The Spirited Seventh Heaven ...

[seascape]

With all due respect, what the 'eff are you talking about? Asian corps. primarily determining retirement? investment in WDW now that Shanghai is done? 5th gate? Orlando vacationers are the only ones with stock and mutual funds? SMH

Who do you think the people are who go every year? The top third of the population is who is the target audience of both Disney and Universal. The bottom 50% can't afford it and the other 17% go once or twice a lifetime. People who only care about what happens in Orlando are making a big mistake. If you want to retire like I do with a lifestyle that allows me to decide where and when I want to vacation must invest for maximum return and that means looking all over the world. I am not be in the top 1% but I have enough because I invested in stocks and companies that are all over the world. ETTS are the way to go but you need international exposure. If you are only interested in those that live in Orlando I could understand your view but rember neither Universal or Disney would care about you and the locals if they could fill up the parks with tourists staying in their hotels. Further it looks like both parks want to build enough hotels that they will raise season pass prices to the point where they are not affordable to anyone but the rich. Both companies increase their prices every year and in California have lots of blackout dates.

 

[jakeman]

Who do you think the people are who go every year? The top third of the population is who is the target audience of both Disney and Universal. The bottom 50% can't afford it and the other 17% go once or twice a lifetime. People who only care about what happens in Orlando are making a big mistake. If you want to retire like I do with a lifestyle that allows me to decide where and when I want to vacation must invest for maximum return and that means looking all over the world. I am not be in the top 1% but I have enough because I invested in stocks and companies that are all over the world. ETTS are the way to go but you need international exposure. If you are only interested in those that live in Orlando I could understand your view but rember neither Universal or Disney would care about you and the locals if they could fill up the parks with tourists staying in their hotels. Further it looks like both parks want to build enough hotels that they will raise season pass prices to the point where they are not affordable to anyone but the rich. Both companies increase their prices every year and in California have lots of blackout dates.

84% of statistics are made up on the spot.

 

[PhotoDave219]

Don't I know it....

Too many people believing spy movies and watching the show 24.

 

[marni1971]

This thread has gone on too long with the Disney versus Universal junk.

And why do you think that is?

 

[seascape]

So if I charge people $1.00 to get in using NextGen and attendance goes through the roof...would you agree or disagree that "total attendance" is a good gauge?

There is no discount in ticket prices for using next gen let's get real. I could say the same thing if universal lowered their price to 1.00 would the increase be due to HP? But I do have a guestion about universals wifi and app. Where was the cost allocated? Disney put all their costs into the next generation budget.

 

[Stevek]

I have said in the past that the cost savings can clearly be proven. So can certain sales, i.e. magic bands. The problem is increased sales in other areaz are difficult to prove. So are people spending an extra day in one of the parks. Can the reason be proved? No. I still say it was worth it and allowing people to plan in advance is great. I will have my 9 days of fast pass plus selected shortly for my vacation from 9/20 to 9/28. Am I spending an extra day in one of the parks? No. We would have spend every day like we do every year. Will we spend more? Yes but we do that every year anyway. Do I love the new system? Yes. So where does that leave us? My wife will buy all three Frozen magic bands if they are still available in September. Disney will save money on us because we use the magic bands at the food booths at Food and Wine. That is at least 200 charges over the 9 days. Then add all that my wife spends at the stores. All that can be proven is the cost savings. Everything else is speculation but some of it has to be the result of next gen. Profits are all that matters and they will increase.

I still have a tough time having to plan so many of my vacation details, so far in advance. The one thing I did like about Magic Bands/MM+ was the ability to make changes or book FP while in the park. I think that's actually a great enhancement as it keeps us from running back and forth in the park. But, I don't want to have to decide X days in advance that I want to ride Space Mountain at 3:30-4:30PM and when I'm actually in the park, that no longer works for me. Yes, I know I can change it but for my 1 time using it (and likely only time for a few years), I did have some challenges finding available FP+ times. All in all, it seems like it would be much easier for me to decide my FP+ times as soon as I get in the park via my mobile device or a kiosk. Traditional FP but digital.

 

[NJBrandon]

I'm pretty sure UNI's app didn't cost $2 billion and that's all that really matters.

 

[marni1971]

Who do you think the people are who go every year? The top third of the population is who is the target audience of both Disney and Universal.

EIGHT hours later and you're still going on about the very subject you said was going on too long.

Why oh why?

There again, I am the heartless one. As you said.

 

[wm49rs]

EIGHT hours later and you're still going on about the very subject you said was going on too long.

Why oh why?

There again, I am the heartless one. As you said.

Bloody thread basher to boot....

 

[wm49rs]

There is no discount in ticket prices for using next gen let's get real. I could say the same thing if universal lowered their price to 1.00 would the increase be due to HP? But I do have a guestion about universals wifi and app. Where was the cost allocated? Disney put all their costs into the next generation budget.

Why yes, yes they did....

 

[Funmeister]

There is no discount in ticket prices for using next gen let's get real. I could say the same thing if universal lowered their price to 1.00 would the increase be due to HP? But I do have a guestion about universals wifi and app. Where was the cost allocated? Disney put all their costs into the next generation budget.

My point is that there are many things that can affect attendance. (Weather, 9/11, prices...yes they do discount, etc.) You cannot use attendance as a measurement. Besides...NextGen was sold more as generating more revenue per guests and not as much as growing attendance.

 

[ParentsOf4]

I have said in the past that the cost savings can clearly be proven. So can certain sales, i.e. magic bands. The problem is increased sales in other areaz are difficult to prove.

Increased sales are easy to demonstrate. Just watch the 10Q's PRGS and PCGS numbers for the next 4 quarters and compare them to the last 3 years, which have averaged about 7-to-8% increases since 2011. In other words, that's the baseline increase before MyMagic+.

In order for MyMagic+ to begin to justify its tremendous investment costs, Disney will need to see double-digit increases in the PRGS & PCGS numbers, higher hotel occupancy, higher attendance, or a combination of all four.

In terms of 'savings', so far, Iger & Rasulo have reported about $300M more in added operational cost associated with new initiatives, which is mostly the result of MyMagic+. ("And this year, we're looking at about a $300 million expense item, and more or less the same amount on the revenue side.")

In addition, they have reported steeper-than-normal depreciation costs associated with MyMagic+. MyMagic+'s technology ages a lot faster than a brick-and-motor attraction.

So far, MyMagic+ has saved zilch.

 

[Mickey_777]

So is it crazy to think that at some point this summer, folks (non-theme park geek families) waiting in 2 hour+ lines for Gringotts may think to themselves, "I wish Universal had a system like Disney where I could reserve my spot ahead of time. It's friggin hot out here."

 

[ParentsOf4]

My point is that there are many things that can affect attendance. (Weather, 9/11, prices...yes they do discount, etc.) You cannot use attendance as a measurement. Besides...NextGen was sold more as generating more revenue per guests and not as much as growing attendance.

When it comes to MyMagic+, attendance is one valid metric to watch.

To your point, in addition to driving higher daily per guest spending (what Disney refers to as PCGS), MyMagic+ is supposed to drive higher attendance. The idea is that if guests have pre-booked all their vacation days at WDW, they are less likely to wander offsite and experience Orlando's other offerings.

In order to judge the success or failure of MyMagic+, we'll need to look at all the numbers and see if there is any improvement in Disney's performance growth, using the last 3 years as a baseline.

By this time next year, we should be able to tell whether MyMagic+ was successful or not.

 

[ABQ]

Increased sales are easy to demonstrate. Just watch the 10Q's PRGS and PCGS numbers for the next 4 quarters and compare them to the last 3 years, which have averaged about 7-to-8% increases since 2011. In other words, that's the baseline increase before MyMagic+.

In order for MyMagic+ to begin to justify its tremendous investment costs, Disney will need to see double-digit increases in the PRGS & PCGS numbers, higher hotel occupancy, higher attendance, or a combination of all four.

In terms of 'savings', so far, Iger & Rasulo have reported about $300M more in added operational cost associated with new initiatives, which is mostly the result of MyMagic+. ("And this year, we're looking at about a $300 million expense item, and more or less the same amount on the revenue side.")

In addition, they have reported steeper-than-normal depreciation costs associated with MyMagic+. MyMagic+'s technology ages a lot faster than a brick-and-motor attraction.

So far, MyMagic+ has saved zilch.

I'm sure you've got it posted somewhere, but I think PCGS was only up 4% on the 10Q posted end of quarter 03/29/2014, while it was 10% for the same quarter 2013. However, attendance growth mirrored that in 3% vs 8% a year prior. Not sure where PRGS was.



Edit....the numbers I'm looking at are "Domestic" I don't know if WDW alone is available anywhere as opposed to combined WDW and DLR

 

[lebeau]

Uh, Dick Tracy was the 9th highest grossing film of the year and made over 160M. It was not a "bomb" - the problem was Disney had very unrealistic expectations that it would be that year's Batman, and didn't understand the difference between resurrecting a character that had languished for decades that most kids had never even heard of, versus Batman, LOL.

Can't like this enough. So true.

And Disney repeated the blunder with The Rocketeer. Other studios piled on with The Phantom and The Shadow. Hollywood seemed to think if it was based on a comic strip, it was all interchangeable.

 

[ParentsOf4]

So is it crazy to think that at some point this summer, folks waiting in 2 hour+ lines for Gringotts may think to themselves, "I wish Universal had a system like Disney where I could reserve my spot ahead of time. It's friggin hot out here."

Having waited an hour in Forbidden Journey's queue, I can honestly say that if they make Gringott's queue as entertaining, I won't mind the hour.

What you have to realize is that what creates the 2+ hour waits are the cursed preferred access lines, which take ride capacity away from some people and give it to others. Completely eliminate the FastPass+ line and Standby wait times would shrink!

One of the reasons Forbidden Journey rarely gets above an hour even in peak summer is exactly because it doesn't have an Express Pass line.

Meanwhile, over at Transformers ...

 

[TeriofTerror]

I just listened to a Mousetalgia interview with Tony Baxter in which he briefly mentions his thoughts on Universal/WWoHP. I found his comments... interesting.

 

[lazyboy97o]

So is it crazy to think that at some point this summer, folks (non-theme park geek families) waiting in 2 hour+ lines for Gringotts may think to themselves, "I wish Universal had a system like Disney where I could reserve my spot ahead of time. It's friggin hot out here."

They never seemed too annoyed with Harry Potter and the Forbidden Journey.

 

[seascape]

Increased sales are easy to demonstrate. Just watch the 10Q's PRGS and PCGS numbers for the next 4 quarters and compare them to the last 3 years, which have averaged about 7-to-8% increases since 2011. In other words, that's the baseline increase before MyMagic+.

In order for MyMagic+ to begin to justify its tremendous investment costs, Disney will need to see double-digit increases in the PRGS & PCGS numbers, higher hotel occupancy, higher attendance, or a combination of all four.

In terms of 'savings', so far, Iger & Rasulo have reported about $300M more in added operational cost associated with new initiatives, which is mostly the result of MyMagic+. ("And this year, we're looking at about a $300 million expense item, and more or less the same amount on the revenue side.")

In addition, they have reported steeper-than-normal depreciation costs associated with MyMagic+. MyMagic+'s technology ages a lot faster than a brick-and-motor attraction.

So far, MyMagic+ has saved zilch.

I can prove costs savings. Ask any large store owner what their credit cards fees are. They have a small percentage and a flat fee for each charge. Then ask anyone who has used their magic band what shows up on their credit card bill. I get one charge a day when I stay at WDW. My charges are very high and at many locations at WDW. WDW sends me a daily email with all my chagres. They save money on me because I eat and drink my way around the world at both food and wine and flower and garden. So please do try and tell me Disney is not saving money. I can tell you there are thousands of people every day they save money on.

As for depreciation the faster the government will let you depreciate things the better it is for taxes. It has nothing to do with how long something will last. Allowing faster depreciation is an economic policy designed to increase investments.

Edit to add on. Increased sales are not as easy to identify as one would like. If the occupancy rates goes up in the value resorts faster than at the deluxe resorts the average spending may decrease because of the customer mix. On the other hand if occupancy increases at the deluxe resorts faster then per capita spending could increase. It's not as easy to determine as one would like. There are too many factors to assign all the benefits to. That is why I think attendance changes are the best way to judge. Disney know how many days people stay on property and the percentage not days they spend in the parks. If this percentage increases then it's working. If it decreases it's not working. If it stays the same people here who say it should decrease based on all that universal is doing would have to say it's working. I don't agree with that because I don't think people will lower their time at Disney.