News Chapek FIRED, Iger New CEO

SamusAranX

SamusAranX

Well-Known Member
el_super said:
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.
Click to expand...
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

el_super

Well-Known Member
TrainsOfDisney said:
Ok. So why did it matter that it was the least attended park?

What metric did Bob care about?
Click to expand...

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

Sirwalterraleigh

Premium Member
el_super said:
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.
Click to expand...
Ummm…what they make is “profit” not revenue…
 
monothingie

monothingie

Evil will always triumph, because good is dumb.
Premium Member
el_super said:
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.
Click to expand...
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.
 
monothingie

monothingie

Evil will always triumph, because good is dumb.
Premium Member
el_super said:
LOL ... no.
Click to expand...
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

Sirwalterraleigh

Premium Member
monothingie said:
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.
Click to expand...
👆🏻👆🏻👆🏻

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
 
Bender123

Bender123

Well-Known Member
Sirwalterraleigh said:
👆🏻👆🏻👆🏻

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
Click to expand...
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

Sirwalterraleigh

Premium Member
Bender123 said:
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.
Click to expand...
Yes…because the business model is what it is…
 
SamusAranX

SamusAranX

Well-Known Member
monothingie said:
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.
Click to expand...
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

Sirwalterraleigh

Premium Member
SamusAranX said:
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
Click to expand...
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

monothingie

Evil will always triumph, because good is dumb.
Premium Member
SamusAranX said:
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
Click to expand...
Oh it’s going to cost them. A lot.

Bob loves overpaying for things.
 

Register on WDWMAGIC. This sidebar will go away, and you'll see fewer ads.

Back
Top Bottom