The Walt Disney Company is often looked at as an example of what it means to be successful in business.
©Disney
That success was evident during the last company earnings call, where we learned that parks revenue had increased by $4.3 billion in the third quarter of this year. So, it’s no wonder that Walt Disney Company executives would be invited to speak at the occasional business affair here and there. Recently, two senior Disney officials participated in a question and answer session at a Bank of America conference and spoke about various aspects of the business. We listened in, and we’re recapping all the important info you need to know!
Walt Disney Company Senior Executive Vice President and Chief Financial Officer Christine McCarthy and Chairman of Disney Parks, Experiences, and Products Josh D’Amaro recently participated in a Q&A session at the Bank of America Securities Media, Communications & Entertainment Conference. During the session, the executives answered questions on everything from park capacity to advertising and more.
©Disney | Walt Disney Company Headquarters
We listened in, and are sharing everything you might want to know!
Disney+ and Streaming
There was a lot of talk about Disney+ and the new ad-supported tier that is being introduced to the service later this year. When asked about pricing, Christine McCarthy commented that when Disney+ first launched, it was priced at “an attractive price point” in order to gain subscribers. Now that more content has come to the platform (both original and acquired) the prices are increasing to match the quantity and quality of content.
©Disney
Disney+ is introducing its ad-supported tier in December, and McCarthy confirmed that during the initial rollout, there will only be 4 minutes of ads per hour. She went on to say that they’ve had no struggle to find advertisers, as the spaces available are scarce which is driving demand. During the initial marketing phase, the company generated over $9 billion in advertiser commitments.
©Disney | She-Hulk on Disney+
The executives also briefly discussed Disney-owned ESPN and the thought behind continuing to own that branch. They shared that ESPN is viewed as an asset by the company and is “fully integrated into how [they] think about delivering content to consumers.”
©Disney
That integration was also mentioned when it came to the overall Disney consumer experience as it relates to the in-park subscriber perks coming for Disney+ Day.
Everything We Know About Disney+ Day This Year
Disney Parks
When it comes to the Disney parks experience, the consumer or guest experience was also at the forefront of the conversation. Disney films and franchises can “translate directly into theme park experiences” according to Josh D’Amaro. He went on to name Pandora in Animal Kingdom and Avengers Campus in Disneyland Resort and Disneyland Paris as examples.
Pandora in Animal Kingdom
D’Amaro also revealed that despite Disneyland having been closed for over 400 days during the global pandemic, the company recovered “very quickly” (albeit not very smoothly) which “speaks to the power of the brand and the connections that guests have” to it. And, despite guest volume being lower, the operating income of Disney parks is above where it was at this time in 2019.
Disneyland’s closed gates in 2020
One thing that has stuck around is the Park Pass Reservation System, which allows them to put a cap on attendance and “fully utilize assets” in the parks. The company knew that the system could be used as a tool to “much better manage park capacity and guest experience.”
Hollywood Studios
Of course, Disney Genie was mentioned as an additional tool that was introduced in the past year, which “optimizes park time for guests” but is also beneficial for the company as it can guide guests to certain attractions or areas of the parks. But, guests can go even further if they so choose by planning their day with Genie+ and Individual Lightning Lanes. According to D’Amaro, 70% of guests surveyed who have purchased Genie+ said they would buy the service on future visits.
Disney Genie
When asked about how data drives business and decision-making in the parks, the executives shared that new systems (like Genie and even Disney+) can gather more data about guests that can improve experiences and give the company more information about how best to direct you in the parks. This can help them create a full picture of the consumer and “move people seamlessly through [their] experiences.”
Click Here to Read Our Ultimate Guide to Disney Genie
Overall, we didn’t learn any bombshell news or information from this call. BUT, we are expecting to learn plenty of juicy news and announcements on Disney+ Day taking place on September 8th! Not only that, but the D23 Expo is coming up right after that and promises exciting panels, entertainment, announcements, celebrity appearances, and more.
We’ll be covering BOTH events live and in full detail, so be sure to stay tuned to DFB for more!
The 2023 Disney World Park Passes You Need to Book Now
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Rats. I was hoping there would be some news on annual passes returning.
I don’t buy the stat that says 70% of people who purchased Genie+ would do it again on a future visit. Unless they had never experience FastPass+.
“One thing that has stuck around is the Park Pass Reservation System, which allows them to put a cap on attendance and “fully utilize assets” in the parks. The company knew that the system could be used as a tool to “much better manage park capacity and guest experience.”
The only “tool” they use it for to staff the minimu employee’s on certain days depending on attendance. They don’t “fully utilize assets”, they only use minimal assets. The parks are still crowded, so this is only benefiting Disney, not the guest who are attending.
What about those of us who go to the parks to get away from our phone and just take it all in? Genie may be great for others, however I prefer to completely unplug and wander the parks without direction.
Many people don’t purchase Genie plus so when you count them along with the reports 70% of past users the actual number of park guest who like it is very low.
It is all hype to protect the status quo at the home office. Everyone is on board and happy, except the guests.
I agree with Mike (above commenter) I’m not buying that 70% would purchase Genie+ again. I have followed many, many Disney sites and the overwhelming replies to Genie is it is a rip-off and just another money grab from Disney. Hopefully, the post pandemic crowds are thinning and eventually the true impact will become evident.
The park reservation system has ruined the Disney experience because you can no longer be spontaneous while on vacation and you’re required to have your face stuck in your phone planning every step you take. I remember when I looked forward to a Disney vacation.
The park attendance was up this past year because people had been locked down for so long they were looking for places to get out and travel. Combine that with the Disney World 50th and people were headed to the parks.
Facts is that once they got there, feedback has been so negative, and people are not happy with the park experience. From higher prices, to reduced experience and interaction, to longer lines. I have never seen such crowds (while Disney claims that the reservation system was designed to reduce crowds) I have never seen such long wait times. Rides and attractions are constantly closed for “Technical Difficulties” . Guest relations have been less than stellar.
Disney has failed on their vision of what they call improvements to the guest experience. I truly believe that after the 50th celebration Disney is going to find drastically reduced attendance. Those that went for the special remembrance and those that went looking to vent the pandemic lockdown, found overpriced and under preformed rewards for their loyalty to Disney. Disney is in self-destruct mode.
I don’t buy the stat that says 70% of people who purchased Genie+ would do it again on a future visit. Unless they had never experience FastPass+.
2nd that ! Genie is the worst thing to happen, gone are the good old days !
Capacity was down but earnings were well up. That tells you how much the company is fleecing people. Disney is no longer a family park. They have become nothing more than a money making machine, hell bent on self destruction.
As long as they believe that park reservations and a late start to park hopping are enhancing the guest experience, this guest and family will not return. My love for Disney is fading along with the magic.
A 4.3-billion-dollar increase was directly related to the HUGE price increases and eliminating Fast Pass. Disney is slowly but surely erasing the average family from going to the park with their HIGH prices. We were season ticket holders since 1996 and we will now be giving them up. Too much $$$ and Too Big of a Hassle with reservations and the likes. Not too sure “change” was for the better in this circumstance. Oh, yes better for Disney’s bottom line. We don’t mind paying more for an improved product BUT now we are paying more and getting much LESS.
At some point, we need to include in “successful” how that success is shared with those who produce it. Major investors in any company are its employees who invest their time, effort, and talent to the company in which they are a member. Along with earnings, Disney should publish how it has allocated (or not) its employees’ earned share of profits directly to those employees with earned wage increases. So, how much have Disney’s cast members – who braved the front lines during a pandemic – been allocated in increased wages to reflect their contribution to Disney’s billions in profits? 10 percent wage increases? 15, 20 percent? Any? Guests, who also invest in Disney with their time and money, are getting shorted as well.
Also, no guest that I have spoken with likes Genie + nor the Lightning nonsense. Terrible systems. Extractive. I love Disney. What’s happening now is just a shame.
By leaving out the actual number of guest punching Genie+ and only saying 70% would do it again….that really tells us nothing. Maybe the number of people buying is lower but the percentage is moderate.
I think the Genie+ survey was a bit flawed. We used Genie+ on our last visit and definitely see the advantage and would purchase on every future visit. However, had the question read, “Which did you prefer–FastPass or Genie+,” it would be FastPass hands down!
Of course, Disney Genie was mentioned as an additional tool that was introduced in the past year, which “optimizes park time for guests” but is also beneficial for the company as it can guide guests to certain attractions or areas of the parks…
This could not be further from the truth – we tried Genie during our recent weekend trip to Epcot and it was awful! It wanted us to go to places we did not put in our plans and directed us to attractions with longer wait times than other attractions we wanted to see with lower wait times – I think it is all about them getting people to go and do what they want them to do to maximize their ability to cram as many people into one space as they can! These Disney execs are worse than the Pirates of the Caribbean!! Would never use Genie again – I’ve been there so many times, I use my own knowledge and instincts and come out much better!
I think 70% of the people surveyed said they’d purchase Genie+ on future visits because it is the only alternative to standing in long lines in the intense Florida heat, something small children and older adults do not do well with. Also, if you or your family has their heart set on a particular attraction or ride, you will pay to make sure your family gets that experience before you leave that very expensive vacation, especially if it’s a one and done trip.
If you’re spending $10,000 to $15,000 on a vacation, you’ll probably be okay with factoring in another $500 for Genie+. If you’re on a budget trip, the alternative is to rope drop and get in as many attractions as possible before the park gets too busy. Or do just what you can do and forget the rest. I’m for the latter.
I dont buy it another, I think its a bunch of ick and d’maro is spewing out fake news.
They have ruined the parks with this but its not like they care. This will justify anything for a buck.
Has he tried to put up with this money grab app while in the park? I bet not!
I thought that Disney was RAISING PRICES because DEMAND WAS GREATER THAN SUPPLY. A Disney spokesperson said that though volume in the parks are lower than 2019, THE REVENUE IS HIGHER. That statement is HYPOCRITICAL. Genie Plus and Individual Attractions has taken money out of the pockets of FEWER GUESTS and sent it directly to the bottom line of Disney. Thank you for that SLIP OF THE TONGUE, to make it clear to all Disney guests how DISHONEST Disney is by raising prices AT THE SAME TIME WHEN FEWER PEOPLE ARE IN THE PARKS. That is very selfish Disney. ELIMINATE GENIE PLUS AND INDIVIDUAL ATTRACTION. BRING BACK THE FREE FAST PASS. Disney, HOW MUCH PROFIT IS ENOUGH? SHAME ON YOU DISNEY.