News Chapek FIRED, Iger New CEO

[TrainsOfDisney]

Attendance isn't the metric Bob Iger cares about.

They spent a billion+ dollars reimagining DCA and it was still the least attended US park.

So does attendance matter? Or not?

 

[el_super]

So does attendance matter? Or not?

It doesn't.

 

[celluloid]

So does attendance matter? Or not?

Only if the weather is below 96 with real feel less than 99 for peak of day.

 

[TrainsOfDisney]

It doesn't.

Ok. So why did it matter that it was the least attended park?

What metric did Bob care about?

 

[SamusAranX]

It didn't have to be a decrease in spending, as much as missing expected return. They spent a billion+ dollars reimagining DCA and it was still the least attended US park. And that least attended badge was in a period of relatively cheap Disneyland APs with monthly payments that gave DCA away for free.

DCA is still the least attended US park. Guess that marvel “synergy” didn’t move the needle.


And I thought attendance didn’t matter? So why does the ranking matter?

 

[el_super]

Ok. So why did it matter that it was the least attended park?

What metric did Bob care about?

Revenue. They only care about how much money they make. The attendance only matters in the context of how much they spent and the park being full of AP holders. Whatever internal projections they had used to justify the expense of reimagining the park, probably weren't met.

The problem of people not willing to spend money on the quality of the product bears out on the other side too: even though there was a drop in quality/output post Carsland, spending didn't change. That's how the justify the pivot.

 

[Sirwalterraleigh]

Reminder: stay on top of the bridge and don’t feed the trolls

 

[Sirwalterraleigh]

Revenue. They only care about how much money they make. The attendance only matters in the context of how much they spent and the park being full of AP holders. Whatever internal projections they had used to justify the expense of reimagining the park, probably weren't met.

The problem of people not willing to spend money on the quality of the product bears out on the other side too: even though there was a drop in quality/output post Carsland, spending didn't change. That's how the justify the pivot.

Ummm…what they make is “profit” not revenue…

 

[monothingie]

Revenue. They only care about how much money they make. The attendance only matters in the context of how much they spent and the park being full of AP holders. Whatever internal projections they had used to justify the expense of reimagining the park, probably weren't met.

The problem of people not willing to spend money on the quality of the product bears out on the other side too: even though there was a drop in quality/output post Carsland, spending didn't change. That's how the justify the pivot.

It’s actually a more complicated relationship. Both attendance and per guest spending are key metric for determining profitability.

Attendance is a key driver of your expenses, the busier your parks are the more it costs to operate them. Likewise on the per guest spending metric, attendance has a direct impact on guest spending, for example, the busier your parks are the more G+ sells.

Interestingly when attendance falls, the parks also cost more to operate because they tend to be over staffed, but similarly per guest spending falls because fewer people will purchase things like G+ because of the lack of perceived need.

 

[TrainsOfDisney]

Whatever internal projections they had used to justify the expense of reimagining the park, probably weren't met.

Whatever was probably not met. You’ve convinced me! Haha

 

[monothingie]

LOL ... no.

Where and how does D+ move to profitability?

Content? No.
Cost? No.
Subscriber Growth? No.

This is the problem with every release needing to be a tentpole. There is nothing in the D+ pipeline that lends itself to justify the eye watering production budgets. There is not enough interest to garner interest and boost subscribers. There is no willingness for subscribers to pay more for content they don’t care about.

Ignoring the 4 million subscribers lost because of the rugby thing in India, D+ still lost a couple of hundred thousand domestically in 2023. This is with the premier of Mando S3. Since then there has been NOTHING to grow the platform. Secret Invasion? Nope. The only thing keeping D+ going at all now is Bluey, which they don’t even own.

 

[Sirwalterraleigh]

It’s actually a more complicated relationship. Both attendance and per guest spending are key metric for determining profitability.

Attendance is a key driver of your expenses, the busier your parks are the more it costs to operate them. Likewise on the per guest spending metric, attendance has a direct impact on guest spending, for example, the busier your parks are the more G+ sells.

Interestingly when attendance falls, the parks also cost more to operate because they tend to be over staffed, but similarly per guest spending falls because fewer people will purchase things like G+ because of the lack of perceived need.

So what you’re saying is: more people buying your product grows margins and makes it more productive?

Damn…why didn’t anyone let the bobs know they’ve been doing it all wrong for 10 years?!

…right…everyone was too busy “experiencing” boo bash and the fixed price at California grill

 

[Br0ckford]

Whatever was probably not met. You’ve convinced me! Haha

This is what I tell my boss if he asks why a certain job didn't meet projected margins. Well, we didn't meet whatever. It goes over well.

 

[Bender123]

So what you’re saying is: more people buying your product grows margins and makes it more productive?

Damn…why didn’t anyone let the bobs know they’ve been doing it all wrong for 10 years?!

…right…everyone was too busy “experiencing” boo bash and the fixed price at California grill

I think the issue with Disney is more the "nickle and Dime" experiences have taken leadership over the day to day core business. Things that were low cost to Disney and maintained satisfaction (Magical Express, Fastpass, Extra Magic Hours) are now either exclusive for premium guests or extra cost. The per cost spending argument has dominated the Disney park experience for a long time and I think falling numbers are starting to be the fruitt of constant price raising and benefit taking.

 

[Sirwalterraleigh]

I think the issue with Disney is more the "nickle and Dime" experiences have taken leadership over the day to day core business. Things that were low cost to Disney and maintained satisfaction (Magical Express, Fastpass, Extra Magic Hours) are now either exclusive for premium guests or extra cost. The per cost spending argument has dominated the Disney park experience for a long time and I think falling numbers are starting to be the fruitt of constant price raising and benefit taking.

Yes…because the business model is what it is…

 

[SamusAranX]

Where and how does D+ move to profitability?

Content? No.
Cost? No.
Subscriber Growth? No.

This is the problem with every release needing to be a tentpole. There is nothing in the D+ pipeline that lends itself to justify the eye watering production budgets. There is not enough interest to garner interest and boost subscribers. There is no willingness for subscribers to pay more for content they don’t care about.

Ignoring the 4 million subscribers lost because of the rugby thing in India, D+ still lost a couple of hundred thousand domestically in 2023. This is with the premier of Mando S3. Since then there has been NOTHING to grow the platform. Secret Invasion? Nope. The only thing keeping D+ going at all now is Bluey, which they don’t even own.

Short term, they could do what Netflix did, although I am not sure how well it would go over with a different (and numerically lower) market/subscriber base.

Long term, they need to merge D+ and Hulu into one platform

 

[Sirwalterraleigh]

Short term, they could do what Netflix did, although I am not sure how well it would go over with a different (and numerically lower) market/subscriber base.

Long term, they need to merge D+ and Hulu into one platform

Well that’s the plan…

The flaw is assuming no one will question the price/cancel

…cause Peter Pan.

I mean…it could work?

 

[monothingie]

Short term, they could do what Netflix did, although I am not sure how well it would go over with a different (and numerically lower) market/subscriber base.

Long term, they need to merge D+ and Hulu into one platform

Oh it’s going to cost them. A lot.

Bob loves overpaying for things.

 

[Lilofan]

This is what I tell my boss if he asks why a certain job didn't meet projected margins. Well, we didn't meet whatever. It goes over well.

All Bob has to impress is the Board who he is in bed with. We are not so lucky.

 

[Bender123]

Yes…because the business model is what it is…

Short term gains, but long term pains...they made their bed