Disney parks on the back burner?

[RanDIZ]

It’s quite evident that Disney is shifting more and more focus to DTC and entertainment overall and putting parks on the back burner. From a business standpoint, it’s brilliant. It took Netflix about 20yrs to reach 150m subscribers with a market cap of $221B. They don’t have parks or merchandise or anything other than TV and Movies. That’s huge! Disney+ took a year to amass half of the subscribers NFLX has and its market cap is $314B. Disney is clearly missing out from its late entry in the streaming game. Disney can easily double its size once they get the ball rolling and the studios come back on line.

Disney has nowhere near the amount of new content. Right now they’re riding the Mandalorian wave which put D+ on the map. Disney will capitalize by using its Marvel and Star Wars franchises via spinoffs by producing new content right to streaming along with blockbuster films. They will close the gap and eventually take over the streaming war.

The pandemic obviously destroyed its revenue. Meanwhile NFLX is thriving and Disney knows streaming’s where the money is at no matter what the climate is. It’s unfortunate for us park lovers because thats what makes Disney personal and magical. ME is gone, EMH, DVC perks, DL AP, etc. What’s next?

The current segment breakdown shows just how little parks really contribute toward Disney’s overall revenue. That will continue to shrink as the focus shifts and Disney continues to take things away and charge more at parks.

 

[Eric Smith]

The parks aren't contributing due to COVID.

 

[RanDIZ]

Exactly. And that’s why Disney is pivoting toward other means of revenue. And it’s coming at our expense. They already announced a price increase for D+

 

[rteetz]

Exactly. And that’s why Disney is pivoting toward other means of revenue. And it’s coming at our expense. They already announced a price increase for D+

They announced the new company structure in 2020. It's a focus on DTC and then everything else after.

 

[RanDIZ]

They announced the new company structure in 2020. It's a focus on DTC and then everything else after.

Unfortunately we’re seeing this play out very quickly with a lot of cost cutting in the parks segment. Not to mention the DVC direct price increases as well. It’s a sad time in the World of Disney.

 

[Eric Smith]

Unfortunately we’re seeing this play out very quickly with a lot of cost cutting in the parks segment. Not to mention the DVC direct price increases as well. It’s a sad time in the World of Disney.

The cost cutting in the parks segment is due to COVID. Pre-COVID, there was a ton of investment planned for the parks, especially the domestic ones.

 

[BrianL]

The cost cutting in the parks segment is due to COVID. Pre-COVID, there was a ton of investment planned for the parks, especially the domestic ones.

Yeah, and I'm sure things will change eventually. These things always swing back and forth. Unfortunately we're on a pullback for parks right now, but it's not forever. It never is.

 

[Mit88]

A lot of people take DTC at the forefront as a bad thing. Maybe I’m a Pollyanna (I am), but I take it very much as a good thing, and yes, for the parks. While in the short term, we won’t get many major additions, but when Disney+ becomes a major revenue juggernaut (it will) that means there will be even more money to be shared throughout other departments of the company, like the parks. If they half-a’d the Disney+ launch and ascension giving that sector very little in budget there’s a good chance that we’d see a weak streaming platform AND small additions to the parks.

in short

Disney+ Big success = Big additions to the parks.

they’re not forgetting about the parks. They’re very important to the company’s success, everyone knows that. But I’m on board with the branching out even if we don’t see the parks see the major prioritization for 5-10 years