Live: Disney Parks and Resorts Presentation - will update as news comes

[Barnum01]

Festival of the Lion King Theater -- Waiting for presentation to begin. African-themed music playing currently.

Festival of the Lion King welcome.

Protect and promote the value of high quality brand content. Use of tech to expand brand. Focus on international exansion by creating immersive Disney experiences.

Introduction of Jay Rasulo, head of Disney Theme Parks.

Walt Disney Parks is positioning itself for growth this decade and beyond.

Disney redefined entertainment with Disneyland in 1955.

Markets gaining unprecedented access to brands. Looking for opportunities for expansion with great return on investment.

Worldwide Travel Market 2.6 trillion dollars

Opportunities to expand are real. Theme Parks, Resorts, Cruises, Timeshares.

Existing Businesses:

Since 2004, revenue increase of 9% annually

Discussion of Hong Kong DL

Year of a Million Dreams

Annie Leibowitz (sp?) photos

DreamBuilder Dream Job campaign

Immersive experience such as Finding Nemo attractions

Emerging Markets:

Asians have more disposable income to spend than ever before.

China is a priority to the Walt Disney Company. Last Year, 31 million Chinese took trips outside of country.

25% global luxury goods is spent by Chinese.

Creating additional theme parks doesn't mean more of the same.

Establish a bigger footprint:

Pullback the curtain and share business team and WDI ideas.

Ideas can't be just exciting, they also have to be profitable.

Term Blue Sky concepts is used.

Different businesses at WDW that have a shot at becoming freestanding enterprises. Launch of standalone businesses from WDW, thinking outside the berm.

Last year, 71% vacationers did not go to a theme park.

Looking at building destination hotels outside of Theme Park areas. Regional resorts and urban hotels themed to Disney traditions.

May choose to fund the project partially or fully with outside partners.

Looking at creating retail, restaurant and entertainment districts outside of LBV and Anaheim, customized to cities where built.

Looking at building additional Disney Water Parks domestically or abroad, both indoor and outdoors.

Not all future theme parks need to be as large as our existing parks. Niche parks would require smaller capital investment.

None of these will happen if we don't perceive the return on capital we desire.

Disney Cruise Lines - lead the family cruise line segment. Yields are significantly higher than other Caribbean lines.

Imagine if we had a larger fleet. DCL is primed for domestic growth.

DVC - grown quickly with double-digit annual growth.

Already have recouped SSR expenses prior to 3rd phase being sold out.

Trading out of points helps determine potential off-site locations.

AKV will uphold and exceed expectations of DVC members.

Adventures by Disney - easily scalable and will continue to grow as needed by demand.

Possibility to grow is all around us. Not looking at what's popular, but what is going to give the greatest return on investment.

Potential for WD Parks and Resorts is limitless.

Thanks for attending and enjoy the rest of your visit. Invite to dinner at Harambi village.

Analysis: Nothing new announced. Not a mention of West Coast DVC, Contemporary construction site, or other new projects. Overall, a very safe presentation and about as exciting as Rasulo gets. In other words, it was a boring presentation with no new news. Sorry folks, I had hoped for a better report for you.

 

[wdw4life]

Is it over? Is that all that was said?

 

[Barnum01]

Sorry. That's it. I'm really disappointed in the presentation. Especially after teasing us with the phrase Blue Sky concepts. It seems that Disney Parks is looking to brand off-site properties. I'm not all that thrilled with this as I believe it will dilute the brand rather than promote it. Look at the Disney Stores. I know it's a different side of the business, but if they can't handle retail without outsourcing the running of the stores, how are they going maintain the Disney quality at various resorts, centers, and waterparks? Sounds like a Six Flags mentality, and we know how well those places are staffed. Grrrrrrrrrr.

 

[wdw4life]

Thanks for listening and reporting. It was over before I was able to get home. Sounds like I didn't miss much. Exactly what is Blue Sky concepts?

 

[Boston5602]

Thanks for reporting back to us

 

[dwelty]

I heard it also. Barnum01 has it pretty much spot on. I was hoping for a CA DVC announcement also, Although I read the fact that they are looking at DVC member trade outs that the Disney collection trades (IE for DLR) will reflect the need for a DVC there.

 

[Barnum01]

Thanks for listening and reporting. It was over before I was able to get home. Sounds like I didn't miss much. Exactly what is Blue Sky concepts?

Blue Sky is a catchphrase within WDI that means imagine and create without worrying about cost, physical limitations or any other limit. Literally, the sky is the limit. At one point, this is how all Disney attractions were encouraged to be conceived. Listening to Rasulo speak, however, everything he said was tied to "return on capital" which shouldn't really come into play when discussing Blue Sky concepts.

 

[doubletrouble_vb]

I got the impression that blue sky concepts are what they aren't looking for going forward.

I think the water park idea really sucks. The niche park idea probably sucks as well unless its something blue sky in nature (ha ha). Building Downtown Disney elsewhere ...a resort and entertainment district by Disney...that could be a great idea. I just hope they don't go into an area where there already is one and dilute demand by unnecessary competition. However I think odds are that's exactly what they will do...build in a Baltimore or Cleveland waterfront area rather than in a dilapidated area with a lot of potential like an Asbury Park, NJ.

 

[Barnum01]

I got the impression that blue sky concepts are what they aren't looking for going forward.

Absolutely. Rasulo actually said we're going to pull back the curtain and reveal what our business unit and WDI have been working on. The fact that business unit is mentioned before WDI shows what the mentality is. We're not going to do anything that might not be profitable, which is a great way to run most businesses, but not necessarily a theme park business. Whatever happened to the weenie? Using the phrase Blue Sky within this context as Rasulo did tonight is oxymoronic.

Building Downtown Disney elsewhere ...a resort and entertainment district by Disney...that could be a great idea. I just hope they don't go into an area where there already is one and dilute demand by unnecessary competition. However I think odds are that's exactly what they will do...build in a Baltimore or Cleveland waterfront area rather than in a dilapidated area with a lot of potential like an Asbury Park, NJ.

My guess would be that they'd look at existing ESPNZones first and see which ones they could acquire adjacent real estate on the cheap and expand around them. Baltimore fits this bill. Cleveland doesn't have a Zone, but its House of Blues is in an area that has potential for future growth, although not on the waterfront. The mention of regional resorts would seem to tie into this as well.

Anchor a Disney entertainment district with a Disney-branded resort on one end and a co-branded DVC on the other end with a theme-branded restaurant such as an EZone taking up a lot of space, plus a performance venue/restaurant in the middle such as HoB then fill in the rest of the spaces with upscale destination retail. One would think a World of Disney store would fit in there somewhere.

So many markets have "lifestyle" shopping centers already that I hope Disney is not merely looking at creating outdoor malls but is really concentrating on making these offsite DTD's truly mixed venues.

That said, I really don't like this idea at all and would rather see the money spent on maintaining and upgrading the existing theme parks and resorts.

All of this does lend credence to all the rumors of Disney-owned property we've been hearing about in Texas, Wisconsin, Virginia, Colorado, etc.

Regards

 

[jaysue]

They should be cautious with brand extension and association - if they do not pull it off correctly then the Disney brand will actually be harmed by these "non-core" activities

Cheers
jaysue

 

[ACDSNY]

Thanks for the report...I guess we'll have to keep waiting for our DL DVC announcement.

 

[Starr W.]

As regarding DVC, looking for off site growth. Locations mentioned CA, Mexico and Carribean.

They basically recapped the Parks and Resorts Presentation.

 

[WendyinNC]

As regarding DVC, looking for off site growth. Locations mentioned CA, Mexico and Carribean.

They basically recapped the Parks and Resorts Presentation.

Is it possible for you to post the entire article? I would like to read it.

 

[Starr W.]

Is it possible for you to post the entire article? I would like to read it.

Go to wsj.com click on the free features tab and you'll find the story.

 

[tgj]

"All of this does lend credence to all the rumors of Disney-owned property we've been hearing about in Texas, Wisconsin, Virginia, Colorado, etc."

Can anyone clue me in? What property in Wisconsin - of all places - is Disney supposed to own?

Thanks!

TJ - in Wisconsin - of all places.....

PS - Wind chill temps got above zero today, for the first time since 2/2/07...

 

[Barnum01]

"Can anyone clue me in? What property in Wisconsin - of all places - is Disney supposed to own?

I've been trying to find this rumor source all afternoon. I remember seeing a post last year regarding Disney and property near Wisconsin Dells. It was right around the same time the Disney Store Outlet opened in the Tanger Outlet Mall last year. It never made it to DISboards, though, so my guess is it wasn't very credible, but as I was typing my earlier post, I did remember it so I threw Wisconsin in with the other states.

I'm gonna be obsessed until I find it again. Any help anyone?

Regards