Disney says MyMagic+ is not over budget

[rteetz]

In a recent article from the New York Times disney executives were interviewed about MyMagic+ and what it brings to wdw. In the article it was discussed that Disney fan websites and blogs have said disneys billion dollar project is well over budget. Tom staggs answered that question and said no they are not they are right where they need to be. He said one of the reasons for this is because Disney has not need to put in as many kiosks as they thought due to more and more people using their smart phones to access their daily plans. More from Staggs and others can be read in the article below.

http://mobile.nytimes.com/2014/04/0...is-key-to-magical-kingdom.html?_r=1&referrer=

 

[cmwade77]

While this is probably technically true, I think the number that may Disney sites are getting is how much Disney has lost on this system. Bottom line is it's not bringing in the profits like they thought it would, which is probably one of the reasons we are seeing the major changes already.

 

[rteetz]

While this is probably technically true, I think the number that may Disney sites are getting is how much Disney has lost on this system. Bottom line is it's not bringing in the profits like they thought it would, which is probably one of the reasons we are seeing the major changes already.

We don't see the profits yet because they haven't been factored in yet. I bet we won't see a different for a couple of years. It's too early to see profits because they are still paying for it.

 

[surferdave]

In a recent article from the New York Times disney executives were interviewed about MyMagic+ and what it brings to wdw. In the article it was discussed that Disney fan websites and blogs have said disneys billion dollar project is well over budget. Tom staggs answered that question and said no they are not they are right where they need to be. He said one of the reasons for this is because Disney has not need to put in as many kiosks as they thought due to more and more people using their smart phones to access their daily plans. More from Staggs and others can be read in the article below.

http://mobile.nytimes.com/2014/04/0...is-key-to-magical-kingdom.html?_r=1&referrer=

I read that and I suspect he's being more than a little disingenuous. I suspect they are way way way over the original budget; Disney probably has a budget now that NextGen more or less fits in as is (and other things that were planned are gone).

 

[Yellowstonetim]

He can't be right. He works for Disney. And obviously anonymous people on the internet know far more than he does.


People believe what they want to believe.

The idea that it hasn't made money is totally not applicable. This was not a ticket price increase. It's benefits are long term and myriad. It will do a great many things. In the short term, spending is up due to magic bands, but that is only one little part.

It is going to be fantastic and change the fundamentals for all theme park companies by providing huge amounts of data, some of it real-time.

 

[lockedoutlogic]

This is my first time posting and I can't even begin to understand the vast and comes finances that must come into play...

But I fail to see how this thing will yield ANY "profits" so to speak. I would think profits would be implied/residual...as this wouldn't directly add to ticket sales or some other type of measurable consumable as it currently stands...

But again...newbie opinion

 

[lockedoutlogic]

He can't be right. He works for Disney. And obviously anonymous people on the internet know far more than he does.


People believe what they want to believe.

The idea that it hasn't made money is totally not applicable. This was not a ticket price increase. It's benefits are long term and myriad. It will do a great many things. In the short term, spending is up due to magic bands, but that is only one little part.

It is going to be fantastic and change the fundamentals for all theme park companies by providing huge amounts of data, some of it real-time.

Woah, boy...

Somebody spiked your Koolaid...me thinks

 

[Yellowstonetim]

Forgive my sarcastic joke, but you know there are some jaded posters out there that will completely see this as bad news because they want to. That was not directed at surferdave, sorry to imply that.

I wouldn't say he was disingenuous, but obviously he is going to put the best spin on it. I don't think is lying, just looking at it in the best way possible.

There are four ways this will make money:

1. Magic bands and pre-planned FP+ make shopping and spending easier so people will spend more. This has already been measured, but I don't know how much this will really make.

2. Making people happy by giving them the rides they want secured in advance and making things easier makes them want to come more and spend more. This is immeasurable.

3. Crowds will move better, Disney can let more people in during a day or party and still keep everyone happy so they make more. This has already been measured but the real result is not clear.

4. The REAL value of this system that isn't being talked about by Disney and is long term is the HUGE amount of data that will be collected on every single person that Disney can match with all the information they have on account. No more surveys, they will KNOW that people age 35-55 from the northeast spend 7 days, go into the parks at X hour, ride 3 rides first, buy these products, and go back to their room at X hour. They will also know live where everyone is and what they are doing AND what FP's they have. Just think about what that information means!! They can adjust things live and after the fact based on real information.

As a financial statistician, I'm telling you this system and bands are going to give them absolute GOLD. The industry will be forever changed.

 

[dcibrando]

something else this is generating a lot of people forget about is the excitement it builds pre-trip now more than it ever has before....with all of the great packaged mailings and materials including reminder magnets, usb drive, and magic bands, etc. I think this is huge...the whether most adults like them or not, kids love these magic bands and I have a feeling the decorating for these bands will increase over time as well (just another way for them to make some $ too)

 

[Laz]

Forgive my sarcastic joke, but you know there are some jaded posters out there that will completely see this as bad news because they want to. That was not directed at surferdave, sorry to imply that.

I wouldn't say he was disingenuous, but obviously he is going to put the best spin on it. I don't think is lying, just looking at it in the best way possible.

There are four ways this will make money:

1. Magic bands and pre-planned FP+ make shopping and spending easier so people will spend more. This has already been measured, but I don't know how much this will really make.

2. Making people happy by giving them the rides they want secured in advance and making things easier makes them want to come more and spend more. This is immeasurable.

3. Crowds will move better, Disney can let more people in during a day or party and still keep everyone happy so they make more. This has already been measured but the real result is not clear.

4. The REAL value of this system that isn't being talked about by Disney and is long term is the HUGE amount of data that will be collected on every single person that Disney can match with all the information they have on account. No more surveys, they will KNOW that people age 35-55 from the northeast spend 7 days, go into the parks at X hour, ride 3 rides first, buy these products, and go back to their room at X hour. They will also know live where everyone is and what they are doing AND what FP's they have. Just think about what that information means!! They can adjust things live and after the fact based on real information.

As a financial statistician, I'm telling you this system and bands are going to give them absolute GOLD. The industry will be forever changed.

Could if be a financial and statistical success and a marketing bust? WDW is trying to reshape buying behavior (of a sort), and that can be next to impossible. Decades ago, retailers taught the American shopping public never to buy anything unless it is on sale. To this day, every attempt to alter that buying behavior has failed (Sears, JC Penny, etc.). To somewhat the same extent, Disney has taught people how to use WDW and DLR using Fp-. Now they are trying to alter that behavior. True, a new target market may embrace FP+, but the established market (of which I consider myself belonging to) is being alienated. Yes, customers like myself do not buy many souvenirs and know where to find the best values for food. However, customers like myself stay in the deluxe hotels and purchase fireworks cruises and afternoon massages at the spa. Given the current situation, I am taking that money and going on a Royal Caribbean cruise this year. Did Disney account for this? Will they attempt to bring me back and how will they do it?

 

[lockedoutlogic]

My point is that none of the big advantages can be linked directly as "profit"

It's an infrastructure project...like a retention pond or monorail track

It's silly to even talk about "profits" in relation to this...it's not a product they're selling...I feel like Staggs is selling magic beans to blind, greedy investors

 

[rteetz]

Could if be a financial and statistical success and a marketing bust? WDW is trying to reshape buying behavior (of a sort), and that can be next to impossible. Decades ago, retailers taught the American shopping public never to buy anything unless it is on sale. To this day, every attempt to alter that buying behavior has failed (Sears, JC Penny, etc.). To somewhat the same extent, Disney has taught people how to use WDW and DLR using Fp-. Now they are trying to alter that behavior. True, a new target market may embrace FP+, but the established market (of which I consider myself belonging to) is being alienated. Yes, customers like myself do not buy many souvenirs and know where to find the best values for food. However, customers like myself stay in the deluxe hotels and purchase fireworks cruises and afternoon massages at the spa. Given the current situation, I am taking that money and going on a Royal Caribbean cruise this year. Did Disney account for this? Will they attempt to bring me back and how will they do it?

Well Disney is never trying to target guests who keep coming back they are always going for new guests. New once in a life time guests spend more than guests that come once a year or more. I sadly do not think they will try to bring you back.

 

[Laz]

Well Disney is never trying to target guests who keep coming back they are always going for new guests. New once in a life time guests spend more than guests that come once a year or more. I sadly do not think they will try to bring you back.

It is hard to believe that any company would not want brand loyal returning customers

 

[Laz]

My point is that none of the big advantages can be linked directly as "profit"

It's an infrastructure project...like a retention pond or monorail track

It's silly to even talk about "profits" in relation to this...it's not a product they're selling...I feel like Staggs is selling magic beans to blind, greedy investors

Very true. WDW is selling service, and like any service, it is intangible. You can't shake it, smell it, test drive it, or take it back if you don't like it. A service only exists in peoples minds after it is used. Because of this intangibility, many potential customers rely on others to help evaluate a potential first purchase decisions. So when all us former, loyal customers come on to forums like this complaining, how will a potential first time customer react?

 

[rteetz]

It is hard to believe that any company would not want brand loyal returning customers

Yes of course Disney wants those guests to keep returning but Disney sees a huge flow of money come from those who are coming for the first time. Once in a life time guests tend to spend the most money.

 

[Castle2Castle]

To somewhat the same extent, Disney has taught people how to use WDW and DLR using Fp-. Now they are trying to alter that behavior.

Disney had to teach people to use legacy FP when it was something entirely new, and it came to be widely accepted. Adapting an accepted system seems like less of a challenge for guest behavior than adoption of an entirely new system. And with more and more people already developing certain expectations of technology, it does seem like a sensible transition for Disney and other organizations to pursue.

True, a new target market may embrace FP+, but the established market is being alienated. Yes, customers like myself do not buy many souvenirs and know where to find the best values for food. However, customers like myself stay in the deluxe hotels and purchase fireworks cruises and afternoon massages at the spa. Given the current situation, I am taking that money and going on a Royal Caribbean cruise this year. Did Disney account for this? Will they attempt to bring me back and how will they do it?

While Disney should want repeat business as well as new guests, they ultimately just need for gains in any one group to outpace losses for the other. The new system was still rolling out at the time, but their Q1 results sounded like they were doing a pretty good job with drawing more people in than they were pushing out. How do you feel you are being alienated by MyMagic+? The things you mention don't seem like they'd be impacted much (if at all) by the new system as separate pay-for-service experiences.

 

[jade1]

To somewhat the same extent, Disney has taught people how to use WDW and DLR using Fp-. Now they are trying to alter that behavior.

How? I would think an expert in FP- will have a huge advantage over a new guest. It seems pretty much the same to me-just everyone has plucked out 3 FP's out of the machines ahead of time, but business as usual once your 3 are gone otherwise.

 

[ctl]

I am one of the few that actually hates the new fast pass system. It limits me and my family to 3 fast passes a day and now they are allowing off-site guests to use the fast pass magic bands too. I have decided not to renew our annual passes because of the system.
I also don't like Disney having that much minute to minute information on me. It's a small thing, but added to the fact that the fast passes are limited to 3 a day, my family and I have decided to look elsewhere for our vacations as WDW has gotten very expensive and there are not enough new experiences to justify a yearly trip anymore. It's sad because we used to love WDW, but between the dining plans which have locked down eating times and reservations months in advance to the fast passes which also lock you down to what park on which day it's become too restrictive.

 

[Castle2Castle]

I am one of the few that actually hates the new fast pass system. It limits me and my family to 3 fast passes a day. . . It's sad because we used to love WDW, but between the dining plans which have locked down eating times and reservations months in advance to the fast passes which also lock you down to what park on which day it's become too restrictive.

I don't know that the FP+ necessarily locked anyone down, depending on available times and preferences, but in any case, they've recently announced that additional FP+ will be made available for after the initial three have been utilized as well as doing something to better accomodate park hopping with it. Just FYI for you and anyone else reading.

 

[jade1]

I don't know that the FP+ necessarily locked anyone down, depending on available times and preferences, but in any case, they've recently announced that additional FP+ will be made available for after the initial three have been utilized as well as doing something to better accomodate park hopping with it. Just FYI for you and anyone else reading.