I just heard this rummor: MGM CLOSING???

[Horace Horsecollar]

I thought that Disney bought the rights to the MGM logo?!I thought I read that somewhere.If that's true,there's no need to change the name.

Disney's agreement with MGM did not give Disney the rights forever. It's a licensing agreement which requires renegotiation and renewal periodically.

So far, all the rumors that "Disney is dropping MGM from the park's name this year" over the past decade have proven to be false.

However, the time may come when Disney is either unable to reach a new agreement with the owners of the MGM name and logo, or Disney no longer wants the park associated with MGM — either because the MGM name takes on a negative connotation at some point or because Disney eventually prefers to promote ABC, Touchstone, or Pixar in the park name.

Indications are that Disney is finally abandoning all efforts to make the studio real and will simply be content to make it nothing but a theme park.

Excellent point! That may very well have been the origin of the OP's rumor.

 

[BensMom]

I agree. Ain't neva gonna happen. Disney doesn't spend that amount of cash to open Lights, Action, Motorcars and just decide to close the park. Disney's revenues are up substantially since 9/11. Although some parts of Disney may be better "cash cows" than others, as a whole, it is very profitable. MGM may not be the top moneymaker, but it's an integral part of the bigger machine.

Don't flame the guy who started this thread...I have a sneaky suspicion that it's a language gap judging from the Spanish notations at the bottom of the post.

 

[Another Voice]

Another possible explanation was a “rumored” contingency plan developed during the worsening attendance period of 2000 – 2003 where the Disney/MGM Studios and Animal Kingdom would be closed on alternating days (example Studios would be closed Mon./Tues. and AK on Wed./Thurs.).

With gas prices & airfares going higher and the financial demands on WDW to prop up the corporate bottom line, a lot of these old “contingency” plans are being dusted off.

 

[MJMcBride]

Another possible explanation was a “rumored” contingency plan developed during the worsening attendance period of 2000 – 2003 where the Disney/MGM Studios and Animal Kingdom would be closed on alternating days (example Studios would be closed Mon./Tues. and AK on Wed./Thurs.).

With gas prices & airfares going higher and the financial demands on WDW to prop up the corporate bottom line, a lot of these old “contingency” plans are being dusted off.

Hasn't attendance at the parks been higher recently thanks to the off season deals, the dining plans, and the busing from the airport? I thought last year was the best they've had in awhile or at least since 9/11.

 

[Another Voice]

Yes, things are a lot better now than have been in the recent past, but a company the size of Disney needs to plan a couple years out. No one knows the impact $4.00+ a gallon for gas will have, or if a couple of major airlines go under and airfares return to pre-deregulation levels. This is in addition to the other "world events" that hang over us all. It's always a good thing to a have a rational, thought-out plan before an emergency instead of being caught in a panic mode (which is what happened in the spring of 2000).

The other side is that Disney still depends on Attractions to float the company. Pirates is doing well, but after production costs and the cut for Mr. Bruckheimer there's not so much left for the corporate coffers to cover two years of bad movies. ABC remains problematic and the "upfront" ad sales for next season were down. Let's not forget the seven big ones it cost to buy Pixar and a newly minted CEO trying to prove himself to Wall Street...the pressure for big earnings growth is about as strong as it's been for a decade. Since there's little that WDW can do to bring in a lot of new guests so the way to improve its bottom line is to cut costs (again).

The sky isn't falling, but the same pressures that made Disneyland/WDW do some really dumb things in the past is still around.

 

[raidermatt]

It does have to make one wonder. Attendance is up, but as pointed out, that's with the bussing and various deals being offered, as well as an apparently successful marketing campaign.

The economy will invariably take a downturn eventually, and various world events being what they are, the possibility of a more sudden downturn has to be accounted for. It does seem that Disney has struggled to reach the improvement levels that other tourist destinations have (not looking to debate that here... the main questions still stand regardless). As long as things are going well, that won't be much of an issue, but when tourism drops, it'll be interesting to see if Disney takes an even greater hit, and how they respond.

I personally think that the rather extreme cuts they made after 9/11 (which were really just an accelleration of cuts that began several years earlier) made it more difficult for Disney to recover when the economy and tourism improved. Sure, those cuts helped make the short term numbers look better, but the guest experience was affected for those that did go, and it's difficult to get them all back.

 

[BensMom]

Hey, I live 6 minutes from Disney property. I have never seen it busier. Try and make priority seating. Forget about it. Remember the dollar to the English pound. That's just one of many reasons Disney's bottom line is what it is. I don't want to hear the crap about the price of a gallon of gas. The Europeans pay lots higher than we do. Okay, it costs me $15 more a week to fill up my tank...big freaking deal. So, what is that...$60 more a month? I'm sorry, but I truly think it will not deter people from travelling. Again, gas prices are cyclical. Disney, and the rest of the world, has seen downturns, and I do not believe it ever waivered from its original intentions. It won't this time either. Disney is a strong company financially. This is why it will keep the machine well oiled, even through the so-called bad times.

 

[MJMcBride]

It does have to make one wonder. Attendance is up, but as pointed out, that's with the bussing and various deals being offered, as well as an apparently successful marketing campaign.

Isn't that how you usually get attendance up. You're downplaying the fact that attendance is up by saying its just because of incentives and good marketing. But thats how its done.

 

[Another Voice]

You're downplaying the fact that attendance is up by saying its just because of incentives and good marketing.

It's like the department store that always has big "SALE!" banners out front. At some point the business has to be profitable in "real life" and can't leap from special event to special event. Disney can't give food away forever if it wants to grow.


P.S. Based on the article I just posted, it doesn't look like we'll see the park change its name to "The Disney/Touchstone Studios" now.

 

[raidermatt]

I don't want to hear the crap about the price of a gallon of gas. The Europeans pay lots higher than we do. Okay, it costs me $15 more a week to fill up my tank...big freaking deal.

Not sure what to say other than most agree that rising gas prices are a concern for the economy, and the forces causing the rise do not appear to be cyclical in nature.

Isn't that how you usually get attendance up. You're downplaying the fact that attendance is up by saying its just because of incentives and good marketing. But thats how its done.

Its one of the ways Marketeers try to manipulate attendance. As AV indicates, the product itself will drive longterm attendance/success. When times were tight, Disney made cuts that significantly impacted the value of the product*. That means that the millions of guests who did show up during that time received a diminished experience. Its unavoidable that a certain percentage will not return or will delay their return because of that diminished experience, even though the economy has improved.

My point is that there is more to Disney's attendance than simply following the economic cycles and coming up with marketing campaigns. We all know that attendance will rise and fall with the economy. The question is whether Disney is maximizing its opportunities within those cycles. By cutting in the low periods, they are negatively impacting their attendance in the future. Sure, it will rise when the economy rises, as it has, but it will not rise as much as it could, and will potentially fall further when the economy falls.


*As pointed out before, the cuts didn't only occur during the economic downturn, which only makes matters worse.

 

[ChrisFL]

I don't want to hear the crap about the price of a gallon of gas. The Europeans pay lots higher than we do. Okay, it costs me $15 more a week to fill up my tank...big freaking deal. So, what is that...$60 more a month? I'm sorry, but I truly think it will not deter people from travelling.

it has nothing to do with how much people pay per month IMO, it has to do with increased airline ticket prices and increased expenses if driving to WDW, both caused by gasoline prices.

 

[MJMcBride]

It's like the department store that always has big "SALE!" banners out front. At some point the business has to be profitable in "real life" and can't leap from special event to special event. Disney can't give food away forever if it wants to grow.


P.S. Based on the article I just posted, it doesn't look like we'll see the park change its name to "The Disney/Touchstone Studios" now.

Its not like that at all. Disney is using smart marketing to drumup business in the "off season" and its worked. Granted the economy (or at least gas prices) could be affecting tourism. Its smart business to encourage visitors that way and by using special events to focus advertising campaigns. Its Business 101 really. The magical express was a smart move to increase customer satisfaction.

A store that keeps a sale sign out front all the time never really has a sale. Its a lie. Thats not this at all. A store that has a sale during slow sales periods is making a smart business decision. And I'm not sure I know what you mean by "real life".

 

[rkujay]

To this ridiculous rumor, I add this....with all due respect to the wonderful cast members. The castmembers, who will be transfered, will leave Florida for the first time. These folks, bless them, are minimum wage people. NO business transfers any but the most skilled folks.

 

[BensMom]

Forces are cyclical affecting gas prices. They were in the 70's...they are now.

 

[raidermatt]

I think that's a dangerous assumption as the dynamics have changed in many ways, but that's another topic for another board. The point is they are what they are, and that does have an affect on people making plans.

 

[BensMom]

Albeit dangerous, I stand in my belief that it is cyclical. By the way, sorry about that Pats/Raiders game a few years back...not.

 

[DonnaL]

In so far as the free dining promotion.....yes, it is a marketing tool, but, done during a very SLOW time of year for WDW. Late August and the entire month of September has ALWAYS been one of the slowest times of year ever since I can remember (which is mid 1970's). Don't ever think Disney would run a promotion like this during peak times. So, yes I'm sure it does to bring in business at a traditionally slow time but not to the point where every room on site is booked as is sometimes the case during peak times when people are paying for their dining. And I'm quite sure some of the apparent downgrades on the menus in various restaurants has been prompted by the dining promotion. It isn't an accident that there recently have been some significant menu changes this month right before the dining promotion.

 

[markb]

My brothers wife's uncle has a freind who's son's wife's father has a cousin's neighbor who's daughter's babysitter is dating a guy who's best man from his first marrage was a bus driver at WDW. He says WDW is PAVING ALL 43 SQUARE MILE of Disney property to provide parking and shuttle service for Universal and Seaworld!!!!!!!!!
He said when you take 43 square miles of parking at 8 bucks a car, add 3 bucks each way for shuttle service, Disney felt that this would "maximize their profits and make a favorable statement to Wall Street!"
From an asset allocation standpoint, it makes sense to me!

"God bless our idiots... they make the rest of us seem smart"
unknown

 

[ChrisFL]

My brothers wife's uncle has a freind who's son's wife's father has a cousin's neighbor who's daughter's babysitter is dating a guy who's best man from his first marrage was a bus driver at WDW. He says WDW is PAVING ALL 43 SQUARE MILE of Disney property to provide parking and shuttle service for Universal and Seaworld!!!!!!!!!
He said when you take 43 square miles of parking at 8 bucks a car, add 3 bucks each way for shuttle service, Disney felt that this would "maximize their profits and make a favorable statement to Wall Street!"
From an asset allocation standpoint, it makes sense to me!

"God bless our idiots... they make the rest of us seem smart"
unknown

Thats totally bogus......... it'd have to be at least $11 bucks a car

 

[Luv2Roam]

Travel packages (for any company) are tools. They do many things -- bring guests in, or more evenly distribute the traveling time. I look at the free dining plan as a tool to bring in more guests during a normally low season time. And it seems to have worked great, judging by various factors I have seen.
We traveled to WDW when many were afraid to travel at all (soon after Sept 11). There was no downside as a guest. I am sure they did not need as many CMs, as the parks were dead. Almost depressingly so. Those trips were just as magical vacations as any others we had at WDW. We certainly never felt treated differnet or lacking in any way. Everything being a walk on was quite the plus and very memorable.