News Disney plans to accelerate Parks investment to $60 billion over 10 years

[HauntedPirate]

Bob: "Darn it. Florida numbers are down and our previous announcement of $17 billion in investments over a decade was met with a yawn. I need another lever to pull to increase excitement while not committing to anything firm."

Josh: "I know, sir!!! Let's increase the number to ... *pauses to catch his breath in his tight jeans*.... $60 billion!!!"

Bob: "Brilliant! I'll make the announcement and take all the credit. Thanks, faithful toady!"

Josh: "You're welcome, sir!"

When at first you don't succeed... keep raising the numbers until it generates sufficient buzz? This was such a great announcement that DIS is down nearly $3/share today. It's complete nonsense, and indicative of a company that is desperately trying to keep investor interest while being non-committal (be honest, this announcement is total vaporware right now) about spending on one of the few units that actually makes them money these days.

 

[Disstevefan1]

They talk about 10 years, but it takes them 2 years to think about building something and 5 to 7 years to actually build something.

 

[HauntedPirate]

Seriously, people. Where are they going to put a 5th park? And how much money would they need to invest in the actual land to make it suitable, because there isn't a ton of contiguous acreage for an entire new gate. Not to mention the additional infrastructure that would be needed, additional staff, the timelines these days...

 

[TheIceBaron]

Seriously, people. Where are they going to put a 5th park? And how much money would they need to invest in the actual land to make it suitable, because there isn't a ton of contiguous acreage for an entire new gate. Not to mention the additional infrastructure that would be needed, additional staff, the timelines these days...

There are a few locations, with the land already being suitable, one is right near magic kingdom that could use some of its existing infrastructure. They recently did a feasibility study for future land development and there are about 3 suitable locations for a 5th park.

 

[neo999955]

I think a 5th park, especially one solely focused on villains would be amazing. But if I was making decisions, I'd take that money and invest in the existing parks. Fix up all the areas mentioned here and add considerable expansion to all four parks.

 

[Indy_UK]

5th park isn’t happening at WDW.

 

[TheMaxRebo]

In an unrelated announcement: I'm planning to double the number of supermodels I date over the next 10 years.

I'd be more interested if you made a filing with th SEC indicating as such

 

[JD80]

I'd be more interested if you made a filing with th SEC indicating as such

Len Testa is not a publicly traded entity.

 

[HauntedPirate]

There are a few locations, with the land already being suitable, one is right near magic kingdom that could use some of its existing infrastructure. They recently did a feasibility study for future land development and there are about 3 suitable locations for a 5th park.

Where is all this land that could be used for a 5th park? Half of the land west of MK is marginally suitable (meaning: $$$$$ to make it suitable). There's the one tract of land north of Epcot. One tract north of WWoS.

 

[FigmentFan82]

fingers crossed D23 will be lively

 

[TheIceBaron]

Where is all this land that could be used for a 5th park? Half of the land west of MK is marginally suitable (meaning: $$$$$ to make it suitable). There's the one tract of land north of Epcot. One tract north of WWoS.

One in particular that could use MK's infrastructure is right near the parking gate for MK.

 

[Tha Realest]

Len Testa is not a publicly traded entity.

But Hank Lonely’s catalogue has been acquired by Scooter Braun

 

[TheIceBaron]

5th park isn’t happening at WDW.

I disagree, today's comments make a 5th gate more likely (even if still small chance). They have already committed to expansions at AK and MK, eventually a 5th gate will make sense. Based on the costs of previous projects and their future budget for the next 10 years (16 billion), a 5th gate will happen sooner rather than later. The $16 billion could conceivably include a 5th gate (especially if a land costs 1 billion). Even half of the 16 billion would likely be 8 lands right? Even if they did 16 billion for only existing parks, surely after that investment WDW would be ready for a 5th park in 2035?

 

[monothingie]

All of these people will be gone in 1-3 years time and the structure of the company will be radically different from what it is today. Additionally, WDI is gutted and dying and there is not desire to commit to anything long term. They've been playing with everyone with these blue sky "what ifs" because they have no ability to commit.

None of what they said today makes them more competitive or increases return on investment. This is just the work of their marketing people to make grandiose announcements, much like with D23, that only resonate with the low information observer.

 

[HauntedPirate]

One in particular that could use MK's infrastructure is right near the parking gate for MK.

Show me the map, don't waste my time sending a link to a video. I have the 2020 RCID Comprehensive Plan open on my desktop. The plot near the MK parking lot is the one I already referenced, south of WL and runs along World Drive. And putting a 5th gate there would be a logistical nightmare.

 

[fgmnt]

Seriously, people. Where are they going to put a 5th park? And how much money would they need to invest in the actual land to make it suitable, because there isn't a ton of contiguous acreage for an entire new gate. Not to mention the additional infrastructure that would be needed, additional staff, the timelines these days...

The permanent addition of an entire park support team, from maintenance and custodial and vending, to GR and behind the scenes bureaucracy, up to additional infrastructure to get people into a park (parking staff, transportation staff) has been the thing that makes it not ever pencil out for me. They can’t staff all of this across Florida right now + they want leaner operations across the company. The indefinite operational commitment required to maintain any additional gate is antithetical to how the company operates in 2023. How does that equate to an additional gate by 2033 unless you live in a fantastic unreality?

 

[monothingie]

I disagree, today's comments make a 5th gate more likely (even if still small chance). They have already committed to expansions at AK and MK, eventually a 5th gate will make sense. Based on the costs of previous projects and their future budget for the next 10 years (16 billion), a 5th gate will happen sooner rather than later. The $16 billion could conceivably include a 5th gate (especially if a land costs 1 billion). Even half of the 16 billion would likely be 8 lands right? Even if they did 16 billion for only existing parks, surely after that investment WDW would be ready for a 5th park in 2035?

It is almost impossible at this point to justify the operational cost of a new park. If there were money to be made it would have been done already.

Capacity has always been at the bottom of their priority list, it is about minimizing cost and maximizing revenue per guest. In the current competitive environment at WDW, building a new park doesn't check any of those boxes.

 

[TheMaxRebo]

Show me the map, don't waste my time sending a link to a video. I have the 2020 RCID Comprehensive Plan open on my desktop. The plot near the MK parking lot is the one I already referenced, south of WL and runs along World Drive. And putting a 5th gate there would be a logistical nightmare.

 

[Trekkie101]

Anaheim are pretty up front on what may come there.

Orlando, I wouldn't write off a 5th Gate terribly quickly. If you try and exit MK at night - it is a borderline disaster. There are huge crowding issues, long waits for bus, monorail and boat.

Epcot's investment in a decent evening show is likely tied to the fact the MK can't realistically have more people in there at that time and they need a "pull away".

Fantasmic is doing its thing but has a limited capacity - potentially more could be done in Galaxies Edge with some sort of interactivity with lightsabers at night. So Hollywood Studios isn't the answer.

Animal Kingdom is closed before the real trouble begins.

It sort of points towards the need for a "nightly / villains" kingdom to try and steal some of the crowds from MK. We know the halloween parties work as well in August as they do in October. I can see a "dark kingdom" working to alleviate some of the MK night time burden.

Paris, has plans now for a large expansion and overhaul of "Disney Village", including a new hotel.

WDS is adding its lake, lake show (with rumoured Tokyos Fantasmic water floats), Frozen, and another land to the mix. Much rumoured to be replacing the announced Star Wars land with Lion King/Pandora or something of that nature. There are two very easily used expansion pads that could take further announcements.

Star Wars that was planned around the lake, has apparently rather sensibly has been moved to Discoveryland into the Star Wars area. It may take a different form but should be an improvement. The ride is unknown.

The other persistent rumour is Runaway Railway to be added to Fantasyland.

 

[TheIceBaron]

It is almost impossible at this point to justify the operational cost of a new park. If there were money to be made it would have been done already.

Capacity has always been at the bottom of their priority list, it is about minimizing cost and maximizing revenue per guest. In the current competitive environment at WDW, building a new park doesn't check any of those boxes.

I think you are misunderstanding my point. In a securities filing today, DIS made a commitment to invest a substantial amount of money into WDW and their other resorts. The amount of money they have committed to an a securities filing is not some cheap marketing ploy, it is a commitment with legal consequences. The amount they committed to invest is over and above building out their existing parks at WDW. My point is $16 billion dollars solely to WDW is an enormous amount of money to simply make Animal Kingdom (for example) a full day park. $8 billion of that investment could make around 6-8 galaxy edge style/size expansions in the parks. I find it less likely they will make even 8 of those expansions at their existing parks without even considering making a 5th gate.

Operationally a 5th park situated near magic kingdom could make use of some of its existing infrastructure or the other option was to convert the Wide World of Sports into a 5th gate as well. With respect to staffing you are looking at the current labor market, not the labor market 10 years from now. Staffing such a park is a concern but you cannot rely on current labor market conditions to decide if you can staff something that will take 5 years at least to complete. If this 5th park was more geared towards a night crowd (with hours of operation from like 2pm-12am for instance) the staffing could be shuffled around a bit as well and help alleviate Magic Kingdom overcrowding.