News Disney Not Renewing Great Movie Ride Sponsorship Deal with TCM ; Attraction to Close

[NearTheEars]

I'm not sure how or what ROI is expected in a infrastructure upgrade. Some, yes, but, that is not the reason for it. It might have been used as a justification for spending a lot of money on it, but, it isn't something that any company looks at as a money maker in any other sense then it allows them to continue to do business. If it adds something, that is just a jackpot.

Oh, and kudos! We managed to take the costs from 2 billion to 3 billion in just 5 or 6 posts. That must be a new record. I am amazed how many people here have access to Disney financial records. Must be nice. They don't usually let a lot of people know about that especially when we consider the complexity of the accounting system for a company the size of Disney. It must be a nightmare pulling all that information together.

I think the issue with the ROI is that they (Staggs?) put out a specific number they expected. If they had just not put a number to it, people probably wouldn't be harping on it, but they had to tell investors something I guess.

 

[Bocabear]

Not that I'm aware of. Both have been trimmed, TSL was an absurd figure vs the finished product originally.

It is still hard for me to believe that with the attraction count problems at the studio they would have come up with a Toy Story Land rehash instead of someting special for this park...it really is disappointing. They have about beat this IP into the ground.

 

[wdisney9000]

They promised ROI to get it passed by the board, but any logical person should've known this was sketchy from the beginning if you are looking at it from a money making proposition.

So what does that say about the BOD? They heard the sales pitch directly from Iger Staggs and Rasulo. Did it not seem sketchy to them? If anybody is looking at it from a money making standpoint, its them.

 

[ChipNDale79]

guys, while I agree about My Magic and Fastpass+. Most of those 2 billion were needed.. because they were mostly a systems upgrade. Disney's system was ANCIENT and their multiple divisions were not linked together correctly.

It was Iger and Co who were claiming these were for the second coming of Jesus and not what it really was (aka a required upgrade to the backbone of Disney's IT systems and communications)

If it really did cost that much to upgrade a system that needed that bad, then fine. The spinning to make it sound like it was an investment for their customers, and investment to make their experience in the parks that much better, was a total failure.

 

[wdisney9000]

Didn't they approve billions in additional attractions, etc. right after they so foolishly, in your estimation, spent it on that alleged massive failure?

Approved? Yes. Begun to do anything with it or spend it almost a year later? No. Im referring to SWL and TSL. Im gonna take the Disney route and tell my wife I "approve" a budget for her to get the new Cadillac Escalade she wants, (appx $70k). I just wont actually buy it until 2021. She should be happy about that, right?

And NGE was referred to as a failure in the sense of ROI (which was promised). That promise was made about 3 years ago. Add in the extra cost to keep updating the system and they apparently have been working on a new style of Magic Band which Im sure wasnt cheap either. If memory serves correct, I believe they went back to the BOD to ask for more money, not to report their profits. Where is Staggs and Rasulo again?

 

[devoy1701]

I'm not sure how or what ROI is expected in a infrastructure upgrade. Some, yes, but, that is not the reason for it. It might have been used as a justification for spending a lot of money on it, but, it isn't something that any company looks at as a money maker in any other sense then it allows them to continue to do business. If it adds something, that is just a jackpot.

Oh, and kudos! We managed to take the costs from 2 billion to 3 billion in just 5 or 6 posts. That must be a new record. I am amazed how many people here have access to Disney financial records. Must be nice. They don't usually let a lot of people know about that especially when we consider the complexity of the accounting system for a company the size of Disney. It must be a nightmare pulling all that information together.

ROI from infrastructure upgrades is expected in the form of reduced overhead and increased operational efficiency (overall lower operating cost to increase profit margins). Usually the money is spent with a promise to be able to do the same thing with less people, or to be able to increase revenue per headcount by being better/smarter with the data you accumulate about your prospects/customers.

Let me just clarify... my entire attitude is based on the fact that what a company invests in is absolutely none of our business. If we disagree, as a stockholder, we sell it off and go to one that we agree with. As a customer if we are not happy about what happens we go to some other place and spend our money there. But, to constantly b**** about something that is not even slightly in our area of expertise is just foolishness. But, I do agree, enough has been said about it especially since my only comment was that the figure went from 2 Billion to 3 Billion in just 5 posts. One or both of those are incorrect and no amount of "but they promised" is going to change that. You and no one else other then the accountants in TWDC know what it costs for sure and I am very sure that they aren't talking.

As a stockholder, we should all be VERY interested in what the company is investing in, and voice our opinion when we disagree with it and/or the results. The executives and Boards are supposed to be investing in things that give the maximum return to the shareholders. The debate is are the short term strategies really good for the long term growth, and most shareholders and fans alike seem to say no. Disney/Iger is doing nothing to strengthen the Disney brand. He's formula for the last 10 years has been to simply buy other people's intellectual properties to increase the portfolio instead of creating their own.

 

[wdisney9000]

guys, while I agree about My Magic and Fastpass+. Most of those 2 billion were needed.. because they were mostly a systems upgrade. Disney's system was ANCIENT and their multiple divisions were not linked together correctly.

It was Iger and Co who were claiming these were for the second coming of Jesus and not what it really was (aka a required upgrade to the backbone of Disney's IT systems and communications)

Yes, the infrastructure upgrade was needed. The debate had shifted to how Disney should have simply been updating the system over the years instead of waiting until the thirteenth hour.

And Im always curious of the claims that the infrastructure was completely crumbling and was about to collapse at any moment, (not saying you said that). All the years leading up to NGE we never had any catastrophic problems with reservations, payment processing, or any other aspect of our trip. If it was as bad as some claim, Im curious to know exactly what areas were "crumbling". Im not trolling, Im actually curious. I only ask, because we have actually experienced MORE issues that we never had prior to MM+. Im talking about bands not scanning at park entrance, room door wont open, FP+ not syncing in large group, dining reservation at wrong time, etc. The upgrades may have improved back house operations , but they haven improved front line.

 

[Matt_Black]

. He's formula for the last 10 years has been to simply buy other people's intellectual properties to increase the portfolio instead of creating their own.

Really. Then what do you call Wreck-It Ralph, Frozen, or Zootopia?

 

[SorcererMC]

Really. Then what do you call Wreck-It Ralph, Frozen, or Zootopia?

Keep in mind that they weren't expecting Frozen to go gangbusters, eg merch shortages and then trying to get it into the parks as 'cheaply' (relative term) as possible. This is to say that they weren't really banking on their own creative content for growth; they should have had complementary promotions ready for it, but they didn't.

Edit: Actually on the last earnings call, there were questions about the Consumer Products segment revenue falling and this was attributed to the appeal of Frozen waning...and how is Frozen 2 going to do? Anyhow, my point is that they should be planning for success of their creative content, so as to capitalize on it as much as possible in a timely fashion.

 

[wdisney9000]

Really. Then what do you call Wreck-It Ralph, Frozen, or Zootopia?

Frozen would be the only true powerhouse out of those 3. And let's not forget that they didn't even faith in it.

 

[Matt_Black]

And now we're moving the goalposts. "Well, YES, okay, but they didn't ____." Just like if I mentioned there's plenty of new original stuff on Disney XD and Disney Junior, that wouldn't count because REASONS.

 

[SorcererMC]

And now we're moving the goalposts. "Well, YES, okay, but they didn't ____." Just like if I mentioned there's plenty of new original stuff on Disney XD and Disney Junior, that wouldn't count because REASONS.

Perhaps I was being too subtle. TWDC is not using their own creative content as a growth strategy, they are using M&A of other IPs. It's not that they don't develop their own content, they do. But they are putting their money - and confidence - into 'external' properties.

 

[seabreezept813]

Out of curiosity, has anyone heard if there's been any internal backlash about removing GMR? I would think that like ToT it would be concerning to take it out of the attractions line-up. I would also imagine that there is a certain demographic of guests who might stay away from this park for good in the absense of this ride.

 

[Matt_Black]

Perhaps I was being too subtle. TWDC is not using their own creative content as a growth strategy, they are using M&A of other IPs. It's not that they don't develop their own content, they do. But they are putting their money - and confidence - into 'external' properties.

That's not what you said. And, even with the moving of the goalposts, let's look at this- since Iger took over, the Disney Princess line, a BIG thing for Disney, has added at least 3 new members, as well as creating numerous tangential franchises, like Sofia the First and Elena of Avalor. Of course, someone will come along to explain how that doesn't count either.

 

[Mike S]

Yes, the infrastructure upgrade was needed. The debate had shifted to how Disney should have simply been updating the system over the years instead of waiting until the thirteenth hour.

And Im always curious of the claims that the infrastructure was completely crumbling and was about to collapse at any moment, (not saying you said that). All the years leading up to NGE we never had any catastrophic problems with reservations, payment processing, or any other aspect of our trip. If it was as bad as some claim, Im curious to know exactly what areas were "crumbling". Im not trolling, Im actually curious. I only ask, because we have actually experienced MORE issues that we never had prior to MM+. Im talking about bands not scanning at park entrance, room door wont open, FP+ not syncing in large group, dining reservation at wrong time, etc. The upgrades may have improved back house operations , but they haven improved front line.

MM+ = Intellilink

 

[SorcererMC]

That's not what you said. And, even with the moving of the goalposts, let's look at this- since Iger took over, the Disney Princess line, a BIG thing for Disney, has added at least 3 new members, as well as creating numerous tangential franchises, like Sofia the First and Elena of Avalor. Of course, someone will come along to explain how that doesn't count either.

I am clarifying the intent of my earlier post. What I'm trying to say is that you are not entirely wrong in saying that they have developed their own content; I'm qualifying how Disney has used their own creative content vs. IPs for growth - this is a sea change under Iger from what TWDC has traditionally done. For the record, I think I like Elena of Avalor and it's a smart move on their part.

Edit: The 'Disney Princess' brand was done purely for merchandising purposes; it was a good way for them to continue to capitalize on their own existing content by 'refreshing' it (I don't always like how they've done that; a separate issue).

 

[ChipNDale79]

That's not what you said. And, even with the moving of the goalposts, let's look at this- since Iger took over, the Disney Princess line, a BIG thing for Disney, has added at least 3 new members, as well as creating numerous tangential franchises, like Sofia the First and Elena of Avalor. Of course, someone will come along to explain how that doesn't count either.

I'm a father of 2 boys, I'm glad they brought along Zootopia, the princess stuff doesn't do anything at all for our house.

Zootopia is a knock out of the park for us though...our boys have watched it probably 20 times now.

 

[ChipNDale79]

I am clarifying the intent of my earlier post. What I'm trying to say is that you are not entirely wrong in saying that they have developed their own content; I'm qualifying how Disney has used their own creative content vs. IPs for growth - this is a sea change under Iger from what TWDC has traditionally done. For the record, I think I like Elena of Avalor and it's a smart move on their part.

Edit: The 'Disney Princess' brand was done purely for merchandising purposes; it was a good way for them to continue to capitalize on their own existing content by 'refreshing' it (I don't always like how they've done that; a separate issue).

I mean, this is valid, look at what has been purchased under Iger; Pixar, Marval, and Lucas. those 3 studios are pumping out hits.

Its completely fair to say the focus has been on acquiring additional IP more so than creating new.

 

[Matt_Black]

Well, first, I don't think the Lucasfilm buy was solely for the IPs. That was a huge consideration, to be sure, but the buy also included ILM and Skywalker Sound. You can see why a company that makes movies would like to have those two under the umbrella, yes?

Furthermore, all 3 of the above mentioned companies had previous working relationships with Disney. In the case of Lucasfilm, this was more of like finally putting a ring on it after dating for 20 years as opposed to a one night stand followed by a Vegas wedding chapel.

 

[ChipNDale79]

Well, first, I don't think the Lucasfilm buy was solely for the IPs. That was a huge consideration, to be sure, but the buy also included ILM and Skywalker Sound. You can see why a company that makes movies would like to have those two under the umbrella, yes?

Furthermore, all 3 of the above mentioned companies had previous working relationships with Disney. In the case of Lucasfilm, this was more of like finally putting a ring on it after dating for 20 years as opposed to a one night stand followed by a Vegas wedding chapel.

I'll give you Iger had to make the deal with Pixar, there's no question about that, it had to be done. With that being said, its also hard to argue that the main reason DIS purchased Star Wars was because of the other things rather than the IP. I mean, look at what all they've done with Star Wars since they purchased it. Multiple new movies and massive theme park expansions for this IP alone.

I honestly don't care about all of that though, just pointing it out. It doesnt really matter to me if they acquire or develop new IP.