What kind of piece of shit wouldn’t let someone back in line to see some lame show after going back to get her phone?
Disney+ had the largest subscriber growth of any streaming company. If it’s still losing money, it’s because it was always going to lose money.
I think the streaming model that would have worked best for everyone is a centralized archive which is kind of what we had when Netflix started. The archive pays for old content well after its initial run and maybe a secondary run. People pay for one streaming option probably at a higher price point than before (around 19.99 to $24.99).
The Parks print money because Disney has slowed their spending. The Parks are printing money but losing fans.
The only new attraction on the horizon for WDW is Tron which was announced forever ago. Dueling Dragons at Universal was still in operation when Tron was announced. Hagrid’s replaced it 2.5 years ago. All the other major parks in Florida have opened two new coasters since Tron was announced. Legoland opened up a whole new park. Disney is going to have a tough time getting new visitors after people have taken their big post-pandemic trip.
Disney theme parks -- and to a lesser extent Disney+ -- have been carrying the revenue growth torch for the House of Mouse for the past year and change. Business is booming at Disneyland and Disney World.
We knew it would be a strong showing. Rival Comcast (CMCSA) -- matching Disney's reach with its Universal Studios gated attractions in Central Florida and Southern California -- posted a 42% year-over-year increase in revenue for the same quarter late last month. The segment's adjusted EBITDA soared 89%.
Disney fared even better. Its domestic theme parks rang up 44% more in revenue than they did in the prior year's fiscal fourth quarter. The segment's operating profit nearly tripled. The gains were even heartier on both ends for Disney's smaller international theme parks. The segment thrived despite a disruption in Disney World near the end of the quarter as Hurricane Ian barreled through Florida.
The secret to the theme park segment's success isn't going to make everyone happy. Revenue per capita is up 6% over the past year and up a whopping 40% from pre-pandemic levels as Disney adds premium add-ons to get folks willing to pay for access to shorter queues for rides and attractions. Disney's park reservations system that typically favors higher-paying guests on single-day admissions or staying at a resort hotel has also made every turnstile tap that much more lucrative.
Disney and its rivals are now comfortably ahead of where they were back in 2019, something that can't be said for the cruise industry, multiplex operators, and other leisure stocks. It feels good, but it's a dangerous game.
It's been a year since Disney introduced Genie+ as a premium queue-shortening platform. Prices for in-park food and merchandise continue to head higher, far outpacing inflation. Disney shareholders may marvel at the rising ceiling, but what happens when the lights go out and the body crashes to the floor?
Disney will naturally keep pushing prices higher and add premium experiences until folks stop coming or paying. It truly is a stunning ascent, and Disney revealed that its international business in terms of guest mix is finally back to pre-pandemic levels. It looks good now, but is it sustainable? Is anybody happy with the Disney parks reservations system that rivals have long abandoned? At some point the pricing elasticity will snap, and that's when Disney will learn that it's a small world after all.
And Universal's pass is much lower effort to use and enjoy on top of that.Part of the problem with Genie+ and Lightning Lane is that they’re charging for what used to be complementary. I understand that paying for rides was untapped revenue. But instead of creating a new product and charging a premium rate, they chose to nickel and dime for what used to be free. That’s a much different model that parks like Universal, Cedar Fair, and Six Flags use. Universal’s pass is very expensive but it’s also complementary if you stay at their premier hotels.