What's Still On and What's Now Off

[YodaMan]

I get what you’re saying but could anyone have prepped for this? Hindsight is easier now

Yes. Easily. Testing was pretty much botched across the board and lack of response after everything in China was horrid.

Back on topic, there are some things here that wouldn’t surprise me and others that would. All I know is that this is still the poster that vehemently argued (incorrectly) about the box office performance of Frozen 2 and I can’t take anything he says seriously at this point because of his absolute stubborness.

 

[eliza61nyc]

Some of the junkies will need their fix, even if the product is stepped on.

Its not about needing a fix, people have saved, planned and paid for vacations years in advanced. They want to know what's going to happen.

I haven't read all 14 pages so let me just say, whenever it opens it will be a process. I work for one of the largest chemical companies on the planet, it's currently shut down and losing big bucks too. We are currently being paid but everyone is wondering how long can they continue if this stretches out.

I am amazed though at how many posters seem almost happy that Disney/Disneyworld is going down the tubes.

 

[CastAStone]

I don't think contracts are a barrier to leases, rent and agreements right now

You really don't understand carriage fees. The fee is only for carrying channels by a system, not for what's playing on them. We're not talking about necessary services or products here, these are entertainment.

This is the rare thing I actually know something about; the ESPN contract with many cable distributors has a premium for NFL games where if ESPN loses their NFL games, the fee goes down automatically. I have never heard of any such thing for any other sports property - I believe that is exclusive to the NFL. So far, no issues there.

 

[UNCgolf]

Lol I would hope no one thinks that way. macro economics are a total different animal than your household budget.
If that's the thought then people would really be nuts because the country currently has a huge deficit

It was tongue in cheek, although corporations do need some cash reserves.

 

[eliza61nyc]

It was tongue in cheek, although corporations do need some cash reserves.

lol, thanks dude. I swear I am the worst at catching stuff, some times things seriously wing over my head!!

 

[UNCgolf]

My understanding always was that WW2 was the reason they nearly went under (+ the strike). They made it through on propaganda, but they lost a ton of $$$ due to not being able to release their films across Europe and Asia due to the war. They had to do propaganda because their main source of income was now a battlefield.

At least the latter point is a non-issue this time. They’ll likely be able to bring films back to the Asian theaters before the western ones, and digital releases know no boundaries.

I'm sure WW2 was a factor in that it may have helped push the movies into the black, but both Pinocchio and Fantasia were domestic failures. Disney was around $3 million in debt in either 1940 or 1941.

Were Europe and Asia bigger markets than the US for Disney at that time? I wouldn't think so, but I don't know for sure and could be wrong.

 

[el_super]

50% capacity with all indoor shows closed and ride throughput reduced due to wipe-downs doesn't seem like nearly enough to keep people at a distance from one another. Not even close.

The concept here wouldn't be to completely eliminate any potential for virus spread, but to show that Disney made good-faith/reasonable decisions to reduce exposure and liability.

 

[the.dreamfinder]

I'm sure WW2 was a factor in that it may have helped push the movies into the black, but both Pinocchio and Fantasia were domestic failures. Disney was around $3 million in debt in either 1940 or 1941.

Were Europe and Asia bigger markets than the US for Disney at that time? I wouldn't think so, but I don't know for sure and could be wrong.

Those markets helped WDP make profits to pay for Walt’s ambitions.

BTW how are we forgetting that Walt Disney Productions only survived WWII on account of Uncle Sam turning the studio into a educational film/propaganda outfit?

 

[Sirwalterraleigh]

I get what you’re saying but could anyone have prepped for this? Hindsight is easier now

Fully? No

Since December/January when the international case was developing?...different question entirely.

I think it’s ridiculous - and history will agree - to complain about money when no attempts were made to save the money by addressing the threat.

We’ll see.

 

[TJJohn12]

BTW how are we forgetting that Walt Disney Productions only survived WWII on account of Uncle Sam turning the studio into a educational film/propaganda outfit?

That, with the added revenue from opening some economic inroads into South America as well - neither of which I see working at the moment frankly for the company.

There's no paying propaganda work around this crisis (plenty of handwashing PSAs on Disney Junior right now, but they aren't a revenue stream). And there's no not-war-torn movie theaters to shop boutique films like Saludos Amigos or Three Caballeros to.

 

[ImperfectPixie]

Those markets helped WDP make profits to pay for Walt’s ambitions.

BTW how are we forgetting that Walt Disney Productions only survived WWII on account of Uncle Sam turning the studio into a educational film/propaganda outfit?

I actually have a DVD burned with some of the Disney propaganda cartoons, along with some of the banned cartoons from that era.

 

[captainbuzzy]

This is why it's hilarious when people are attacked for not having savings while also wanting to bail out huge corporations. Why should individual people bother with savings to get them through a crisis when gigantic corporations don't bother keeping cash reserves for a crisis?

In our capitalist society, wall street demands returns and shareholder value. Responsible corporations maintain cash and liquidity to weather a crisis, which Disney has (had) over $10 billion. For a company that depends on social interactions as part of business this is beyond catastrophic. ESPN was running dodge ball the other day! How much do you think their getting for ads? Movie theaters are shut. Theme parks are closed. Cruise lines are not sailing. Disney is still paying their employees. I wouldn't call what they've done irresponsible at all. I know I could not do better managing a company on the likelihood of an event that happens every 100 years.

 

[doctornick]

It would then follow, that cable subscribers shouldn't have to pay their $8 fee to them since they have no live programming.

As long as people are paying their cable/satellite bills, why wouldn't the cable/satellite companies be paying the monthly fee to ESPN? ESPN is still broadcasting and available to the consumers. Whether the channel is "worth" the costs is irrelevant and, in fact, maybe people who have the channel on their package never watched it even when it had live sports.

That's a far different scenario than if ESPN needs to pay rights fees to sporting events that were cancelled. In that case, the sports league/teams/organizer is failing to provide the product at all.

 

[UNCgolf]

Those markets helped WDP make profits to pay for Walt’s ambitions.

BTW how are we forgetting that Walt Disney Productions only survived WWII on account of Uncle Sam turning the studio into a educational film/propaganda outfit?

I mentioned that earlier -- that WW2 may have actually benefited Disney rather than hurting it; it's possible there wouldn't be a Disney without that WW2 boost. Just depends on if Pinocchio and Fantasia could have been successes with overseas markets (and I think Fantasia would have lost money no matter what).

 

[Sirwalterraleigh]

In our capitalist society, wall street demands returns and shareholder value. Responsible corporations maintain cash and liquidity to weather a crisis, which Disney has (had) over $10 billion. For a company that depends on social interactions as part of business this is beyond catastrophic. ESPN was running dodge ball the other day! How much do you think their getting for ads? Movie theaters are shut. Theme parks are closed. Cruise lines are not sailing. Disney is still paying their employees. I wouldn't call what they've done irresponsible at all. I know I could not do better managing a company on the likelihood of an event that happens every 100 years.

I don’t think anyone is criticizing Disney...I know I’m not. But as you point out - they are in a precarious position. They have done buybacks...that’s purely for Iger, the board and the shareholders...and does little to nothing positive for the rank and file...but we’re past that now. They have not to my knowledge taken the crisis as an opportunity to cry for public bailout. The airline CEOs where in Washington crying for money weeks ago - before major disruptions and closures had started. That’s about a month or so after posting “record profits” and record compensation packages.

That’s not “laisse faire”...that is absolutely corporate welfare. And that is BS.

I’m Not labeling Disney that.

As long as people are paying their cable/satellite bills, why wouldn't the cable/satellite companies be paying the monthly fee to ESPN? ESPN is still broadcasting and available to the consumers. Whether the channel is "worth" the costs is irrelevant and, in fact, maybe people who have the channel on their package never watched it even when it had live sports.

That's a far different scenario than if ESPN needs to pay rights fees to sporting events that were cancelled. In that case, the sports league/teams/organizer is failing to provide the product at all.

Advertising and subscription fees for the tv segment peaked in 2009 and have declined since. It’s not a coincidence they keep cranking park prices. It’s not because all of a sudden they became “great”...it was a difference in need/philosophy.

 

[muddyrivers]

It's genuinely hard to imagine most of the EPCOT overhaul being "abandoned". Disney recognizes that the park isn't in great shape to the point that the entire front half is being overhauled...so they'd just leave it like that indefinitely? Might as well not reopen the park.

If this rumour is true, I could see them deciding with all the refurb work they're doing to leave the park closed. That way they don't need to worry about impeding on guest experience, construction equipment can come and go as it pleases, and then reopen it when everything (or the biggest changes at least) is completed.

 

[TrainsOfDisney]

It's genuinely hard to imagine most of the EPCOT overhaul being "abandoned". Disney recognizes that the park isn't in great shape to the point that the entire front half is being overhauled...so they'd just leave it like that indefinitely? Might as well not reopen the park.

They would finish the entrance and the paving, probably put up something temporary in open places that will be reserved for future expansion.

SSE they can do the bare minimum to keep it running.

It’s really easy to imagine it actually.

 

[Liberty6]

I didn't see the Target location that was announced at the last D23 expo anywhere on this list. Is that still on track?

It is as of now but has nothing do with the closure of WDW. As long as the contractors continue to show up work continues.

 

[HauntedPirate]

I don’t think anyone is criticizing Disney...I know I’m not. But as you point out - they are in a precarious position. They have done buybacks...that’s purely for Iger, the board and the shareholders...and does little to nothing positive for the rank and file...but we’re past that now. They have not to my knowledge taken the crisis as an opportunity to cry for public bailout. The airline CEOs where in Washington crying for money weeks ago - before major disruptions and closures had started. That’s about a month or so after posting “record profits” and record compensation packages.

That’s not “laisse faire”...that is absolutely corporate welfare. And that is BS.

I’m Not labeling Disney that.

Advertising and subscription fees for the tv segment peaked in 2009 and have declined since. It’s not a coincidence they keep cranking park prices. It’s not because all of a sudden they became “great”...it was a difference in need/philosophy.

Disney announced recently it wants to issue, and may have approval for, $6 billion in "long-term debt". And the Federal Reserve announced shortly after Disney's announcement that it wants to buy up "long-term debt" in an unrestricted manner for an indeterminate amount of time.

What was the line from the teacher in "The Incredibles"? 'Coincidence? I think NOT!'

 

[Sirwalterraleigh]

Disney announced recently it wants to issue, and may have approval for, $6 billion in "long-term debt". And the Federal Reserve announced shortly after Disney's announcement that it wants to buy up "long-term debt" in an unrestricted manner for an indeterminate amount of time.

What was the line from the teacher in "The Incredibles"? 'Coincidence? I think NOT!'

I don’t have a problem with that...

We know Disney will get money - That was a given. But that’s a small fee and they aren’t lobbying and complaining that they’ll collapse in a week.

I just have no sympathy for the airlines (the top of the pyramid...not the workers)...the economic boom has lasted much longer than the normal cycle - and they’ve proven yet again they can’t be trusted to be responsible.

Even the cruise lines...who evade taxes with registry as is well documented...and want checks. I’m fine with saving them but shouldn’t there be a longterm price for exploiting loopholes?