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

[Andrew C]

I'm not that familiar with DCL spend. How much have they spent getting the Wish and Treasure out the door?

Just north of a billion on each.

 

[doctornick]

Just north of a billion on each.

And Adventure, while huge, came at a bit of a discount no? Since it was previously being built by another company.

 

[Moth]

Back in April, Iger said that Disney is planning $17 billion worth of investments in Walt Disney World over the next 10 years.

Was he lying, or has "plans" changed?

It's Iger and his relationship with WDW. Plans definitely changed lol. He obviously has no interest in WDW until Universal bends the knee and gives up Marvel.

 

[CaptainAmerica]

I'm not that familiar with DCL spend. How much have they spent getting the Wish and Treasure out the door?

More than a billion, less than two.

 

[MrPromey]

... Marvel rights I still believe Disney are going to try and get back as part of the Hulu talks and the right side of the park will become it's own Avengers Campus.
...

What about the negotiated sale in the stake that Disney is obligated to buy, do you think would make Universal's use of Marvel properties in a Florida theme park part of that same discussion?

 

[CaptainAmerica]

I'm agreeing with your overall assessment of this announcement: it's good news for the parks, even with inflation.

That said, $1 today is worth more than double the value of $1 in 20 years at 4% inflation (it'd be $0.46).

I had to do this in a spreadsheet because compounding values is really hard to wrap my head around.

You can't start from Year 0 and then discount over 20 years to get to Year 20. That would imply that every dollar in the last decade was spent in 2013 and every dollar in the next decade will be spent in 2033.

Do the same thing you did, but instead of 20 periods at 4%, do 10 periods at 2%.

 

[flynnibus]

If historical trends hold and $60 billion is the real number, I would expect something like:

• $20 billion World
• $10 billion Land + "Other Domestic"
• $10 billion Cruise
• $20 billion International

But they would have to be super aggressive to get anywhere near that International number, so I would expect this to skew more towards World than the round numbers I chose here.

I found the point that the presentation made sure to include the global references... in both of their scale and options to expand to be very deliberate. I don't think they included global sites to just inflate their claims of what they had.

Obviously that is where Disney's inside data on their product and consumers stomps everything we know from the outside... but makes you wonder where they really see the investment opportunities. Is DLP finally ready to be something bigger?

 

[lentesta]

And Adventure, while huge, came at a bit of a discount no? Since it was previously being built by another company.

$41 million for the ship as it was. The press release effectively said that amount of money was immaterial.

 

[lentesta]

You can't start from Year 0 and then discount over 20 years to get to Year 20. That would imply that every dollar in the last decade was spent in 2013 and every dollar in the next decade will be spent in 2033.

Do the same thing you did, but instead of 20 periods at 4%, do 10 periods at 2%.

Yeah, you're right. My point was that inflation has to be accounted for.

 

[fgmnt]

Sure thing. We just need everyone riding that carousel to give Disney $12.99 a month for a year to cover its cost!!

When is Tony gonna set up that Patreon to make a new Journey into Imagination?

 

[flynnibus]

Yeah, you're right. My point was that inflation has to be accounted for.

yeah but when outlining a vision (not a specific budget) over a long period of time, you don't inflation adjust your totals. They are framing these plans in today's money... and will adjust in tomorrows money, tomorrow, using tomorrow dollars and rates.

 

[Tjaden]

Hey everyone, I made a graph too. I can also do a bar chart or pie chart if requested.

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Thank God I skipped DVC Member and went straight for Lunatic. That's one bill I don't have to worry about.

 

[MisterPenguin]

 

[Andrew C]

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This is crap out of here!!

 

[flynnibus]

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An 11% difference? Im sold… these guys are just cheap!

/s

 

[TheMaxRebo]

We can quibble about exact numbers but seems clear that this is an increased version what they spent the past 10 years, but likely less than double, especially when factoring inflation. Whether it is 40% more or 50% more, who knows

So bigger question is how we feel about them doing in the next 10 years 140% of what the last 10 years brought

 

[hopemax]

Since Iger's typical MO is acquisitions, any chance this money is intended to be used that way? The old rumors of acquiring a toy company for "Products." Especially, with Barbie being the box office winner this summer. Or some regional entertainment operation? Bringing back the Disney Store in some fashion?

Trying to think outside of the DCL / Resort box since it's Parks, Experiences and Products.

 

[No Name]

Come on.

Galaxy's Edge takes up the same square footage as Backlot Tour but it's super disingenuous to call that a "replacement."

Nobody said it was an equal replacement, but it’s still a replacement.

 

[No Name]

One thing I haven’t seen mentioned much is the rate of theme park inflation, which has outpaced regular inflation.

Everest was built for $100 million. What would that cost them today? Not that they’d ever build a generic coaster themed to India or whatever, but I’m going to guess at least $300 million, probably more like $400 million. That’s more than double regular inflation!

At this rate, 60 billion will do far less than it should.

 

[UNCgolf]

One thing I haven’t seen mentioned much is the rate of theme park inflation, which has outpaced regular inflation.

Everest was built for $100 million. What would that cost them today? Not that they’d ever build a generic coaster themed to India or whatever, but I’m going to guess at least $300 million, probably more like $400 million. That’s more than double regular inflation!

At this rate, 60 billion will do far less than it should.

If the Cosmic Rewind $500m price tag is correct, then yeah...

Expedition Everest has a much better queue than Cosmic Rewind, and certainly a better facade. The on-ride experience is subjective -- I think Everest is clearly better from a themed perspective, but I assume the physical sensation goes to CR -- but I don't think you'd find many people that think CR is worth 5x as much as Everest even if they like CR more.

That's admittedly an overly simplistic way to look at it, but it illustrates the general point. If Disney's costs keep spiraling the way they are, who knows how much they can actually build with that money.

That said, it's still good news. They've announced plans to invest a large sum of money into the parks. That's what everyone wants.