Comcast CEO: Universal will compete aggressively with Disney

[Rumors Rocks]

http://www.orlandosentinel.com/business/os-comcast-theme-parks-20140107,0,7714951.story

By Jason Garcia, Orlando Sentinel
6:14 p.m. EST, January 7, 2014

The top executive at Comcast Corp. signaled Tuesday that the company expects to win theme-park market share away from industry leader Walt Disney Co. and other rival park owners.

"We're doubling down on theme parks," Comcast Chairman and Chief Executive Officer Brian Roberts told analysts during a conference in Las Vegas that was broadcast online. "We think that there is a lot of 'there' there in the theme-park business for many years to come and that we have a low market share — and only one way to go."

Comcast's Universal Parks & Resorts operates the third-busiest collection of theme parks in the world, with combined attendance of more than 36 million a year, according to estimates compiled by the Themed Entertainment Association and consulting company AECOM. But it remains far behind the global leader, Walt Disney Parks & Resorts, which draws more than 126 million theme-park visits per year.

(United Kingdom-based Merlin Entertainments Group, whose attractions include Legoland parks and Madame Tussauds wax museums, is No. 2, with about 54 million visitors.)

NBCUniversal's U.S. theme parks — Universal Studios Florida and Universal's Islands of Adventure, both at Universal Orlando, and Universal Studios Hollywood in Southern California — rank behind only parks at Walt Disney World and Disneyland in attendance.

One reason Comcast is bullish: the impending launch of the Wizarding World of Harry Potter — Diagon Alley, a new land expected to open by summer in Universal Studios Florida. It is a follow-up to the original Wizarding World of Harry Potter, which has delivered record attendance and profit growth since opening in mid-2010.

Comcast also will open its fourth and largest on-site hotel at Universal Orlando, the 1,800-room Cabana Bay Beach Resort, within weeks. Roberts called the hotel, a joint venture with Loews Hotels, the largest hotel under construction in North America, and noted that "we're so underinvested in hotels right now."

With Cabana Bay, Universal Orlando will have about 4,200 on-site hotel rooms, compared with about 26,000 rooms and time-share suites at Disney World. Comcast has said it could have 10,000 to 15,000 rooms in Orlando.

Disney would not comment on Roberts' remarks.

Industry watchers once expected that Comcast would try to shed the theme parks after it acquired a majority stake in NBCUniversal from General Electric Co. in 2009. But the Philadelphia-based cable giant — which bought out the rest of GE's stake last year — has since come to view the business as an untapped growth engine, thanks primarily to the financial success of the Wizarding World of Harry Potter.

Comcast has since begun construction on a Wizarding World clone at Universal Studios Hollywood.

"The big surprise has been the theme-park business," Roberts said.

jrgarcia@tribune.com or 407-420-5414

 

[twebber55]

This is great for us fans

 

[DLFT]

I agree. As long as competition remains strong, the visitors will win.

 

[Maineiak]

No doubt the Disney execs already knew this. I am curious to see how they respond though. Iger hit the ground running with his idea to buy Pixar, so I'm curious what he has up his sleeve. More importantly than the Pixar or Marvel purchase is the fact that theme park revenue is 2nd only to the cable network revenue. Long term, the acquisitions Disney did/will make could prove beneficial to the parks.

 

[FlipHipster]

This is awesome and I agree I hope the mouse has some more cards to play. I mean it doesn't get much more in your face than that. Wonder if all the additional rooms they are adding prompted the current changes at WDW with MM+

 

[wiigirl]

I agree. As long as competition remains strong, the visitors will win.

 

[nugov2]

I think that is great. We were so impressed with our IOA/Uni experience. I think WDW should think twice about what they are doing/not doing. It may not be for 10-20 yrs but I wouldn't be surprised if they start to see a decline. I have posted this in the past, but besides MK(which is pretty much even in my book besides the nostalgia factor), IOA is far superior to any of the parks WDW has to offer(IMO). It was much cleaner(most likely b/c of crowd size difference), City Walk amazing and people were just as friendly. They offer more perks(valet at the park, express pass) that still an upcharge are within reason and overall I feel more valued vs. number.

 

[jlewisinsyr]

Universal also has true 4+ star hotels versus Disney's attempt at a 3.5 star at 5 star prices (AKA Grand Floridian). Universal's ability to capitalize on their hotels and offer a unique high class experience is what may help differentiate them.

 

[OnSpaceshipEarth]

Yes...I say bring it on!

I've never been much of a fan of Universal but their aggressive stance will light a fire under Disney's butt.

Get ready to rumble!

 

[OldsDr]

I have always been of the understanding that in the past there was no real competition in the Orlando area theme park industry; Improvements at one would drive attendance at the others because a lot of people try to cram everything in.

But, I have also been comparing WDW of today to the US Auto Industry of the 70s and 80s. That is living on its reputation and girth while do nothing to proactively keep customer loyalty. We all know how that turned out.

This decision by Comcast may actually mean real competition, and they may be to WDW what Toyota and Volkswagen were to GM and Ford in the 70s and 80s.

 

[OnSpaceshipEarth]

I have always been of the understanding that in the past there was no real competition in the Orlando area theme park industry; Improvements at one would drive attendance at the others because a lot of people try to cram everything in.

But, I have also been comparing WDW of today to the US Auto Industry of the 70s and 80s. That is living on its reputation and girth while do nothing to proactively keep customer loyalty. We all know how that turned out.

This decision by Comcast may actually mean real competition, and they may be to WDW what Toyota and Volkswagen were to GM and Ford in the 70s and 80s.

Maybe.

I think that if Disney *wanted* to they could really CRUSH Universal. If they were to slash prices, add new lands and attractions for a few years it would bring Universal to it's knees. They have the land, resources and *brand-power* to do this. To date, they haven't felt the need to do this...but if Disney starts to really feel "threatened"?

Look out.

 

[DWJoshua]

THIS is exactly what we need. I've said this several times recently, but Disney has got to get it's groove back. Universal is starting to look like true competition now - as opposed to in the past when they've been a distant, distant, distant second. Current numbers obviously show that WDW isn't feeling it yet, but I believe they will. There's a big delay in how long it takes for guests to start feeling the stagnation.

Right now, there's almost nothing new and exciting happening in WDW. New Fantasyland is okay, but nowhere near what Universal has done with the Harry Potter IP. Hopefully this type of aggressive, public competition will kick Disney into gear. Otherwise, we may actually see that major shift in market share in the coming years.

No matter what happens, the visitors win. If Universal keeps expanding, it means more quality options in Orlando. If Disney does nothing, it will still be a good place to visit, but we'll at least have other options. If both companies dump boatloads of money into their parks, we win big time!

 

[OnSpaceshipEarth]

THIS is exactly what we need. I've said this several times recently, but Disney has got to get it's groove back. Universal is starting to look like true competition now - as opposed to in the past when they've been a distant, distant, distant second. Current numbers obviously show that WDW isn't feeling it yet, but I believe they will. There's a big delay in how long it takes for guests to start feeling the stagnation.

Right now, there's almost nothing new and exciting happening in WDW. New Fantasyland is okay, but nowhere near what Universal has done with the Harry Potter IP. Hopefully this type of aggressive, public competition will kick Disney into gear. Otherwise, we may actually see that major shift in market share in the coming years.

No matter what happens, the visitors win. If Universal keeps expanding, it means more quality options in Orlando. If Disney does nothing, it will still be a good place to visit, but we'll at least have other options. If both companies dump boatloads of money into their parks, we win big time!

I think your last option is what's going to happen. Star Wars Land(which is almost certain to happen) and Avatarland is already a huge counter-punch.

 

[Bob Roberts]

I think your last option is what's going to happen. Star Wars Land(which is almost certain to happen) and Avatarland is already a huge counter-punch.

I would like to share your optimism Spaceship Earth, but I doubt Disney will ever counter with a thunderous blow. An old saying in business is that you have got to spend money to make money. However Disney has strayed far away from this philosophy in the past 8 years. The thing is they have such a loyal brand following they can get away with this, for now.

I think a counter punch in their minds these days would be to add a Magical micro chip on the Magic Bands. This microchip will give you all the ketchup, mustard, mayo, salt and pepper, for all your meals for only $35 dollars extra per person for your entire stay!!!!! Now if you want to go on the luxury plan which includes extras like salad dressing, blue cheese, peanut butter etc, that will be $55 per person!!! The micro chip will be in the shape of Tinkerbell and they can call it the Magical Nickel and Dime Fairy!!!! An even better idea would be to have two fairy's, one named Nicky and the other one Dimey. Then they can sell t-shirts, mugs, and all sorts of garbage with Nicky and Dimey on them and people will buy the stuff with their Visa cards!!!!

They should look into hiring me!!!!

 

[artesian]

For me and my fam it's already happening. 5 years ago going to US/IoA would never cross our minds. This 10 day trip I have coming up in August has me in US/IOA 3-4 days and a possible 4-5 in WDW. The kids beg every trip to go to US. Whoever said Disney needs to add more now is right. They are outright losing 4-5 days of admissions from me. I might be in the minority being I go every year but you can't deny more of the veterans that have been might seek entertain in other areas. The purest can tell me the #'s don't show this but I blame that on more and more first or few timers that all they want to do is WDW. MB and FP+ when I go this trip will influence this to even possibly less visits on mutilpe days. I'm trying to keep an open mind and hope thing change in the near future.

 

[DWJoshua]

For me and my fam it's already happening. 5 years ago going to US/IoA would never cross our minds. This 10 day trip I have coming up in August has me in US/IOA 3-4 days and a possible 4-5 in WDW. The kids beg every trip to go to US. Whoever said Disney needs to add more now is right. They are outright losing 4-5 days of admissions from me. I might be in the minority being I go every year but you can't deny more of the veterans that have been might seek entertain in other areas. The purest can tell me the #'s don't show this but I blame that on more and more first or few timers that all they want to do is WDW. MB and FP+ when I go this trip will influence this to even possibly less visits on mutilpe days. I'm trying to keep an open mind and hope thing change in the near future.

I can completely identify with this. Our trip this past December was a quick one, so we only went to the Disney parks. However, the trip before that, we definitely spent time at Universal. Our family has been traveling to WDW since I was a kid, about once every 1-2 years. We have only been to Universal once or twice in all that time. Now, I think that's all changed. We'll definitely be including Universal in future trips, probably at the expense of a couple days that we'd normally spend at WDW.

 

[mm1971]

I still think the difference is in the demographics. Disney is more for the family and longer vacation types that are looking for an overall experience. US/IOA is more of a theme park (higher thrills) only with less of a long term option. With expansion, US/IOA may make a little more headway into a destination, not just a park, but we'll see.

My children are not thrill riders so US/IOA is not as much of a draw to us. We did go for a day to do the HP stuff and a few other things a few years ago, but that was it-one day. With the new addition and continued updates, that may change for us just not yet. It would be good to see them add things out of the park similar to Disney, but without having the footprint expansion is unlikely.

With all that said, I agree. If US/IOA can do enough to push Disney and they really do have to compete, it's a win-win for us. I know it's wishful thinking, but a price war between the two would be just the thing to get me to both locations consistently.

 

[mm1971]

I can completely identify with this. Our trip this past December was a quick one, so we only went to the Disney parks. However, the trip before that, we definitely spent time at Universal. Our family has been traveling to WDW since I was a kid, about once every 1-2 years. We have only been to Universal once or twice in all that time. Now, I think that's all changed. We'll definitely be including Universal in future trips, probably at the expense of a couple days that we'd normally spend at WDW.

Not withstanding my earlier post, I think both of them may be counting on the expense of doing both parks being a factor. If you go to Disney for 10 days, and add extra park days it is only a few dollars per day once you get to the 5th day. That is where the value is. Now if you don't add the days to the existing tickets and head over to US/IOA you start at the high priced tickets again. Some families have the finances and willingness to spend it doing both. A lot can't afford those few day ticket prices to both locations on one trip. I think it's more likely that if US/IOA can build out of the park value, they can see an uptick in families that will take their full vacation there. That's really what it's all about, isn't it? Keeping people on property spending $$?

 

[lockedoutlogic]

I love 99% of the things about Brian roberts...


He has no reverence/fear of Disney... Nobody will ever convince me that he did NOT get a call from Roy Disney and wasn't integral to the plan that led to eliminating Michael Eisner ( in retrospect...not as shiny now as it seemed then...but whatever.

Comcast has every reason to take on Disney... Content is the future and Comcast must grow their business to fight Disney's lead In content as delivery changes...and they have the assets and money to do it.

As everyone else has pointed out... This stuff is great for Disney fans. The number prove that universal isn't on the same tier...
But at a mimimum... It makes Disney look arrogant, complacent, lazy, toothless...Something...that they don't want to be associated in their parks.

The only thing is its cable... Which is a compete screw job to consumers...always will be, always has been.

 

[lockedoutlogic]

I have always been of the understanding that in the past there was no real competition in the Orlando area theme park industry; Improvements at one would drive attendance at the others because a lot of people try to cram everything in.

But, I have also been comparing WDW of today to the US Auto Industry of the 70s and 80s. That is living on its reputation and girth while do nothing to proactively keep customer loyalty. We all know how that turned out.

This decision by Comcast may actually mean real competition, and they may be to WDW what Toyota and Volkswagen were to GM and Ford in the 70s and 80s.

Agree...(fact)

Agree...

Agree...


The first point...and this is why I love this announcement...shows how much of a hill they have to climb. Universal/sea world/ Disney have never had years of huge gains without direct gains for the others ... With the noticeable exception of universals period of mismanagement ten years ago.

The problem for us here on the "DISboards"... Is that they make more money even when the mismanagement gets worse...

Maybe we all should start
The "Oboards"?