Interesting Iger Interview with Bloomberg Businessweek

[zulemara]

http://www.businessweek.com/articles/2012-08-09/bob-iger-on-disney-california-adventure#p1

He said Harry Potter has had "moderate affect" on the Orlando business. I'm surprised he gave that much credit to Universal! This interview really surprises me on a number of levels.

 

[rokstedy]

I think it would be ridiculous for him to say it had no effect.

 

[zulemara]

I was expecting something more along the lines of "a small" or "fairly low." Disney ALWAYS sugarcoats things so to say moderate was rather surprising to me.

 

[extreme8]

Maybe "moderate" is sugar coating it and he was avoiding "devastating".

 

[Horace Horsecollar]

Maybe "moderate" is sugar coating it and he was avoiding "devastating".

The numbers for the Disney Parks & Resorts business sector have been good since the Wizarding World of Harry Potter opened. Universal's Islands of Adventure had a nice jump in business, but Disney also enjoyed strong business. Keep in mind that the Wizarding World of Harry Potter caused people to plan trips to Orlando, and many of those additional Orlando guests also visited Walt Disney World.

Iger used the word "modest," which has a different meaning than "moderate." So Disney felt "modest pressure." No big deal.

There was nothing "devastating" for Disney about Wizarding World of Harry Potter.

From the interview article:

Are you feeling pressure at all over what Comcast/Universal (CMCSA) is doing with Harry Potter?

Universal did a good job with Harry Potter. It’s had a modest impact on our business in Florida. But we continue to expand and improve that place, too. We’re building out Fantasyland now in the [Orlando] Magic Kingdom, then we’ll add Avatar Land.​

By the way, the link in this thread goes to page 2 of the article. Here's a link to page 1.

http://www.businessweek.com/articles/2012-08-09/bob-iger-on-disney-california-adventure#p1​

 

[lockedoutlogic]

I like how disney makes more money...pound for pound...and "we" still search for ways to make it look like they've become victims on shark week...somehow.

some things just don't die

 

[pilferk]

I think it would be ridiculous for him to say it had no effect.

Well...he could have.

It doesn't actually look like it's had any effect on WDW park attendance. Yes, IOA saw a SIGNIFICANT increase in attendance.

WDW parks saw no backslide, at all. In fact, in most cases, they saw similar increases to what they've seen in the past. If you look at the numbers, it doesn't look like IOA is "stealing" WDW bodies (as in they're choosing IOA OVER a Disney park).

It certainly doesn't look like it's had any effect on WDW's bottom line. Their revenue and profit, according to their recent filings, are through the roof. They're basically printing money.

So...what effect has it had, exactly?

Maybe it's effected their water park attendance? I don't know....

 

[pilferk]

It's an intersting article. I found this amusing (about DCA):

We probably underestimated how much people would demand Disney when they come to a park that has the Disney name on it.

Um...remember EPCOT?

 

[Horace Horsecollar]

In the interview, Iger answered a question about "pressure," not about revenue, profit, or attendance.

The effect of the Wizarding World of Harry Potter on Disney is that it raised guest expectations of what a themed environment can and should be be.

In the long run, that will mean that Disney will need to do more than they've done in the recent past -- for example, with Pixar Place at DHS. Despite having an excellent ride, Pixar Place has essentially no "magic" as an environment.

Disney fans who think that Harry Potter has somehow devastated the attendance or business at the parks of Walt Disney World have not taken the time to understand the actual numbers.

 

[pilferk]

In the interview, Iger answered a question about "pressure," not about revenue, profit, or attendance.

The effect of the Wizarding World of Harry Potter on Disney is that it raised guest expectations of what a themed environment can and should be be.

In the long run, that will mean that Disney will need to do more than they've done in the recent past -- for example, with Pixar Place at DHS. Despite having a excellent ride, Pixar Place has essentially no "magic" as an environment.

I'm not sure that's what it will mean (or if that's the way Iger took it).

Because Disney's measuring sticks are attendance, revenue, profit and business. For them, I think that's the only real pressure they feel.

They seem to want to see quantifiable effects. Until they do, I'd argue that there is no "pressure" (using your definition). I think Iger was being kind with "modest", actually....either way he interpreted it.

Were Eisner still in charge, with the way he ran things, maybe they would have felt some "creative" pressure. But there was good and bad in that, since he ran the entire company that way. It was one big "I'm better than you are" mentality (externally, internally, personally, professionally).

But not in today's Disney corporate.

Now...WDI might feel pressure to raise their game because of professional pride. We'll see. But the minute the bean counters can't quantify the plussing the WDI folks are doing....it'll get cut, if history is any indication.

Carsland is AMAZING, by all accounts. Easily the equal of WWOHP. I don't think there is any indication that WWOHP was the cause of Carsland's detail and theming.....

 

[lockedoutlogic]

The effect of the Wizarding World of Harry Potter on Disney is that it raised guest expectations of what a themed environment can and should be be.

In the long run, that will mean that Disney will need to do more than they've done in the recent past -- for example, with Pixar Place at DHS. Despite having an excellent ride, Pixar Place has essentially no "magic" as an environment.

I'm usually with you in most things...but cant be in this case...

I've seen zero implication that management feels the "need" to do anything to "raise there game" to stay on the wave...
If anything - they have learned that you can sling crap and still not suffer greatly on a global scale.

The Disneyland core revolted and they had to respond at California adventure...this is true and they deserve all the credit for having the fortitude NOT to buy...

But let's face it: other than that example they've gotten away with bad, cheaply constructed (or in the case of animal kingdom - parks sacrificed for budget reasons) almost everywhere and have been "punished" by enjoying growth...
That's what the late Eisner period taught them: their consumers buy and large have no spine.

As far as "raising the level of guest expectations" - Disney is addressing the one area where it has been raised and they are deeply concerned: the expectation of discounts at their parks.
I for one don't necessarily think that's "bad"...but it goes to show that they are not feeling any pressure to fix their mistakes or for that matter - "strengthen the parks"...as they repeatedly push.

Even when they do spend...it's on their schedule and seems very controlled/ calculated. The fact that they have actually slashed almost every capital investment budget in parks over the last 15-20 years seems evidence to that. A very telling one is downtown - where they have made a mess out of one section and have been slow or unwilling to address the changes in retail culture that have marginalized the point of West Side...and yet have.no problem packing people into marketplace each day to empty their pockets buying what is basically crap of the highest crappiest order...

Another example is what is basically an abandoned plan to facelift EPCOT...where if anything potter should at least have them working toward a reinvention plan ...but they have not by any report. Instead they expand fantasyland...which increases little girl, infant, and toddler giftshop potential by redoing the neglected backside of MK...which they let fall into ruin over 15 years ago and were none too concerned with.

I just see no reasonable info available that would draw the conclusion that they feel pressure or the pinch.

THEY decide who's gonna be pinched around here, mister!
...and it's usually moms on a 52.00 a la carte breakfast/photo package that is mediocre in every sense at CRT