Chi84
Premium Member
I do now. But I stopped waiting in lines in 1999 when WDW introduced the first fastpass. So the worrying stopped 22 years before the buying started.
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News Disney’s Q1 FY25 Earnings Results Webcast
- Thread starter DCBaker
- Start date
flynnibus
Premium Member
You're right, they blew billions...to make hundreds of millions.
Kodak is on line 1 for you...
How much is netflix losing by not licensing out their content?
What major media distribution company is doing great in 2025 by following 1995 business models these days?
What major movie studio is doing great in 2025 by following 1995 business models these days?
Disney isn't just a production company or indie studio creating content. They had billions in revenue that relied on a business model that was dying and the investing world as a whole yearned from predictable revenue from recurring revenue... not just sale of product.
The DTC market got crowded because everyone knew they couldn't be left behind... tho obviously not all succeed but sitting back and just retreating to a content-creator only isn't a growth strategy either.
Dranth
Well-Known Member
I believe it would be more accurate to say they spent billions to own assets that are used to make hundreds of millions in profit currently.You're right, they blew billions...to make hundreds of millions.
Assuming those billions are lost implies they couldn't sell any of those assets if they choose to and that the service will not bring in more than it is currently in the future.
TrainsOfDisney
Well-Known Member
it wouldn’t have been the worst idea. Put Netflix and Apple on a bidding war to see who will pay the most for “exclusive” Disney content.
Jrb1979
Well-Known Member
I agree to some extent. They don't crowds like in 2029 again. At the same time IMO they have gone too far with regulating it. When they gone past the tipping point for value resorts and hoping those in the deluxes will cover those losses by increasing those prices. IMO is not a recipe for success
Agent H
Well-Known Member
What Do you mean 2029?
flynnibus
Premium Member
A notion that only works if you think you can control the finite, limited and desirable resource...
In case you didn't notice, those guys started creating their own content, and showed they could corner customers even without 'your stuff'. So trying to sit back and think you are king of the mountain while the world moves away from you is exactly how giants die.
The ideas of someone like netflix paying you huge premiums forever isn't going to happen. They eventually learn to fish themselves... and then you start to lose as your competition not only has competing products, but advantages in GTM and advertising.
That was already happening - and when your distribution becomes your competition... well you better do something.
JD80
Premium Member
It's been a long week and my brain is tired so I hope this makes sense.
I think Disney has figured out that the best crowd level for park ops and profitability is 2012-2016 levels (which is where we are at). Any more and the crowds negatively impact GSATs etc.
I think this is the case because Values and Moderates are leveled out cost wise. Daily tickets have leveled out as well outside of inflationary pressures. However, they haven't figured out how much they can profit off of the top level spenders that stay at Deluxes. They are trying to optimize all the extras that you can buy and figure out how much they can get out of those with more money.
Only issue is balancing out LL** vs. merch vs. table service. That money is interchangable with Value and Moderate guests so one hand is stealing from the other. Which is why I'm willing to bet they are at some point going to play with LL** and dining plans for the Value and Moderate guest.
What does that look like? Well, that can be a few different things.
- Offer free dining and see if those guests with free dining purchase more LL** than those guests who don't have free dining based on the customer profile (Value/Mod/Deluxe guest)
- Remove LLMP altogether - this is probably tested with limiting LLMP/SP inventory to see if the guests who don't buy LLMP/SP instead spend money on Table Service. Then maybe survey them later to see if they purchased merchandise during their stay. Or track it through MB usage.
If they can prove that all the majority of lost revenue from eliminating LLMP (SP won't go away) is indeed going to Food and Bev or Merch they might just find the right price point of LLPP and get rid of MP.
@lentesta likes to joke that there are 40 ways to get in line. I'm willing to bet now (and I didn't think this a few weeks ago) that there is a chance that eventually the Lightning Lane stuff is going to be streamlined to just LLPP and LLSP once they can figure out where all the money can go (and @Jrb1979 can crow that he was right all along).
(this post is way too long)
TrainsOfDisney
Well-Known Member
i honestly don’t even know what point you are making… just trying to point out how I’m wrong?
So what did Disney+ do wrong in your opinion, or you think they knocked it out of the park?
flynnibus
Premium Member
You said to license out their content - presumably instead of changing their business model which was a studio that relied on theatres, bundled cable deals, and linear TV.
The old model was dying. Disney was not just a production company and movie studio. It was a conglomerate that had billions in assets and fingers in multiple revenue streams. They couldn't just ride those into the ground and then decide 'oh, I guess this isn't gonna be a thing anymore'.
To suggest D+ was bad and they should have just licensed content out and stay the status quo would undercut so much of your ability to control your destiny, and WHY studios got into distribution and performance in the first place.
Look at players like WB these days... it's not for lack of amazing content in why they are struggling as a business.. it's for their lack of navigating the new world order.
Animaniac93-98
Well-Known Member
A cornerstone of Disney's business has always been the distribution of their back catalog. Starting with theatrical re-releases, then moving on to episodes of their weekly TV show, The Disney Channel and home video, the goal has always been to get new generations to pay for access to their old movies. They were the only studio to frame their entire library (not just sub brands of titles or series) as collectible and essential for families.
Their own streaming service was the logical choice to do so and more than any other studio they had the built in nostalgia and audience to sign up for one. Simply licensing would have left money on the table and allowed others to decide how and when to present these titles.
But it's also for this reason I've questioned how necessary the expensive, original series were essential to selling the service and retaining subscribers when data suggests engagement is often driven by the same established catalog.
Their own streaming service was the logical choice to do so and more than any other studio they had the built in nostalgia and audience to sign up for one. Simply licensing would have left money on the table and allowed others to decide how and when to present these titles.
But it's also for this reason I've questioned how necessary the expensive, original series were essential to selling the service and retaining subscribers when data suggests engagement is often driven by the same established catalog.
TrainsOfDisney
Well-Known Member
That was my suggestion from a few pages ago. Disney+ should have been the “Disney Vault” - sold for more money - and no original content (or very little - like documentary stuff).