Effort to vote out Bob Chapek at upcoming shareholder meeting

[Illinois76]

The Disney Parks are still a large revenue generator and the largest profit generator ($2.4B profit on $7.3B in revenue for Parks, Experiences & Products vs $808M profit on $14.5B revenue for Media & Entertainment). I don't think they're going out of business if Disney decided to close its parks tomorrow - but it would sure be a huge hit on their profits.

Disney is 1 big company, but consumers won't automatically spend more for less value just because they like the MCU or Star Wars. Look at Galactic Starcruiser and how many people are cancelling their reservations after seeing the video they put out that Disney later took down.

People may still be happy to spend $20 to go see the new Marvel movie and even subscribe to Disney+ but even as people get priced out of going to Disney parks, the people who are left who can still afford to spend $15K+ on a 7-day vacation will expect a more luxury experience and if they don't "feel the magic" or word of mouth spreads that there is no magic, the demand could easily shrink.

Its still possible Disney is betting on the Metaverse and a virtual Disney Park to replace the physical ones - and perhaps their long term strategy is to boost profits enough that the physical parks look attractive enough that they can sell them off and invest in a virtual park. I think we're still pretty far away from a virtual experience that could really replace a physical one though.

I think you still undervalue how good the Disney brand is at indoctrinating kids from a young age to love their branding and the characters.

That’s what drives the churn for new park visitors, and those don’t have the ‘good old days’ POV.

 

[middlechild]

".. undervalue how good the Disney brand is at indoctrinating kids ..."

Parents decide on what to exposure kids have to a variety of mediums. In order for this indoctrination, first Disney has to be seen by the kids. As parents sour on the Disney experience, the disneyfication of everyday life, other entertainment options will and have taken center stage. Which makes Bob Chapek's (and Josh D'Amaro) focus on the young adult demographic best able to afford high gate prices such a short term vision.

 

[middlechild]

Has been posted in other threads but is a great read if you haven't already: https://www.frommers.com/blogs/arth...ie-hard-fans-now-turning-against-poor-quality

I think the last paragraph is an interesting one ...

This post appeared on the bottom of page 2. Since I think the video by Don within the article is a good summation, I have quoted the post here atop page 3 hoping more people take the time to see it.
Thanks @Liquidice

 

[Brocktoon]

This post appeared on the bottom of page 2. Since I think the video by Don within the article is a good summation, I have quoted the post here atop page 3 hoping more people take the time to see it.
Thanks @Liquidice

The article mentioned the 50th Anniversary ears with golden sequins and rhinestones ... don't know how I missed that story when those items dropped

Ear Headband

Ear Hat

Seriously! ... 750 to $1000 for that quality and materials. This to me summarizes my frustrations with the current 'because we know someone will pay' mentality of Disney

 

[808blessing]

I think you still undervalue how good the Disney brand is at indoctrinating kids from a young age to love their branding and the characters.

That’s what drives the churn for new park visitors, and those don’t have the ‘good old days’ POV.

The effects of watching solely Disney+ as a marketing tool will STREAM many to the Disney Parks for a few years. The content is very broad and something for everyone. Not going to underestimate it has a very strong marketing game no matter the current reality. Watching content often translates into brand loyalty.

Happy to see DL making a few steps in the right direction. I sure hope WDW folllows suit.

 

[ChipnDale79]

I think you still undervalue how good the Disney brand is at indoctrinating kids from a young age to love their branding and the characters.

That’s what drives the churn for new park visitors, and those don’t have the ‘good old days’ POV.

i have a 9 year old and a 10 year old. The 9 year old is basically done with disney. He's been a lot, and is annoyed with how little we're able to do in the parks vs what he was able to do a few years ago. He'd rather go to Universal all of a sudden.

My kids have grown up on all things Disney

 

[Liquidice]

I think you still undervalue how good the Disney brand is at indoctrinating kids from a young age to love their branding and the characters.

That’s what drives the churn for new park visitors, and those don’t have the ‘good old days’ POV.

I thought it was interesting that on the DIS Unplugged discussion yesterday they talked similarly to my thinking that parents not kids build the memories for their kids which in turn those kids grow up wanting their kids to go to the parks. Its around the 28 minute mark that when you price out people, parents won't take their kids to the parks and their kids won't grow up being Disney parks fans. I'm sure there's some truth to what you're saying that some people will want to go to the parks because they are fans of the brand from Disney+ etc but I think there are also lots of kids who grew up spending time in the parks and as parents want the same thing for their kids.

This link should take you to right around where Ryno is talking about it:

I know for me, I go to the parks because I fondly remember going to Disney as a kid and I want my kids to have similar memories. Its similar to how parents who took annual trips to the beach growing up still do that every year with their children today.

I guess the question is, will children who grow up on Disney+ become big enough fans that they want to go to Disney World more than once in a life time, or is it a one and done for them?

Or does Disney already know that they can remain profitable without the returning guests and they're only interested in attracting new customers who take a once in a lifetime trip.

I think that mindset probably works as long as the economy is good - if we hit a recession and people are taking less vacations, Disney will want those diehard fans who would pick Disney as their first choice. Right now, I think Disney is at war with those diehard fans the "less profitable" AP holders and if they turn them off, will they come back when Disney needs them? Will there be new ones to replace them? If we hit a recession in 10 years (its feasible we'll hit one much sooner), I'm not so sure the 4 year old Disney+ subscriber that loves the Disney brand will be able to afford Disney at 14.

 

[Brocktoon]

With bigger things going on in Europe now ... there is the potential that the economics could be in a much different place in the coming months. Could we see 10%+ inflation along with $7/gal gas by the summer? Inflation and prices could be out of control in Europe killing a lot of international travel ... this could all add up to the tourism industry rapidly slowing this summer and into the end of the year.

Will Disney's solution be passing price increases on to the customer in the face of dropping vacation attendance? If gas and inflation keep spiking I'm pretty much ready to cancel my planned WDW vacation for this year

 

[BadPinkTink]

@Liquidice
I saw that part of the discussion and as someone from Europe I totally disagree.
In Ireland and UK, going to Disney parks only became possible in the 1980's and it was a one and done holiday to Florida. Even now, its still a one and done holiday for most families. We don't grow up going to Disney parks, we grow up watching The Disney Channel, the Disney movies on TV, VHS video, DVD and now Disney+. Its the kids who drive the parents to go to Disney parks. The parents do the big one and done family holiday to Florida because of their kids, the kids are Disney obsessed, but the parents don't have any emotional ties or nostalgia. Its only the generation who were kids in the late 1980's and 1990's onwards who are now parents who have memories of the one and done family holiday to Florida. But even with most of them, the huge Disney nostalgia and emotional ties are not there.

The Disney brand is worldwide, and for many, growing up watching Disney on TV and in films, going to a Disney park is a bucket list trip.

 

[Liquidice]

@Liquidice
I saw that part of the discussion and as someone from Europe I totally disagree.
In Ireland and UK, going to Disney parks only became possible in the 1980's and it was a one and done holiday to Florida. Even now, its still a one and done holiday for most families. We don't grow up going to Disney parks, we grow up watching The Disney Channel, the Disney movies on TV, VHS video, DVD and now Disney+. Its the kids who drive the parents to go to Disney parks. The parents do the big one and done family holiday to Florida because of their kids, the kids are Disney obsessed, but the parents don't have any emotional ties or nostalgia. Its only the generation who were kids in the late 1980's and 1990's onwards who are now parents who have memories of the one and done family holiday to Florida. But even with most of them, the huge Disney nostalgia and emotional ties are not there.

The Disney brand is worldwide, and for many, growing up watching Disney on TV and in films, going to a Disney park is a bucket list trip.

Well, WDW has only been around since 1971 - prior to that I don't think many parents on the US east coast were going to Disneyland. I agree that parents of that timeframe didn't have emotional ties or nostalgia because they probably didn't go to a Disney park at that age - but the kids who went do and are now adults (myself included), and we can disagree here - but I do think parents have good memories tied to going to Disney as kids and ultimately they're the ones paying for that trip not the kids

When you say a bucket list trip - you mean a once in a lifetime trip right? Again - I think Disney currently is trying to attract those once in a lifers who will spend that little bit extra for Genie+ and ILL$ so they get everything done. But what I'm not sure of is if Disney can survive just on those once in a lifetime trip goers. Its working now, particularly because of pent up demand from the pandemic - but that won't last forever.

Like Brocktoon said, we could be heading for a worldwide recession in the coming months - and I suspect you won't see as many people vacationing to Disney during a recession. What Disney will need are the diehard fans that they're currently (imho) saying they don't want and are "less profitable".

 

[TsWade2]

This is ridiculous! This hating on Bob Chapek is nothing but an unhealthy cult! I’m still not sure about how well Bob Chapek will do, but I’m giving him a chance.

 

[Karin1984]

@Liquidice
I saw that part of the discussion and as someone from Europe I totally disagree.
In Ireland and UK, going to Disney parks only became possible in the 1980's and it was a one and done holiday to Florida. Even now, its still a one and done holiday for most families. We don't grow up going to Disney parks, we grow up watching The Disney Channel, the Disney movies on TV, VHS video, DVD and now Disney+. Its the kids who drive the parents to go to Disney parks. The parents do the big one and done family holiday to Florida because of their kids, the kids are Disney obsessed, but the parents don't have any emotional ties or nostalgia. Its only the generation who were kids in the late 1980's and 1990's onwards who are now parents who have memories of the one and done family holiday to Florida. But even with most of them, the huge Disney nostalgia and emotional ties are not there.

The Disney brand is worldwide, and for many, growing up watching Disney on TV and in films, going to a Disney park is a bucket list trip.

From a Dutch perspective, that's not the case here. (Generalization) If people here go to a Disney park then it's Disneyland Paris. And going to a Disney park is not because of the Disney channel or Disney plus. It's because it's considered the 'good parent' thing to do. To make sure your kids do not miss out on experiences. But then you can suffice with just one visit. And if you don't want to go to Paris, you can be the good parent by taking them to our biggest themepark.

The Dutch people who go to Disneyworld are usually those who are more into theme parks in general.

I do agree with that for the US the nostalgia factor is a lot bigger, and therefore there is a danger of alienating generations from it.