Disney Quarter

[whaler11]

Down 5-6% premarket on missing their number.

Claim that skinny bundles are promising and have provided incremental subs for ESPN - but didn't quantify the net loss of subs for the quarter.

 

[huskymedic]

Down 5-6% premarket on missing their number.

Claim that skinny bundles are promising and have provided incremental subs for ESPN - but didn't quantify the net loss of subs for the quarter.

Tough when a profit of $2.1b in a quarter doesn't meet expectations. Damn EPS.

 

[HuskyHawk]

well they made big bucks off of me on the cruise

 

[huskymedic]

well they made big bucks off of me on the cruise

Worth every $ though... great time if into Disney.

 

[HuskyBandDad]

Disney park attendance down too but revenue about the same due to price increases.

 

[Slasher]

Disney park attendance down too but revenue about the same due to price increases.

Which is pretty much exactly want you want as a business. If you can drive less people but still make the same revenue you are more profitable because you need fewer people to run the business.

 

[HuskyBandDad]

Which is pretty much exactly want you want as a business. If you can drive less people but still make the same revenue you are more profitable because you need fewer people to run the business.

But how long does it last? At some point does raising prices too much drive too many people away? Less people mean less parking, food and shopping dollars.

 

[whaler11]

Which is pretty much exactly want you want as a business. If you can drive less people but still make the same revenue you are more profitable because you need fewer people to run the business.

LOL - No

 

[NYUConn]

LOL - No

Business 101 - the goal is to have as few customers as possible.

 

[Slasher]

Business 101 - the goal is to have as few customers as possible.

But how long does it last? At some point does raising prices too much drive too many people away? Less people mean less parking, food and shopping dollars.

If revenue is the same, you aren't losing a dime. Yes, there's a point of no return where the prices are too high and revenue falls. Revenue is already factoring everything..merchandise sales, parking, etc.

If you can make $10M with 400,000 people served or make $10M with 800,000 people served, it's much better to go with option A, because that will require far less resources and more profit. I'm confused why you wouldn't think otherwise (extreme example but it portrays the gist.)

 

[HuskyBandDad]

If revenue is the same, you aren't losing a dime. Yes, there's a point of no return where the prices are too high and revenue falls. Revenue is already factoring everything..merchandise sales, parking, etc.

If you can make $10M with 400,000 people served or make $10M with 800,000 people served, it's much better to go with option A, because that will require far less resources and more profit. I'm confused why you wouldn't think otherwise (extreme example but it portrays the gist.)

I understand what you are saying but if you limit your customers you risk future dollars because at some point it becomes too expensive.
Mets and Yankees have a lot of empty high priced seats.

 

[NYUConn]

I understand what you are saying but if you limit your customers you risk future dollars because at some point it becomes too expensive.
Mets and Yankees have a lot of empty high priced seats.

Exactly. You can cover your losses of fewer customers by increasing prices, but that's a band aid fix. At a certain point, likely sooner than later, the cost per admission is going to be so high that it's impossible keep your customer base stable and the whole thing will fall apart.

 

[whaler11]

If revenue is the same, you aren't losing a dime. Yes, there's a point of no return where the prices are too high and revenue falls. Revenue is already factoring everything..merchandise sales, parking, etc.

If you can make $10M with 400,000 people served or make $10M with 800,000 people served, it's much better to go with option A, because that will require far less resources and more profit. I'm confused why you wouldn't think otherwise (extreme example but it portrays the gist.)

Because this is the opposite of reality.

It opens you up to more risk on a downturn because a small percentage drop in traffic costs you a higher percentage of revenue.

If you are talking about Disney parks specifically - you want the traffic to drive future visits. You want kids to go there and want to go back as teenagers. You want them to bring their cousins. You want them to bring their kids someday.

Your proposition is the exact opposite of what you want if you happen to look past this quarter.

 

[whaler11]

Exactly. You can cover your losses of fewer customers by increasing prices, but that's a band aid fix. At a certain point, likely sooner than later, the cost per admission is going to be so high that it's impossible keep your customer base stable and the whole thing will fall apart.

UConn could double their ticket prices and probably have the same revenue with half as many people.

This seems like a winning strategy - they could close the upper deck. Look at the savings!

 

[CAHUSKY]

Less people also means less incremental in park revenue like F&B, mouse ears, etc. I'm no expert on Disney but I'd assume that's a sizeable revenue stream.

 

[Seaa Blue]

We want park attendance down. Crowds suck, and Disney needs to be encouraged to invest more back into the parks.

 

[Slasher]

I understand what you are saying but if you limit your customers you risk future dollars because at some point it becomes too expensive.
Mets and Yankees have a lot of empty high priced seats.

But I bet their revenues haven't suffered. The point of a business like ESPN is to make money. Regardless, for sports attendance there is a difference because you are talking about generating interest, and trying to convert casual fans into long-term fans, etc. Anyways enough on this topic.

 

[Duncan Idaho]

They open in China next month.

 

[CAHUSKY]

Regardless, for sports attendance there is a difference because you are talking about generating interest, and trying to convert casual fans into long-term fans, etc. .

Which is exactly what Disney needs to do.....................Develop long term repeat customers who are loyal to the brand and buy their merchandise.

 

[nomar]

Down 5-6% premarket on missing their number.

Claim that skinny bundles are promising and have provided incremental subs for ESPN - but didn't quantify the net loss of subs for the quarter.

This is jargony as f---.