News Bob Iger talks about attendance declines, ticket pricing, the feud with Ron DeSantis, and his huge optimism for Disney Parks and Resorts

[Sirwalterraleigh]

You do understand what the word 'future' means right? Why would you think the OUTLOOK of a space is limited by profitability of the STARTUP phase?

Ads... premium buys... price increases.. minimum terms.. all of these things are going to happen and will boost revenue dramatically.

Streaming is in the 'lure them in phase' as they build their base and credibility. This is not all streaming will ever be.

Meanwhile... terrestrial broadcast already played their cards and people are not going to go back to linear television.

You do understand they had almost zero infrastructure costs, right?

You’re able to process under the nametag?

Those costs are all content and debt. They’re not running fiber optic cable down Main Street in Kansas.

That’s why they should be out ahead. And what Diller is warning about.

Sure they can sell ads. Good luck…the cords are cut and people are trained with low commitment, on demand.

 

[DznyRktekt]

I would like to read some juicy @WDW1974 commentary on this and other aspects of the current state of WDW.

 

[JD80]

You do understand they had almost zero infrastructure costs, right?

You’re able to process under the nametag?

Those costs are all content and debt. They’re not running fiber optic cable down Main Street in Kansas.

That’s why they should be out ahead. And what Diller is warning about.

Sure they can sell ads. Good luck…the cords are cut and people are trained with low commitment, on demand.

lol zero infrastructure costs

You truly have zero clue about anything you talk about.

 

[matt9112]

You spend about $35 to get into the parks for the day? And some people are paying$140+?

If they doubled your admission to about $70 dollars a day, which is still a 50% discount, how would that significantly impact your spend at Disney? You'd go from $12k a year to 12.8k a year?

Outrageous!

There’s two things I think people miss. Annual passes are seen as least in my opinion as disney giving back to Florida residents if you will. It was Florida residents who elected the officials who gave disney all the powers to create the RCID in the first place. There’s a reason most sports teams and other amusement parks etc offer some sort of deal and or packaging for local residents. To be fair disney generates a lot of tax revenue and you could argue that’s how they give back but regular folks don’t see tax revenue nor do they relate to it.

The other facet is the fact that many pass holders don’t come ALL the time to make it dollars a day in cheapness. All in all it’s a balancing act. Pass holders give you local good will and will hold the line when the economics turn. People on full blown vacations will have far better (spend per guest) as well as staying longer granted that’s less of a concern technically if APs spent the same amount you wouldn’t care if 12 APs go for 12 days or if one vacationer went for 12 days.

I think the perception is even further skewed when you look at DVC and regular hotel occupancy as a whole. Disney world has theme parks but it’s arguably justs giant over priced hotel. With that mind set theme park spending per guest becomes less important as a singular item and occupancy becomes the new metric. Because occupancy will determine park ticket sales and merchandise sales more food and beverage etc. the hotel cost itself is rolled into the package too.

So WDW is a massive hotel and the parks are just sort of expensive amenities nothing different than a spa.

 

[Sirwalterraleigh]

lol zero infrastructure costs

You truly have zero clue about anything you talk about.

Lol

Code and a warehouse of servers
Lol. Lol. Lol. Lol.


They’re already cheaping on content…which is something Netflix learned you can’t do 6 years ago.

lol. lol. Lol. Lol.

Streaming doesn’t make much because of CONTENT cost.

Try to keep up

 

[AEfx]

You do understand what the word 'future' means right? Why would you think the OUTLOOK of a space is limited by profitability of the STARTUP phase?

Ads... premium buys... price increases.. minimum terms.. all of these things are going to happen and will boost revenue dramatically.

Streaming is in the 'lure them in phase' as they build their base and credibility. This is not all streaming will ever be.

Meanwhile... terrestrial broadcast already played their cards and people are not going to go back to linear television.

Exactly.

Streaming is the present and future. It's also a very good model. There is a reason every company known to man wants you to subscribe to something, or have moved to subscription-only models. Computer software, bottled water, make-up, and so on - subscription models are very profitable for a whole bunch of reasons.

The problem right now is that too many streamers popped up at once, and they spent way too much money trying to fight with each other for dominance. We are in the growing pains of an industry that hasn't even approached maturity yet.

They are already making corrections - Paramount+ merging with Showtime, etc. They will continue to consolidate and spend more judiciously on programming, instead of just throwing massive payouts to show runners just to secure them, before they make any shows, etc.

Out of all of them, Disney is actually best poised for the future. They are really the only streamer that can "make it on their own" - they have nearly a century of content to mine, they have the most successful franchises on the planet, and once they stop spending so lavishly on things no one asked for, as well as the built in "if you have kids, you have Disney+" audience, financially it is the future of the company.

Once they put Hulu out of its misery and it's a one-stop-shop, Disney+ is going to be just fine. When you do the math, it's poised to bring somewhere in the neighborhood of a billion dollars a month into the company, reliably. There is no question that it is the future revenue leader of the company.

 

[MagicHappens1971]

Out of all of them, Disney is actually best poised for the future. They are really the only streamer that can "make it on their own" - they have nearly a century of content to mine, they have the most successful franchises on the planet, and once they stop spending so lavishly on things no one asked for, as well as the built in "if you have kids, you have Disney+" audience, financially it is the future of the company.

I have been saying this to friends and family and on here since the launch of D+, of all the streamers it has the best potential for the future.

 

[Professortango1]

Once they put Hulu out of its misery and it's a one-stop-shop, Disney+ is going to be just fine. When you do the math, it's poised to bring somewhere in the neighborhood of a billion dollars a month into the company, reliably. There is no question that it is the future revenue leader of the company.

If Disney+ can have their library mimic their international library, maybe. It is the one streaming service I have never paid money for since the content is so restrictive in terms of variety. Want to watch a horror movie? Not on Disney+. Its good if you only want to watch cartoons/Marvel/Star Wars, but that doesn't justify the cost for me.

I'll probably never get rid of Prime due to the shipping benefits and how much online shopping has replaced regular shopping. The streaming service is a great bonus.

 

[Poseidon Quest]

Out of all of them, Disney is actually best poised for the future. They are really the only streamer that can "make it on their own" - they have nearly a century of content to mine, they have the most successful franchises on the planet, and once they stop spending so lavishly on things no one asked for, as well as the built in "if you have kids, you have Disney+" audience, financially it is the future of the company.

Once they put Hulu out of its misery and it's a one-stop-shop, Disney+ is going to be just fine. When you do the math, it's poised to bring somewhere in the neighborhood of a billion dollars a month into the company, reliably. There is no question that it is the future revenue leader of the company.

I don't subscribe to Hulu, but I am excited to see them merging the two together. While Disney+ has a really strong library, it's a place I go for watching movies and not for casual, background entertainment. Adding shows and more adult-oriented content from Hulu will really boost its appeal I think.

 

[TrainsOfDisney]

When you do the math, it's poised to bring somewhere in the neighborhood of a billion dollars a month into the company, reliably.

What math are you doing to get to that number!?

There is no question that it is the future revenue leader of the company.

I think there is a question that Disney+ ever turns a significant profit - I highly doubt it ever becomes the revenue leader.

 

[AEfx]

I'll probably never get rid of Prime due to the shipping benefits and how much online shopping has replaced regular shopping. The streaming service is a great bonus.

That's why it is so strange to me that Amazon spends billions on the streaming service...because I think most people are like you in this respect.

 

[Sirwalterraleigh]

Exactly.

Streaming is the present and future. It's also a very good model. There is a reason every company known to man wants you to subscribe to something, or have moved to subscription-only models. Computer software, bottled water, make-up, and so on - subscription models are very profitable for a whole bunch of reasons.

The problem right now is that too many streamers popped up at once, and they spent way too much money trying to fight with each other for dominance. We are in the growing pains of an industry that hasn't even approached maturity yet.

They are already making corrections - Paramount+ merging with Showtime, etc. They will continue to consolidate and spend more judiciously on programming, instead of just throwing massive payouts to show runners just to secure them, before they make any shows, etc.

Out of all of them, Disney is actually best poised for the future. They are really the only streamer that can "make it on their own" - they have nearly a century of content to mine, they have the most successful franchises on the planet, and once they stop spending so lavishly on things no one asked for, as well as the built in "if you have kids, you have Disney+" audience, financially it is the future of the company.

Once they put Hulu out of its misery and it's a one-stop-shop, Disney+ is going to be just fine. When you do the math, it's poised to bring somewhere in the neighborhood of a billion dollars a month into the company, reliably. There is no question that it is the future revenue leader of the company.

The flaw in the D+ thinking has always been that there is ever gonna be a need for “less” content to get overhead under control. It’s quite obvious that isn’t the case.
And they also seem to believe there isn’t a “walk away point” for the market size they need.

They may not prove to be fatal flaws…but huge question marks to deal with.

I’ll restate my same stance since this came out: people will not pay $49.99 for Peter Pan with commercials.

That’s the “past” and not enough money can be printed to pay for it.

 

[FettFan]

I don't subscribe to Hulu, but I am excited to see them merging the two together. While Disney+ has a really strong library, it's a place I go for watching movies and not for casual, background entertainment. Adding shows and more adult-oriented content from Hulu will really boost its appeal I think.

No. In fact, Disney+ needs to scrub Deadpool, Deadpool 2, and Logan from its service and put them on Hulu instead.

Disney is about FAMILY entertainment.

 

[Sirwalterraleigh]

That's why it is so strange to me that Amazon spends billions on the streaming service...because I think most people are like you in this respect.

Because they have the deepest pockets on the planet in a growth industry and they do it for the credibility and cross sell.

But even they can’t keep budgets in line. They just don’t care like Disney has to…

 

[Sirwalterraleigh]

No. In fact, Disney+ needs to scrub Deadpool, Deadpool 2, and Logan from its service and put them on Hulu instead.

Disney is about FAMILY entertainment.

It became huge specifically because they expanded their movie studios in the 80’s and then bought abc/espn

It’s a bigger world now and they aren’t a cartoon studio.

Thankfully the 20th century is over and those pining for it and making really dumb societal trends are far into the backside of the course ️

 

[hopemax]

That's why it is so strange to me that Amazon spends billions on the streaming service...because I think most people are like you in this respect.

They've likely reached the limits on who will pay for Prime just for shipping. On other forums I visit, there are always a ton of people who pay for Prime because of the streaming, not the shipping. They were quite content to just add things to their cart until they reached $25 (pretty easy to do these days) and get free shipping that way. It was the entertainment options that pushed the subscription over the edge.

 

[el_super]

I think there is a question that Disney+ ever turns a significant profit - I highly doubt it ever becomes the revenue leader.

What do you think WILL be the revenue leader?

If they can't make streaming work, it will be because audiences have turned away from traditional entertainment entirely.

That seems unrealistic. People will still want movies and TV shows... even if they aren't called movies and TV shows anymore.

 

[Sirwalterraleigh]

They've likely reached the limits on who will pay for Prime just for shipping. On other forums I visit, there are always a ton of people who pay for Prime because of the streaming, not the shipping. They were quite content to just add things to their cart until they reached $25 (pretty easy to do these days) and get free shipping that way. It was the entertainment options that pushed the subscription over the edge.

I think it’s the combo that makes people swallow the annual fee…

The problem
Is only Amazon has that combo. You get your stuff cheap - even groceries if you like whole paycheck - and your mindless streaming

I can think of other streams that don’t offer that

Namely: all of them.


That was the stupidity of that “subscription” stuff Slaphead floated. I know exactly where that was going…pay $50 a month for commercial loaded crap to get 20% off $1000 Hotel rooms next to parks with minimal capex

Literally…get the HELL…outta here.

 

[Professortango1]

No. In fact, Disney+ needs to scrub Deadpool, Deadpool 2, and Logan from its service and put them on Hulu instead.

Disney is about FAMILY entertainment.

That may work as a channel when you get a cable package, but many people don't want to pay for more than 2 streaming services and we want them to be as diverse as possible. If I have the option of Prime, Max, Netflix, and Apple with plenty of varied content for all my family and moods, why would I pick Disney which only goes after family entertainment when I can get family entertainment and more from other streamers? The fact they dubbed over parts of Free Solo irked me. If you are going to show a documentary, show it.

Plus, with Disney's affinity for re-editing their content without warning or notice, if I like a Disney property I just get it on physical media. No McClunky, no Lilo hiding in a pizza box, no French Connection alternative history.

 

[TrainsOfDisney]

No. In fact, Disney+ needs to scrub Deadpool, Deadpool 2, and Logan from its service and put them on Hulu instead.

Disney is about FAMILY entertainment.

I do think that this is hurting the brand as well. I feel like “Disney+” should only be Disney branded family content.

So no Simpsons, no Hamilton (which I love), no Beattles, no Ice Age, etc.

Star Wars maybe since that is much closer associated with the Disney brand and for the most part is considered family entertainment.

If Disney had a leader that fully embraced the synergy abilities of the Disney brand I believe they would be much better off. Iger doesn’t beleive in Disney so he’s trying to make Disney+ like Netflix and trying to make the Disney parks like universal.