is Disney in trouble?

[binness]

just returned from the wdw. been there for a week (from Aug 14th to the 20th) - what should be considered as the high high season, isn't it? we had great time, going to MK, EPCOT, MGM & cape Kennedy. I have read many posts in order to plan our journey. since travelling with our kids I was worried mostly from the crowds. we were amazed to find out that there were hardly any waits l at the MK & EPCOT!!! could you believe it?? using the fast pass, most of the attractions were just 5 minutes wait the most!!! some of the show's were half empty (or half full..) and not that many people at the park as I have expected. to watch the parades we needed only 20 minutes wait in advance, while I have anticipated I should have to get my spot at least an hour before. the same was in EPCOT and somewhat the same at MGM (which because is a smaller park it felt like a bit more crowded). few days before our arrival, the DISNEY company have published its financial results which indicated a decline in revenues.
with all the other major attractions at Orlando, and due to the above, do you think (as I do) that DISNEY IS IN TROUBLE?

 

[jwfla422]

We were there last week as well. We have "seasonal" APs and there are only a few weeks and 2 months out of the year that are blacked out. The "peak" season in the summer starts after the first weekend in June until the middle of August. Kids start going back to school in many states in the middle of August (crazy but true).

Actually 8/15 is the cut off for the "peak" season, from then until the beginning of October it is considered "off-peak". I planned our trip for the weekend after 8/15 because of that reason, plus our APs are blacked out til then. I prefer to go to WDW when it is off peak anyway. It is also referred to as "value" season, then there's "regular" season (ie. October, May) and holiday season (Thanksgiving, week between Xmas and New Yrs and Easter week).

Disney has been "slower" than normal since last 9/11. So, are many tourist oriented business/places.

 

[patsal]

Mid-end of August things slow down. The kids are going ( some have already gone) back to school, and people are winding down their vacations. Rates at the hotels drop at this time, etc. I have gone in the middle of August before and the crowds were pretty light as well. I plan to do the same thing for 2004. I do think, though, that attendance is down still. The economy is not really picking up as quickly as many of us had hoped. Glad you enjoyed your vacation and didn't need to wait in too many lines.

 

[whozit]

We were there 8/8/02-8/15/20 and experienced light crowds as well. I did not want to go at that time, expecting hoards of people, but missing school wasn't an option for the child accompanying me. I was very happy not to be trapped in lines all day, but also wondered how the business was going for Disney. (The longest waits we experienced were in the lines to see characters one-on-on (Ariel at the Grotto was about a 45 minute wait and Cinderella in Toontown was 30-40 minutes). Space Mtn, Splash Mtn & Big Thunder Mtn were all walk right on or a 5 minute wait just after the parks opened and then when we rode again using FP, we walked right on during our time window. (I did notice Space Mountain's standby wait time was posted at 65 minutes at about 2:30pm (in 'normal' times, I would have expected that to be longer).

 

[Kim&Chris]

I don't know if they are in trouble, but they've definitely seen better days.

Their stock is at an all-time low (around $15.50). I am a stockholder, so I am especially concerned about this. They need to re-vamp the company and get back on the right track. By that I mean that they need to get back on track with their animated features, and sell ABC. These are simply my opinions.

I've read that their next animated movie is going to be Chicken Little. Are they kidding?? CHICKEN LITTLE??? They need to get their act together and find another Little Mermaid, Lion King, or Beauty and the Beast-type movie.

With all that aside, I think Disney has the potential to rebound in a big way. Once they get rid of all the managerial "dead weight" (all those executives making millions and millions a year IN ADDITION TO huge stock options), they can re-direct the money into other profitable ventures.

Let's keep our fingers crossed.............

 

[Disney-Kim]

I just read about Disney's credit rating being lowered on the business news. something to do with the stock credit rating or ??? but it was basically bad news and it said theme park attendance was down 10% from before 9/11.

 

[wdwguide]

Disney is in pretty deep trouble right now (devaluated stock price, downgraded credit rating, $1 billion class action lawsuit, under-performing DCA, and ABC, tons of debt, etc), but the attendance at WDW around this time is not unusually low; it's just not quite as high as it has been the last few years.

Their next animated movie will be Treasure Planet, to be followed by the IMAX re-release of the Lion King. Chicken Little is not scheduled for release until the second half of the decade.

There are some positive things coming up on the horizon, including Eisner's deadline to turn the company around, the release of a Disney "reward credit card" which should be quite profitable for the company, Mission: Space which should increase Epcot's visitation by a million or more per year, the increased royalties from Euro Disney SCA and the Oriental Land Company, and finally Hong Kong Disneyland, which they basically got for free ($300 million or so).

At this point things aren't nearly looking as bleak as they did 20 years ago, but it is time for the company to start making some wise investments to boost its bottom line fairly quickly to avoid serious complications.

 

[binness]

they definitely needs some new attractions. it was my 3rd visit to the WDW (last time was about 9 years ago) and to tell you the truth - it was a lot of fun but hardly any excitement as it was at the other 2 times!!!. of course, my kids loved it( first time for them) and for them it was like a dream come true (I guess like to any other visiting first time). I'm kind of sorry for not going to universal since it looks to me more tempting since having more exiting attractions. I know that some of you, guys, are going to the WDW again and again and again, but I simply felt this time no excitement - and this is (for my opinion) the main problem.
what do you think?

 

[eeyore0062]

We were there for the same time as you, and were there 4 years ago, as well, and noticed no real difference in the crowds. What you need to remember is that the schools in Florida, and much of the south start the 1st or 2nd week of August, thereby taking much of the local crowds with them. Many people who live in Florida also go North during this month. I can't tell you how many cars with Florida license plates were headed north on 95 2 weeks ago. August is perceived to be too hot and humid, and many people have started going in October and other more temperate times due to this. That is why there are so many specials on hotels, like those at the Courtyard Marriott. I am sure that some people aren't traveling like they used to because of the shape of the economy, unemployment on the rise, and the fear of flying, being in public places, etc... but that is affecting all of the tourist industry, not just Disney.

 

[Tagrel]

We've been on 4 trips to Disney during the second half of August and I think the 10% decrease in attendance seems right on the money this year. It seemed slightly less crowded, but going early and using fast pass has saved us from waits all 4 years.

I was one of the ones who threw a fit at the end of Early Entry, but found that the first hour in the parks we're walk on (at least for the rides we choose to do) - just like early entry, except we didn't have to get up so early, and the park wasn't super crowded by noon.

(You'll never know how hard that was to admit!)

 

[Jeff in BigD]

It's been in trouble, but not the sudden freefall that many think, but rather a steady decline. Their stocks were down even when stocks were up.

If you go over to the rumors board (which has some inside insight), you'll see just how bad things are & why the media has been reporting that Michael Eisner's position with Disney is about to flatline.

 

[Doctor P]

Disney is a diverse business, and parts of it are in some trouble. Interestingly, the core business of movies is actually doing pretty well as is the theme parks division. Disney Vacation Development is also doing pretty well. Unfortunately, their internet and television forays have been less successful.