Disney looking to cut theme park capital investment?

HennieBogan1966

Account Suspended
Tomm

I have to say that I do beleive that losses in other parts of the company do in fact affect opertations at the parks. Whether or not anyone here wants to admit to it, all the money that comes into the company IS the companies money. When you have so many different operations in a company, and when a lot of those operations are losing money, you have to pay for those losses from somewhere. Yes, the parks ARE making money. At least WDW seems to be. So, when other arms of the company take losses, guess where the money comes from to pay for those losses? Think about it. The easiest option for Disney is to trim budgets in their parks. You can't cut people from ABC/ESPN, as it takes certain numbers of people to run those operations. And they continue to produce new shows for ABC/ESPN, in an attempt to make a big splash with something. (that's the theory of "if you throw enough darts at the dartboard, eventually you'll hit the bullseye.") So those budgets continue to escalate. Again, they have been and will continue to overpay for MNF, which just costs more to the company. So, in the end, what are you left with for recapturing all of this investment? Well, you said it. Trim budgets at the parks. It's the one area of the company with the flexibility to do that. Because of seasonal vacation schedules of many families, Disney is able to have that flexibility with their payroll and operational budgets.

The next problem is that when the guests show up each year, Disney is having to compete with other theme park operators for those vacation dollars. So, you have to now talk about new rides, attractions, parades, resorts, and merchandise. Again, more investment. And while the parks may report millions, even billions in revenue, much of that is used up on the losses for all the "other" investments which are failing. Hence, my opinion that if they had it to do all over again, that they would'nt. I still believe that you focus on what you do best, and continue to improve THAT. You don't help by growing a company with businesses which TRADITIONALLY lose money, simply to keep from being bought out. If the price is right, the stockholders WILL sell. So, the grow the company to avoid hostile takeover idea doesn't hold water with me in THIS case.

Think about it. IF Disney is making millions or billions in revenue from THEME PARK generated revenue; and IF they didn't have to spend it on recovering lost monies on bad investments; HOW MUCH would they have to reinvest into the theme parks?
 

Dayma

Well-Known Member
It also works the other way around. When the movies and ABC start doing better that is more money to promote Disney and to build more rides. Its getting better with ABC so I just think people get worried when they say they are cutting the budget and they really do not understand finance.
 

HennieBogan1966

Account Suspended
I would agree with you black on the finance statement. That's why I asked if the budget for this year was still higher, even with the "cut", than it was last year. If so, then it's not REALLY a cut. What it really is at that point is an adjustment to a PROJECTED budget.
 

Yen_Sid1

New Member
Lynx04 said:
It is cool, I understand your frustration. I would like to enjoy ever attraction when I go to the parks, and at first I was really disappointed about the seasonal status of attractions like WOL and COP. The more I think about it though the more I tend to side with Disney with it. Disney is not hurting in any way and could keep ever attraction open all year long with out going under, it is just being business conscience to not waste more money then they need to. There are to sides that Disney has to play to, they have the Guest (us), and they have the Shareholders (some of us are share holders as well). The fan side of me says keep everything open, but the shareholder side says don't spend unnecessarily.

I agree 100% about the broken AA. If Disney has an attraction open it should be at the highest quality possible. That is the Disney standard and they have been under performing their own standard.

The Show Quality Standards aren't being observed because they laid off most of the Show Quality dept. and maybe only do annual reviews now if any.
Everything now is geared toward Ride Safety and making sure the rides are running. A couple of AA figures won't stop the ride from running, but it will be a bad show. Management just cares about getting people on and off the ride as fast as possible. The key word is throughput, how many guest per hour. Then if you have pavilions with low ridership, then they want to make it seasonal to save on costs.
 

HennieBogan1966

Account Suspended
Well, if there is no oversight on show quality, then it will certainly suffer for it. However, with regard to low ridership, I fully understand reducing operating hours if the numbers aren't there to support staffing an attraction 365 days a year. Can you imagine paying someone to stand around for 8 hours a day, when they're only "working" 3-5 hours of that day? How much is that going to cost over a year if you have 3-6 attractions overall that are in this type of situation?

Sure, I'd like to have everything open all the time too. But if I'm running a business, I don't want to pay people to stand around and do nothing. That's money LOST that CANNOT be recovered.
 

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