Tuesday, August 19, 2008
I've said it before...
It's easy to be negative. For some reason it's easier for humanity to focus on doom and gloom. Even when it's not always the case. Although we're not in the "Goldielocks Economy" anymore, we're not in another Depression. When it comes to the Market, it's a lot easier to be a Bear than a Bull. Someone is always there to say something like: "Yeah, but..." Many people see the glass as continually half empty. I tend to see it an opportunity to open another bottle, but that's just me. A lot of people in the media are trying to say that Disney is going to cut back because of a world-wide slowdown. That there is no way to continue to live this Cinderella story. Is it really a fairy tale? Will the Mouse start to slash and burn it's movies, parks and other sources of revenue for the sake of the bottom line? So far, that's not the case.
Bob Iger did an interview with Jim Cramer on CNBC's Mad Money the other day that focuses on this point. Interesting article. Don't forget to watch the video interview as well...
Posted by Honor Hunter at 10:57 AM
Labels: Bob Iger, CNBC, Jim Cramer, Mad Money, Stock Market, Wall Street, Walt Disney Company
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Except of course how they started cutting back key entertainment (Fantasmic, etc) in Orlando at the start of this winter, and supposedly Spectromagic will have the same fate, even after the repair of the Liberty Square bridge.
To me, this is an obvious tell that bookings this winter are looking bleak, and they are responding to it.
There hasn't been any slash and burn yet, and from what I've heard there's a lot of attractions in the planning stage for the new few years.
With the gigantic refurb of California Adventure, Toy Story Midway Mania in two parks, the new Little Mermaid OmniMover ride, and the Monster's Inc roller coaster coming out ... let's just say that I'm sold on Disney's forward thrust.
The question I'm asking myself is, will I be okay with some entertainment and labor hour cuts now during the lean times to make it possible for them to not put the brakes on new attractions and remodeling of existing ones? It's tough because the entertainment is a bird in the hand where we fought long and hard to reach the point where quality entertainment is available daily at every venue. To give that up for a possible bird or two in the bush is troubling. But if everything plays out, it's an exchange I would gladly make.
Well regardless of the company line they are Slashing and burning for the stock price at the expense of future park guests. You run somebody off they might not come back and then the company could get in a downward spiral that will cost a lot to recover from.
My examples are from Florida.
Quality of food IS being cut.
Shows ARE being cut.
Variety of merchandise IS being reduced.
Prices are going up and what you get is going down.
Staff Pay is being reduced.
Starting to look half empty with no other bottle to open in sight.
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