Since Disney is a long-term player in the theme park industry, many of the projects Mr. D’Amaro presented won’t open for another two years or longer.
Disney’s stock price plummeted when it revealed last year that it intended to invest $60 billion over the next ten years to grow its theme park and cruise businesses – double what it had spent over the previous ten years.
Wall Street was expecting details, which the company was not ready to provide. For a little while, Disney fans were ecstatic; however, soon after, many began to ask questions and expressed their feelings on social media about feeling duped. Was Disney only speculating about the expansion, or was this actually happening?
As part of a massive expansion of its resort business, Disney introduced a series of new theme-park attractions, including its first land dedicated to movie villains and a doubling of its Avengers Campus in California.
At the company’s biennial D23 fan club convention in Anaheim, California, on Saturday, the projects were announced. In September of last year, Disney revealed its long-term ambitions for its parks and resorts division, which included increasing capital expenditure to $60 billion over a ten-year period. It is now giving much-needed details.
The Florida Magic Kingdom at Walt Disney World will house a villain-themed area. It will be about the same size as its expansive Star Wars-themed areas, with two attractions, retail stores, and restaurants.
A Cars-themed area will be added to Frontierland, which is being upgraded at the same park. During one ride, visitors will pass by mountains and geysers and through a wilderness. When combined, the two projects mark the 53-year-old Magic Kingdom’s biggest expansion to date.
Disney is also developing a huge “Spider-Man” roller coaster, a ride-through “Encanto” experience, a water ride called “Lion King,” and a suspended roller coaster with a theme centered around “Monsters, Inc.” The list of projects is endless and includes extravagant outdoor pageants that Disney refers to as “spectaculars” as well as new nocturnal parades.
During a three-hour nighttime talk at D23: The Ultimate Disney Fan Event, a three-day gathering in Southern California, Mr. D’Amaro went into depth about the projects, emphasizing that they are all occurring and not just notional. (The reference to D23 relates to 1923, the year Walt Disney made his Hollywood debut.)
Despite their enormous cost, the ships and developments unveiled on Saturday do not total $60 billion. That amount also includes investments in technology and infrastructure, as well as long-term plans for Disney’s still-secret rides, resort hotels, and dining and shopping areas.
Three days after Disney revealed a lower-than-expected theme park performance for the quarter that concluded on June 29, Mr. D’Amaro made his long-awaited presentation. Operating profit dropped to $2.2 billion, a 3% decrease. Disney attributed the increase in operating expenses to a “moderation of consumer demand” that “exceeded our previous expectations.” Disney stated that the post-pandemic spike in travel has subsided and that Americans with lower incomes, who have been severely impacted by years of rising inflation have reduced their discretionary spending.
Since Disney is a long-term player in the theme park industry, many of the projects Mr. D’Amaro presented won’t open for another two years or longer. Due in part to the fact that many parents consider a trip to Disneyland or Disney World to be a rite of passage for their children, Disney’s parks have a long history of recovering swiftly from economic downturns.
In a report released on Wednesday, Laurent Yoon, a media analyst at the research firm Bernstein, stated that “we’re not concerned” about Disney Experiences’ short-term difficulties.
Every two years, D23 is like a big business pep rally, with about 140,000 attendees paying anything from $79 to $2,600 to be advertised to. Disney presents a star-studded cast and teases upcoming TV series like “Bluey” and “Percy Jackson and the Olympians.” A lot of people show out dressed as their preferred Disney figure. There are kiosks selling glow wands for $30 and confetti cannons.
It’s a highlight for Disney execs as well. Disney’s CEO at the time, Bob Chapek, attempted to exploit the occasion in 2022 to improve his reputation and move past his turbulent early years. Disney granted media credentials to around a thousand reporters and online writers this year. Many arrived from abroad.
A live-streamed portion of the presentation within the Fortnite online game was viewed by over 1.2 million viewers. Disney and Epic Games established a multiyear agreement in February to integrate Disney into a Fortnite realm. On the project, Mr. D’Amaro has been collaborating with Pete Docter of Pixar and Kevin Feige of Marvel. These executives oversee creative direction for Disney’s film studios.
As part of an announcement concerning Disney characters (Doctor Doom, the Mandalorian, and Cruella de Vil) making their debut in Fortnite in the upcoming weeks, Mr. Feige added from the stage, “A lot of people learn about our characters for the first time through Fortnite.”
Florida and cruise ships were the two most noteworthy aspects of Mr. D’Amaro’s presentation from a commercial standpoint.
Because it is still a very tiny component of Mr. D’Amaro’s portfolio, Disney Cruise Line, which debuted its first ship in 1998, has been disregarded. Disney still only has a 5% market share in the cruise sector, although its share has doubled recently and its fleet is currently operating at over 90% occupancy. Cruises are therefore viewed by the corporation as an essential long-term growth business.
According to Mr. D’Amaro, some of the possibility relates to regions of the world where Disney is unable to justify the construction of a theme park. For instance, India lacks the consumer wealth necessary to maintain a park. However, it is more than sufficient for a Disney cruise ship and a floating theme park that can serve as the area’s brand engine.
Disney is up against more competition in Florida due to Universal Orlando Resort, which is investing billions of dollars in a massive expansion that will add three new hotels and a 750-acre fourth park. Disney has openly played down the threat, claiming that new Orlando attractions often boost the entire market, but it is evident that the corporation is paying attention. Mr. D’Amaro revealed at least eight new Disney World rides on Saturday.