Why Hollywood Studios is being rebuilt

[RSoxNo1]

For what it's worth, Kevin Rafferty, said this afternoon, that no decision has been made about building Carsland in FL. I know he could be simply toeing the company line, but he seemed pretty sincere.

Where did he say this?

 

[danlb_2000]

Not really sure what you're trying to say here. Are you saying Simpsons is being overlooked? Because the imperical evidence is saying the exact opposite. It was a big story on internet media sites like AV Club, IGN, Buzzfeed, as well as other smaller sites. It was the number 1 post on Reddit for a few days. The restaurant has had a line just to enter it just like the "hallowed" Be Our Guest. Bloggers from Attractions and Touring Plans have been lauding the food choices.

I'd say that's far from overlooked.

Not to mention that it isn't even complete yet.

 

[GoofGoof]

I agree with everything but this last part. Comcast has shareholders that are just as crazy as Disney's, if this next round of expansions under-perform in any way, the dynamic will shift. Plus, Comcast has a capital intensive cable industry to keep up with. An industry that has tremendous pressure on it at the moment from folks like Google and hungry and desperate Telecoms. Comcast is doing the right things at the moment for most of NBCUniversal, but it is still very early in the game to make long term assumptions.

I agree with this. A setback in Comcast's core business areas could have a huge negative impact on their parks segment. All It takes is a few bad quarters and a consultant comes in and talks about selling off non-core assets to re-focus on the core business lines. The Universal parks are not as directly integrated with the rest of the Comcast business like Disney Parks with TWDC.

All that being said, Comcast is a very well run company with highly competent management and based on how much my cable bill is each month they have a healthy business model. The Universal parks provide an excellent place to invest all the cash they generate from me.

 

[Tim_4]

All that being said, Comcast is a very well run company with highly competent management and based on how much my cable bill is each month they have a healthy business model. The Universal parks provide an excellent place to invest all the cash they generate from me.

However, market trends are heavily against Comcast and other companies that rely on distributing other companies' content to the consumer. Mediums like the WatchESPN App, HBO GO, Amazon Prime Instant Video, Netflix, Roku, etc. are allowing consumers to move more towards a la carte programming. I don't see it being more than five years before you'll be able to pay ESPN or HBO directly for their service rather than going through a service provider like Comcast. Their model is a distributor/middleman function, which is being undermined by technology and consumer choice.

 

[GLaDOS]

However, market trends are heavily against Comcast and other companies that rely on distributing other companies' content to the consumer. Mediums like the WatchESPN App, HBO GO, Amazon Prime Instant Video, Netflix, Roku, etc. are allowing consumers to move more towards a la carte programming. I don't see it being more than five years before you'll be able to pay ESPN or HBO directly for their service rather than going through a service provider like Comcast. Their model is a distributor/middleman function, which is being undermined by technology and consumer choice.

Comcast has shifted it's view towards its internet service, though. I think they'll continue to upgrade that in the next few years to ensure they're still one of the top providers whether it's cable or internet.

 

[Tim_4]

Comcast has shifted it's view towards its internet service, though. I think they'll continue to upgrade that in the next few years to ensure they're still one of the top providers whether it's cable or internet.

I don't doubt that they'll continue to be profitable. But I think it's also unreasonable to say that their cable/media businesses will provide billions of cash to fund their theme parks forever and always.

 

[GLaDOS]

I don't doubt that they'll continue to be profitable. But I think it's also unreasonable to say that their cable/media businesses will provide billions of cash to fund their theme parks forever and always.

Oh, no doubt. Even Disney has had its rough spots.

But with how diverse Comcast has become with purchasing Universal Studios, the theme parks, NBC (okay, NBC is in trouble but that can change), and other purchases, they've help to bolster themselves against complete collapse. They may not always be as strong as they are, of course.

Also, I think it's obvious this kind of building in Orlando isn't going to be a constant thing. 2010-2020 will be an unprecedented time of additions and building, IMO, but I don't know how much it'll continue after that.

 

[bubbles1812]

I don't doubt that they'll continue to be profitable. But I think it's also unreasonable to say that their cable/media businesses will provide billions of cash to fund their theme parks forever and always.

Couldn't the same be said of Disney in that regard? And whose to say Comcast wont branch out and do other things the way Disney has.

 

[NoChesterHester]

I don't doubt that they'll continue to be profitable. But I think it's also unreasonable to say that their cable/media businesses will provide billions of cash to fund their theme parks forever and always.

Thanks for pointing this out. Media distribution is changing rapidly and Comcast Cable is quickly becoming an antiquated service. It won't be tomorrow, or even in five years that it is gone, but the way we consume media is quickly changing. Comcast and DirecTV know this and are holding on for dear life. At least Comcast has alternate products... I don't know what DirecTV will do.

 

[GoofGoof]

However, market trends are heavily against Comcast and other companies that rely on distributing other companies' content to the consumer. Mediums like the WatchESPN App, HBO GO, Amazon Prime Instant Video, Netflix, Roku, etc. are allowing consumers to move more towards a la carte programming. I don't see it being more than five years before you'll be able to pay ESPN or HBO directly for their service rather than going through a service provider like Comcast. Their model is a distributor/middleman function, which is being undermined by technology and consumer choice.

This is where the well run business comment comes in. I agree the business is changing and I think top execs at Comcast would too. I don't think cable TV will be gone in 5 years, but in the not so distant future the business will evolve. Comcast is pretty well positioned to take advantage of it as long as they don't sit back and rest on their current success.

 

[GoofGoof]

I don't doubt that they'll continue to be profitable. But I think it's also unreasonable to say that their cable/media businesses will provide billions of cash to fund their theme parks forever and always.

Yep. Agreed. And that's why we should enjoy the current run at Universal parks while it lasts. I think Comcast will evolve and succeed going forward, but if their numbers slide the parks will likely be a place to cut back due to their capital intensive nature.

 

[GoofGoof]

Thanks for pointing this out. Media distribution is changing rapidly and Comcast Cable is quickly becoming an antiquated service. It won't be tomorrow, or even in five years that it is gone, but the way we consume media is quickly changing. Comcast and DirecTV know this and are holding on for dear life. At least Comcast has alternate products... I don't know what DirecTV will do.

True, but we will still need an Internet connection to access the distribution.

 

[Tim_4]

Couldn't the same be said of Disney in that regard?

Disney has its risk areas, but this one ain't it. People WANT ESPN. They don't care if they get it from Comcast, DirecTV, DISH, Verizon, AT&T, whoever. Given the choice, the consumer would purchase it directly from Disney if possible, eliminating paying for the "bundle" of crap channels they don't want and eliminating the markup charged by the middleman (which, no doubt, Disney will claim some of for themselves).

 

[Kman101]

Yeah, not to get it too far off-topic, but I'm eagerly counting down the months until my contract with DTV is up. I'm so done with them and I'm moving towards other ways to get my content (plus I'm able to use an over-the-air antenna for local channels).

It's definitely true times are changing, but Comcast and DTV and others, they'll probably be fine for the forseeable future, but 5 years (10?) from now could (should?) be incredibly different. It's already starting to be. I think we're a long way from the mass public exoding from normal cable/satellite but the move is growing from what I can see (not that I admit to be anywhere near in the 'know' lol!).

Comcast seems pretty competent though.

 

[danlb_2000]

True, but we will still need an Internet connection to access the distribution.

Yes, but cable companies make a lot more money off providing content then they do providing Internet service. In 2012 Comcast earned $5 billion in revenue from Video but only $2.4 from internet access.

 

[GoofGoof]

Yes, but cable companies make a lot more money off providing content then they do providing Internet service. In 2012 Comcast earned $5 billion in revenue from Video but only $2.4 from internet access.

Agreed. I don't think Comcast would be satisfied with just providing Internet access either. In my hood they have been very successful in providing content as well as distribution. Comcast Sports Net is a must have for me. It's definitely still way more regional than an ESPN, but they have room to grow with VS or NBC Sports or whatever they call it these days. NBC is still a question mark. While I agree that major networks and things like HBO and ESPN could operate independently on a subscription basis I don't see a lot of the smaller networks making it. Without being part of basic cable they aren't going to get enough subscribers to make a profit.

 

[El Grupo]

Comcast is doing well on the data side. 2012 was another great year for them in sub. and revenue growth for this product. Their competition is also enjoying similar success as that industry continues to flourish.

However, their bread and butter business, cable TV distribution, has taken a bit of a hit the last two years. While DirecTV has gained 700,000 subs., Comcast has lost almost 800,000 during the same period. It also appears that DirecTV is generating more revenue per video subscriber. Verizon, AT&T and Dish are also cutting into their core businesses. Only so long that Comcast will be able to generate small gains in video revenue from rate increases. Bundling has lost some of its luster for customers as many are discovering they can get similar discounts by shopping around and cherry picking products that meet their needs from multiple companies. The folks in Philadelphia may not be as agreeable to budgeting new large projects in a few years.

With that said, my guess is NBC Universal sees the next 3 - 5 years as their key opportunity to take advantage of market conditions for their theme parks division and with their parent corporation. They appear to be striking while the iron is hot in moving forward with the tremendous expansions in both Orlando and Burbank. Seems like an incredibly smart move to me.

 

[Computer Magic]

Comcast is doing well on the data side. 2012 was another great year for them in sub. and revenue growth for this product. Their competition is also enjoying similar success as that industry continues to flourish.

Maybe Disney should have contracted Comcast for Disney's infrastructure for FP+. Comcast has experience implementing data service in large areas..

 

[El Grupo]

Maybe Disney should have contracted Comcast for Disney's infrastructure for FP+. Comcast has experience implementing data service in large areas..

Just my guess that AT&T and Verizon would have more recent experience to offer since I believe they have rolled out data service across broader areas over the last few years.

 

[Computer Magic]

Just my guess that AT&T and Verizon would have more recent experience to offer since I believe they have rolled out data service across broader areas over the last few years.

In my area AT&T is still struggling with their fiber rollout. If you are too far from the hub, you can't get service.