Disney Parks Chief Says Focus on Familiar Formula
SAN FRANCISCO (Reuters) -- Facing skittish tourists, a weak economy and investors calling for deep changes at Walt Disney Co., the new head of the company’s hard-hit theme parks division is placing his faith in the tried and trusted Disney magic. Drafted from Paris, where he headed Euro Disney since 2000, Jay Rasulo, 46, was appointed parks chief of Walt Disney Co. on September 29. “What we do know about our guests is that they come to Disney resort destinations to have memorable, magical moments, and I don’t think that has changed at all,” Rasulo told Reuters in an interview late on Thursday. “It certainly hasn’t changed for the last 50 years that we have been in that business, and I seriously doubt it has changed in the last 18 months.” Rasulo inherits the division which is the financial backbone of the Burbank, California-based company in tough times. The theme parks division accounted for 40% of Disney’s operating earnings last year, but Disney lowered its fourth-quarter financial forecast due in large part to weak park attendance. Rasulo said Disney needed to listen to its guests and respond. “I think we’ve been doing the right things,” he said. Disney had not changed its message, had not altered its advertising strategy or spending in order to attract a different mix of visitors and had not modified its already successful strategy of partnering with companies to sponsor park rides, he said. But it was already having success with a new attraction geared to young children at its Anaheim, California-based California Adventure, which failed to meet early expectations. The new attraction, related to the animated feature “A Bug’s Life,” opened on Oct. 7 as part of a bid to offer more for young children at California Adventure. Rasulo said Disney should focus on the long run for its 10 theme parks in the United States, France and Japan. Asked if improved attractions could offset the slow economy, Rasulo said Disney’s best bet was to focus on the customer: “They are the things that will do you the best in an up cycle and will do you the best in a down cycle.”
SAN FRANCISCO (Reuters) -- Facing skittish tourists, a weak economy and investors calling for deep changes at Walt Disney Co., the new head of the company’s hard-hit theme parks division is placing his faith in the tried and trusted Disney magic. Drafted from Paris, where he headed Euro Disney since 2000, Jay Rasulo, 46, was appointed parks chief of Walt Disney Co. on September 29. “What we do know about our guests is that they come to Disney resort destinations to have memorable, magical moments, and I don’t think that has changed at all,” Rasulo told Reuters in an interview late on Thursday. “It certainly hasn’t changed for the last 50 years that we have been in that business, and I seriously doubt it has changed in the last 18 months.” Rasulo inherits the division which is the financial backbone of the Burbank, California-based company in tough times. The theme parks division accounted for 40% of Disney’s operating earnings last year, but Disney lowered its fourth-quarter financial forecast due in large part to weak park attendance. Rasulo said Disney needed to listen to its guests and respond. “I think we’ve been doing the right things,” he said. Disney had not changed its message, had not altered its advertising strategy or spending in order to attract a different mix of visitors and had not modified its already successful strategy of partnering with companies to sponsor park rides, he said. But it was already having success with a new attraction geared to young children at its Anaheim, California-based California Adventure, which failed to meet early expectations. The new attraction, related to the animated feature “A Bug’s Life,” opened on Oct. 7 as part of a bid to offer more for young children at California Adventure. Rasulo said Disney should focus on the long run for its 10 theme parks in the United States, France and Japan. Asked if improved attractions could offset the slow economy, Rasulo said Disney’s best bet was to focus on the customer: “They are the things that will do you the best in an up cycle and will do you the best in a down cycle.”
