News Expect closure of Hong Kong Disneyland and Shanghai Disneyland to impact Walt Disney World

[lazyboy97o]

I feel this is any large company that runs the risk of losing money. Whether it’s right or wrong is another discussion but not shocking in the slightest. So I don’t understand people who think it wouldn’t happen cause the parks division are one division from my understanding (more complicated I imagine but in simple terms is one big pot.) I also don’t get people who are shocked they would do it.

The next animated movie doesn’t have its staff cut because a live action movie underperformed. Sometimes having a bomb is part of making movies, Disney knows that and is able to properly handle the fallout from such losses. They don’t understand why so many people go to the stupid theme parks they tried to sell off, so they don’t know how to stand firm and explain normal cycles or even extraordinary events. They only know how to response with panic because they don’t know how to ride out a small storm.

 

[FigmentForver96]

The next animated movie doesn’t have its staff cut because a live action movie underperformed. Sometimes having a bomb is part of making movies, Disney knows that and is able to properly handle the fallout from such losses. They don’t understand why so many people go to the stupid theme parks they tried to sell off, so they don’t know how to stand firm and explain normal cycles or even extraordinary events. They only know how to response with panic because they don’t know how to ride out a small storm.

As I said, right or wrong is another discussion. Just not shocking that it’s happening either.

 

[the.dreamfinder]

From this piece I read in the Hollywood Reporter this morning, Chinese exhibitors are currently expecting to be closed until at least March 1st.

 

[Kman101]

I feel this is any large company that runs the risk of losing money. Whether it’s right or wrong is another discussion but not shocking in the slightest. So I don’t understand people who think it wouldn’t happen cause the parks division are one division from my understanding (more complicated I imagine but in simple terms is one big pot.) I also don’t get people who are shocked they would do it.

Folks seem to think that Disney is a magical company who doesn't operate like a business. I don't like how they operate lol, as most of us don't, but it's not a surprise. I saw a lot of "know-it-alls" on social media going on the attack when someone dared suggest it would lead to cuts. It's so bizarre. At least have your eyes open. lol

 

[TrainsOfDisney]

Folks seem to think that Disney is a magical company who doesn't operate like a business. I don't like how they operate lol, as most of us don't, but it's not a surprise. I saw a lot of "know-it-alls" on social media going on the attack when someone dared suggest it would lead to cuts. It's so bizarre. At least have your eyes open. lol

If your Pixar movies are consistently making money, and your live action movies bomb.... do you take money away from Pixar because the entire movie division has to make a certain target?

 

[LSLS]

If your Pixar movies are consistently making money, and your live action movies bomb.... do you take money away from Pixar because the entire movie division has to make a certain target?

If they think they can slash the movie budget and still draw the same box office, absolutely they do.

 

[TrainsOfDisney]

If they think they can slash the movie budget and still draw the same box office, absolutely they do.

Couldn’t they? I mean if short term profits are the bottom line as long as Pixar is at the top some people will still come see it. I mean look at the good dinosaur! (Too soon?).

But if the long term health of the brand is a concern, you need to continue creating Pixar movies at high quality and you do that by spending $200 million per film.

 

[LSLS]

Couldn’t they? I mean if short term profits are the bottom line as long as Pixar is at the top some people will still come see it. I mean look at the good dinosaur! (Too soon?).

But if the long term health of the brand is a concern, you need to continue creating Pixar movies at high quality and you do that by spending $200 million per film.

So what you are saying is they could have theoretically cut The Good Dinosaur's production budget by 10% after a movie flop (maybe cutting a bunch of the animation details put on towards the end) and still draw the $332 million?

I mean, if you want to look at it in terms of movies (which I'm not sure I really like the comparison), if the head of Walt Disney Studios is told he needs to make $X,XXX in 2018, and they were looking like they would end up $2 million under because one movie flopped, I would not be the least bit shocked if they cut $2 million from the 2018 marketing budget for End Game, with the thought being that movie won't need it anyways.

 

[WDWTank]

That's corporate USA in a nutshell. Do more with less.

Such a terrible motive

 

[Lilofan]

Since a percentage of merchandise comes from China, wait and see if any impacts to DLR and WDW merchandise stock due to Coronavirus. I'm sure many merchandise and food items from China sold in the USA will be impacted by lower inventory counts. If Chinese residents don't go to work, production stops.

 

[techgeek]

This afternoon both Delta and American Airlines announced suspension of flights to mainland China, effective within the next few days and ongoing through at least the end of March (March 28th for American, April 30th for Delta).

I think this is just the start of travel issues related to the virus, and it gives us an early picture of realistically how long it could remain an issue. It would seem the park closures could wind up being months and not just weeks.

 

[HauntedPirate]

This afternoon both Delta and American Airlines announced suspension of flights to mainland China, effective within the next few days and ongoing through at least the end of March (March 28th for American, April 30th for Delta).

I think this is just the start of travel issues related to the virus, and it gives us an early picture of realistically how long it could remain an issue. It would seem the park closures could wind up being months and not just weeks.

Buckle up, looks like this could get ugly.

 

[IanDLBZF]

This afternoon both Delta and American Airlines announced suspension of flights to mainland China, effective within the next few days and ongoing through at least the end of March (March 28th for American, April 30th for Delta).

Also Virgin Atlantic (suspending today) and United (who extends that suspension until end of March).

As for Cathay Pacific and Hong Kong Airlines, they said they would be reducing the number of flights to/from China. Not sure about other Asian carriers (eg Asiana, Korean Air, ANA, JAL, etc), anybody have further details.

 

[Lilofan]

Only (7) USA airports accepting flights from China and passengers will be screened.

Honolulu
Los Angeles
San Francisco
NYC
Chicago
Seattle
Atlanta

 

[Patcheslee]

Because of Chinese New Year, most business will not be effected as much for a while as production would be low anyway. This could all be blown over by then, or all the traveling people make during the celebration will make it worse.

My company has 2 manufacturing plants in Wuhan, China, both which are an extension of and cross supplier of our plant. They have already extended New Year's holiday and banned all travel. Any employees who were there in the past few weeks and returned to the U.S. are supposed to get screening. But if is goes for too long it will effect our production here, and in turn more layoffs for us because it is a global company. It isn't just Disney that could be negatively effected.

 

[celluloid]

We can probably expect some numbers to drop in US park attendance too(from overseas visitors) if the chain of concern or panic continues with flight plants being canceled.
The Olympics coming up in Japan too could see interesting changes from predictions(?)

 

[Lilofan]

We can probably expect some numbers to drop in US park attendance too(from overseas visitors) if the chain of concern or panic continues with flight plants being canceled.
The Olympics coming up in Japan too could see interesting changes from predictions(?)

Don't know but USA should clean up in the medal competition since Russia got banned for cheating. I know firsthand people in Japan are known for efficiency and cleanliness.

 

[Rosso11]

From this piece I read in the Hollywood Reporter this morning, Chinese exhibitors are currently expecting to be closed until at least March 1st.

This is what can potentially hurt Disney just as much if not more than the parks being temporarily closed in China. Mulan was being made by Disney primarily for the Chinese market. They were expecting huge numbers in China for this. Hopefully their biggest movie ever in China. I wouldn’t be surprised if Disney pushes back the worldwide release of Mulan until things get back to normal. The problem is even if the theaters open back up early March most people in China will still be scared to go to the movies being locked in an enclosed room for 2 hours with a few hundred people by March 27th Mulan’s present release day.

 

[the.dreamfinder]

This is what can potentially hurt Disney just as much if not more than the parks being temporarily closed in China. Mulan was being made by Disney primarily for the Chinese market. They were expecting huge numbers in China for this. Hopefully their biggest movie ever in China. I wouldn’t be surprised if Disney pushes back the worldwide release of Mulan until things get back to normal. The problem is even if the theaters open back up early March most people in China will still be scared to go to the movies being locked in an enclosed room for 2 hours with a few hundred people by March 27th Mulan’s present release day.

Disney makes squat from the movies they release in China, roughly 25% of the gross. It’s more of a brand building exercise than a money maker.

 

[seascape]

Disney makes squat from the movies they release in China, roughly 25% of the gross. It’s more of a brand building exercise than a money maker.

China is a huge market and just about the same size as North America. 25% may only be half the normal cut but it is huge and where many movies become profitable and without it many movies will lose money.