What if this thing fails?

[Goofyernmost]

All those IP's that so many complain about are the most likely to keep Disney afloat in hard times, but, it won't necessarily be beneficial to the Parks. That to me is the most vulnerable because it is a one item commodity. It is a fun theme park. One that in the event of hard times will be something that is likely to be the first to be targeted to be crossed of the list of places to spend money if money becomes tight. What will speed it along is the cost of the resort as a whole, not only for Disney to keep in complete working order, but, also something that the public can afford to go to if things get tough.

Those awful Iger IP purchases will be much more likely to prosper because they are much cheaper to operate and cheaper to offer to the public in a manner that they can afford. Marvel, before it became a Disney IP, for example, was surviving without any connection to a park. It was profitable and survivable on it's own and could more easily remain independently solvent without the mind blowing overhead generated by having to operate an entire resort. That might be the only reason that Disney can make it through a tough time financially.

That said, there is also the possibility that like certain restaurants, stores, etc. they can fall out of favor with the public. The public is a fickle mistress. It can all of a sudden become not to be the place to be seen and the South of France once again be the destination of choice for the folks with all the money that want to be seen as socially elite. That was the way it was before, but, Disney grew on the loyalty of those that were not rich enough to purchase a villa on the Riviera. If the big money stops wanting to go there, what will happen to all that stuff that is still good but, has priced itself out of the reach of the common folk? There are no guarantee's in life, especially if it happens to be a theme park.

 

[Mouse Trap]

All those IP's that so many complain about are the most likely to keep Disney afloat in hard times, but, it won't necessarily be beneficial to the Parks. That to me is the most vulnerable because it is a one item commodity. It is a fun theme park. One that in the event of hard times will be something that is likely to be the first to be targeted to be crossed of the list of places to spend money if money becomes tight. What will speed it along is the cost of the resort as a whole, not only for Disney to keep in complete working order, but, also something that the public can afford to go to if things get tough.

Those awful Iger IP purchases will be much more likely to prosper because they are much cheaper to operate and cheaper to offer to the public in a manner that they can afford. Marvel, before it became a Disney IP, for example, was surviving without any connection to a park. It was profitable and survivable on it's own and could more easily remain independently solvent without the mind blowing overhead generated by having to operate an entire resort. That might be the only reason that Disney can make it through a tough time financially.

That said, there is also the possibility that like certain restaurants, stores, etc. they can fall out of favor with the public. The public is a fickle mistress. It can all of a sudden become not to be the place to be seen and the South of France once again be the destination of choice for the folks with all the money that want to be seen as socially elite. That was the way it was before, but, Disney grew on the loyalty of those that were not rich enough to purchase a villa on the Riviera. If the big money stops wanting to go there, what will happen to all that stuff that is still good but, has priced itself out of the reach of the common folk? There are no guarantee's in life, especially if it happens to be a theme park.

Which IP's do you consider awful purchases?

 

[TwilightZone]

Those awful Iger IP purchases will be much more likely to prosper because they are much cheaper to operate and cheaper to offer to the public in a manner that they can afford. Marvel, before it became a Disney IP, for example, was surviving without any connection to a park. It was profitable and survivable on it's own and could more easily remain independently solvent without the mind blowing overhead generated by having to operate an entire resort. That might be the only reason that Disney can make it through a tough time financially.

If you were a big marvel fan before diseny, you would know that statement was untrue. The only big marvel thing at the time was spiderman, the comics were failing.

Also all iger purchases were good. From memory

Marvel: comic books have a wide fanbase
Pixar: Good storytellers and animators most of the time
Fox: MANY iconic IPs
Lucasfilm: the creators of star wars. They just have really bad management by their team, but they have had bad management forever, it's not much of a disney thing (but disney should fix it!)

 

[Maeryk]

Yeah that whole thing was so short sighted. Such a phenomenal amount of money wasted. They didn't even anticipate the well known coming of the chip cards for all those custom made POS terminals with Mickey's on them. I think they only lasted one or two years. Magicbands are totally unnecessary and everything could be done with a phone. The only reason the Magicbands are still around is because luckily for Disney they became a fad in themselves and are selling fairly well. Once that dies off I suspect the Magicbands will disappear rather quickly.

Really this whole thing is just one of many signs that Disney as a company doesn't really understand the business anymore, in much the same way years ago Sears didn't see the changing trends in the retail business. The beginning of the end has already happened, we're really just watching it all play out now.

Phones are not always on, and do not provide real time RFID tracking of each guest. That is why they have magic bands. They are collecting more data than you can imagine on a daily basis, without ever asking a single survey question. The long range rfid chip in the bands allows them unprecedented views into how guests use, move through, and avoid their parks, shops, and rides.

They aren't going anywhere.

 

[Maeryk]

They are morphing to something else. It used to be Disney had a different standard and way of doing business than say Six Flags. They sold stories not just rides. Well now they sell restaurants and beer to pull you in. I find it is not coincidental that they add alcohol to Magic Kingdom while closing all the kids clubs at the resort. One day they might morph into have the Main Street Medical Marijuana Dispensary, I am only half kidding with that. But it wont close just keep chugging.

They are closing the kids clubs because helicopter parents don't use them. We used them a few times and there were like, 8 kids at lilos playhouse. 2 of them ours.

They can't realistically offer services that few use.

 

[Goofyernmost]

If you were a big marvel fan before diseny, you would know that statement was untrue. The only big marvel thing at the time was spiderman, the comics were failing.

Also all iger purchases were good. From memory

Marvel: comic books have a wide fanbase
Pixar: Good storytellers and animators most of the time
Fox: MANY iconic IPs
Lucasfilm: the creators of star wars. They just have really bad management by their team, but they have had bad management forever, it's not much of a disney thing (but disney should fix it!)

I never said that I thought Iger acquisitions were bad, I believe the point I was making was that they now have more to keep them afloat. It is the parks that will not really be able to hold steady if prices continue to rise and the economy does a major downturn. If one doesn't think that is already starting to happen. My retirement fund, which is very modest to say the least, dropped in value just this month alone by $4K. Enough for me to basically stop thinking about making a trip to Central Florida this coming winter.

 

[Club Cooloholic]

They are closing the kids clubs because helicopter parents don't use them. We used them a few times and there were like, 8 kids at lilos playhouse. 2 of them ours.

They can't realistically offer services that few use.

All of them had to close? Also you can have 2 people work it and be fine. Believe me, the pay for those workers is more than covered by the meals and drinks the parents consume during their time out.

 

[Nottamus]

Sometimes its not the company that does something to make itself fail......BUT another company, or technology, or idea that is the next big thing. Just changes everything.

I live in an area where in the 1800's was a HUGE producer of the old wedge nails. (forget name) Huge factory....employed probably everyone in town...well, it was technology ...a new nail...a screw...that made that company obsolete.

The area rebounded into glass, and glass factories that covered city blocks...again,...huge factories that employed towns..

Well, then came plastic...and now, the factories are empty...mostly. Sitting as a reminder of when things were great.

So, maybe there's a company right now, that might just be the 'next big thing'...that will make Disney obsolete.
(just hope not in my lifetime...i really like the place)

 

[Lucky]

Sometimes its not the company that does something to make itself fail......BUT another company, or technology, or idea that is the next big thing. Just changes everything.

So, maybe there's a company right now, that might just be the 'next big thing'...that will make Disney obsolete.
(just hope not in my lifetime...i really like the place)

I’m putting my money on Armadillo Land.

 

[graphite1326]

Phones are not always on, and do not provide real time RFID tracking of each guest. That is why they have magic bands. They are collecting more data than you can imagine on a daily basis, without ever asking a single survey question. The long range rfid chip in the bands allows them unprecedented views into how guests use, move through, and avoid their parks, shops, and rides.

They aren't going anywhere.

I remember

Rome wasnt built in a day, either.

But it didn't take long to fall.

 

[KBLovedDisney]

Another thought came to mind, what if the majority of people who go to the World start to really dislike the bad showing of attractions, i.e. animatronics not working, things looking dusty, obvious creaking noises, etc and thus the AP holders start to decline their renewals or people just in general stop going and the parks experience a massive decline in foot traffic? Could that lead to failure?

 

[eliza61nyc]

I have been going for 20 years. However, I will soon be on a fixed income when I retire. For now we can still go but after our last trip we just don't feel the "magic" we used to. Some is due to cost for sure and some is due to the direction Disney is going. I can't see going 5 years from now. My children are now on their own but are not financially able to go. The OP may be onto something or at least us commoners will not be patrons.

See here's IMO what I don't get. now granted I only started going on my dime in the early 2000's but people make it sound like for 2 bucks the masses where just rolling into Disney. I remember going with my parents in the late 70's (the only time I went) and they complained greatly about the cost.

I think the above poster hit it pretty good. If the economy is good and folks feel secure in their jobs they will spend the money.

Also, I don't know where other people travel to but Disney is NOT imo crazy expensive. I'm comparing it to MAJOR vacation destinations. So again Joe and Jane first timer are not going to be shocked at a 4.00 bottle of water because they've seen those prices before

 

[KBLovedDisney]

See here's IMO what I don't get. now granted I only started going on my dime in the early 2000's but people make it sound like for 2 bucks the masses where just rolling into Disney. I remember going with my parents in the late 70's (the only time I went) and they complained greatly about the cost.

I couldn't begin to tell you how many times my Dad complained and told me how expensive Disney was, and that was when we only stayed at Disney for 2 days. Every other year or two years we would go and ONLY stay 2 days at a time. That was it.

It was expensive before I was born, expensive after I was born, and it is expensive now.

 

[eliza61nyc]

Personally I think people are more bothered by the crowds than the price increases

 

[eliza61nyc]

Blockbuster was a good example of something that was King but totally let it slip away and then basically died.

I don't think so. Blockbuster did not evolve like say Netflix. Lol i used to get Netflix in the mail 3 at a time. It morphed into the streaming giant it is today. The parks are finally attempting to change. Now folks here don't like the change but that's moot. Disney at least has gotten ride of those old stale rides. You have to change

 

[Maeryk]

I don't think so. Blockbuster did not evolve like say Netflix. Lol i used to get Netflix in the mail 3 at a time. It morphed into the streaming giant it is today. The parks are finally attempting to change. Now folks here don't like the change but that's moot. Disney at least has gotten ride of those old stale rides. You have to change

As the creators of Netflix said, if they only ever intended to mail them it would have been named "mailflix". They saw streaming for what it would become and built the new standard from the ground up.

Disney needs to think beyond us old pharts and adapt to the next generation of up and coming repeat guests, and most of them want virtual content at least as much as physical. They are trying. Remains to be seen if their vision and implementation end up being a Netflix, or a Betamax.

 

[Animaniac93-98]

In the winter of 1993 Disney closed Newport Bay Club at Euro Disney because occupancy was so low.

We don't have to guess to know what would Disney do if attendance or occupancy takes a sharp decline. The resort already went through the post 9-11 tourism slump and the 2008 recession. The response would most likely be closed facilities, entertainment cuts, reduced operating hours and various discounts/incentives.

Disney could also pull rooms out of inventory so that the hotels are still advertised as open, even if a quarter or half the rooms are empty.

 

[eliza61nyc]

Yes I know this will probably never ever ever happen and if it does, it is probably like 1 in a 1,999,999,999,999,999,999,999,999.99 chance of being a possibility, but I had this thought just now.

Please be kind.
-------
With everything that has suddenly come through Disney World: Star Wars, Toy Story, major re-refurbishments, classic ride closures, rising costs and upcharges within upcharges

My question is this: What if TDC plan ultimately backfires and fails miserably? What would happen to the Disney franchise?

I don't think the Franchise or parks will fail but they will continue to morph and I suspect they will continue to change in ways old timers don't like.

Personally (and this is just my opinion from a very limited view) I don't think upcharges annoy the general public all that much for the simple fact that you don't have to do them. crowds will continue to have a negative effect, so Star wars land could potentially help or hinder. It may spread the crowds out but it will also bring more folks in even temporary.

Some one else mentioned the economy. I think that has a bigger effect on the parks than the price increases. If people feel their jobs aren't going anywhere and the money is still coming in, they are going to vacation. Disney has done an excellent job of marketing the world has a place that HAS to be visited at least once. I've got new mama's on my job already talking about when they are taking their kids to the world.

lastly, shareholders are fickle lovers. let the parks consistently have bad results and see how long before they boot the current management out.

 

[Disstevefan1]

"soft attendance"

I'm not buying it.

I agree, "soft attendance" is code for Disney to cut costs, and increase revenue, such as ending the live actors like in the pirate tutorial, the Star Wars thing, at the same time, adding more and more hard ticket events and adding hard ticket events INSIDE hard ticket events like the Town Square party INSIDE Mickeys Very Merry Christmas Party!

 

[s8film40]

Phones are not always on, and do not provide real time RFID tracking of each guest. That is why they have magic bands. They are collecting more data than you can imagine on a daily basis, without ever asking a single survey question. The long range rfid chip in the bands allows them unprecedented views into how guests use, move through, and avoid their parks, shops, and rides.

They aren't going anywhere.

There are far more tracking opportunities in phones, the RFID bands were old technology when they implemented them. They aren't going anywhere until the sales slow down, but once it becomes an expense rather than a profit they'll disappear real fast.