Comcast CEO: "Universal will compete aggressively with Disney"

[CJR]

So is harry potter the new mascot for universal? Your comparing apples and oranges.

Harry Potter is a recent addition to universal, and its only major draw. It just seems to some that instead of developing other draws universal is just using potter to solve all of their problems. They made a land in island of adventure, now one the original park, and now maybe a hotel. All withing a small window of time(relatively speaking). And i see why there doing it as wwohp is by far the best part of universal, put they are clearly milking the harry potter franchise.

Despicable Me 2 made over $900 million this past summer so I wouldn't say Harry Potter is Universal's only major draw.

 

[WDWDad13]

How can anyone blame Uni for building a HP themed resort when Disney plans on building the Apple Dumpling Gang, Pete's Dragon, and Bedknobs and Broomsticks themed resorts in 2016, 2018 and 2020?

you forgot the John Carter resort coming THIS YEAR!!! It's so well themed... it's like it doesn't even exist lol

 

[maxairmike]

you forgot the John Carter resort coming THIS YEAR!!! It's so well themed... it's like it doesn't even exist lol

You won't see a Potter resort at Universal Orlando, it was a proposal, but you won't get two Hogwarts representations because JK wouldn't allow that. You probably will get Potter themed rooms at one of the resorts eventually, but unless they move the backstage facilities around and build a resort connected to the WWOHP, you won't get a standalone Hogwarts/Potter resort.

 

[Groxtak]

because UNI would start to become identified/represented as the Harry Potter theme park - some would argue they are referred to that way now.

I don't blame them for building more... but to put it in their OTHER park I thought was interesting. (I know why though...and if Disney were to do that people would be bashing them about just wanting more $ from people) - seems though if they keep building HP "stuff" - maybe they should have made 1 of their theme parks solely themed to that instead...I don't know?

My 2 cents on what Uni could (and might) do...

You know that employee parking lot and backstage area the Hoggswarts Express cuts through?

Let's say Uni acquires more land and relocates some of that. The beautiful thing is that it could be relocated on land that isn't necessary adjacent to the current USO property because these buildings are mostly for backstage or non-guest related purposes.

Those building could be demolished to make room for a HP themed hotel that the Hoggswarts Express would make a stop at. A themed hotel with transit connections to both parks that they could get away charging more for. Genius, if they do it!

 

[marni1971]

they are clearly milking the harry potter franchise.

And why not? It's been a licence to print money.

Money that's being heavily reinvested into the parks.

And if and when the fuss dies down a bit the parks will still have two world beating, fantastically executed full on E tickets situated in totally immersive lands with great supplementary attractions.

 

[SirLink]

IF Comcast built a HP themed hotel you can guarantee they think they will fill it.

But it won't be the 5th resort.

Isn't the fifth resort the one they wanted to do long ago ... Tooniversal ago?

 

[71jason]

you forgot the John Carter resort coming THIS YEAR!!! It's so well themed... it's like it doesn't even exist lol

Kind of like the Harry Potter resort that inspired three pages of debate (most of it involving you, I'd point out). Mindless debate over something no one has ever even seen concept art of, because it doesn't and will never exist. Almost like someone is trying to derail a debate that suddenly involved verifiable hard numbers embarrassing to TDO, if I was in the Spirited Tinfoil Hat Brigade. Oh wait, I am ...

 

[marni1971]

Isn't the fifth resort the one they wanted to do long ago ... Tooniversal ago?

Theming wise? No.

 

[Groxtak]

Is it possible that Disney goes after Comcast CEO to replace Iger after he steps down?

No. Because Comcast is mostly owned by a family. The Comcast CEO is of that family.

 

[WDWDad13]

Kind of like the Harry Potter resort that inspired three pages of debate (most of it involving you, I'd point out). Mindless debate over something no one has ever even seen concept art of, because it doesn't and will never exist. Almost like someone is trying to derail a debate that suddenly involved verifiable hard numbers embarrassing to TDO, if I was in the Spirited Tinfoil Hat Brigade. Oh wait, I am ...

wow

 

[PhotoDave219]

And why not? It's been a licence to print money.

Money that's being heavily reinvested into the parks.

And if and when the fuss dies down a bit the parks will still have two world beating, fantastically executed full on E tickets situated in totally immersive lands with great supplementary attractions.

So instead of funneling that money to prop up the stock, they're reinvesting that money to make even MORE money?

 

[alissafalco]

Wow, never heard that number. And that was for (in most tourists' minds) a one-day attraction.

Assuming a worst case scenario, how do you think WDW competes? Extending benefits, like more FastPasses, to the deluxe resorts probably won't do a lot, I imagine those aren't the rooms being taken by Cabana Bay. Sadly, new park improvements wouldn't do much, either--guests will just drive from Universal to see Star Wars Land or what-have-you, like they already planned to do with MK. Do they shutter a resort again? Slash prices?

I know the only way to get me to stay on property is with a heavily discounted room.

 

[ParentsOf4]

@ParentsOf4 - I enjoy your posts more than almost anyone else's on WDWMagic and I believe what you are saying is what Disney management believes, but one thing I do not understand is why those management people think that MM+ will fill a substantial number of hotel rooms. I mean, the prices they charge for those rooms is insane. I remember only a few years ago when I could stay at Port Orleans Riverside for $99 per night or Poly for $225 per night on an Annual Passholder discount. Now those rooms at Port Orleans average over $200 per night! Not to mention Poly and the other Deluxe hotels are now in the $450 to $700 per night range (and higher). Do they really think people will spend that kind of money for a few extra FastPass + selections? Plus you can stay at a really nice Deluxe hotel at Universal for under $300 per night and get free Front Of The Line passes for ALL rides good ALL day and night. It just makes no sense to me that FP+ and MM+ will increase non-discounted hotel occupancy at WDW by very much if at all.

Here's something to consider. Even at today's insane prices, Disney managed to fill 8.3M, yes that's million, room nights. Just to throw out a number, if you assume an average stay is 7 nights, that's 1.2M families who coughed up Disney's prices.

We've read on these threads plenty of posts from people ranting about how much they loved MyMagic+. That's what Disney is hoping for.

Disney is hoping they can find a couple of hundred thousand more families to switch from offsite and book their 7-night stays onsite instead. 200K more onsite families corresponds to 1.4M room nights. In 2013, Per Room Guest Spending (PRGS) was $267. $267 X 1.4M = $374M. That's just in one year at current PRGS (which can be expected to rise).

An occupied room at a hotel that's already running at over a 50% occupancy rate represents almost pure profit. Last year, Disney's domestic hotels ran at 79%.

Again, Disney only has to influence a few hundred thousand families. They don't need more visitors, only more visitors staying onsite and (per the original budget), MyMagic+ becomes a big financial success.

 

[SirLink]

Theming wise? No.

The one with the Needle? I was sure they would of gone with that one.

 

[dman1373]

Despicable Me 2 made over $900 million this past summer so I wouldn't say Harry Potter is Universal's only major draw.

Im not saying that universal doesn't use other big movie franchises. But things like despicable me and transformers aren't really draws. They have their place, but its not like them being there has anything to do with most people coming to universal. There are two reasons most people go to universal and thats the universal park brand or harry potter.

 

[celluloid]

Not many in California's side of the Country and visiting have been on anything on par with Universal Florida's attractions except for Transformers being the big gun they got first. Despicable Me, more family experiences and The Wizarding World of Harry Potter West even if smaller, will feature Forbidden Journey that will get some major attention. To think this applies to only the east or just the states is not looking at the big picture.

 

[the.dreamfinder]

No. Because Comcast is mostly owned by a family. The Comcast CEO is of that family.

I think he meant NBCUni CEO Steve Burke. He just recently signed a fat new contract so I don't think that's a realistic possibility. However Disney does have Alan Horn and Kathleen Kennedy, so maybe all we need is willpower to kick Bob and ALL of his Strategic Planning cronies out and move those two up the ladder.

 

[TubaGeek]

Im not saying that universal doesn't use other big movie franchises. But things like despicable me and transformers aren't really draws. They have their place, but its not like them being there has anything to do with most people coming to universal. There are two reasons most people go to universal and thats the universal park brand or harry potter.

Then why would there be anyone at Universal Studios? Despicable, Transformers, and Simpsons merch are flying off shelves faster than you can say... I dunno... a Potter spell... or something...

 

[ParentsOf4]

Assuming a worst case scenario, how do you think WDW competes? Extending benefits, like more FastPasses, to the deluxe resorts probably won't do a lot, I imagine those aren't the rooms being taken by Cabana Bay. Sadly, new park improvements wouldn't do much, either--guests will just drive from Universal to see Star Wars Land or what-have-you, like they already planned to do with MK. Do they shutter a resort again? Slash prices?

WDW's play is obvious; we all know it:

• MyMagic+
• Avatar Land
• Star Wars Land

Articles on certain popular websites aside, WDW has to build Star Wars Land. It's just a matter of when and how much.

Pandora presents Disney with some difficulty. Even the reaction on Disney's highly edited official blog was noticeably less that enthusiastic. Avatar was a knee-jerk reaction by Iger when WDW got its teeth kicked in by WWOHP. I've said it before and I'll say it again, letting J.K. Rowling go to Universal was the stupidest theme park move in the history of The Walt Disney Company. They let a major property slip through their fingers and right into the hands of a resort that was a "competitor" in name only. At least until WWOHP opened.

Don't think Disney is done with MyMagic+. We are only looking at v1.0. The beauty of MyMagic+ is that once fully deployed at all resorts, restaurants, shops, and attractions, all it takes is software modifications for Disney to manipulate it into producing whatever behavior they want from their "guests". I'm intentionally being vague but some pretty incredible ideas have been considered. And no, I won't tell.

 

[maxairmike]

Im not saying that universal doesn't use other big movie franchises. But things like despicable me and transformers aren't really draws. They have their place, but its not like them being there has anything to do with most people coming to universal. There are two reasons most people go to universal and thats the universal park brand or harry potter.

So a 20% increase (I believe that's what was stated in the article, it was something like 10-20%) in the park in which the Transformers attraction opened doesn't count as a major draw, and would have happened if nothing (or something with truly non-major draw) had opened? It is a major draw, it is heavily featured now alongside Potter in marketing materials.