Here's the latest word on two major new attractions at Universal Studios. The Orlando Sentinel calls it an 'expansion' at USF, but I read it more as a freshening up of their attractions, as they will actually replace two older ones and not be completely new.
Simon
By Richard Verrier | Sentinel Staff Writer
Posted May 19, 2002
LOS ANGELES -- Universal Orlando is getting two major new attractions -- based on the movies Shrek and Jimmy Neutron: Boy Genius -- as part of an unexpected expansion that will give Central Florida's ailing tourism industry a much-needed boost.
Barry Diller, in one of his first strategic moves since taking the helm of Vivendi Universal Entertainment this month, has greenlighted the plans despite a severe downturn in tourism and theme-park attendance after Sept. 11.
Diller also has given the theme-park group the go-ahead to aggressively scout for new locations for overseas parks, including possible sites in Germany and mainland China.
The growth mandate marks a strategic shift from just a year ago, when Universal's new French parent put theme-park expansion on hold until the company's two newest parks in Orlando and Japan could prove their worth.
Helping to bring new momentum to the theme parks is Diller, a legendary figure in Hollywood who now chairs the newly formed Vivendi Universal Entertainment, which was created after Vivendi's $11 billion acquisition of Diller's film and television businesses.
Reached in Cannes, France, last week, Diller affirmed his support of expanding the theme-park business.
"I like roller coasters," he said. "I've been going to Magic Mountain [in California] since they built it when I was a kid. I went to the Universal park in Orlando before it opened just because I wanted to see the rides. I rode Spider-Man so many times it's embarrassing."
A few years ago, Central Florida's tourism industry was on fire, with the opening of three new parks -- Disney's Animal Kingdom in 1998, Universal's Islands of Adventure in '99 and SeaWorld's Discovery Cove in 2000.
A raft of major new attractions came on board, too, including Men in Black Alien Attack at Universal Studios, Aerosmith Rock 'n Roller Coaster at Disney-MGM Studios and SeaWorld's Kraken.
But business started to droop early last year because of the softening economy and was made worse by the September terrorist attacks. Universal's growth plans reflect confidence that the parks will make a quick recovery from the worst tourism slump in more than a decade.
Indeed, its two Orlando parks -- Universal Studios Florida and Islands of Adventure -- are running at last year's levels. And Universal Studios Hollywood reported record attendance in the first quarter this year, driven mostly by a popular discount on annual passes, executives said.
Rival Walt Disney Co. also has seen significant gains in attendance in recent months, though its parks have been hurt more by the continued lag in international travel.
Vivendi also has been encouraged by the strong results from its theme park in Osaka, Japan, which in its first year of operations drew 11 million visitors -- 2 million more than the company projected -- despite a recession in Japan.
Bob Gault, named Universal Orlando president in February, led the opening of Universal's Osaka theme park, which attracted its first million visitors faster than any other attraction in history -- 37 days after it opened in March 2001.
Gault has made it clear he intends to liven up the parks with new shows and attractions.
The gains in Japan and Hollywood brought a 69 percent jump in the group's cash flow in the first quarter, more than any other segment of Vivendi.
"In the post 9-11 period, we came out swinging," said Tom Williams, chief of Universal Studios Recreation Group.
Williams attributes the turnaround largely to an aggressive marketing campaign after Sept. 11 to counter the steep travel falloff.
Universal doubled its advertising budget, hired a new advertising agency and launched a national advertising campaign aimed at luring out-of-state visitors to its two Orlando theme parks. The promotions included a 60-second television commercial during the Super Bowl.
The performance of the parks, however, has largely been overshadowed by the steep declines in Vivendi's stock price amid doubts from investors about Chief Executive Officer Jean-Marie Messier's overall strategy for building a European rival to AOL Time Warner.
Theme parks also get overlooked because they only account for about 5 percent of Vivendi's operating income. Yet they are an important symbol of Messier's drive to create a global entertainment giant and another outlet for promoting Vivendi's diverse holdings, including movies, music, television and children's books.
Diller also is interested in finding ways to promote ties between his USA television and film business and Universal Studios. Among the possibilities, Williams said, are staging television shows such as Home Shopping Network programs at the theme parks, or developing children's programs that could be spun off into theme-park attractions.
The new expansions, however, will be on a more modest scale than past projects such as the $75 million Amazing Adventures of Spider-Man ride in Orlando.
"Alfred Hitchcock: The Art of Making Movies," will close to make way for the Shrek attraction. The new 10-minute show will blend 3-D film, moving simulators and other special effects based on the fairy tale fable from the hit DreamWorks movie.
Visitors will hear, see and smell characters from the Oscar-winning feature film, which Universal distributed.
The attraction will open simultaneously in Orlando and Hollywood in the summer of 2003, marking the first time Universal has opened a major attraction on both coasts. The move is part of an effort to create more cohesion between the properties, executives said.
Universal Studios Florida in spring 2003 also will add "The Jimmy Neutron Adventure," inspired by the animated hit movie Jimmy Neutron: Boy Genius by Paramount Pictures.
The motion-based attraction, which will replace the "Funtastic World of Hanna-Barbera," will take customers on a ride in Jimmy's rocket ship and include such popular children's characters as the Rugrats and SpongeBob SquarePants. All together, the three attractions are expected to cost more than $60 million.
Industry experts say these kinds of additions are necessary to keep theme parks healthy and competitive.
"If they don't get out in front and add new things, they have a real chance of falling back," said Steve Baker, a theme-park consultant in Orlando.
For example, Disney World is opening a much-heralded "Mission: Space" attraction at Epcot next year.
Universal Studios also is looking to expand internationally, but only with the help of local partners who can finance most of the cost.
"We want to grow judiciously," Williams said.
For example, Universal owns 24 percent of Universal Studios Japan and has a lucrative management contract but only invested $90 million in the $1.7 billion facility.
"Japan has been such an enormous success, it just reinforced the confidence that Vivendi had in the recreation business," Universal Studios chief Ron Meyer said.
New theme parks likely won't be on that same scale as the Islands of Adventure theme park, which cost more than $2 billion.
The company is not yet saying how many parks it will build, the cost, or how they may be financed. The latter would be a paramount for investors already concerned about Vivendi's heavy debt load.
Universal operates a resort in Spain called Universal Mediterranea, where it is building a second 500-room hotel and a water park at the existing Port Aventura theme park near Barcelona.
The studio is studying sites in Germany and China, including Shanghai and Beijing. Disney, which just opened a second theme park in Paris, is also building a park in Hong Kong and studying sites on the mainland as well.
"Clearly, there are many great opportunities to grow," Meyer said.
Simon
By Richard Verrier | Sentinel Staff Writer
Posted May 19, 2002
LOS ANGELES -- Universal Orlando is getting two major new attractions -- based on the movies Shrek and Jimmy Neutron: Boy Genius -- as part of an unexpected expansion that will give Central Florida's ailing tourism industry a much-needed boost.
Barry Diller, in one of his first strategic moves since taking the helm of Vivendi Universal Entertainment this month, has greenlighted the plans despite a severe downturn in tourism and theme-park attendance after Sept. 11.
Diller also has given the theme-park group the go-ahead to aggressively scout for new locations for overseas parks, including possible sites in Germany and mainland China.
The growth mandate marks a strategic shift from just a year ago, when Universal's new French parent put theme-park expansion on hold until the company's two newest parks in Orlando and Japan could prove their worth.
Helping to bring new momentum to the theme parks is Diller, a legendary figure in Hollywood who now chairs the newly formed Vivendi Universal Entertainment, which was created after Vivendi's $11 billion acquisition of Diller's film and television businesses.
Reached in Cannes, France, last week, Diller affirmed his support of expanding the theme-park business.
"I like roller coasters," he said. "I've been going to Magic Mountain [in California] since they built it when I was a kid. I went to the Universal park in Orlando before it opened just because I wanted to see the rides. I rode Spider-Man so many times it's embarrassing."
A few years ago, Central Florida's tourism industry was on fire, with the opening of three new parks -- Disney's Animal Kingdom in 1998, Universal's Islands of Adventure in '99 and SeaWorld's Discovery Cove in 2000.
A raft of major new attractions came on board, too, including Men in Black Alien Attack at Universal Studios, Aerosmith Rock 'n Roller Coaster at Disney-MGM Studios and SeaWorld's Kraken.
But business started to droop early last year because of the softening economy and was made worse by the September terrorist attacks. Universal's growth plans reflect confidence that the parks will make a quick recovery from the worst tourism slump in more than a decade.
Indeed, its two Orlando parks -- Universal Studios Florida and Islands of Adventure -- are running at last year's levels. And Universal Studios Hollywood reported record attendance in the first quarter this year, driven mostly by a popular discount on annual passes, executives said.
Rival Walt Disney Co. also has seen significant gains in attendance in recent months, though its parks have been hurt more by the continued lag in international travel.
Vivendi also has been encouraged by the strong results from its theme park in Osaka, Japan, which in its first year of operations drew 11 million visitors -- 2 million more than the company projected -- despite a recession in Japan.
Bob Gault, named Universal Orlando president in February, led the opening of Universal's Osaka theme park, which attracted its first million visitors faster than any other attraction in history -- 37 days after it opened in March 2001.
Gault has made it clear he intends to liven up the parks with new shows and attractions.
The gains in Japan and Hollywood brought a 69 percent jump in the group's cash flow in the first quarter, more than any other segment of Vivendi.
"In the post 9-11 period, we came out swinging," said Tom Williams, chief of Universal Studios Recreation Group.
Williams attributes the turnaround largely to an aggressive marketing campaign after Sept. 11 to counter the steep travel falloff.
Universal doubled its advertising budget, hired a new advertising agency and launched a national advertising campaign aimed at luring out-of-state visitors to its two Orlando theme parks. The promotions included a 60-second television commercial during the Super Bowl.
The performance of the parks, however, has largely been overshadowed by the steep declines in Vivendi's stock price amid doubts from investors about Chief Executive Officer Jean-Marie Messier's overall strategy for building a European rival to AOL Time Warner.
Theme parks also get overlooked because they only account for about 5 percent of Vivendi's operating income. Yet they are an important symbol of Messier's drive to create a global entertainment giant and another outlet for promoting Vivendi's diverse holdings, including movies, music, television and children's books.
Diller also is interested in finding ways to promote ties between his USA television and film business and Universal Studios. Among the possibilities, Williams said, are staging television shows such as Home Shopping Network programs at the theme parks, or developing children's programs that could be spun off into theme-park attractions.
The new expansions, however, will be on a more modest scale than past projects such as the $75 million Amazing Adventures of Spider-Man ride in Orlando.
"Alfred Hitchcock: The Art of Making Movies," will close to make way for the Shrek attraction. The new 10-minute show will blend 3-D film, moving simulators and other special effects based on the fairy tale fable from the hit DreamWorks movie.
Visitors will hear, see and smell characters from the Oscar-winning feature film, which Universal distributed.
The attraction will open simultaneously in Orlando and Hollywood in the summer of 2003, marking the first time Universal has opened a major attraction on both coasts. The move is part of an effort to create more cohesion between the properties, executives said.
Universal Studios Florida in spring 2003 also will add "The Jimmy Neutron Adventure," inspired by the animated hit movie Jimmy Neutron: Boy Genius by Paramount Pictures.
The motion-based attraction, which will replace the "Funtastic World of Hanna-Barbera," will take customers on a ride in Jimmy's rocket ship and include such popular children's characters as the Rugrats and SpongeBob SquarePants. All together, the three attractions are expected to cost more than $60 million.
Industry experts say these kinds of additions are necessary to keep theme parks healthy and competitive.
"If they don't get out in front and add new things, they have a real chance of falling back," said Steve Baker, a theme-park consultant in Orlando.
For example, Disney World is opening a much-heralded "Mission: Space" attraction at Epcot next year.
Universal Studios also is looking to expand internationally, but only with the help of local partners who can finance most of the cost.
"We want to grow judiciously," Williams said.
For example, Universal owns 24 percent of Universal Studios Japan and has a lucrative management contract but only invested $90 million in the $1.7 billion facility.
"Japan has been such an enormous success, it just reinforced the confidence that Vivendi had in the recreation business," Universal Studios chief Ron Meyer said.
New theme parks likely won't be on that same scale as the Islands of Adventure theme park, which cost more than $2 billion.
The company is not yet saying how many parks it will build, the cost, or how they may be financed. The latter would be a paramount for investors already concerned about Vivendi's heavy debt load.
Universal operates a resort in Spain called Universal Mediterranea, where it is building a second 500-room hotel and a water park at the existing Port Aventura theme park near Barcelona.
The studio is studying sites in Germany and China, including Shanghai and Beijing. Disney, which just opened a second theme park in Paris, is also building a park in Hong Kong and studying sites on the mainland as well.
"Clearly, there are many great opportunities to grow," Meyer said.
