Throughout a latest interview, Disney CEO Bob Iger stated the “turbocharged” $60 billion funding into Parks & Resorts can be virtually fully present mental property. This publish shares what he needed to say plus what he and Josh D’Amaro have stated up to now, discusses the method, 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-Might 2024. Throughout that, Disney’s CEO as soon as once more mentioned a spread 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 newest quarter: “We had file income in all of our parks, file per capita spending, and file attendance in each certainly one of our parks besides Walt Disney World, which was nonetheless robust.” (As we’ve mentioned numerous instances, 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 newest 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 brilliant 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 when Disney made the mandatory adjustments to repair drawback factors and put the corporate ready to show issues round from a free money circulate perspective–which is now occurring–that they had a possibility to spend money on future progress. “Why not spend money on 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, method forward of potential 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 need to fixate on it an excessive amount of as a result of it’s past the scope of this publish, however the common tone was that media & leisure, studios, and ESPN all have had or nonetheless have a wide range of issues. Against this, Parks & Resorts (or Experiences, as they’re now calling it) has been a brilliant spot that has been dependable and resilient. That added context makes the $60 billion funding in Parks & Resorts simpler to know (and imagine!).
From there, Iger went by the worldwide parks (that Disney owns) and praised latest and upcoming additions. He overrated 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 referred to as the Zootopia land great and profitable. “Virtually 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 just lately 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 sights being constructed that can open within the subsequent two to a few 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 maybe probably the most notable factor he stated (for my part) as a result of…no they aren’t. No less than, not formally or publicly.
This can’t 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 experience 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 experience 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 little thing else he stated in the course of 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 all over the world. (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 by way of 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 during the last a number of years. I’ve truthfully misplaced depend of what number of instances Iger has invoked Pandora or Toy Story Land or Automobiles 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 greatest returns for Parks & Resorts have been “all in regards to the IP.” He stated that “for fairly a very long time, new sights and lands on the parks had been based mostly on both very outdated IP or no IP–you realize, simply an attraction. Beginning with Automobiles 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 sights and lands can 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 respect the why of that. However truthfully, the primary time I heard this quote, I didn’t assume something of it. That is completely nothing new. Iger, D’Amaro, Chapek, and different Disney executives have been making feedback like this since not less than 2019. I’m fairly certain I keep in mind listening to related 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 incredible affect on rising our returns on the parks. When you’ve got Star Wars to market on the parks…Avatar is an effective instance, Automobiles Land, we’re constructing a Frozen land…the curiosity among the many potential viewers is increased. It’s not like “I’m going to experience some nondescript coaster someplace, that perhaps 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 Automobiles Land. (Emphasis added.)
Virtually irrelevant, however I don’t assume Iger was taking a deliberate dig at Expedition Everest with that offhand remark. I feel he forgot about Expedition Everest, and that simply so (paradoxically) occurred to be the final unique non-IP attraction constructed at Walt Disney World. I’m unsure whether or not that’s higher or worse, however I simply can’t conceive of Iger taking a shot at his personal attraction. Now Chapek, however…
Turning to commentary, is anybody stunned by Iger’s most up-to-date feedback about IP sights and lands? Actually? If I had been compelled to comb by outdated interviews (please don’t make me do it), I might simply discover a dozen references to mental property that Disney hopes to construct. May 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 unique tales with new sights?
Throughout a presentation to traders when pitching the $60 ‘turbocharged’ funding plan, D’Amaro stated, “Now we have a wealth of untapped tales to carry to life throughout our enterprise. Frozen, probably the most profitable and standard 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 whole lot 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 ‘biggest hits’ checklist of IP sights. (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 desires to gauge the American fan response to them to see whether or not Frozen and Tangled needs to be leveraged extra within the US parks.)
Truthfully, even once 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 unique!
To make certain, I’m not endorsing this virtually all IP method–simply that I’m not stunned by it. I very a lot don’t agree with it.
In contrast to many different followers, I don’t assume “synergy” is a unclean phrase. On the contrary, I feel it’s each essential and vital to the parks. I additionally agree with D’Amaro and Iger that there’s a whole lot of untapped potential in IP on the parks. As I’ve talked about earlier than, it’s wild to me that so few motion pictures from the Disney Renaissance have rides at Walt Disney World.
These are actually time-tested classics, and resonate with each millennial dad and mom 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 sights over the previous a number of years–it’s solely logical to show in direction of the animated motion pictures. (Particularly as these show to be large hits on the worldwide parks.)
Maybe my perspective is formed by this being a planning-centric web site, so I hear from a whole lot 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 need 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 very good 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 motion pictures and Disney+ reveals 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. Massive 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 in all probability wouldn’t be constructed in the present day, 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 method. Utilizing a longtime IP is actually a “cheat code” or shortcut. The attraction or land doesn’t should be nearly as good, as a result of there’s already built-in enchantment. It doesn’t should succeed as a lot in resonating emotionally, as a result of it might reference moments from the films that tug on the heartstrings.
Points of interest and lands based mostly 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 people desires. 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 can even prolong this to IP lands. Galaxy’s Edge is, clearly, based mostly on the Star Wars franchise. Nevertheless it’s additionally an unique location and the closest factor to a non-IP IP land (a dumb however correct time period). Disney guess large on that, solely to have it surpassed in some methods by the completely unambitious Avengers Campus, the entire conceit of which is principally simply “listed here are characters in a median place.”
I’d argue that the IP-centric method is not less than considerably short-sighted. Not simply because Figment or Massive Al or Sonny Eclipse have turned a whole lot 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 greatest franchises. Haunted Mansion has had a number of motion pictures (certain, they weren’t good…however that’s not the experience’s fault). The Society of Explorers and Adventurers is getting a Disney+ present that’ll kick off a “Magic Kingdom Universe.” Movies are in improvement that includes Figment and House Mountain.
Fan-favorite sights can encourage motion pictures and reveals…it’s not merely one route. There are numerous different sights which have turn out to be popular culture fixtures or manufacturers unto themselves. “it’s a small world” doesn’t have a film or sequence (but?), nevertheless it has a board sport, books, ornaments, family merchandise, and many others–to not point out a beloved/reviled tune. Is it not a useful IP for Disney at this level?
In the end, I need to see established IP at Walt Disney World. It’s completely wild that there are not any actual rides for Magnificence and the Beast, Aladdin, The Lion King, Pocahontas, Hunchback of Notre Dame, Hercules, Mulan or Tarzan. That checklist could possibly be prolonged to incorporate Lilo & Sew, The Emperor’s New Groove, The Incredibles, Tangled, Up, and different animated motion pictures, in addition to Disney Villains. It additionally is sensible 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 need to see unique sights at Walt Disney World and past. And truthfully, I don’t assume that’s a very unreasonable request. Sure, it’s riskier and doesn’t have as a lot of a built-in viewers. However you realize what? New franchises and types should be born someplace. I’ve seen among the output from the studios and leisure divisions within the final a number of years, and it’s not like all of their large artistic dangers are precisely paying large 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” unique attraction at Walt Disney World that might sometime encourage a film or sequence? By Iger’s personal admission, Parks & Resorts is the one division that has confirmed itself time and time once more. Whenever you give the Imagineers a wholesome finances and artistic freedom, there’s nothing they’ll’t accomplish. Whereas I’ve respect for the studios…I don’t assume their latest monitor file is almost as robust. So why not construct each kinds of sights and lands?!
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YOUR THOUGHTS
What are your ideas on “virtually all” new sights and lands coming to Walt Disney World and past being based mostly on standard mental property? Suppose the Walt Disney Firm will observe 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 wish 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 also help you reply? Listening to your suggestions–even whenever you disagree with us–is each fascinating to us and useful to different readers, so please share your ideas under within the feedback!
