Why has Disney stopped expanding globally?

[akileese]

Incredibly risk averse.

It's risk vs reward. A new resort is incredibly expensive in this day and age. I don't think we even have close to what the final cost is for Epic Universe, but it's a lot. They have a resorts all over the world already. If they opened another European resort for example, you're risking cannibalizing Paris. Universal can do things like open a park in the UK because they don't have a European footprint, so there's no cannibalization there.

Almost every place that has the capital, population and willingness to work with Disney has had a park built. Also it's a risky investment with the how the world economy is today.

Cruises are a cheaper way to make the brand more global with less risk.

Yep this right here. More ports and more ships means more guests to service. Cruises are a money faucet and until it shows signs of slowing down, that's what they'll keep doing.

 

[monothingie]

1. Having multiple locations domestically and internationally cannibalizes demand at existing locations and cheapens (LMAO) the experience at the existing location.
2. Climate/Temperature - There will never be an outdoor park in cold/unsuitable environments that can limit operations.
3. Global Conflict - There will never be a Disney Park in the Mid-East or Africa or Eastern Europe due to regional political and stability issues. (Except for the Chicoms, because they have a marketplace with a large enough wealthy population.)
4. Disney takes a very conservative approach to massive undertakings and very slow to come to market and develop these things.

 

[JoeCamel]

Almost every place that has the capital, population and willingness to work with Disney has had a park built. Also it's a risky investment with the how the world economy is today.

Cruises are a cheaper way to make the brand more global with less risk.

They haven't tapped Australia yet, I can't count the number of times I've seen 10 am Foster's being consumed by people with an aussie accent in the parks. Glued into their hand like an American with a big gulp, I think the demand is there and the Asian parks don't fill the bill

 

[BasiltheBatLord]

They haven't tapped Australia yet, I can't count the number of times I've seen 10 am Foster's being consumed by people with an aussie accent in the parks. Glued into their hand like an American with a big gulp, I think the demand is there and the Asian parks don't fill the bill

This could just be a longstanding myth, but I recall hearing that the company conducted a feasibility study for an Australian park and determined that the population was not sustainable.

 

[JoeCamel]

This could just be a longstanding myth, but I recall hearing that the company conducted a feasibility study for an Australian park and determined that the population was not sustainable.

They could build for a 40% discount there compared to here - Bob you hear that?

 

[Moth]

They haven't tapped Australia yet, I can't count the number of times I've seen 10 am Foster's being consumed by people with an aussie accent in the parks. Glued into their hand like an American with a big gulp, I think the demand is there and the Asian parks don't fill the bill

If the Universal Kiddy park succeeds, I expect a "small-scale" Disney park to be built there.

 

[Jrb1979]

If the Universal Kiddy park succeeds, I expect a "small-scale" Disney park to be built there.

I have to laugh cause of when I think if Disney, I used to think of them as the leader in the Industry. Lately they seem to be the follower

 

[Moth]

I have to laugh cause of when I think if Disney, I used to think of them as the leader in the Industry. Lately they seem to be the follower

Well of course they are, they've done nothing but examine what Universal has done in the last decade or so. It's sad but Universal is equally lucky Disney is currently run by a lame duck so they can show what they're capable of.

 

[BrianLo]

They haven't tapped Australia yet, I can't count the number of times I've seen 10 am Foster's being consumed by people with an aussie accent in the parks. Glued into their hand like an American with a big gulp, I think the demand is there and the Asian parks don't fill the bill

DCL goes there. That’s how they tap smaller markets.

If the Universal Kiddy park succeeds, I expect a "small-scale" Disney park to be built there.

Even though people more willingly attribute the kiddie park to the core brand, I think offering an inferior product will shoot them in the foot. I don’t see Disney following. Disney already tried alternative land products and it was a no go.

DCL is the kiddie park business equivalent, except not a watered down product and sufficiently different enough from the parks to not invite disappointment in comparison. Plus it moves markets on a dime.

 

[BrianLo]

I don’t think it’s imminent for decades, but South Korea is the next actual theme park market. In my read.

 

[Jrb1979]

DCL goes there. That’s how they tap smaller markets.



Even though people more willingly attribute the kiddie park to the core brand, I think offering an inferior product will shoot them in the foot. I don’t see Disney following. Disney already tried alternative land products and it was a no go.

DCL is the kiddie park business equivalent, except not a watered down product and sufficiently different enough from the parks to not invite disappointment in comparison. Plus it moves markets on a dime.

That's great that DCL goes there but for many DCL isn't an equal alternative to the parks.

 

[coffeefan]

Well, I wouldn't expect international expansion in this era of tariff policy.

 

[Disgruntled Walt]

Well, I wouldn't expect international expansion in this era of tariff policy.

I don't really see how that factors into things. It takes more than four years to plan and build one of these parks, and as far as we know they're not even planning one right now.

 

[JMcMahonEsq]

I don't really see how that factors into things. It takes more than four years to plan and build one of these parks, and as far as we know they're not even planning one right now.

You don't see how geopolitical tensions and global instability would factor into things?

 

[Disgruntled Walt]

You don't see how geopolitical tensions and global instability would factor into things?

I'm saying in the general discussion of why they've stopped expanding their parks globally, I don't think the current administration's tariff threats (and I could be wrong, but I'm not sure that anything has even happened yet) are dictating whether or not Disney is building overseas parks.

I'm trying to steer clear of politics.

 

[JD80]

I don’t think it’s imminent for decades, but South Korea is the next actual theme park market. In my read.

Frontierland becomes DMZland

 

[BrianLo]

That's great that DCL goes there but for many DCL isn't an equal alternative to the parks.

That wasn’t exactly my point. The Kiddie park isn’t an equal alternative either, but it diminishes the brand by offering a confusingly cheaper product. DCL is at least a different product.

Aus and Canada do not have the population to support a full Disney theme park. And I say that as a Canadian who’d of course love one from Disney… but I also don’t want a half baked product either.

These markets will and still do travel to the destinations anyways.

 

[JMcMahonEsq]

I'm saying in the general discussion of why they've stopped expanding their parks globally, I don't think the current administration's tariff threats (and I could be wrong, but I'm not sure that anything has even happened yet) are dictating whether or not Disney is building overseas parks.

I'm trying to steer clear of politi

If you are going to look at international expansion, I don't think there is any way you can take politics out of it. I mean we can try and steer away from the right/wrong evaluation of concerns, but looking at geopolitical stability, is going to be one of the primary factors in examining international expansion. Nor do i think you have to talk about the current administration, per se. However the current administration is very similar he one that existed 8 years ago, so you have to keep in someonewhat in mind in asking what has been going on planning wise over the past 8-10 years

 

[JMcMahonEsq]

They haven't tapped Australia yet, I can't count the number of times I've seen 10 am Foster's being consumed by people with an aussie accent in the parks. Glued into their hand like an American with a big gulp, I think the demand is there and the Asian parks don't fill the bill

The population of Australia is less than that of the tri state area. How/why would the rate significant investment into a brand new destination resort?

 

[JoeCamel]

The population of Australia is less than that of the tri state area. How/why would the rate significant investment into a brand new destination resort?

You ever seen a drunken aussie spend money mate?