Throughout a latest interview, Disney CEO Bob Iger stated the “turbocharged” $60 billion funding into Parks & Resorts might be virtually completely current mental property. This put up shares what he needed to say plus what he and Josh D’Amaro have stated previously, discusses the strategy, and why it’s controversial with followers.
The newest information comes by way of a question-and-answer session that Bob Iger participated in on the MoffettNathanson Media & Communications Summit in mid-Could 2024. Throughout that, Disney’s CEO as soon as once more mentioned a variety of subjects, together with how the corporate plans to spend $60 billion on theme parks within the subsequent decade, in addition to competitors for Walt Disney World from Common’s Epic Universe.
Iger additionally highlighted the efficiency of Parks & Resorts in the latest quarter: “We had document income in all of our parks, document per capita spending, and document attendance in each considered one of our parks besides Walt Disney World, which was nonetheless robust.” (As we’ve mentioned numerous occasions, pent-up demand arrived and subsided at Walt Disney World sooner than all different locations. See Disney ‘Warns’ of Attendance Slowdown for extra from the latest earnings name about this.)
Turning to future progress, Iger defined that Disney’s bullishness on its Parks & Resorts enterprise was due to it being a vivid spot for the corporate that yields each outcomes and stability. He stated that the return on invested capital in Parks & Resorts over his tenure had been “extraordinary.”
Iger added that after Disney made the required adjustments to repair drawback factors and put the corporate able to show issues round from a free money circulation perspective–which is now taking place–that they had a chance to put money into future progress. “Why not put money into the within the enterprise that has the very best returns?”
This dialog about Parks & Resorts occurred towards the backdrop of Iger conceding that conventional media is “not going to be a progress enterprise” and that the corporate acquired forward of itself with Disney+ and was “very, very aggressive” investing “an excessive amount of, means forward of doable returns,” which led to streaming turning into a $4 billion loss. With regard to content material, Iger added that “good isn’t ok.”
I don’t wish to fixate on it an excessive amount of as a result of it’s past the scope of this put up, however the normal tone was that media & leisure, studios, and ESPN all have had or nonetheless have quite a lot of issues. Against this, Parks & Resorts (or Experiences, as they’re now calling it) has been a vivid spot that has been dependable and resilient. That added context makes the $60 billion funding in Parks & Resorts simpler to grasp (and consider!).
From there, Iger went by the worldwide parks (that Disney owns) and praised latest and upcoming additions. He overvalued Shanghai Disneyland turning into the #1 vacationer vacation spot and boosting model affinity in China.
He stated that the brand new Zootopia land was constructed as a result of it’s the primary animated film in China, and that consciousness for the addition could be very excessive. He known as the Zootopia land great and profitable. “Nearly 90% of the individuals who present up [to Shanghai Disneyland] are conscious that Zootopia is there. We constructed a sufficiently big land…about 50% of the individuals who go to truly undergo Zootopia land.”
Iger additionally mentioned the great success of Hong Kong Disneyland, which not too long ago opened the World of Frozen land for which he’s beforehand provided effusive reward. Likewise, he gushed over the Walt Disney Studios Park overhaul, saying they’ve been investing within the soon-to-be-renamed park and that “there are much more points of interest being constructed that can open within the subsequent two to 3 years.” It wasn’t clear whether or not that is referring to the World of Frozen there, or a yet-unannounced alternative for Star Wars: Galaxy’s Edge in WDSP.
His feedback weaved all of this collectively, explaining how the way forward for the theme parks will make the most of Disney’s famed flywheel to focus on tales from the studios and Disney+ streaming service. Iger stated that Disney is “beginning to lean into funding” for Moana, which is probably probably the most notable factor he stated (in my opinion) as a result of…no they aren’t. Not less than, not formally or publicly.
This can not conceivably be about Moana’s Journey of Water at EPCOT, as a result of that funding isn’t beginning–it’s over. As you would possibly recall, model one for the Dino-Rama alternative included a Moana boat trip and the idea artwork (above) for that was very clear. Not impressionistic such as you would possibly see for an idea that had but to crystalize.
Given the recognition of the unique Moana film on streaming (even in spite of everything these years) plus the sequel popping out this 12 months plus early rumors about that trip discovering a house elsewhere at Walt Disney World…I feel that remark was Iger letting slip that there are plans for extra Moana at Walt Disney World and past. Just about every thing else he stated throughout the interview was a rehash of previous feedback–that is the closest to new information that we acquired from the interview.
Iger additionally spoke about “leaning in additional to Star Wars” and talked about that Mandalorian movie in 2026. (Not so coincidentally, there are rumors of a Mandalorian curler coaster.) He then talked about Toy Story 5 and the way that franchise already has a presence at each park world wide. (I certain hope this was pointing to a previous instance of utilizing the flywheel successfully and never foreshadowing extra Toy Story within the parks. Please no, there’s already greater than sufficient.)
He concluded that if Disney will get issues proper with its movie slate, “that ought to begin to repay extra when it comes to combining it with the turbocharge idea that I described on the theme parks.”
Whereas the precise franchises differed, each Iger and D’Amaro (and Chapek earlier than them) have made numerous feedback like this over the past a number of years. I’ve actually misplaced rely of what number of occasions Iger has invoked Pandora or Toy Story Land or Vehicles Land or Star Wars: Galaxy’s Edge as success tales. He’s additionally began to try this with World of Frozen, and I’d anticipate to listen to much more about that (and Zootopia) as these are clearly large wins for Disney.
Iger additional defined that all the largest returns for Parks & Resorts have been “all in regards to the IP.” He stated that “for fairly a very long time, new points of interest and lands on the parks had been primarily based on both very previous IP or no IP–, simply an attraction. Beginning with Vehicles Land and Toy Story Land and some others, I can’t keep in mind this all of the specifics, we determined that the majority of our funding within the parks for points of interest and lands could be utilizing IP. It’s very, very clear what that delivered.”
This has turn out to be a controversial assertion amongst diehard Disney Parks followers, and I can recognize the why of that. However actually, the primary time I heard this quote, I didn’t suppose something of it. That is completely nothing new. Iger, D’Amaro, Chapek, and different Disney executives have been making feedback like this since at the least 2019. I’m fairly certain I keep in mind listening to comparable sentiment across the time that Toy Story Land and Star Wars: Galaxy’s Edge had been introduced, and that continued when these lands and Pandora opened–and on earnings calls after they proved fruitful.
Enable me to refresh your recollection with this quote from a January 2019 interview Iger did with Barron’s: “The acquisition of those manufacturers and the creation of mental property behind them have had an amazing impression on rising our returns on the parks. When you could have Star Wars to market on the parks…Avatar is an effective instance, Vehicles Land, we’re constructing a Frozen land…the curiosity among the many potential viewers is greater. It’s not like “I’m going to trip some nondescript coaster someplace, that possibly is [themed like] India or no matter.” No, you’re going to Arendelle and also you’re going to expertise Frozen with Anna and Elsa. Otherwise you’re going to fly a banshee into Pandora. Go to Vehicles Land. (Emphasis added.)
Nearly inappropriate, however I don’t suppose Iger was taking a deliberate dig at Expedition Everest with that offhand remark. I feel he forgot about Expedition Everest, and that simply so (mockingly) occurred to be the final authentic non-IP attraction constructed at Walt Disney World. I’m unsure whether or not that’s higher or worse, however I simply can not conceive of Iger taking a shot at his personal attraction. Now Chapek, then again…
Turning to commentary, is anybody stunned by Iger’s most up-to-date feedback about IP points of interest and lands? Actually? If I had been pressured to comb by previous interviews (please don’t make me do it), I might simply discover a dozen references to mental property that Disney hopes to construct. Might you return and discover a single occasion of Iger, D’Amaro, Chapek, or anybody else from the c-suite saying they’re excited to inform authentic tales with new points of interest?
Throughout a presentation to traders when pitching the $60 ‘turbocharged’ funding plan, D’Amaro stated, “We have now a wealth of untapped tales to deliver to life throughout our enterprise. Frozen, one of the crucial profitable and widespread animated franchises of all time, might have a presence on the Disneyland Resort. Wakanda has but to be delivered to life. The world of Coco is simply ready to be explored. There’s a number of storytelling alternative.”
That’s a reasonably consultant quote about what Disney plans to construct within the coming decade. Generally the IPs change (Encanto will get talked about lots), however that’s the overall concept. The entire DisneylandForward pitch deck was a ‘best hits’ listing of IP points of interest. (A little bit of an apart, however I feel one purpose why there’s been a lot home protection of World of Frozen and Fantasy Springs at HKDL and Tokyo DisneySea is as a result of Disney needs to gauge the American fan response to them to see whether or not Frozen and Tangled must be leveraged extra within the US parks.)
Truthfully, even after I stopped and re-read Iger’s IP quote, my response wasn’t shock or feigned outrage. It was that he stated it’d be virtually all IP. That means there’s truly an opportunity they’ll construct one thing authentic!
To make certain, I’m not endorsing this virtually all IP strategy–simply that I’m not stunned by it. I very a lot don’t agree with it.
Not like many different followers, I don’t suppose “synergy” is a unclean phrase. On the contrary, I feel it’s each obligatory and essential to the parks. I additionally agree with D’Amaro and Iger that there’s a number of untapped potential in IP on the parks. As I’ve talked about earlier than, it’s wild to me that so few films from the Disney Renaissance have rides at Walt Disney World.
These are actually time-tested classics, and resonate with each millennial mother and father and childless adults. They need to get rides! Ditto the fashionable hits (like Moana) that clearly have endurance. Disney spent lots constructing Star Wars and Marvel lands and points of interest over the previous a number of years–it’s solely logical to show in the direction of the animated films. (Particularly as these show to be big hits on the worldwide parks.)
Maybe my perspective is formed by this being a planning-centric web site, so I hear from a number of first-timers. And I do know that, as a sensible actuality, nothing will get folks to go to Walt Disney World like characters and tales that their children already love. Hugging Mirabel, listening to Elsa sing “Let it Go,” being interrogated by Stormtroopers–these are the experiences they wish to have. That’s “Disney” to them. It’s what will get them within the door, so to talk.
That’s not Disney to me. There’s a great probability it’s to not you, both, in case you’re a longtime fan. I’m a parks fan before everything. Whereas I benefit from the films and Disney+ exhibits to an extent, I largely simply watch them at this level for consciousness. (Even so, I skip lots as a result of a lot of it simply isn’t excellent.)
Whereas it’d’ve been the characters and film tales that acquired me within the door within the first place, it was the distinctive experiences of Walt Disney World that acquired me hooked. Haunted Mansion. Pirates of the Caribbean. Nation Bear Jamboree. House Mountain. Huge Thunder Mountain Railroad. Carousel of Progress. Just about everything of EPCOT Heart. I wouldn’t be a fan–you wouldn’t be studying this–if not for all of that. Issues that most likely wouldn’t be constructed right this moment, for probably the most half.
Simply as I get why followers are upset by Iger’s feedback, I additionally get why that is Disney’s strategy. Utilizing a longtime IP is actually a “cheat code” or shortcut. The attraction or land doesn’t need to be pretty much as good, as a result of there’s already built-in attraction. It doesn’t need to succeed as a lot in resonating emotionally, as a result of it may well reference moments from the flicks that tug on the heartstrings.
Points of interest and lands primarily based on mental property are decrease danger and better reward. They’re simpler to market. They’ve colossal pre-existing audiences. They’re very clearly what most of the people needs. From a enterprise perspective, it makes full sense to create an Arendelle or Radiator Springs land versus a ‘generic’ Scandinavia or Route 66 space.
To not get too far afield, however you might even lengthen this to IP lands. Galaxy’s Edge is, clearly, primarily based on the Star Wars franchise. However it’s additionally an authentic location and the closest factor to a non-IP IP land (a dumb however correct time period). Disney wager large on that, solely to have it surpassed in some methods by the completely unambitious Avengers Campus, the entire conceit of which is mainly simply “listed below are characters in a mean place.”
I’d argue that the IP-centric strategy is at the least considerably short-sighted. Not simply because Figment or Huge Al or Sonny Eclipse have turned a number of us into diehard followers. That’s undoubtedly a giant a part of it–but in addition as a result of the Disney flywheel cuts in each instructions.
Pirates of the Caribbean is among the studio’s all-time largest franchises. Haunted Mansion has had a number of films (certain, they weren’t good…however that’s not the trip’s fault). The Society of Explorers and Adventurers is getting a Disney+ present that’ll kick off a “Magic Kingdom Universe.” Movies are in growth that includes Figment and House Mountain.
Fan-favorite points of interest can encourage films and exhibits…it’s not merely one path. There are numerous different points of interest which have turn out to be popular culture fixtures or manufacturers unto themselves. “it’s a small world” doesn’t have a film or collection (but?), but it surely has a board recreation, books, ornaments, family merchandise, and many others–to not point out a beloved/reviled music. Is it not a precious IP for Disney at this level?
Finally, I wish to see established IP at Walt Disney World. It’s completely wild that there aren’t any actual rides for Magnificence and the Beast, Aladdin, The Lion King, Pocahontas, Hunchback of Notre Dame, Hercules, Mulan or Tarzan. That listing could possibly be prolonged to incorporate Lilo & Sew, The Emperor’s New Groove, The Incredibles, Tangled, Up, and different animated films, in addition to Disney Villains. It additionally is smart so as to add Moana, Coco, Encanto, Inside Out, Frozen, Zootopia, and more moderen releases from the Disney+ period. Walt Disney World gained’t presumably get all of that within the subsequent decade–it’d take far more than the $17 billion earmarked for Florida. Perhaps greater than the entire $60 billion for all of Disney Parks!
I additionally wish to see authentic points of interest at Walt Disney World and past. And actually, I don’t suppose that’s a very unreasonable request. Sure, it’s riskier and doesn’t have as a lot of a built-in viewers. However what? New franchises and types need to be born someplace. I’ve seen a few of the output from the studios and leisure divisions within the final a number of years, and it’s not like all of their large inventive dangers are precisely paying big dividends.
Perhaps as an alternative of investing $200 million into some half-baked CGI fest that nobody requested for (and about as many individuals pays to observe), that cash could possibly be spent on a “dangerous” authentic attraction at Walt Disney World that might sometime encourage a film or collection? By Iger’s personal admission, Parks & Resorts is the one division that has confirmed itself time and time once more. If you give the Imagineers a wholesome finances and artistic freedom, there’s nothing they will’t accomplish. Whereas I’ve respect for the studios…I don’t suppose their latest monitor document is sort of as robust. So why not construct each forms of points of interest and lands?!
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YOUR THOUGHTS
What are your ideas on “virtually all” new points of interest and lands coming to Walt Disney World and past being primarily based on widespread mental property? Assume the Walt Disney Firm will comply with by on its purported plans to “turbocharge” funding and double CapEx to $60 billion on Park & Resorts within the subsequent decade? Which IPs would you prefer to see higher represented at WDW and DLR? Something you’re hoping does not find yourself coming to fruition? Do you agree or disagree with our assessments? Any questions we may help you reply? Listening to your suggestions–even whenever you disagree with us–is each attention-grabbing to us and useful to different readers, so please share your ideas beneath within the feedback!
