Josh D'Amaro comments on rising prices and "additional" or removed services: "An inevitable result of progress"

[Smiley/OCD]

I think this is a fair argument that will be largely answered in a few weeks at D23, Disney just posted record profits and announced $6 billion in capital expenditures, if they don’t hint at how they’re going to spend that money in the parks we’ll know exactly what Chapeks vision for the parks will be.

With Epic universe in full construction mode there will never be a better time to announce future plans, if they don’t announce something big we’ll have our answer.

The fact there’s been no leaks or rumors doesn’t give me much hope though.

This last line…so accurate…Disney is now like your favorite sports team at the trade deadline…there’s sooooo many pieces of the puzzle that needs to be addressed…you keep looking for the great news that the team made that trade…the twelfth hour comes and goes and you get bubkes…THATS what the bearded charmer and Josh is going to give us at D23…bubkes.

 

[GhostHost1000]

Two big questions remain:
1. Where is it being “spent”?
2. Is it actually being “spent”?

3rd question and how much of what they announce actually happens or how much gets budgets slashed

 

[marni1971]

…the issue is that I’d get the farm he’ll keep going.

And I bet I get to keep the farm

He isn’t.

Same as us.

 

[marni1971]

I wonder if a lot of it is people focusing on what isn't there/gone whereas people who don't go as often are still able to focus on what is there

I had two families we are friends with take trips this summer, for one it was their first trip ever, for the other was the first in a number of year and only been a couple of times in total.

They both absolutely loved it and are planning their next trip

People will still go. That much is certain.

 

[MissingDisney]

Scott Gustin just tweeted this part of the article, where D'Amaro talks about sending people food and merchandise discounts via Genie to disperse crowds. Has anyone ever gotten a food or merchandise discount via the app before? Because I sure haven't. This sounds like complete nonsense.

View attachment 663108

So in other words, “yes, we inflate/deflate (lie about) wait times in the parks to manipulate you but don’t be mad….we want you to think you’re getting your money’s worth by shelling out extra for Genie +. We’re actually doing you a favor! You’re welcome!”

 

[Sirwalterraleigh]

There was talk about that when it was getting developed many years ago but of course has never happened.

That was the word that popped into my head: liar

This guy really got up on the wrong side of the skinny jeans that morning

 

[Sirwalterraleigh]

He isn’t.

Same as us.

I’d still give it some time to “germinate”

 

[marni1971]

Scott Gustin just tweeted this part of the article, where D'Amaro talks about sending people food and merchandise discounts via Genie to disperse crowds. Has anyone ever gotten a food or merchandise discount via the app before? Because I sure haven't. This sounds like complete nonsense.

View attachment 663108

By “discount“ maybe he means charging something reasonable as opposed to what they think they can get away with.

 

[marni1971]

I’d still give it some time to “germinate”

For him or for me?

 

[bhg469]

People will still go. That much is certain.

I belong to a group of people that are into drinking at Disney.. We just joined on the advice of a bartender and it has well over 40,000 members at this point. We joined because we really enjoy a GOOD cocktail.. Not a simple rum and coke or a screwdriver but I digress. I feel like that site represents the problem.. Not the excessive drinking on Disney property but it seems like every other day some will ask for the best drinks on property and a huge swath of people suggest La Cava De Tequila. The bar that serves margaritas out of a jug...

Maybe that makes sense to some people here, maybe some of those people are here but if your idea of a great drink comes out of a plastic jug from walmart, you're overpaying for garbage and you enjoy the bottom of the barrel service and quality.

 

[dreday3]

For him or for me?

I don't think anyone thinks you are planning a trip to Disney at the moment.

 

[GimpYancIent]

All this time B.C and Josh or B.I. are referenced yet no identity is given to the members of "The Board". Who are the shadowy nameless members of "The Board"? Maybe they should be brought out into the light for all to see and know since B.C. and Josh etc. answer to "The Board". How about a look behind the curtain? Decision making may be different, no?

 

[GimpYancIent]

I belong to a group of people that are into drinking at Disney.. We just joined on the advice of a bartender and it has well over 40,000 members at this point. We joined because we really enjoy a GOOD cocktail.. Not a simple rum and coke or a screwdriver but I digress. I feel like that site represents the problem.. Not the excessive drinking on Disney property but it seems like every other day some will ask for the best drinks on property and a huge swath of people suggest La Cava De Tequila. The bar that serves margaritas out of a jug...

Maybe that makes sense to some people here, maybe some of those people are here but if your idea of a great drink comes out of a plastic jug from walmart, you're overpaying for garbage and you enjoy the bottom of the barrel service and quality.

Drink enough and no one cares.

 

[marni1971]

I don't think anyone thinks you are planning a trip to Disney at the moment.

We’ll be there very soon - a trip planned in 2019. I’ve already dropped two days off what was originally planned to go elsewhere.

After that I don’t know when we will go back to a WDW park. We’re certainly not planning on it.

 

[CaptainAmerica]

Two big questions remain:
1. Where is it being “spent”?
2. Is it actually being “spent”?

These are audited financial statements.

 

[mightynine]

All this time B.C and Josh or B.I. are referenced yet no identity is given to the members of "The Board". Who are the shadowy nameless members of "The Board"? Maybe they should be brought out into the light for all to see and know since B.C. and Josh etc. answer to "The Board". How about a look behind the curtain? Decision making may be different, no?

Disney - Leadership, History, Corporate Social Responsibility

The Walt Disney Company, together with its subsidiaries and affiliates, is a leading diversified international family entertainment and media enterprise.

thewaltdisneycompany.com

They are not hard to find.

 

[dreday3]

We’ll be there very soon - a trip planned in 2019. I’ve already dropped two days off what was originally planned to go elsewhere.

After that I don’t know when we will go back to a WDW park. We’re certainly not planning on it.

I hope you have fun though!

 

[The Colonel]

It may seem unlikely, since Disney is such a staple of Americana, but similar events have happened in the past. Overnight Disney can become unfashionable, passe, uncool, ridiculous, superficial, vulgar, and somewhere no one with any sense or style goes to anymore. It can reach that tipping point when enough people hate the management, can't afford the parks, feel abused, feel insulted, and treated like walking ATM machines. EVERYONE in upper Disney management seems to be going out of their way to make this happen. They no longer even pretend to serve the core values that built the company. I hope it happens.

 

[MichWolv]

That's what I thought too, yet:

View attachment 663096

Paging @MichWolv.

Disney consolidates both Shanghai and Hong Kong, despite owning a minority of the stock in each, because, despite the minority ownership, it has power over the day-to-day operations of each through contractual agreements. There are several structures in which this could happen. In the case of Shanghai and Hong Kong, the structure is one where, while Disney owns a minority of the operating entity, the operating entity has contracted management to a company that Disney owns a majority of. Thus, Disney controls the entity that makes management decisions about the operation of the resort. This is described in the footnotes to the financial statements as follows:

The consolidated financial statements of the Company include the accounts of The Walt Disney Company and its majority-owned or controlled subsidiaries.
*****
The Company enters into relationships with or makes investments in other entities that may be variable interest entities (VIE). A VIE is consolidated in the financial statements if the Company has the power to direct activities that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant (as defined by ASC 810-10-25-38) to the VIE. Hong Kong Disneyland Resort and Shanghai Disney Resort (together the Asia Theme Parks) are VIEs in which the Company has less than 50% equity ownership. Company subsidiaries (the Management Companies) have management agreements with the Asia Theme Parks, which provide the Management Companies, subject to certain protective rights of joint venture partners, with the ability to direct the day-to-day operating activities and the development of business strategies that we believe most significantly impact the economic performance of the Asia Theme Parks. In addition, the Management Companies receive management fees under these arrangements that we believe could be significant to the Asia Theme Parks. Therefore, the Company has consolidated the Asia Theme Parks in its financial statements.

The management companies are mentioned elsewhere in Disney's 10-K filing as follows:

Shanghai Disney Resort
Shanghai Shendi (Group) Co., Ltd (Shendi) and the Company have 57% and 43% equity interests in Shanghai Disney Resort, respectively. A management company, in which the Company has a 70% interest and Shendi a 30% interest, operates Shanghai Disney Resort.

Hong Kong Disneyland Resort
The Company owns a 48% interest in Hong Kong Disneyland Resort and the Government of the Hong Kong Special Administrative Region (HKSAR) owns a 52% interest. The resort is located on 310 acres on Lantau Island and is in close proximity to the Hong Kong International Airport and the Hong Kong-Zhuhai-Macau Bridge. Hong Kong Disneyland Resort includes one theme park and three themed resort hotels. A separate Hong Kong subsidiary of the Company is responsible for managing Hong Kong Disneyland Resort. The Company is entitled to receive royalties and management fees based on the operating performance of Hong Kong Disneyland Resort.

Not that it matters, but these types of structures are common for businesses in China, as the Chinese government generally disallows outside ownership of significant real estate in China. So companies structure their operations in China so that they have less than majority ownership of the real estate, but still make the decisions about running the business through contractual relationships. For accounting purposes, the decision on whether the operations are included in the financial statements is determined by "control", not ownership. Usually, control rests with the majority owner, but not always.

 

[bhg469]

Drink enough and no one cares.

This is precisely the issue.. A $20+ drink should be good before you've had 5 rounds... The people with this kind of attitude but the same thought process into everything.