot about the long gone food court that I used to love dining at where Playhouse Disney now is that featured sets from one Touchstone film, think it was Risky Business..

Not Risky Business but Big Business that starred Bette Midler and Lily Tomlin. Two totally different movies My sisters and I had loved that movie so it was kind of cool for us to see part of the set back then. That's the only reason I remember that's what it was.

 

[WDW1974]

I'll message you tomorrow.

Thanks. I'm not ignoring it. I only have about 15 PMs waiting ...

But I do worry that you could be right, even though my info conflicts with yours at present. I can't imagine how Disney Social Media/PR will be able to explain away why Bob Iger keeps teasing fans about Star Wars announcements for years now (insert your own fanboi teasing an Imagineer old enough to be his daddy joke here).

At some point it becomes more than laughable and just winds up in the pathetic column.

I am convinced that WDW's Star Wars expansion at whatever they decide to call The Disney-MGM Studios this go around is not going to be completed until 2021 (yes, six plus years from now), so that Disney can market that as a major deal for the 50th (they won't ignore that one!) without adding anything more than a few parades and a night spectacular at MK. This IS how Disney thinks today ... how little can we do? How long can we put it off? How much can we increase prices?

I guarantee you, as sure as I am breathing right now, that TDO and my good pal Georgie K have spreadsheets with target prices increases going out five years now ... and plans for DVC expansion going out at least that far.

But attractions? HAHHAHAHHAHHAH!!!

EDIT: Wanted to make the post clearer ... and also protect my sagging manboobs ... I mean BRAND at all costs.

 

[Skippy]

At some point it becomes more than laughable and just winds up in the pathetic column.

If there is zero Star Wars parks announcements at D23... then wow.. I would be shocked and disappointed. They'll have to make up for it with serious info about other projects to avoid backlash..

Backlash... who am I kidding.. I'm sure those people will find it in their hearts to praise the event regardless of what is shown.

Maybe they want to avoid an Avatar scenario where they take so long to build it that everyone forgets it's happening.

 

[WDW1974]

Was talking to a friend about what SDL's 'signature' attraction will be when it finally opens (BTW, I'm ignoring today's Motley Fool piece of placed content because I'd hate to state that I wonder how much Disney is paying the guy because they would never do anything of the sort!)

HKDL really didn't have one because the biggest 'original' attraction planned for Lantau was the RnRC/Dinosaur hyrbrid featuring a thrilling ride (with sound) thru a primeval landscape was one of the first things axed.

At SDL, it won't be Tron, which has suffered MANY budget cuts. It sure won't be the 7DMT. It could be Roaring Rapids, but I generally hate raft rides (although I'm gonna guess this one won't be a soaker like typical rides because the Chinese and the climate won't like that) and I've heard Dino AA's being cut. It won't be the Crystal Grotto cruise because that's more of a C-D Ticket and best described as SDL's version of Storybook Land as it will use various forms to tell famous Disney tales. ... So, really, what's left?

The only big attraction (that excludes a few E-Ticket caliber shows) left would be Pirates. I'm trying to get an accurate ride time for it. I believe it is in the 15-minute range, but don't hold me to that. I'm thinking that will have to be the 'signature' attraction on Opening Day that sets this MK apart ... because I have looked up and down the menu and see absolutely nothing else that could fit the label.

In other Shanghai news (can't you see the PML tuning out now?), there still remains no signs of any added capacity or additional attractions. I'm sure we shouldn't worry about where that $800 million went. It certainly couldn't have gone for overrruns, rebuilds and payoffs. Never.

Again, WDI can claim they have ultimate design control over the park, but that's not the case. Look at Bob Weis' Twitter ... the man spends less time in Shanghai then I do passing up leftover pizza (you'd have to be here to appreciate that one, just trust me that I likes the pizza!) Yet again, Tom Morris and Tony Baxter pretty much lived in HK and Paris, respectively, when those parks were being built. ... I can't wait to see if UNI has more control of their Beijing project.

 

[WDW1974]

^ how refreshing to get a press release actually showing what's going where (roughly) with mention of "multiple attractions"

You don't like the giant tease game that TWDC plays stateside, especially in the swamps?

They hate building things almost as much as Lifestylers hate paying for anything!

 

[WDW1974]

As I said, few and far between.

That does not a movie studio make.

I gave you a list off the top of my head that goes back to 2003 (and by no means is complete). How is that ''few and far between?"

Basically, you just spelled out the problem - Disney doesn't have an original bone in their body these days and has shown very little capability of bringing a new live-action property forward. One filmed version of a non-Disney musical that did okay (50M budget/200M gross), one sole success with films based on theme park attractions (out of how many tries? Country Bears, Haunted Mansion, et al), and a bunch of one-shot live-action riffs off of animated classics.

I'm not talking about originality, which I agree with you on. That wasn't the metric we were talking about (you can't change the finish line when the race has already started!)

All of the films I gave were financial successes. Some were blockbusters, but all were solid bank.

Pirates has generated billions at the box office, and sold huge amounts of merchandise, and is still going.

Even when you look at the sole live-action franchise that has been a financial success (Pirates) - when you account for how much money those films cost (the last film reportedly cost almost 400 million dollars to make, the most expensive movie of all time) they aren't nearly as impressive. I'm actually shocked they are making another one because for a hit film the ROI is actually rather low, but they really have no choice as it's all they've got on their own. When you crunch the numbers, Maleficent was more profitable - the only thing that keeps the Pirates films going is the international fascination with Depp, the US grosses can't even pay for the budget.

I can tell you flat out out that all the Pirates films were huge successes. Even the last, which had a budget in the $360-370 million (yes, that's insane) still made over a billion dollars. That makes it a big success by any standard. And Maleficent was a big success ... yes.

Contrast that with Age of Ultron, which hasn't even opened in the US yet and has almost made it's budget back already after one weekend internationally.

We all know that US grosses are more important because of the percentage of $$$ that flows back to the Studio. I don't know what it has made yet. I do know the budget was reported to be between $275-300 million depending on who you listen to. But just like PotC, It will be huge. It will be the highest-grossing film of the year by a mile, since Star Wars doesn't open until the week before Christmas.

I'll grant Tomorrowland, though you didn't list it, even though yet-another-theme-park-tie-in, could possibly have some potential, but we'll have to wait for the box office to decide that.

In any case, this is why Disney needed Lucasfilm and Marvel - Marvel has already brought a financial success that Disney has not been able to achieve on it's own, and Lucasfilm - well, we will have to talk after TFA drops - but I'm betting when the decade closes, Disney is the #1 money making studio in the world, and it won't be due to the overall paltry home grown offerings the studio offers.

The question you posed was what has Disney done at the BO with its own product and I answered that. ... There is very little doubt that Marvel and Lucas products will be huge draws for the next few years. It's beyond that when fatigue sets in and a $250 million film makes $87 million in the USA when times will be interesting.

I may be wrong, but I don't see Ant-Man being a huge film by any stretch. Wait until a few films are outright bombs.