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wdwguide
10-08-2003, 10:08 AM
Walt Disney Q&A Sessions with Jay Rasulo & Tom Staggs

http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=DIS&script=1010&item_id=791400

jlambrig
10-08-2003, 10:16 AM
Listening now. Folloiwing along with the written remarks that you can also see at

www.businesswire.com

do a search on Disney

wdwguide
10-08-2003, 10:19 AM
"We have no plans to open any domestic theme parks within the next several years"

as expected

"Let's take a closer look at the key elements of our plan ...

... to continue developing the diverse mix of "uniquely Disney" entertainment offerings that have always characterized our properties.

"The first component of this four-part investment strategy is ...

... what I'll call E-Ticket Attractions."

Putting e-tickets in the focus of development is certainly good news!


"Here's a communications piece we've developed for another one of our major marketing themes -- our upcoming Golden Celebration in honor of Disneyland's 50th Anniversary. In fact, this 18-month celebration, which kicks off in May 2005, will be the biggest bash in Disney history ...
... with all five of our Resorts participating in different ways"

As expected

daannzzz
10-08-2003, 11:04 AM
Reading that report just tells me things will continue as is. They seem to think that "Guests want more Disney" means they want more characters. That Guests "want more things the family can do" means "low cost" kiddie rides built around the characters. They are focusing on "low cost" shows and other special effects instead of rides.

wdwguide
10-08-2003, 11:17 AM
daannzzz,

in my opinion, compared to the last four years, the current investment in rides is nothing short of amazing. There will be no less than three e-ticket rides opening within three years (M:S, Soarin', EE), in addition to the new car stunt show and a handful of smaller projects. I think it's unrealistic for them to do much more than that, in fact, if you had told me about this attraction lineup a year or two ago, I would have probably accused you of "wishful thinking".

Naturally, there is lots that needs to be done still - the parades are getting old, Illuminations is getting old, Fantasmic is getting old, maintenance is still not where it should be, guest service is not as great as it used to be, etc. Especially the latter things Disney does not seem to realize that these are significant.

Peter Pirate
10-08-2003, 11:22 AM
Did I miss a specific comment on 'Soarin'?'

Planogirl
10-08-2003, 11:29 AM
Could someone say what if anything they did announce? I started listening late and now they appear to be done already.

jlambrig
10-08-2003, 11:34 AM
What I heard is that the are going to concentrate more of the pie to marketing than attractions. While they are certainly dedicated to cap ex for attraction based startegies, they said a couple of times they see marketing themes as being a main focus. In fact, Rasulo and Hunt both referred to this when asked if they have made any startegic changes from the previous management group.

As for no new parks, their only focus is getting China to agree to a second park. This became increasingly obvious with the remark that guests who go to EuroDisney are more likely to go to WDW than the person who doesn't go to DLP. That is also true to an extent for TDS and it is expected to continue for DHK. This ties in with the marketing theme point above. They see untapped markets so they are going to direct more dollars to developing and implementing these themes. They are now marketing WDW and DLP together in Europe.

What I read in Rasulo's prepared remarks
"but once Tower of Terror opens, Disney's California Adventure will offer a complete, full-day experience"

What I heard him say
"but once Tower of Terror opens, Disney's California Adventure will offer a complete, enhanced experience"

RhondaS
10-08-2003, 11:38 AM
It's not over yet. :)

Planogirl
10-08-2003, 11:45 AM
I caught a little of the marketing spiel and it sounded OK but thanks for the added detail. :)

In reading through the transcript:
... and we will leverage not only one of the world's strongest brands but also the extensive franchise-building activities of businesses throughout The Walt Disney Company.

Does anyone know what this means? Franchise-building?

but once Tower of Terror opens, Disney's California Adventure will offer a complete, full-day experience that is different in style but comparable in variety and substance to what is currently available at Disneyland

Maybe while so much is closed at Disneyland. :rolleyes:

jlambrig
10-08-2003, 12:21 PM
Originally posted by Planogirl


Does anyone know what this means? Franchise-building?



The Disney model is one of franchsie-building through films, i.e. creating product through film. So , that gorgeous snowglobe of Nemo comes from the Nemo "franchise". Dsiney is now trying to do this through the Disney Channel more so than film as film has a shorter "shelf life" than TV. Kim Possible is a good example of a newer franchise that Disney is trying to establish through the Disney Channel.

On a different note, I thought it interesting that they are talking about the prospect of reducing the moratorium on video releases from 7-10 years to 5-7 years.

*123JOANNA123*
10-08-2003, 12:43 PM
"According to independent research ...

... more than three-quarters of leisure travelers -- or 42 million U.S. households...

... have taken at least one leisure trip in the past five years with their extended family, other families or a group of friends. "

This would explain the survey I took part in while at WDW in August. They sent me a follow up survey all about travelling as part of a multi-household party.

All the results that they then quote in the press conference, I was asked about in the Disney survey. "Independent research":confused: ??

raidermatt
10-08-2003, 03:16 PM
but once Tower of Terror opens, Disney's California Adventure will offer a complete, full-day experience that is different in style but comparable in variety and substance to what is currently available at Disneyland


Ok, show of hands... anyone agree?

Anyone?

Buehler?

Also, isn't this an admission that without ToT, as well as FFF and Aladdin, DCA offered far less than DL, even by Disney's apparently warped standards?

Why then, would this same company be so surprised that pricing the park as an equal to DL would result in failure and ridicule?

Bizarre.

Another Voice
10-08-2003, 03:40 PM
The word "brand" is used ten times in the prepared statement.

That's tells you everything you need to know about the future of Disney parks.

petecaler
10-08-2003, 10:34 PM
Jay mentioned a $1 billion capital improvements project fund. That caught my attention.....

stlphil
10-08-2003, 11:45 PM
Meet the new boss.

Same as the old boss.


Except for the names of the details, this presentation could practically have been given by Ei$ner/Pre$ler any time in the last several years. Still in denial over DCA; bragging about lowering capital spending; all marketing, marketing, marketing, yadda, yadda, yadda.

So depressing.

Peter Pirate
10-09-2003, 09:10 AM
What did you guys expect? It was a PR event, after all.

The speech was fine. There is a lot of information and, yes, a lot of the same. But mostly folks will hear what they want to hear based on their current perspective on the company...I mean there are quite a few around here who will hear NOTHING good unless the first words are "Michael Eisner is stepping down."...

Another Voice
10-09-2003, 11:01 AM
"But mostly folks will hear what they want to hear based on their current perspective on the company..."

Works both ways Mr. Pirate.

crusader
10-09-2003, 11:10 AM
stlphil-

I agree. I didn't find it to be depressing, though. What exactly is the expectation here?It was a PR event, after all.

Exactly. Designed to inform by stating very little. There are no true predicators. It's all speculative, wishful thinking crystal snowglobe-telling prophecy.

But hey, it sounded pretty good!

raidermatt
10-09-2003, 12:35 PM
What did you guys expect? It was a PR event, after all.
Designed to inform by stating very little. There are no true predicators. It's all speculative, wishful thinking crystal snowglobe-telling prophecy.
You're both right, of course. Its pretty clear there is not a true strategic change taking place, but rather just some minor budget tweaking.

Unfortunate, but not a surprise.

Peter Pirate
10-09-2003, 01:42 PM
Works both ways Mr. Pirate. Indeed it can...But as for me, the head of the rose colored glasses crowd, I heard a nice speech. I didn't hear anything that makes me think Disney has had an epipheny or is about to embark on a great new future. I heard a little about some things we already new about in a nice candy coated package...That's it. So maybe there are some folks out there who have taken the route opposite of the 'Eisner must resign' outlook I mentioned, but I haven't seen it here yet... :wave:

Planogirl
10-09-2003, 03:48 PM
I too thought that they might mention Soarin'. But this was pretty much what I expected otherwise, lots of cheerleading and little substance. Pretty much what one would expect on any of these conference calls.

noblemickey
10-09-2003, 06:49 PM
Reading the Dis boards regularly there were no surprises. I do feel it is good news that WDW, at least partially, is back in the lime light and will get some attention, ie: new and refurbished attractions. However, I still don't know why Disney Execs can sit there and let 20,000 Leagues go idle right in the middle of Fantasyland. It is an eye sore and must be addressed. Hopefully, Disney will have some additional announcements in the not to distant future for improvements to WDW-Magic Kingdom.

wdwguide
10-09-2003, 07:18 PM
Originally posted by Planogirl
I too thought that they might mention Soarin'. But this was pretty much what I expected otherwise, lots of cheerleading and little substance. Pretty much what one would expect on any of these conference calls.

I would not be surprised if they still did this. After all, this press conference was intended for investors, who care little about the name or nature of a particular attraction, but more on costs and returns. With attraction announcements, they get a bigger "bang" for their buck by putting on a show for the press and travel agents.

stlphil
10-09-2003, 10:46 PM
Just to be clear, I realize it was a PR event and didn't expect mea culpas, doom and gloom. Of course I expected positive spin all around.

But even given this, Jay acknowledged in the presentation that all has not been roses and light. This would have been a perfect opportunity to take advantage of the fact of having a new guy heading the segment, and spin the message in the direction of dynamic, new, forward-looking, customer-centric leadership- even if nothing had fundamentally changed. You wouldn't have to say explicitly or implicitly that Paul was clueless (that's why the spin doctors get paid the big bucks). New leadership vision would be well received by the audience since Ei$ner is not particularly well regarded in widening quarters of the financial community either.

Yet instead Jay presents a talk that mostly takes the exact same misguided tone as Ei$ner has over the last several years. Milking a brand that has been diluted, rather than building the brand to increase the value to the company. I admit I may have a somewhat distorted picture since I only read the transcript rather than listening to the speech, but on paper Jay "sounds" more in lock-step with Ei$ner than even Pre$ler did.

Would I be the first to refer to him as Ra$ulo?

PKS44
10-10-2003, 07:33 AM
I have to agree with my St Louis neighbor-if you want to read how a successful theme park corporate exec gives out PR that reveals a different strategy and philosophy for dealing with difficult economies I refer you to this link provided on another thread by crusader:

Click Here (http://www.olc.co.jp/ir_2003a/ar2003.pdf)



The head of olc operates in the same corporate way that Ra$ulo has to yet one hears about exploiting the brand from Disney...investing in the brand and a willingness to trade short term profits for long term viability and success by OLC. Think about what he says about Tokyo DisneySeas--here he has a park with 10 million visitors in its first 10 months and what does he say? We need to improve our guests experience there because the guests are too concentrated in one part of the park. They are turning people away from the gates and yet in a very difficult economic time they are concerned that they need to invest in making their guests experience BETTER?!!!! Wow! What a concept!

No reason Disney could not do what OLC is doing except for a lack of courage and leadership at the top....I won't be rushing out to buy back the Disney stock I sold when it last saw $25 a share.

Paul

airlarry!
10-10-2003, 09:05 AM
Here's the future line-up at the Tokyo Disney Resort (TDR):

Tokyo Disneyland DisneySeas

2004 Waterfront Park
2005 Buzz Lightyear
2006 New Roller Coaster
2007 Tower of Terror

In addition, fundamentally addressing the problem of concentration of guests at Tokyo DisneySea will require large-scale capital investment to introduce new attractions, including
construction time.

By the numbers: Tokyo DL DisneySeas
42 attractions 23 attractions (**)

In contrast:

Disneyland CaliMisadventure
61 attractions (*) 33 attractions (*)

(*) These numbers are inflated by the website to include:

Disneyland:

Meet & Greet with Aladdin and Jasmine
Counting the main street railroad stations 4 times!!
A Fire Engine, presented by National Rental!!
Meet and Greet with Goofy and pals
Horse Drawn Streetcars, presented by National (are you kidding?)
Horse Drawn Carriage, presented by National!
Meet and Greet Disney princesses
Omnibus, presented by National Car Rental (come on!)
Starcade (why not count every video game at every pizza parlor in America as an 'attraction')
Meet & Greet Toy Story 2
Meet and Greet Winnie The Pooh

CaliMisAdventure:

Bountiful Farm
Meet & Greet Flik & Atta
Meet & Greet Chip and Dale
Games of the Boardwalk (I'd pay $47 to play carnie games, sure.....)
Golden Winery
Tortilla Factory
Puddle Park (in the old days, they didn't even advertise water play areas like in Epcot or DTD, they were just *suprises*)
Boudin Bakery (are you kidding me?)

(**) Tokyo DisneySeas counts in its 23 the American Waterfront vehicles, transit locations, the Gondolas, and the Fortress, but still has either 19 or 20 legitimate attractions.

As for WDW, I am a firm believer that each park should get a new E-ticket ride every 4-5 years, to remind folks to come back every 3-5 years for another visit. Smaller attractions and shows should be added nearly every years, tied in to the latest animated features. There should be no down areas like the lagoon...I have found no long term closures at the Tokyo Disneyland park, even though it has been open for 20 years this year.