Throughout a latest interview, Disney CEO Bob Iger stated the “turbocharged” $60 billion funding into Parks & Resorts shall be nearly solely current mental property. This submit shares what he needed to say plus what he and Josh D’Amaro have stated previously, discusses the method, and why it’s controversial with followers.
The most recent 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 report income in all of our parks, report per capita spending, and report attendance in each one in every of our parks besides Walt Disney World, which was nonetheless sturdy.” (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 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 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 after Disney made the required modifications to repair drawback factors and put the corporate ready to show issues round from a free money movement perspective–which is now taking place–they’d a possibility to put money into future progress. “Why not put money into the within the enterprise that has the best returns?”
This dialog about Parks & Resorts occurred in opposition to the backdrop of Iger conceding that conventional media is “not going to be a progress enterprise” and that the corporate bought forward of itself with Disney+ and was “very, very aggressive” investing “an excessive amount of, approach 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 submit, however the normal tone was that media & leisure, studios, and ESPN all have had or nonetheless have quite a lot of issues. In contrast, 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 grasp (and consider!).
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 large and profitable. “Nearly 90% of the individuals who present up [to Shanghai Disneyland] are conscious that Zootopia is there. We constructed a large enough land…about 50% of the individuals who go to truly undergo Zootopia land.”
Iger additionally mentioned the large 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 may 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 substitute 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 spotlight tales from the studios and Disney+ streaming service. Iger stated that Disney is “beginning to lean into funding” for Moana, which is maybe essentially 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’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 substitute 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 any case these years) plus the sequel popping out this yr 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 all the things else he stated throughout the interview was a rehash of previous feedback–that is the closest to new information that we bought 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 around the globe. (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 over the past a number of years. I’ve actually misplaced depend of what number of instances 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 huge wins for Disney.
Iger additional defined that the entire largest returns for Parks & Resorts have been “all concerning the IP.” He stated that “for fairly a very long time, new points of interest and lands on the parks have been primarily based on both very outdated IP or no IP–you recognize, simply an attraction. Beginning with Vehicles Land and Toy Story Land and some others, I can’t bear 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 develop into a controversial assertion amongst diehard Disney Parks followers, and I can admire the why of that. However actually, 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 bear in mind listening to related sentiment across the time that Toy Story Land and Star Wars: Galaxy’s Edge have 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 affect on rising our returns on the parks. When you might have Star Wars to market on the parks…Avatar is an efficient instance, Vehicles 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 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 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 authentic non-IP attraction constructed at Walt Disney World. I’m undecided 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 points of interest and lands? Actually? If I have 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. 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 buyers when pitching the $60 ‘turbocharged’ funding plan, D’Amaro stated, “We now have a wealth of untapped tales to deliver to life throughout our enterprise. Frozen, one of the crucial profitable and well-liked 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 numerous storytelling alternative.”
That’s a reasonably consultant quote about what Disney plans to construct within the coming decade. Typically the IPs change (Encanto will get talked about rather a lot), however that’s the overall concept. The entire DisneylandForward pitch deck was a ‘best hits’ checklist of IP points of interest. (A little bit of an apart, however I feel one motive 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 ought to be leveraged extra within the US parks.)
Actually, 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 nearly all IP. That means there’s truly an opportunity they’ll construct one thing authentic!
To make certain, I’m not endorsing this nearly 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 grimy phrase. On the contrary, I feel it’s each mandatory and essential to the parks. I additionally agree with D’Amaro and Iger that there’s numerous 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 at the moment are time-tested classics, and resonate with each millennial dad and mom and childless adults. They need to get rides! Ditto the trendy hits (like Moana) that clearly have endurance. Disney spent rather a lot 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 large hits on the worldwide parks.)
Maybe my perspective is formed by this being a planning-centric website, so I hear from numerous first-timers. And I do know that, as a sensible actuality, nothing will get individuals 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 probability it’s to not you, both, should you’re a longtime fan. I’m a parks fan in the beginning. Whereas I benefit from the films and Disney+ reveals to an extent, I principally simply watch them at this level for consciousness. (Even so, I skip rather a lot as a result of a lot of it simply isn’t superb.)
Whereas it would’ve been the characters and film tales that bought me within the door within the first place, it was the distinctive experiences of Walt Disney World that bought me hooked. Haunted Mansion. Pirates of the Caribbean. Nation Bear Jamboree. Area 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 in all probability wouldn’t be constructed right now, for essentially 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 basically 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 attraction. It doesn’t should succeed as a lot in resonating emotionally, as a result of it could actually reference moments from the films that tug on the heartstrings.
Sights 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 would even lengthen this to IP lands. Galaxy’s Edge is, clearly, primarily based on the Star Wars franchise. But it surely’s additionally an authentic location and the closest factor to a non-IP IP land (a dumb however correct time period). Disney guess huge 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 below are characters in a mean place.”
I might argue that the IP-centric method is not less than considerably short-sighted. Not simply because Figment or Huge Al or Sonny Eclipse have turned numerous us into diehard followers. That’s undoubtedly a giant a part of it–but additionally as a result of the Disney flywheel cuts in each instructions.
Pirates of the Caribbean is likely one of 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 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 Area Mountain.
Fan-favorite points of interest can encourage films and reveals…it’s not merely one path. There are a lot of different points of interest which have develop into popular culture fixtures or manufacturers unto themselves. “it’s a small world” doesn’t have a film or sequence (but?), but it surely has a board recreation, books, ornaments, family merchandise, and so on–to not point out a beloved/reviled tune. Is it not a precious IP for Disney at this level?
In the end, 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 checklist 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 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 wish to see authentic points of interest at Walt Disney World and past. And actually, 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 recognize 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 huge inventive 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 can pay to look at), that cash could possibly be spent on a “dangerous” authentic attraction at Walt Disney World that would 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. While you give the Imagineers a wholesome price range and inventive freedom, there’s nothing they’ll’t accomplish. Whereas I’ve respect for the studios…I don’t assume their latest observe report is sort of as sturdy. So why not construct each varieties of points of interest and lands?!
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YOUR THOUGHTS
What are your ideas on “nearly all” new points of interest and lands coming to Walt Disney World and past being primarily based on well-liked mental property? Suppose 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 also help you reply? Listening to your suggestions–even once you disagree with us–is each attention-grabbing to us and useful to different readers, so please share your ideas under within the feedback!