Is Chapek on the verge of being fired?

[middlechild]

As Internet access becomes a commodity, the race shifted from video to owning the subscriber entertainment in general. MDE, Genie+, Disney+ - they all want to capture your eyeballs first thing each day and throughout the day. Most of us never review recurring charges once set in motion, so automatic payments keep a guaranteed revenue stream into Disney's coffers. Internet providers into my home have been switched out, Comcast for MetroNet and back but the recurring charge for cell phones remains constant. In other words, Internet is approaching a public utility, the content providers are battling to be listed in the top three to keep people logged into their service. Subscriptions to Disney+ and ESPN+ etc provide a more complete package than many others, converting that offering into recurring monthly revenue that remains constant has the potential to eclipse parks or movies, considering the reach is world-wide. Investing in Disney+ is a required strategy in my opinion to allow parks to stop funding all the other divisions as the cash cow in the portfolio.

 

[Missingmypooh]

As Internet access becomes a commodity, the race shifted from video to owning the subscriber entertainment in general. MDE, Genie+, Disney+ - they all want to capture your eyeballs first thing each day and throughout the day. Most of us never review recurring charges once set in motion, so automatic payments keep a guaranteed revenue stream into Disney's coffers. Internet providers into my home have been switched out, Comcast for MetroNet and back but the recurring charge for cell phones remains constant. In other words, Internet is approaching a public utility, the content providers are battling to be listed in the top three to keep people logged into their service. Subscriptions to Disney+ and ESPN+ etc provide a more complete package than many others, converting that offering into recurring monthly revenue that remains constant has the potential to eclipse parks or movies, considering the reach is world-wide. Investing in Disney+ is a required strategy in my opinion to allow parks to stop funding all the other divisions as the cash cow in the portfolio.

exactly this^^^

disney+ is cheap NOW.
If you think they don’t have a heavy monetization plan for the next 5-10 years you’ve been heavily mislead by your education/work experience.

everything Disney does is a test, that is then matched with user surveys to provide an excessive amount of data.

disney is testing lower park options for higher prices.
Disney is testing direct to streaming movies.

so far? It’s working in their favor. Ask any marketing expert and they’ll tell you that less options for higher prices lead to the most satisfaction (less anxiety about making a decision plus higher perceived value is the $$$$). Disney straight up said this when they changed DVC buy ins amounts this year!

 

[Disney_lost_it]

People keep saying the parks are suffering, but until I see attendance and hotel stays drop off, ima hold off. People don’t like the changes, that doesn’t mean they were the wrong ones. For instance changing the way cell phones were “upgraded” was obscenely unpopular, but sales never decreased, and once people got used to it, they became accepting of it.

"For instance changing the way cell phones were “upgraded” was obscenely unpopular". I kept my last one for 8 years. in year 3 of my "new" one. Upgrades are a pain and ultimately puts the consumer into the position of being nothing more than a renter rather than an owner. Most are blind and duped by that game.

I'll ask it again, how may months of $8 D+ fees does a family of 4 have to buy to match a weeks visit to the parks. That visit will include food, lodging, and souvenirs..... years worth per each visit. Basically, a lifetime of D+ will never match a families visits to the parks. We spent 4 days at Universal last week, our first ever visit due to Chaepek's changes. Not even going to discuss the spending in the parks. That would have been a visit to the "old" Disney.

 

[Disney_lost_it]

exactly this^^^

disney+ is cheap NOW.
If you think they don’t have a heavy monetization plan for the next 5-10 years you’ve been heavily mislead by your education/work experience.

everything Disney does is a test, that is then matched with user surveys to provide an excessive amount of data.

disney is testing lower park options for higher prices.
Disney is testing direct to streaming movies.

so far? It’s working in their favor. Ask any marketing expert and they’ll tell you that less options for higher prices lead to the most satisfaction (less anxiety about making a decision plus higher perceived value is the $$$$). Disney straight up said this when they changed DVC buy ins amounts this year!

"Ask any marketing expert". No, ask a real customer. The last thing I need is a marketing expert to tell me what I enjoy or value. Take a step into the real world. No one likes less for more.

 

[Aluminum Falcon]

I'll ask it again, how may months of $8 D+ fees does a family of 4 have to buy to match a weeks visit to the parks. That visit will include food, lodging, and souvenirs..... years worth per each visit. Basically, a lifetime of D+ will never match a families visits to the parks. We spent 4 days at Universal last week, our first ever visit due to Chaepek's changes. Not even going to discuss the spending in the parks. That would have been a visit to the "old" Disney.

I think your question is a little unfair, I think you need to compare how many guests WDW has on a yearly basis to how many subscriptions Disney+ has.Once you have that, you would need to figure out margin for WDW v Disney+, then you could fairly compare the two. Dollar for dollar isn’t a fair comparison, because we have no idea what Disney makes per dollar, (is it 30 cents on the dollar in the parks, and 60 cents on disney+). I think you’re purposely making the argument simple when it is far from it.

However, I do agree that the parks make more than Disney+, (currently) but the parks aren’t struggling currently, (speaking for the company here, not the guests) and with Disney+ in its infancy with a lot more subscriptions then initially planned for. With that in mind, I think focusing onDisney+ in the short term to ensure subs don’t drop off, is the smart move, and until the parks are in financial turmoil, (which I believe we are far off from) disney will continue on the path they’re on

 

[RedVines2001]

People keep saying the parks are suffering, but until I see attendance and hotel stays drop off, ima hold off. People don’t like the changes, that doesn’t mean they were the wrong ones. For instance changing the way cell phones were “upgraded” was obscenely unpopular, but sales never decreased, and once people got used to it, they became accepting of it.

I get the cell phone analogy but that assumes all cell phone providers did the same thing (which they did). I think the best thing to happen right now is Universal taking note of the discontent among Disney Parks’ guests and start offering all the things that Disney had cut into their growing parks. Hopefully that draws away a big enough chunk of Disney’s market share for them to notice and realize their strategic miscalculations. And I am hoping that they are in fact miscalculations. Not an economist but competition always benefits the consumer.

 

[DL1WDW2]

In response to post 146: (Universal take note of “Dis”content…

Thats kinda how it felt when I visit Universal Studios Orlando every holiday season…with a little more effort they could steal the popular spectacle of lights that Disney abandoned. Every year Universal Studios Orlando add more and more holiday lighting and great holiday music every step of the way. And Grinch is so much more “holiday” than Mickey Mouse!
And no fake snow just magical glistening confetti that is abundant and beautiful !
And castmembers that are happy and having fun while they have fun with guests for real!
And discounts with a Yes not a No , even Starbucks in Universal property gives a discount to Annual Passholders!

 

[Aluminum Falcon]

"Ask any marketing expert". No, ask a real customer. The last thing I need is a marketing expert to tell me what I enjoy or value. Take a step into the real world. No one likes less for more.

Marketing covers wide swaths of customers, they cater to the masses as opposed to the individual. Looking to individual customers is a mistake, there are too many differences between any individual, doing so would be reckless. Before you say that there are many who feel the way you do, (especially on these boards) Disney would have done a ton of research before pulling the trigger on any decision, and where i do believe they could/can have miscalculations, i would trust their judgement more than the opinions on these boards

 

[Aluminum Falcon]

I get the cell phone analogy but that assumes all cell phone providers did the same thing (which they did). I think the best thing to happen right now is Universal taking note of the discontent among Disney Parks’ guests and start offering all the things that Disney had cut into their growing parks. Hopefully that draws away a big enough chunk of Disney’s market share for them to notice and realize their strategic miscalculations. And I am hoping that they are in fact miscalculations. Not an economist but competition always benefits the consumer.

i see where you are coming from, but i think you are only taking into account what Disney has done recently. Universal already has a paid for line skipping offering, that costs more than Disneys, they have both continued to raise pricing year over year. The real "difference" is in perks being cut back, or changed, (ie, early/after hours) my thought on this is that Disney wasn't having problems stuffing their Value, and Moderate hotel offerings, and they are making a concerted effort to fill their Deluxe. I do believe that a lot of the other changes were caused by Covid, and i do not foresee them being continued once things settle back down, (when that will be is anyone's guess at this point).

Bringing it back to another cell phone analogy, Disney is Verizon or AT&T, and Universal would be T-Mobile, I don't think many would think it worth Verizons time to offer better perks, because they already "own" a large customer base, T-mobile on the other hand should offer unlimited plans, ect., to better compete with the like of Verizon. People put Universal and Disney in the same weight class, but just in terms of revenue alone,(not to get too far into financials) Disney cleans up. I just think that at the end of the day, Disney can charge more, because they offer more, (even with scaling some things back) maybe someday that will change, only time will tell.

 

[ChipnDale79]

i see where you are coming from, but i think you are only taking into account what Disney has done recently. Universal already has a paid for line skipping offering, that costs more than Disneys, they have both continued to raise pricing year over year. The real "difference" is in perks being cut back, or changed, (ie, early/after hours) my thought on this is that Disney wasn't having problems stuffing their Value, and Moderate hotel offerings, and they are making a concerted effort to fill their Deluxe. I do believe that a lot of the other changes were caused by Covid, and i do not foresee them being continued once things settle back down, (when that will be is anyone's guess at this point).

Ive only stayed at a deluxe once in my life, that was when i was a kid. As an adult ive only paid to stay at a value or a moderate.

Everything i'm hearing from disney now is that my money isnt good enough for them, the perks they offered kept me from going to universal. We're now in the early stages of planning a Universal trip.

 

[Brett Wyman]

Ive only stayed at a deluxe once in my life, that was when i was a kid. As an adult ive only paid to stay at a value or a moderate.

Everything i'm hearing from disney now is that my money isnt good enough for them, the perks they offered kept me from going to universal. We're now in the early stages of planning a Universal trip.

We hear stories here like this all the time, but then the parks just hit capacity a few days back. Disney wont care about those leaving if other people keep taking their place. I said this in several threads previously, but I think when the stimulus checks dry up(if they ever do!) we will see what the new normal is for Disney attendance. And if it's down then they'll have to react. If it's still growing they'll just shrug their shoulders and push forward.

 

[ChipnDale79]

We hear stories here like this all the time, but then the parks just hit capacity a few days back. Disney wont care about those leaving if other people keep taking their place. I said this in several threads previously, but I think when the stimulus checks dry up(if they ever do!) we will see what the new normal is for Disney attendance. And if it's down then they'll have to react. If it's still growing they'll just shrug their shoulders and push forward.

people have money to burn and want to travel. that wont last forever.

 

[Aluminum Falcon]

Ive only stayed at a deluxe once in my life, that was when i was a kid. As an adult ive only paid to stay at a value or a moderate.

Everything i'm hearing from disney now is that my money isnt good enough for them, the perks they offered kept me from going to universal. We're now in the early stages of planning a Universal trip.

I think the fact that you've only stayed at a deluxe once, is why Disney is offering more perks to Deluxe guests. Disney, (to me), is trying to entice moderate and value guests to splurge on a Deluxe. Will that drive some guests away, (such as yourself) I could see that, but it could also have the effect Disney is looking for, time will tell. I think a lot on these boards keep talking about how they are "sticking it" to Disney, that may materialize into something detrimental to Disney's bottom line, but my guess is that Disney has already accounted for the drop off of some, to get increases from others across the board. Again, time will tell

 

[Disney_lost_it]

Marketing covers wide swaths of customers, they cater to the masses as opposed to the individual. Looking to individual customers is a mistake, there are too many differences between any individual, doing so would be reckless. Before you say that there are many who feel the way you do, (especially on these boards) Disney would have done a ton of research before pulling the trigger on any decision, and where i do believe they could/can have miscalculations, i would trust their judgement more than the opinions on these boards

marketers will also tell you that for every vocal complaint many more simply go away:

A study by TARP Research as far back as 1999 uncovered the fact that for every 26 unhappy customers, only 1 will bother to make a formal complaint. The rest will either stay where they are disappointed or will silently take their business elsewhere. According to another research by 1st Financial Training services, 96% of unhappy customers don’t complain, 91% of those will simply leave and never come back. White House Office of Consumer Affairs found that a dissatisfied customer will tell between 9-15 people about their experience. Around 13% tell more than 20 people, which leads to damage of reputation, loss of potential customers and revenue.

I have no doubt that Disney does enormous amounts of research. But research is only as good as the questions asked. Do you think Disney's researched the end of their MB? Was the question...We plan to end the MB, as a customer are happy and willing to find your own way to the parks? I kind of doubt it. Or for FP. Do you think their question was.... We plan to end the free FP, increase our entry fee to the parks and charge you for a pass that at times will not allow you the ability to ride your favorite rides? I kind of doubt it. But those are the real results of their changes. I know the FP at times did not get you on your favorite rids, but you can accept it when it's free, not when it's an extra fee. Or did they ask this question.... your visit to the Magic Kingdom will cost your upwards of 30% or more than in the past, are you happy to pay that extra amount with the likelihood of at best receiving the same value proposition, if not a lesser one?

Count the unhappy customers on this board, then adjust by the above marketing factors. I'm not sure how many casual conversations we had with other visitors to Universal last week discussing these exact issues as to why we were at Universal vs. Disney. And the "masses" is nothing more than an accumulation of individuals.

 

[Aluminum Falcon]

We hear stories here like this all the time, but then the parks just hit capacity a few days back. Disney wont care about those leaving if other people keep taking their place. I said this in several threads previously, but I think when the stimulus checks dry up(if they ever do!) we will see what the new normal is for Disney attendance. And if it's down then they'll have to react. If it's still growing they'll just shrug their shoulders and push forward.

I would caution your thought on stimulus checks, the American public has more in savings currently than they've had in decades. You wouldn't be seeing that if a lot of households were splurging on an expensive vacation. I think demand is there, because it always has been, and people feel more comfortable traveling now

 

[Disney_lost_it]

Ive only stayed at a deluxe once in my life, that was when i was a kid. As an adult ive only paid to stay at a value or a moderate.

Everything i'm hearing from disney now is that my money isnt good enough for them, the perks they offered kept me from going to universal. We're now in the early stages of planning a Universal trip.

I've stayed only at the Grand Floridian. Favorite place. But given all of Disney's changes we just went to Universal. It was just as fun. Stayed at the Sapphire Falls, very nice and great poll. Easy walk or boat ride to the parks. The overall value was greater than what Disney is now offering.

 

[Brett Wyman]

I would caution your thought on stimulus checks, the American public has more in savings currently than they've had in decades. You wouldn't be seeing that if a lot of households were splurging on an expensive vacation. I think demand is there, because it always has been, and people feel more comfortable traveling now

Thats true but a lot of that is tied up in 401ks and similar retirement funds attached to a market that is historically high and could start to drop anytime now. Id be curious to see a liquid vs retirement savings chart for Americans.

 

[Nabas]

Ive only stayed at a deluxe once in my life, that was when i was a kid. As an adult ive only paid to stay at a value or a moderate.

Everything i'm hearing from disney now is that my money isnt good enough for them, the perks they offered kept me from going to universal. We're now in the early stages of planning a Universal trip.

Just keep in mind that the Universal system is similar to Disney’s new system.

Those staying onsite at Universal’s Deluxe Resorts get an incredible perk (unlimited Express Pass). Those staying at Universal’s moderate or value hotels do not get this.

IMO, the big difference is price. Universal’s onsite hotels often cost half of what comparable Disney hotels cost.

Looking at availability for the end of this month, a 6-night stay at Endless Summer averages $87 per night. At Pop, it’s $160 per night.

Cabana Bay is $125 per night. Coronado Springs is $222 per night.

Sapphire Falls is $172 per night. Caribbean Beach is $264 per night.

The Hard Rock is $376 per night. The Yacht Club $507 per night.

Portofino Bay is $389 per night. The Grand Floridian is $701 per night.

 

[Disney_lost_it]

I would caution your thought on stimulus checks, the American public has more in savings currently than they've had in decades. You wouldn't be seeing that if a lot of households were splurging on an expensive vacation. I think demand is there, because it always has been, and people feel more comfortable traveling now

And that travel will branch back out to their normal venues. We've been itching to travel back to the Caribbean since the start of covid. Once air travel become safe an reliable we will. The return to travel will likely include not driving to the closest parks or beaches anymore. It's likely going to be the things that people couldn't do over the 2-3 years of covid.

 

[Disney_lost_it]

Just keep in mind that the Universal system is similar to Disney’s new system.

Those staying onsite at Universal’s Deluxe Resorts get an incredible perk (unlimited Express Pass). Those staying at Universal’s moderate or value hotels do not get this.

IMO, the big difference is price. Universal’s onsite hotels often cost half of what comparable Disney hotels cost.

Looking at availability for the end of this month, a 6-night stay at Endless Summer averages $87 per night. At Pop, it’s $160 per night.

Cabana Bay is $125 per night. Coronado Springs is $222 per night.

Sapphire Falls is $172 per night. Caribbean Beach is $264 per night.

The Hard Rock is $376 per night. The Yacht Club $507 per night.

Portofino Bay is $389 per night. The Grand Floridian is $701 per night.

We ended up at the Sapphire due to the Portofino being full. Just as nice as the Grand Floridian on the inside. Once we added on the Express passes we still came out well ahead of the "free" express passes with the Portofino, and didn't know the difference.