Disney CFO explains rationale for MyMagic+ on earnings conf call

[WDW1979]

http://finance.yahoo.com/news/call-disney-cfo-explains-mymagic-225441629.html

 

[Peter Pirate 2]

Let's suck all discretionary money, all credit card allowances and all possible bonus and/or future unrecognizd money from our Walmart demographic and we're bound to make our quarterly bonuses for the next two or three years. Yeah, that's magic!

 

[Peter Pirate 2]

And don’t forget our fabulous upgrades...you know, FLE ... It's so much better than HP or Seaworld's Antartica ... Oh wait...

 

[bcrook]

Let's suck all discretionary money, all credit card allowances and all possible bonus and/or future unrecognizd money from our Walmart demographic and we're bound to make our quarterly bonuses for the next two or three years. Yeah, that's magic!

I love this quote from The CFO "When they get into the Orlando market and their time isn't yet planned, they can be subject to everything you see down there, which is a lot of in-city marketing for all the many products that people have put there to basically bleed off the feed that we fundamentally motivate."

It almost sounds retaliatory towards customers who have dared to wander off. Now they will show us, and they will lock us down with magicbands and the FP+ addiction. At least they are being open about it.

 

[doconeill]

I was on my way to post a link here, but of course got distracted on my way...

Here's Jason Garcia's version from the Orlando Sentinel.

Honestly, nothing really new...when they first announced the plan, they admitted that it was really all about squeezing an extra 10-20% out of the guests. Some of which we had already figured out - make it so easy to pay for things that you don't think twice about it.

Now they are admitting the rest...make you plan in advance, so that you can't change your plans later

 

[bcrook]

I was on my way to post a link here, but of course got distracted on my way...

Here's Jason Garcia's version from the Orlando Sentinel.

Honestly, nothing really new...when they first announced the plan, they admitted that it was really all about squeezing an extra 10-20% out of the guests. Some of which we had already figured out - make it so easy to pay for things that you don't think twice about it.

Now they are admitting the rest...make you plan in advance, so that you can't change your plans later

This is the biggest reason FP+ will be rationed. They will become too valuable to skip and go somewhere else. If you book them in advance you will use them.

 

[gr8estg8r]

I love this quote from The CFO "When they get into the Orlando market and their time isn't yet planned, they can be subject to everything you see down there, which is a lot of in-city marketing for all the many products that people have put there to basically bleed off the feed that we fundamentally motivate."

It almost sounds retaliatory towards customers who have dared to wander off. Now they will show us, and they will lock us down with magicbands and the FP+ addiction. At least they are being open about it.

Well great way to think negatively! Actually what I think that he meant is that many people come to Orlando thinking of only Disney World and realize that there are other things to do. If they get those guest to pre-plan for most of their trip at Disney, then that will keep them on-property. Disney World is the reason Orlando is the biggest tourist destination. They just don't want people to be enticed by other offerings. For instance, when Disneyland opened there were many motels and hotels that sprung up around it. Disney lost this revenue by not having their own hotels and such in the area.
One could also argue that if they spent more money by investing in new rides they would get more revenue that way, but long-term (after new ride effect wears off) mymagic+ probably will have a bigger impact if it has the effect they forsee.

 

[ChipnDale79]

Well great way to think negatively! Actually what I think that he meant is that many people come to Orlando thinking of only Disney World and realize that there are other things to do. If they get those guest to pre-plan for most of their trip at Disney, then that will keep them on-property. Disney World is the reason Orlando is the biggest tourist destination. They just don't want people to be enticed by other offerings. For instance, when Disneyland opened there were many motels and hotels that sprung up around it. Disney lost this revenue by not having their own hotels and such in the area.
One could also argue that if they spent more money by investing in new rides they would get more revenue that way, but long-term (after new ride effect wears off) mymagic+ probably will have a bigger impact if it has the effect they forsee.

I'm one of the people that believes MyMagic+ will actually be a negative effect for Disney. I have a rigid schedule in my day to day life, it's one of the things I look forward to shedding as soon as possible while on vacation. I don't like having to book meals 180 days in advance, but in order to eat at certain places, you have to. That's about as much planning as I'm willing to do on my vacation, I don't want to have to schedule every day of my vacation around which rides we want to ride and when 6 months in advance.

Will this work for a couple of years? Sure I think it will, but I think once people see how rigid their schedules are, maybe they won't book return trips to WDW as often as they did before.

Disney also has to walk a fine line here, I think we all believe and are ok with companies making profits, it is in fact what they are in business for. However, once those companies are perceived as "greedy", that does in fact turn people away from them. Most people are already paying thousands of dollars for a Disney vacation, and now they want to squeeze more money out of us? Careful Disney.

 

[bdklein]

I have a rigid schedule in my day to day life, it's one of the things I look forward to shedding as soon as possible while on vacation. I don't like having to book meals 180 days in advance, but in order to eat at certain places, you have to. That's about as much planning as I'm willing to do on my vacation, I don't want to have to schedule every day of my vacation around which rides we want to ride and when 6 months in advance.

100% agree with this.

 

[MonorailLime]

Again, you dont HAVE to participate in MyMagic+. True, Disney has financial motivations behind it, but I have seen some of the technology in their Guest testing and preferred FastPass+. I didn't make circles around the park getting the ticket, running to spend time elsewhere, running back... It saved me time and energy. And TapToEnter is much much faster and far easier than traditional turnstiles.

Seriously, if your going to judge before you experience it, don't go. It's like this site is filled with people who know more than the designers and engineers. You don't. Stop being so full of yourself. Negative comments before a full-blown release does nothing productive. Wait and see what it really is, and if it does anything to benefit YOU before judging. Don't be the people to ruin MyMagic+ like the Annual Passholders did for Monsters Inc. Laugh Floor (making negative reviews when only pieces of the show were shown to them).

I thought we learned this etiquette in elementary school?

EDIT: While I only have 3 posts, I have been lurking for some time, and this is a trend that DisBoards has that isn't so apparent at other sites. It's aggravating to see people who don't know what they're talking about create a negative image for a product that isn't available yet.

 

[doconeill]

Again, you dont HAVE to participate in MyMagic+. True, Disney has financial motivations behind it, but I have seen some of the technology in their Guest testing and preferred FastPass+. I didn't make circles around the park getting the ticket, running to spend time elsewhere, running back... It saved me time and energy. And TapToEnter is much much faster and far easier than traditional turnstiles.

Seriously, if your going to judge before you experience it, don't go. It's like this site is filled with people who know more than the designers and engineers. You don't. Stop being so full of yourself. Negative comments before a full-blown release does nothing productive. Wait and see what it really is, and if it does anything to benefit YOU before judging. Don't be the people to ruin MyMagic+ like the Annual Passholders did for Monsters Inc. Laugh Floor (making negative reviews when only pieces of the show were shown to them).

I thought we learned this etiquette in elementary school?

Ummm...first, we can comment/judge based on the information available if we want. Just like we can choose to use MM+ or not.

If Disney didn't want the possibility of negative reviews based on an incomplete preview, they shouldn't have had the preview. Seriously, what did they really expect the guests to say?

And I hardly think those negative reviews actually ruined the attraction. Seems to do well enough.

Sure, with the technology, no more running around - that we know of, since it isn't even working yet. But in the same vein, they've only said so far that we can have three FP+ choices...unless that changes, that is a major limitation to what I am used to being able to get, and I don't like it. And I'm free to post my displeasure with it.

And you're calling us full of ourselves, oh Self-Anointed-Forum-Police-With-Two-Posts?

 

[MonorailLime]

Most people are already paying thousands of dollars for a Disney vacation, and now they want to squeeze more money out of us? Careful Disney.

Disney is targeting people who could be spending more, but don't have the time, or incentive to do so. MyMagic+ aims to understand your likes and dislikes and tailor a personalized experience to you. YOU decide how much you spend, not Disney. Disney is simply making it easier for you to spend. It's similar to saying that 'eating McDonalds makes you fat,' when in reality, your choice to eat McDonalds makes you fat.
There's a difference in accessibility and use of a program. I love TapToEnter. I don't have to dig through my wallet to find my room key. I simply tap the whole wallet and I'm in my room. This is helpful when my hands are full with luggage, or breakfast because the family is just waking up.
However, I limit how much I can spend at the Front Desk. It's my responsibility to utilize an easily accessible item within the limits I understand myself.

 

[MonorailLime]

Ummm...first, we can comment/judge based on the information available if we want. Just like we can choose to use MM+ or not.

If Disney didn't want the possibility of negative reviews based on an incomplete preview, they shouldn't have had the preview. Seriously, what did they really expect the guests to say?

And I hardly think those negative reviews actually ruined the attraction. Seems to do well enough.

Sure, with the technology, no more running around - that we know of, since it isn't even working yet. But in the same vein, they've only said so far that we can have three FP+ choices...unless that changes, that is a major limitation to what I am used to being able to get, and I don't like it. And I'm free to post my displeasure with it.

And you're calling us full of ourselves, oh Self-Anointed-Forum-Police-With-Two-Posts?

First, it is common in the industry to hold previews. Previews show investments and are intended to excite industry analysts. They're intended to create the realization of a need.
MyMagic+ aims to equally distribute Guests in the park environment to create an equal load on park amenities and reduce Guest dissatisfaction due to crowds, wait times, and missed opportunities. One only needs a small amount of knowledge about the Disney company to see that. Might I direct your attention to this bit of research: disneyresearch (dot) com/research-areas/behavioral-sciences/
Search for the paragraph titled "Mobile Apps for Mitigating Theme-Park Crowding"
This explains why Disney is including Fireworks and Parade viewing reservations as FastPass+ options. Who needs a FastPass to see a parade? No one. So there clearly is a bigger motivation around it.

Ron Schneider, the original DreamFinder, describes in his book "From Dreamer to Dream Finder" that Monsters Inc. Laugh Floor was intended for two other parks. However, the negative reviews around the launch of the attraction prevented it from ever making it into another gate.

And you are incorrect. Disney has said that you may PREBOOK THREE FASTPASSES. Where people come up with the idea that you are limited to three for the day is ludicrous. Again, you don't know how many you will get, just how many you prebook. Don't make assumptions. For testing purposes, three was used because FastPass+ did not have the entire server system online -- just a limited quantity with beta software. Why overload and crash a conceptual beta test?

And a four year old can post in a forum. For someone who has worked in this industry more than most posters here, I think I'm more than qualified to say these things, despite my two posts. Either way, I'm indifferent until the product is fully released and I EXPERIENCE it myself.

 

[DRDISNEYMD]

Let's suck all discretionary money, all credit card allowances and all possible bonus and/or future unrecognizd money from our Walmart demographic and we're bound to make our quarterly bonuses for the next two or three years. Yeah, that's magic!

~Hasn't it *always* been this way???

And don’t forget our fabulous upgrades...you know, FLE ... It's so much better than HP or Seaworld's Antartica ... Oh wait...

~LOL.

Again, you dont HAVE to participate in MyMagic+. True, Disney has financial motivations behind it, but I have seen some of the technology in their Guest testing and preferred FastPass+. I didn't make circles around the park getting the ticket, running to spend time elsewhere, running back... It saved me time and energy. And TapToEnter is much much faster and far easier than traditional turnstiles.

Seriously, if your going to judge before you experience it, don't go. It's like this site is filled with people who know more than the designers and engineers. You don't. Stop being so full of yourself. Negative comments before a full-blown release does nothing productive. Wait and see what it really is, and if it does anything to benefit YOU before judging. Don't be the people to ruin MyMagic+ like the Annual Passholders did for Monsters Inc. Laugh Floor (making negative reviews when only pieces of the show were shown to them).

I thought we learned this etiquette in elementary school?

EDIT: While I only have 3 posts, I have been lurking for some time, and this is a trend that DisBoards has that isn't so apparent at other sites. It's aggravating to see people who don't know what they're talking about create a negative image for a product that isn't available yet.

Disney is targeting people who could be spending more, but don't have the time, or incentive to do so. MyMagic+ aims to understand your likes and dislikes and tailor a personalized experience to you. YOU decide how much you spend, not Disney. Disney is simply making it easier for you to spend. It's similar to saying that 'eating McDonalds makes you fat,' when in reality, your choice to eat McDonalds makes you fat.
There's a difference in accessibility and use of a program. I love TapToEnter. I don't have to dig through my wallet to find my room key. I simply tap the whole wallet and I'm in my room. This is helpful when my hands are full with luggage, or breakfast because the family is just waking up.
However, I limit how much I can spend at the Front Desk. It's my responsibility to utilize an easily accessible item within the limits I understand myself.

Fabulous post(s), I couldn't agree more!!!

 

[ChipnDale79]

Again, you dont HAVE to participate in MyMagic+. True, Disney has financial motivations behind it, but I have seen some of the technology in their Guest testing and preferred FastPass+. I didn't make circles around the park getting the ticket, running to spend time elsewhere, running back... It saved me time and energy. And TapToEnter is much much faster and far easier than traditional turnstiles.

Seriously, if your going to judge before you experience it, don't go. It's like this site is filled with people who know more than the designers and engineers. You don't. Stop being so full of yourself. Negative comments before a full-blown release does nothing productive. Wait and see what it really is, and if it does anything to benefit YOU before judging. Don't be the people to ruin MyMagic+ like the Annual Passholders did for Monsters Inc. Laugh Floor (making negative reviews when only pieces of the show were shown to them).

I thought we learned this etiquette in elementary school?

EDIT: While I only have 3 posts, I have been lurking for some time, and this is a trend that DisBoards has that isn't so apparent at other sites. It's aggravating to see people who don't know what they're talking about create a negative image for a product that isn't available yet.

Here's the thing, this Fast Pass + has had negative responses all over the internet, not just on The DIS. Either 1 of 2 things is true, it really is as bad as people are making it out to be, or Disney is losing the PR battle with this thing pretty badly.

As to your comment on don't go, I don't think thats what Disney wants us to do.

I don't want to plan my vacation ride for ride, I know I don't have to participate, but that means less regular fast passes for me to get while I'm there. If this is not how this system is going to go, then Disney needs to step up and squash the "rumors". Again, this isnt just isolated to The Dis, people are saying the same thing all over the internet about it.

 

[doconeill]

And you are incorrect. Disney has said that you may PREBOOK THREE FASTPASSES. Where people come up with the idea that you are limited to three for the day is ludicrous. Again, you don't know how many you will get, just how many you prebook. Don't make assumptions. For testing purposes, three was used because FastPass+ did not have the entire server system online -- just a limited quantity with beta software. Why overload and crash a conceptual beta test?

Disney has not said, a single time, that you can get more than three FP+, other than they "might" be able to offer more in some situations. They have not you can get more in the parks, or if any will even be available. Despite, for months, of people questioning it. So I am NOT incorrect, based on the information Disney has provided.

So, again, it's based on the information available. If the information is incorrect, or it changes - fine. Opinions will change. However, Disney has released information, and opinions can form based on that information, and we are free to express those opinions - because it might get them to change things, or clarify things, etc.

 

[MonorailLime]

Here's the thing, this Fast Pass + has had negative responses all over the internet, not just on The DIS. Either 1 of 2 things is true, it really is as bad as people are making it out to be, or Disney is losing the PR battle with this thing pretty badly.

As to your comment on don't go, I don't think thats what Disney wants us to do.

I don't want to plan my vacation ride for ride, I know I don't have to participate, but that means less regular fast passes for me to get while I'm there. If this is not how this system is going to go, then Disney needs to step up and squash the "rumors". Again, this isnt just isolated to The Dis, people are saying the same thing all over the internet about it.

The problem is that it's not easy to squash rumors. Disney is studying how to continue and integrate the system of Legacy FastPass with the introduction of FastPass+. As of right now, if you don't prebook, FastPass+ will allow you to utilize it just as LegacyFastPass does now -- FastPasses at the park subject to availability. FastPass+ prebookings have a select number available and are available on a first-come-first-serve basis. In addition, Disney is more than DOUBLING the FastPass+ attractions available. This means that for a standard attraction with LegacyFastPass, they could theoretically have more than double the FastPass+ capacity than LegacyFastPass.
The internet is full of speculation. I can assure you that less than 5000 Guests were invited to the beta tests, and they were BETA TESTS. They were used to find the problems and the Guests invited were informed that these were TESTS. They signed a waiver understanding that this is not a complete product. FASTPASS+ IS NOT COMPLETE. It is still in development until roll out.
Additionally, FastPass and FastPass+ are complimentary. Disney has NO obligation to provide them. You don't pay for it. So whatever they do with it is their choice. Until I know how it works and it has been deployed, I'm patiently waiting.

 

[doconeill]

EDIT: While I only have 3 posts, I have been lurking for some time, and this is a trend that DisBoards has that isn't so apparent at other sites. It's aggravating to see people who don't know what they're talking about create a negative image for a product that isn't available yet.

FYI, not one of the sites is a big as the DISboards.

And how do you know I DON'T know what I'm talking about? You know as much about me as I know about you.

Sigh...really need to get back to work and stop reading...

 

[MonorailLime]

Disney has not said, a single time, that you can get more than three FP+, other than they "might" be able to offer more in some situations. They have not you can get more in the parks, or if any will even be available. Despite, for months, of people questioning it. So I am NOT incorrect, based on the information Disney has provided.

So, again, it's based on the information available. If the information is incorrect, or it changes - fine. Opinions will change. However, Disney has released information, and opinions can form based on that information, and we are free to express those opinions - because it might get them to change things, or clarify things, etc.

But they have. I changed my FastPass+ options on the MyDisneyExperience App once I was inside the Magic Kingdom. Additionally, there were kiosks available in each land except for Circus that allowed you to change or modify the FastPass options. The Cast Members working those locations ALL UNANIMOUSLY stated that these are the locations where you will be able to get additional FP+ options and make changes to your itinerary.
The negative comments on this program have persisted for months. They're not going to say or do anything until it's roll out time. They are engineers, not PR Reps. Their goal is to create a unique experience tailored to EVERYONE. That's a daunting task.
Again, FastPass+ is free. If you don't like how it works, go pay for ExpressPass at Universal. Disney has not stated how it will work because it's not yet ready. Your information is based off of BETA TEST standards. That's seldom a reliable metric.

 

[Angel Ariel]

Iger said he also expects MyMagic+ to lure more people into staying in Disney hotels, likely because they will be given access to more of the system's perks than guests who spend their nights in off-property competitors.

Anyone else intrigued by this? Seems to offer some credence to the concern that perhaps FP+ will be tied in some way to staying on site (perhaps on site people get more prebookings, or something similar).