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Bob Iger at WDW now ... BoD to Follow?
- Thread starter WDW1974
- Start date
Call my bookie ''Freddie Four Fingers" and ask. He does all my odds-making. Works out of a seedy little 'massage parlor' off of Tropicana in LV.
ThemeParkJunkee
Well-Known Member
Is it possible the exhibits may be moved to the family museum in San Francisco?
A great story that won't likely ever get written (listening @skubersky ?) is spending a day with a family that bought one day tickets to that park only and what they saw and what their thoughts were/are. Again, won't happen because it is a great story to write.
1023
Provocateur, Rancanteur, Plaisanter, du Jour
1023
Provocateur, Rancanteur, Plaisanter, du Jour
I would imagine the items that are "Family loan" would go back to the museum.
*1023*
I don't see why it wouldn't be.
FrankLapidus
Well-Known Member
Thanks for the response, it wasn't entirely unexpected to hear that it likely is going for good but its very disappointing nonetheless.
OK, so @ParentsOf4 REALLY, REALLY, REALLY wanted me to read this gem of his (it is), which I had previously missed. So, here I am ... you now owe me a lunch! 
And that was easy ... because I agree with the whole damn thing. I don't have to even comment further except to say that the guy gets it (we all sorta knew that!)
Now, how about a lovely lunch on the water at the Boathouse (with alcohol included of course)?
Yes, the project most likely will be depreciated over 25 to 40 years, so it will have a relatively small impact on today's bottom line, perhaps $50M to $80M annually. (Obviously, free cash flow will be impacted.) Divide that by a relatively modest (for WDW) 5% bump in annual attendance, and it's pretty easy to imagine how a $2B investment could readily pay for itself in increased hotel, ticket, food, and merchandise sales.
Why hasn't Disney already done this in the recent past?
Because they haven't had to.
Up till a few years ago, the Orlando theme parks had excess capacity. MyMagic+ was about optimizing that pre-existing capacity. Get Guests to preplan their trips so they would be less likely to leave 'The Bubble'. Even though that hasn't materialized, an improving economy, new South American markets, and Harry Potter have drawn millions more to Orlando. WDW's attendance is up double digits since the opening of WWOHP in 2010 and is projected to rise even more in the coming decade. The parks are becoming oppressively overcrowded. In fact, so overcrowded that Disney risks disappointing its current Guests, resulting in decreased return business.
Disney already is taking small steps to address this issue. The New Fantasyland, MK bus terminals, Hub redesign, 3rd Soarin' theater, and 3rd Toy Story Mania track are examples of recent projects designed to improve capacity.
But it isn't enough.
WDW's attendance is horribly lopsided, with MK bursting at the seams even as other parks struggle to maintain consistent attendance throughout the day. Frozen/Maelstrom and what effectively has become a twice-a-year Food & Wine Festival are Disney's attempt to draw more to Epcot. Pandora (and other projects) should help DAK. But DHS is a mess. There is no quick & easy fix for DHS.
After 15 years of low capex investments in Orlando, WDW is in need of a major expansion. Based on historical Disney data, I estimate that Iger has undercapitalized WDW to the tune of about $2.5B since taking charge. WDW desperately needs an infusion of capital and DHS could use all of it.
In recent years, there have been excuses to ignore WDW. Over $1B spent in DLR. Nearly $2B more on 2 new cruise ships. Over $2B spent in China. However, with the Shanghai project winding down, WDW is now front-and-center.
It was one thing to dump profits into stock buybacks when DIS was at $30, $50, or even $70 per share. However, with stock now at a ridiculously high $114 per share, DIS is a poor choice for "investing" company funds. The company will continue to spend billions on repurchases, but the peak years should be behind us until the stock takes a tumble. (And it will tumble during the next recession.)
Right now, Disney needs to find a place to park the roughly $9B it's going to make in net income this year.
Looking up the road, Universal has scored a grand slam not once but twice with Harry Potter. Disney hit its own homerun with Cars Land. Disney has seen that a well-themed and immersive land based on a popular IP can be a clear financial success.
Given its options, investing in Disney's domestic theme parks with a surefire winner like the Star Wars IP is looking like a pretty good choice.
And that was easy ... because I agree with the whole damn thing. I don't have to even comment further except to say that the guy gets it (we all sorta knew that!)
Now, how about a lovely lunch on the water at the Boathouse (with alcohol included of course)?
EPCOTCenterLover
Well-Known Member
Slightly off topic- with all this talk of a huge budget for the DHS re-do, what is the combined budget for all the things being done to DAK? Between Avatarland and Rivers of Light and all these small projects, I'm sure this is a big expense as well. I wonder why Disney's kept so quiet on the price tag for this park's transformation? Is it so guests don't think TWO parks have so much closed or covered with construction walls? That's my guess.
1023
Provocateur, Rancanteur, Plaisanter, du Jour
From memory...I wanna say 800M for everything... but that's from memory...and I am getting older... Just pandora area was 500M-ish I think.... Please feel free to correct me
*1023*
AEfx
Well-Known Member
Even if they did give exact dollar figures, 99% of people booking WDW vacations would never hear them.
Captain Neo
Well-Known Member
Epcot Center didn't have any off the shelf rides for its first 20 years if I recall correctly and neither did DAK or MGM Studios in its first few years. I don't think it was Walt Disney or any of the old guards intent to pad parks with spinners and carousels that was a necessity back in the 50s due to limitations with budget and technology. What is Disney's excuse now. If they need more family rides than build actual dark rides, if they want outdoor rides then do them grandouise like a Skyway or Peoplemover but don't just throw in yet another damn off the shelf carnival ride and give it a quick theme job and pretend its not out of place in a 21st century Disney theme park.
ThemeParkJunkee
Well-Known Member
One thing we can look at (in retrospect) is Capex spending as a percentage of net income which @ParentsOf4 does with some regularity on this board. I don't even bother to "do the math" anymore since he does it for me when annual reports come out. Unfortunately, TWDC includes its Cruise Line in the "Parks and Resorts" category along with the international parks. It will be interesting to see the reports in the coming years. I still haven't sold my DIS stock. I'm a "buy and hold" kind of person. Holding this particular investment has been a good idea despite my personal disappointment in the Parks portion. They are just so HUGE in terms of the entertainment industry in general. I will be paying far more attention to the numbers from now on. Thanks to @ParentsOf4 and @PhotoDave219 for doing my "due diligence". Time to quit being lazy. ThemeParkJunkee (accountant) needs to step up her game I think.
I think 800 million
doctornick
Well-Known Member
Yeah, so, thinking about this and the reactions.... Looks like we are probably talking about something like $2-2.5B heading to WDW over the next ~6 years with the lion's share going to DHS and at least some amount going to Epcot. Not clear to me if there is anything going to MK or DAK (or the water parks) out of that, but I'm thinking not much even if there is. Maybe something like a new fireworks show for MK.
This is all separate from the ~$1 billion headed to DLR as well in the next few years.
Furthermore, I'm getting the sense that the build will be phased over many years with some stuff opening relatively quickly, but the whole project not being complete until ~2021. I guess that would help to make a grand re-christening of DHS part of the WDW 50th anniversary*. Even if they are building and opening stuff in phases, I hope they learned from the FLE and open up a complete land at a time. None of this "opening but there are still construction walls in the middle" stuff.
Let's say the number ends up being around $1.8B just for DHS -- that should be easily enough for (say) a high quality/immersive $700M Star Wars land, a $600M Pixar land featuring TSPL and 3 higher quality rides from other franchises with the requisite theming/food/merch as well as a few hundred million to add some Disney animation related stuff or something like Indiana Jones or GotG while still improving the parking situation. Maybe even find some money for a permanent fireworks show or a new daytime parade.
*As an aside, I do wonder if these plans would limit any significant investment in MK for the 50th. Oh well, cross that bridge when we get there, but one would hope that a Golden anniversary would automatically warrant a sizable celebration.
EPCOTCenterLover
Well-Known Member
Thank you!
doctornick
Well-Known Member
That would have to be one hell of an impressive Toy Story Playland -- it's a massive amount of space you are talking about. They could have gotten enough land for TSPL -- with plenty left over -- just with the Backlot Tour closure. if they really are leveling One Man's Dream and the Animation building to go along with the Backlot Tour, then there really does have to be some significant stuff coming. And part of that would hopefully be an improvement to the park's layout/guest flow.
doctornick
Well-Known Member
Well, that's great to hear. And I do think that there is clear evidence that WDI can deliver some awesome themed experiences when given the support and money from leadership. There just has not been that will regarding WDW for year now from the people holding the purse strings.
Hula Popper
Well-Known Member
Never tell me the odds.