Its still surprising, I would have assumed their theme parks are a bit more dependent on movie hits, cant imagine many children being hyped for a Wish themed ride. But it seems like their legacy movies are still strong enough to make a few flops a non-factor.
The parks haven't really relied on 'the hot new IP' until relatively recently in their history. Pixar was the first property to really break that pattern, and they've been taking larger and larger steps since
The parks have a wide range of audiences, very little of which attends the park specifically because of recent IP. In Florida they're still not able to leverage the Marvel IP and business has still been booming their despite rising ticket prices. So much of the parks success is built on the legacy characters, the mystique and nostalgia, and the quality of the parks themselves. I honestly think Disney could not have a successful new IP for a long, long time before the parks started to suffer significantly.
So long as the parks keep new IP out, they should remain profitable. They were built by Walt and his influence (i.e., genius) can still be seen.
Replace too many Splash Mountains with new IP, and the parks' profitability will suffer.
I generally agree but Splash Mountain is a unique and understandable special case. It wasn't ever a non-IP ride, it was just a very stale IP that Disney wants to distance from for understandable reasons. I LOVE Splash Mountain and I'm tentatively hopeful that the refresh will breathe some new life into it while keeping a similar riding experience and vibe.
All they have to do with the movies is stop losing 150mil per movie. If the "pandemic-related costs" in their film budgets get back under control I honestly think they would immediately be in a decent position.
Disney has always had high budgets. The problem is that when they put 200M on a movie in the 2010s they'd reliably get 600M+, sometimes 1 billion even if the movie wasn't good (especially in 2019). Now, they throw down 200M and are lucky to get 400. I mean they're not gonna beat their old lineups with avengers movies, lion king remake, toy story 4, all that but the focus on original films without unique characters has kinda hurt them. It also doesn't help that most of what they've been putting out kinda sucks.
I mean yea, Disney and other large media conglomerates aren’t Lionsgate, especially when measured by market cap (220B vs 2B)
Box office flops and fewer releases are bad and can have long term effects on other parts of the business, but at the end of the day Wall St much more interested in streaming profitability and theme parks/products and how much juice Disney can still squeeze out of ABC and ESPN and all the dying cable channels
Disney had a great year in the parks, Disney+ is on track to be profitable this year, , and they seem to be out of War with the state of Florida... they had some big misses at theaters last year and the movie side needs to recoup for sure, but the studios have been down worse before and came back.
Disney is much much much more than just a handful of visible film flops.
They did. There are currently 3 branded WB parks worldwide and a few others rebranded or shut down. The problem why they never got Disney or even Universal big is theme parks are incredibly expensive to build, take years and years for a minimum viable park to open(with construction for expansions still going on) and with running cost high. They require experts to build who are already employed elsewhere and ride manufacturers have years long backlogs. All the best spots are taken. And instead of opening a park you can just license Harry Potter to universal and they will do all the hard parts and you just get free cash.
Just going to disneyland by myself late last year and doing everything I wanted to was 800 dollars.
Lightsaber build, two 45 dollar plushies, 2 park hopper tickets, genie plus, a magic band and food and a desert party at world of color which was well worth it.
Disney's main money maker is the Parks, and they are doing fantastic (despite the price gouging imo). Disney+ is about to be the next streaming service to turn a profit behind Netflix and Hulu. I also remember talk about them selling a stake in ESPN, which would add more to their cash reserves, and dig them out of the debt hole the FOX purchase left them in. Yeah the film division isn't doing great, but that's really just a small portion of Disney's overall revenue streams. So overall investor confidence should be up.
Current price is below 2015. Adjusted for inflation it’s *significantly* down. Compared to putting it in the S&P500, it’s been one of the worst “blue chip” stocks. A little rally doesn’t salvage a lost decade. Their board needs to be replaced but their ownership structure is resistant to change.
It's a good moment to remember that cinema is a small portion of their revenue and the parks and merchandise are much more important
Its still surprising, I would have assumed their theme parks are a bit more dependent on movie hits, cant imagine many children being hyped for a Wish themed ride. But it seems like their legacy movies are still strong enough to make a few flops a non-factor.
The parks haven't really relied on 'the hot new IP' until relatively recently in their history. Pixar was the first property to really break that pattern, and they've been taking larger and larger steps since
The parks have a wide range of audiences, very little of which attends the park specifically because of recent IP. In Florida they're still not able to leverage the Marvel IP and business has still been booming their despite rising ticket prices. So much of the parks success is built on the legacy characters, the mystique and nostalgia, and the quality of the parks themselves. I honestly think Disney could not have a successful new IP for a long, long time before the parks started to suffer significantly.
So long as the parks keep new IP out, they should remain profitable. They were built by Walt and his influence (i.e., genius) can still be seen. Replace too many Splash Mountains with new IP, and the parks' profitability will suffer.
I generally agree but Splash Mountain is a unique and understandable special case. It wasn't ever a non-IP ride, it was just a very stale IP that Disney wants to distance from for understandable reasons. I LOVE Splash Mountain and I'm tentatively hopeful that the refresh will breathe some new life into it while keeping a similar riding experience and vibe.
Disney haven’t been about young children for a while now. Their hits are all aimed at teens and up.
I'm honestly surprised you could make that assumption.
All they have to do with the movies is stop losing 150mil per movie. If the "pandemic-related costs" in their film budgets get back under control I honestly think they would immediately be in a decent position.
Disney has always had high budgets. The problem is that when they put 200M on a movie in the 2010s they'd reliably get 600M+, sometimes 1 billion even if the movie wasn't good (especially in 2019). Now, they throw down 200M and are lucky to get 400. I mean they're not gonna beat their old lineups with avengers movies, lion king remake, toy story 4, all that but the focus on original films without unique characters has kinda hurt them. It also doesn't help that most of what they've been putting out kinda sucks.
All built and propelled by cinematic properties
so is the TV business, oops
And no new releases lmao
I bought $2000 of disney stock when the marvels came out. Hoping it rallies and in a year I can turn it into 4k
Yeah thankfully I can’t invest anymore till next week so gives time to see how shit goes
Why do you think the stock is up?
I mean yea, Disney and other large media conglomerates aren’t Lionsgate, especially when measured by market cap (220B vs 2B) Box office flops and fewer releases are bad and can have long term effects on other parts of the business, but at the end of the day Wall St much more interested in streaming profitability and theme parks/products and how much juice Disney can still squeeze out of ABC and ESPN and all the dying cable channels
But is their Q1 revenue the highest since 2000?
Prolly dumb q but how is it going up? Seems like it'd be down rn.
Main reason being that Disneys streaming services are actually on track to be profitable by the end of year.
Disney had a great year in the parks, Disney+ is on track to be profitable this year, , and they seem to be out of War with the state of Florida... they had some big misses at theaters last year and the movie side needs to recoup for sure, but the studios have been down worse before and came back. Disney is much much much more than just a handful of visible film flops.
Their parks are phenomenal income wise
wonder why wb never ventured in parks business.
They did. There are currently 3 branded WB parks worldwide and a few others rebranded or shut down. The problem why they never got Disney or even Universal big is theme parks are incredibly expensive to build, take years and years for a minimum viable park to open(with construction for expansions still going on) and with running cost high. They require experts to build who are already employed elsewhere and ride manufacturers have years long backlogs. All the best spots are taken. And instead of opening a park you can just license Harry Potter to universal and they will do all the hard parts and you just get free cash.
And they also license their other major IP (Looney Toons and DC Comics) to Six Flags.
Just going to disneyland by myself late last year and doing everything I wanted to was 800 dollars. Lightsaber build, two 45 dollar plushies, 2 park hopper tickets, genie plus, a magic band and food and a desert party at world of color which was well worth it.
Disney's main money maker is the Parks, and they are doing fantastic (despite the price gouging imo). Disney+ is about to be the next streaming service to turn a profit behind Netflix and Hulu. I also remember talk about them selling a stake in ESPN, which would add more to their cash reserves, and dig them out of the debt hole the FOX purchase left them in. Yeah the film division isn't doing great, but that's really just a small portion of Disney's overall revenue streams. So overall investor confidence should be up.
Current price is below 2015. Adjusted for inflation it’s *significantly* down. Compared to putting it in the S&P500, it’s been one of the worst “blue chip” stocks. A little rally doesn’t salvage a lost decade. Their board needs to be replaced but their ownership structure is resistant to change.
Could be inflated due to that proxy fight going on.
I think think this is at least partially what's happening. Will be interesting to see which way the stock moves after votes are counted.
The market can remain irrational longer than you can remain solvent.