The Business Of Building Dreams...

Six decades ago today the seeds were planted...

Walt Disney's dream of building a themed park for the family that he wanted to build in California got started on this date.  In New York, Walt's brother, Roy Disney met with financiers with a presentation for a park his brother wanted to his next big project.  Roy was the man with the skills that allowed Walt to dream as big as he did.

In a meeting with the three networks he pitched his plan.  CBS and NBC aren't interested in being an owner in an amusement park.  The fledgling ABC network, looking to boost its fortunes against the other two, more established rivals, is willing to make a deal.  Leonard Goldenson and Roy work out a deal for a weekly television show, investment in the upcoming park and a line of credit for Walt Disney to build his dream.

The deal will not be finalized until early next year.  When it does, it set the stage for the new show entitled "Disneyland" will provide new content for ABC as well as provide the public with updates about the park as construction continues.  Originally, someone else was to intro the show, but at the networks insistence Walt himself will host the show.  The program will cement his image as Uncle Walt over the duration of the years as families across America welcome him into their living room.

And it will also allow him to build his dream so that we can experience ours...

A Numbers Game...

Popularity is a fleeting thing...

The attendance of theme parks shows the popularity of the destination, and from time to time parks rankings will move up or down.  For long periods of history certain spots have been held by the same park.  For instance, the Magic Kingdom in Florida has maintained the top position in theme parks.

Years ago, before Tokyo Disneyland added a second gate, the stunning Tokyo DisneySEA, there was a horse race between the two parks for the top position.  Now, WDW's first park wins outright with the original here on the west coast getting the silver prize.

The Themed Entertainment Association (TEA) and AECOM have just released the figures of theme parks for 2012.  How did Disney do this year?  Where did Disney California Adventure get to after the Extreme Makeover?  Where is the rest of the world in themed entertainment?

You can find the answers to all these and many more here.  It's an exhaustive analyses of where, what and why of theme parks.  It's also quite readable with graphs, charts and lists that put in perspective the theme parks of the world, not just Disney's world.  But here is a list of the top 25 theme parks for the Cliffs Notes version:

1. Magic Kingdom 17,536,000  +2.3%
2. Disneyland 15,963,000 -1.1%
3. Tokyo Disneyland 14,847,000 +8.5%
4. Tokyo Disney Sea 12,656,000 +8.5%
5. Disneyland Park at Disneyland Paris 11,200,000 +1.9%
6. Epcot 11,063,000 +2.2%
7. Disney's Animal Kingdom 9,998,999 +2.2%
8. Disney's Hollywood Studios 9,912,000 +2.2%
9. Universal Studios Japan 9,700,000 +14.1%
10. Islands of Adventure 7,981,000 +4%
11. Disney California Adventure 7,775,000 +22.6%
14. Hong Kong Disneyland 6,700,000 +13.6%
15. Universal Studios Orlando 6,195,000 +2.5%
19. Sea World Florida 5,358,000 +3.0%
20. Walt Disney Studios Park at Disneyland Paris 4,800,000 +1.9%
23. Busch Gardens Tampa Bay 4,348,000 +1.5%

24. DeeFTeLING  Kaatsheuvel, Netherlands 4,200,000 +1.8%

25. OcT eAST Shenzhen, China 4,196,000 +7.9%



Now, if this intrigues you then head over to the actual report for a detailed look...

All Things Disney...

The "All Things D" is an amazing place for dialing into what's relevant in geek techno...

They've had some extremely interesting, in depth discussions with people connected to the information age that is here, and the one just ahead.  If you want to see where things are going, for good or bad, then their talks are a must.  I've really enjoyed Walt Mossberg's interviews of Steve Jobs, and his talk with Bob Iger was subtly revealing as well.

Well, this year the Mouse came again in the form of Walt Disney Parks and Resorts, Tom Staggs.  One of a few people that are in line for the big job, Staggs is approachable, intelligent and focused in his back and forth with the hosts.  Take a look at the interview and see what he and the company have planned for the next few years in the parks and elsewhere.

If nothing else, watch Tom for a preview of who might be running the place in a couple of years...

Blue Sky Buzz: Pixar's Place In Disney's World...

I got time...

Let me tell you a story...

Two actually.  A tale really.  The tale of two, possible future worlds.  One is what the vision of Suits have for this world, and the other is what Creatives want for this world.  You see the see the Suits see only profit and opportunity.  The Creatives see ideas as the real treasure.  The trick is finding somewhere in the middle.  In a balanced world, the Creatives will find a way to prove to the Suits that their vision is what is needed, and creating something just for the sake of dollar signs isn't actually good for the bottom line in the end, as it diminishes what the Founder successfully created that made his company so profitable.

Translation is, originality and thinking outside the box to give the guest what they didn't know they wanted was how Walt Disney blazed his path to create a company that is now the pinnacle of, and largest deliverer of entertainment in the world.

This tale is of the Disney World part of that world.

There is a lot going on in that Florida haven right now.  Construction of the Fantasyland Expansion, the continued work on expansion of Disney's Animal Kingdom with the fantasy animal park coming to fruition with the "Avatar" land, and most importantly, the addition and bringing new life into Disney's Hollywood Studios that will happen in the next few years.

This park has been waining over the past decade+.  It has lost focus on what it is and where it is going.  It's in the process of trying to find what it is trying to entertain guests with, to tell who it is really.  It's beginning to shake off the narrative that it is the Mouse's alternative to Universal Studios and now trying to figure out what film experience it wants to tell to everyone entering it's gate.  While DAK is expanding to a full day park with the myth element (albeit, a sci-fi mythical creatures design, not a fantasy mythical creature design) of the park, DHS is now planning on moving away from being a movie "tour" park, and being a movie "experience" park.

I have great hope for Walt Disney World.  With the hiring of George Kalogridis, the languishing quality of WDW will finally be addressed.  The lower standards that are accepted there as the norm will hopefully, slowly be replaced by what we expect in a Disney Experience.  Kalogridis is a nuts and bolts guy, so we should expect operations, and quality to be made a much more prominent focus over the next few years.  If you're unhappy with what you get there, please make sure you let guest relations know so that it reaches Team Disney Orlando.  It has a much better chance of getting addressed with George now in charge.

Now, back to that vision thing.  Here's what the dilemma is.  Right now, actually the last few months of last year and into the new year, the company has been working with the decision of what path to move forward with on the expansion of Hollywood Studios.  You see everyone loves success since it's so elusive in business.  In a world where profit is king, you want to replicate what works.  In Burbank's case, this means clone it.  Duplicate it.  Copy it and hope lightning strikes twice, or even three times.  Such is the case with Cars Land, which is the single most profitable creation for the parks in twenty years.   The easy answer for the Suits is to clone it, the more difficult answer from the Creatives is to recreate what made it successful.

I'm sure you've read all the rumors floating around the Internet about cloning Cars Land down in Florida.  How it's going to go where the old Hollywood Backlot Area is and expand the Pixar Place area of the park.  This is partially true.  The Pixar Place area is where Imagineers expect to create the expansion of the park that I refer to, mainly at least.  But therein lies the fight.

One path is that one.  To clone Cars Land and expand the Pixar Place and give it a much grander imprint in the Hollywood Studios park.  The shadow of the Lamp will fall heavily on this gate if that choice is the direction they head.  It'll be destined to be a hit just like out here in California.  There will be no shortage of demands if the land is announced, with its immersive theming and escapist fun that literally draws you into an animated world.  This would make the Studio Backlot an inviting plot of real estate to put this WDI creation.  Instant hit: just add three years of construction, hundreds of millions of dollars, and in 2015 you'll have a swarm of people descend on the Florida resort for the experience we have out here.

Then there is the alternative.

Expand the Pixar Place, but not with a clone.  Imagine that?  Now what would/could it consist of?  Well, the area as pitched would have several other Pixar character creations.  This lists rings like a laundry list of the last decades hits for Disney animation via Emeryville.  Nemo ideas, lots of Toy Story ideas thrown around (including several attractions out of the "Toy Story Land" areas in Paris and Hong Kong), even talk of a Ratatouille clone like the one being built at Walt Disney Studios Paris (not likely, though, but not impossible).  But the new E-Ticket surrounding all of these minor C and D Ticket attractions would be something better.  Something incredible even.

Yes, that pun was intentional.  The proposal, which wasn't a done deal when I talked to my Bothans near the beginning of the year, would involve the Brad Bird creation.  If the Mouse decides to go the non-clone route, the largest part of the expansion would be an attraction based on "The Incredibles" film.

It's not the same one that was going to go into DCA when they were scrambling for something to stop the bleeding and the laughter, but it is a project that is designed to take you into the idealized world that Bird created where Supers were very real.  This one would feature cutting edge technology, with animatronics and possible 3D/4D effects that rival anything done with Cars or the new Ratatouille ride.

It's part of what Lasseter wanted with each park having its own original creations.  Attractions to make you want to travel to different parks for different reasons.  Imagine that?  The plan was to have two or three C-Tickets, budget permitting of course, and a large E-Ticket based on this film to define the entire area as a fully immersive experience of Pixar's imaginative stories.  A Pixar land so to speak.  Will that happen?  It's a matter of numbers, time and justification of money that comes down to a battle of Suits and Creatives trying to figure what will be best.  Cloning?  Or creativity?  So which side will win?

We'll likely find out what the answer is to that question sometime later this year...

New World Order...

The world is not enough... 

Well that didn't take long...

Less than a week, actually.  So George Kalogridis is really going to the Florida Project.  Which is a very good thing for Florida.  It means the standards there will rise dramatically.  Hopefully he brings some of his own team and brushes away much of the deadwood that resides in the Team Disney Orlando building.

But I expect a lot from Walt Disney World now that he's in charge.  He's human, so I don't expect him to be able to move mountains.  It's a huge bureaucracy that he'll have to maneuver though, but he should be able to clear a lot of the obstacles and start having incremental, positive steps.  And each step forward is a good thing.

Now, as for Micheal Colglazier, I'm not of a particular opinion on him.  I don't know him as well, I haven't met him, and don't want to color it, casting a negative light on him before he's even gotten a chance to show us what he can/will do.  He was one of two people who I heard were up for this.  The other one, unfortunately couldn't get out of contractual obligations, and wasn't able to take the job.  Micheal is apparently well liked by the Cast Members at Animal Kingdom, and so far what I hear sounds like he's a talented and sociable suit.  Time will tell how he does as the head of the Disneyland Resort.

I know many people are upset about the "Avatar" reference that was applied to his name, but that truly came from higher-ups.  He had nothing to do with it other than endorsing it, which is about all he could do at the time.  DAK has been in kind of a frozen state over the past five years and he's been there, so the best that can be said is he didn't let it go downhill during his time there.  No astounding news or breakthroughs, no major challenges or surprises.  He seems to be a safe bet.

It'll be interesting to see if Stagg and Iger's bet pays off...

A Whole New World...

George is taking the grand tour...

The rumors have been spreading for weeks...

Meg Crofton isn't the most beloved person at Walt Disney Parks & Resorts by far.  She's proof that not everyone Iger hires is up to the job.  Rich Ross is the glowing example of an experiment gone awry.  But even that had a silver lining with the hiring of Alan Horn, one of the best people in the entertainment industry and a gem of a man, a great person to run the studios.  So with the unhappiness with Meg, perhaps her possible departure could mean having someone take her job that is more in tune with what Disney is?

Now, I haven't confirmed this with many of my Bothans; most of them happen to be very busy working on projects in the Far East/West and I haven't talked to them much lately.  But I did send a secret message to a couple of them, and I'm waiting to hear if they know anything about this.  I've been getting some very in-the-know people telling me about this over the last couple of weeks.  What am I talking about?

Well, it's rumored that George Kalogridis, Disneyland's president might be moving on to bigger things in Florida.

Meg isn't known for her warmth and care, and she's not beloved by the Disney fan community for sure.  Her being put in charge of the One Disney project is an example of someone not liked, putting in to place something no one wants.  I can tell you that the Cast Members in Anaheim HATE the One Disney mantra.  They arbour being forced to do everything that Florida does, just because it's Florida.  After all, would you make all your children act and dress alike?

George is very well liked across the Disneyland Resort.  He's talented, very personable and extremely caring.  I do know that there has been talk around the Resort of him moving on.  And the job he's done has impressed Iger and Staggs.  If WDW is to get him to take over for Meg, then you can expect the quality of that Resort to increase dramatically.  He would be a refreshing replacement for a part of the Disney Empire that has had Suits that just don't "get" it.  Disneyland Suits aren't perfect, but most "get" it.  My hope is that should he get the position, he'll clean house and get rid of many of those around him that were connected to Meg.  The Orlando Suits are continually clueless when it comes to many of the quality issues that are commonplace here in Anaheim.

Now, should he go then that means that the Disneyland Resort will have to find someone to take his place.  I've already heard of a couple people that are being talked about for that position.  One of them is very well known by the Disney community and would be well received.  The other one I am not sure about.  But within the next few months you'll start to hear some changes coming the the Disney world.  Not just in Florida.  But it'll be interesting seeing who is put in place in all these positions before Iger makes his exit in a couple years.  He'll leave the company in a more powerful, solid position than his predecessor, but will Walt Disney World be better?

Time will tell...

Chinese Adventure...

Another kingdom in the Middle Kingdom...




With the focus now off on Anaheim for the time being, eyes turn East...

Shanghai Disneyland is progressing along with a tentative opening date of late 2015/early 2016. As many have said before, it will have a different vibe than the traditional "Magic Kingdom" styled template that everyone is used to. It will still be Disney, but the areas will have a much more culturally specific tone than what we've seen before. If there is an overriding theme that you can take from what is coming, it is this:

Adventure and water.

What's that you say? Well, I can't reveal everything, or even a great deal of what my Bothans have told me, but I can express a few things that are happening. There will be a great emphasis on water in the park in many of the areas and attractions that are designed for this gate. From fountains, geysers, pool, ponds, waterfalls and water rides, this place will be decked out in aqua. The designs are quite elaborate, and the detail of each area will rival the detail that Hong Kong Disneyland had, albeit the attraction list will be much more interesting.

Another thing that will be noticed in the park, is the amazing amount of adventure attractions and layered theming this resort will have. Even the names should give you a hint. How about Adventure Island in Adventureland? Or a tropical area of the park featuring a dense jungle attraction known as Jungle Challenge. Lavish water and fog effects will be placed around these areas that will deepen the atmosphere of the experience. And if it doesn't get cut, the rock work of the amazing dinosaur attraction, Lost World Roaring Rapids will simply stun you. It's really impressive and I hope that Iger and Staggs don't skimp on the budget and let this sculptured mountain disappear into legend.

The front entrance will be unique as we all know because there won't be a Main Street like every other park has had since the original was opened by Walt. But the beautiful and hypnotic trees, plants and flowers that lead up through the Fantasia Gardens toward the Dumbo attraction will provide a fantasy-like surrounding that will make you feel like your in an imaginary world that is decidedly Disney, but decidedly different.

The attractions will have the detail and quality one would expect from the Mouse, but may take on a slightly unique presentation that I find refreshing, as I hate clones and want each gate to have its own identity. So far, the design work being done by Imagineers is something that will make fans very proud of what can be done to immerse you in a manufactured world. As the plans move forward, we can expect the final design to be ready sometime late next year. After that it will take between two and three years to bring the ideas and dreams into brick and mortar.

And then there are the hotels...

The World Of Tomorrow (Films)...

It's amazing, it's astouning, it's the world of tomorrowland...








Time passes so quickly that you tend to lose perspective of what has happened...

Or what could happen. The middle of the decade is only about three and a half years away. I thought it would be interesting to take a look at where the Mouse will likely be then.

When we get to 2015 you have to wonder where the Walt Disney Company will be. What will the film business be like? The theme parks division? How will the events and advances in technologies change or advance the Burbank entertainment company? In this post, I thought we'd look at the film division.

Walt Disney Studios -

This division is divided into five branches that includes Walt Disney Pictures, Walt Disney Animation Studios, Pixar Animation Studios, Marvel Studios and Touchstone Studios.


Walt Disney Pictures:

The live action family division of the Mouse at the middle of the decade will have released "John Carter," "20,000 Leagues Under the Sea," probably "Pirates of the Caribbean 5" and various others. A "TR3N" will likely have been released if the reception to "Tron: Uprising" meets the Suits approval. And should many of those films be successful, then you can imagine sequels to several of them would be on the way. Another John Carter would be close to production or already being filmed based on how much box office receipts came in in 2012. A sixth, and likely final Pirate film starring Johnny Depp would undoubtedly be in the making as well. The likelihood of Rich Ross still being in charge will depend on the success of many of these films as well as several comedies recently approved. Should we get more stinkers like what has come out with over the past year, another head of the studios could be in charge by the middle of the decade. Success in this business has a way of leveling out and rolling heads.

Walt Disney Animation Studios:

The heart and soul of the company will look dramatically different come a few years. The output of films will have been of a consistently better quality for the good part of a decade by then (Pixar bought in 2006, "Bolt" two years later). With Lasseter making sure stories count more than bean counter opinions, audiences will hopefully have started to regain faith in the brand by then. Also the variety of films will have broadened. While princesses and queens and kings will still be present, stories that you wouldn't normally think of coming from Disney will have come or be soon coming from Disney. By 2015, you can expect "Wreck It Ralph," "King of the Elves," and likely "Snow Queen" to be out come the middle of decade. But the most interesting ones are yet to come from the trailers of what Dean Wellins and Don Hall have planned. By this time WDAS will have likely rebuilt a reputation that war torn down over the late 90's/early 2000's.

Pixar Animation Studios:

Up north in Emeryville, Disney North will be passed all the announced films that we know will continue through 2013. Next year is "Brave" which presents a princess tale from the Lamp's point of view. Afterwards, "Monster University" will roll into theater the following year. 2014 and 2015 have yet to be announced, but one of those films is likely to be by Pete Docter, and there are four or five other projects that are in various states of active development up there and anyone of them could be moved on the production slate. It all depends on which ones Lasseter believes are ready to move into production. I would expect an expansion of the slate of films from Emeryville to be announced within the next year or so. We're about due for another list.

Marvel Studios:

Disney's latest sibling has a much fuller and more open slate over the next few years. Now, this is a list of films the studio is producing itself, not the characters that have been licensed to other studios. But by 2015 expect to see "Avengers," "Iron Man 3," "Thor 2," "Ant Man," "Captain America 2," and possibly a "Runaways," film, a "Doctor Strange," film and a "S.H.I.E.L.D." film. This isn't even counting several other projects that are gestating like "Iron Fist" and others that the comic book powerhouse are planning for the silver screen.

Touchstone Pictures:

Over at the adult live-action division, which has basically become a distribution house for Steven Spielberg, will have just had the five year/thirty picture deal expire the year before. Should DreamWorks and Disney seem to be enjoying the marriage at this time, you could expect a similar five year plan to be announced. Films like "Lincoln," "Robopocalypse" and several others will have been released within this time frame. That would mark a decade worth of relationships with Spielberg and his company. Hopefully, some of his talent will be used in other areas of the company throughout these coming years.

The many divisions of the studio focus on different aspects of the market. Walt Disney Pictures concentrates on the live-action family entertainment. Walt Disney Animation Studios concentrates on classic animated entertainment. Pixar Animation Studios concentrates on cutting edge animated entertainment. Marvel Studios concentrates on live-action adventures of its vast catalog of characters. Touchstone Pictures which used to be another label of Disney produced/non-Disney stories will now concentrate on the new mission of being a simple distribution label for DreamWorks. It's come a long way from where it was as a small, animation company that made shorts for RKO Pictures to play in front of their features.

It's going to be interesting to see where it after the the middle of this decade...

August Projected...

A world filled with imagination...




One of the great things about the first D23 Expo was the Imagineer Display that everyone gravitated toward...

It was great to see the plans that WDI had for the upcoming future. At least what they were willing to reveal. Next month's D23 Expo will have another area that will display work throughout all 11 Disney Parks called the "Carousel of Projects."

It'll have much of what we've seen already, but several sections will have more detailed views of what to expect from the Fantasyland Expansion in the Magic Kingdom, the further progress of Hong Kong Disneyland and more elaboration on what to expect from Shanghai. Hopefully they'll show some of the incredible models for that River Run project we mentioned a while back, or perhaps what is to be expected in the very different Tomorrowland.

But what I'm looking forward to is the presentation by Tom Staggs who I'm greatly happy is in charge of the parks instead of the soulless Jay Rasulo. I always thought he was a creativeless, bean counter and it's good to see he is in the proper position now. The management team of Burbank is quite better than it was a decade ago, but the WDW management team seems more of an enigma to me. I wish they seemed to care about the parks as much as Anaheim. I expect that Staggs knows the problems and will slowly over the next few years make the moves that will put people in power in Florida that can advance that resort to its full potential.

Until August...

The 13th Gate...

Lucky number...




Lucky gate...
A couple weeks ago the Mouse will let out the first, minimalist details about the coming Magic Kingdom-styled theme park that it plans to open in Shanghai in 2015/16...

But what I want to know is what will come after it?


I mean, we know that Shanghai Disneyland is going to be modeled after a Magic Kingdom styled park. Of course there will be variation, with no Main Street involved, but it's still going to follow the basic principles of the hub/4-5 lands concept that Walt Disney pioneered back in the Fifties. But what will the park after that one be? We know that Shanghai will be Iger's first chance to put the stamp of his taste on a Disney park. But it's going to be something that already has guidelines to adhere to. So it won't tell us how far, or how daring the Walt Disney Company via Iger wil go. The park after SDL will be a much bigger and far more interesting test.

First off, examine the parks that the Mouse already has:




* In California it has two (2) with the original Disneyland and Disney California Adventure.




* In Florida it has four (4) with the Magic Kingdom, Epcot, Disney's Hollywood Studios, Disney's Animal Kingdom, not to mention a host of other properties including a couple of water parks.




* In Japan it has two (2), although they're not technically owned by them, but franchises that royalties are derived from.




* In France it hast two (2) with Disneyland Paris and Walt Disney Studios Paris.



* In China it has one (1) for now (Hong Kong Disneyland), and one (1) that is supposed to be done after the middle of the decade (Shanghai Disneyland).

Twelve parks, 12 gates. So, what's next?

California -

Well, let's narrow down the possibilities for each of these first. Starting with the original, what are the chances we'll have a third gate for Anaheim in the next few years? Sadly, not likely at all. There are blue sky projects all over WDI, but nothing so big is being planned for a third theme park right now. The majority of the resources are going toward making the Second work and then the focus will likely shift to the Disneyland park in 2011/12 for some tlc for a few years. This along with a small possible/probable second expansion will likely fill out most of this decade for the Disneyland Resort.

If a third gate comes, it'll be later in the decade, no sooner than 2017/18 at the earliest. And likely, that would probably be the announcement of, not the building of any third park. For now, we have to be content with improving the parks and resort. This isn't bad news as with each addition the parks/hotels/shops become closer to being a true resort as was promised almost a decade ago. It will arrive late, but starting in 2012 we'll get what was deserved all the way back into 2001. A third gate will be a blessed surprise and a welcome addition, but not an expected one.

Florida -

Then perhaps a fifth gate for Florida? Again, not much planning going ahead for a massive new gate like the other four. As of now you shouldn't expect a park along the size and scope of the last three gates. Right now, that "Boutique" park planned for night time guests is still in the works, but with the economy the way it is the announcement of that is in doubt. So, until the international outlook becomes better, I don't think number five will be alive. Which, really is fine with me.

WDW has four parks right now that need attention directed by WDI (as the current Fantasyland expansion shows) and hopefully the park managers and Suits will be able to work on improving the experience for guest. I don't expect to see any announcement during this decade. If the economy booms and attendance surges, anything is possible, but the build out of the parks is pretty full. About the best we can hope is a furthered improvement of the current parks and the current experience.

Europe -

Now, then you have Paris with its two gates. There perhaps? No. Let me restate that: NO. Not a snowballs chance in Hades. If there is any resort that has absolutely no chance of getting another gate, it's Paris. I know that EuroDisney recently came out with plans that included announcements of a possible park, but these are projections over decades, not years. With the financial situation in Europe the way it is, any dream of announcing a third park will be just that: a dream. But with the 20th anniversary coming up you can look forward to some updates/rethemes and additional E-Tickets at both parks.

I'd suggest going over to Alain's excellent Disney and More blog if you wish to have some more knowledge as to what could be coming down the line for the parks. It's great to see that they're still expanding the two parks, even if there is no plan/news for a third gate. Now, if they'd just build a better front entrance to Walt Disney Studios Paris, like what is happening to California Adventure. Well, I guess you can't have everything.

Asia -

J a p a n
Surely Tokyo would have something coming up? After that earthquake/tsunami it's going to take some time for the Oriental Land Company to get back up to speed and that could take a few years. Any talks of a third gate are really off the table. But it doesn't mean there haven't been projects that the Walt Disney Company and their Japanese partners haven't tried. Remember how they were going to have that Urban Entertainment Center, a couple of years ago? This was a product of those wonderful Jay Rasulo daze, uhm, I mean days, that are now behind us. But the Japanese owners of the Disney's only franchise couldn't make the numbers work for the OLC and it was scrapped. Even if it were to have been built, it wouldn't have been on the Tokyo Disney Resort or even in Tokyo for that matter. Several other cities were being looked at for this expansion of Disney's only franchise partner.

As for the resort, any expansion would more than likely require more landfill and that is a very pricey expenditure, even for the Oriental Land Company. So unless plans for parking structures go through so as to free up some of those parking lots, any plan for a third gate in the land of the rising sun won't rise. Then again, with the liquefaction of the parking lot from the natural disaster, perhaps this could be feasible? There is a model in the Imagineers secretive model room of a project for the TDR, but it waits, unwanted. That doesn't mean that all construction is dormant of course. You could see a great deal of expansion of the current parks. Tokyo DisneySEA in particular has continually added attractions over the past few years that will culminate this year in the tenth anniversary of that amazing park. Events and planning for the fifteenth anniversary are already starting to be talked about and you can imagine a few surprises to be announcEd as that date comes closer.

C h i n a
So, that leaves only Hong Kong. What could be happening there? Well, we know what's going on there up until 2013 with the current Extreme Expansion. Notice that date? It's a year sooner than originally announced and that is by design. They want to get as far out in front of Shanghai as possible. In fact, if the plans go well for the Extreme Expansion and attendance goes up to expectations then plans are for another, slightly smaller expansion to be completed by the opening of China's second Disneyland. Now, as for the Hong Kong Disney Resort; is a second park in the cards for the future?

No. Not anytime soon. There is still a couple of years before the actual expiration date on the original deal. The most likely thing to happen is that the Walt Disney Company will get a waver or extension for at least into the next decade. By the beginning of the next decade we can probably expect Hong Kong to get another park, but like DCA, HKDL is in need of tender love and care.

As for Shanhai Disney Resort, there are plans to build out to at least two, but possibly three theme parks when completed. But that plan is over a decades expected roll out. And we won't see a second park for this park until well into the next decade.

So will all this in mind it brings into perspective what this decade is. From 2011-2020 is a recovery decade, a hangover decade. A span of time that will mostly be used to buttress or fix up existing parks and resorts. This decade will be a chance for the Mouse to refresh and strengthen the places and experiences to be found in a Disney kingdom.

The next decade will be the one where the unexpected will come...

Tom's Text...

Make us proud, Tom...




For those of you that weren't able to attend the Walt Disney Company's 2011 Investor Conference, I have a gift...

For those that are curious and those that like to read. For your perusal, here in full is Tom Staggs' speech to investors earlier yesterday:

I was reflecting, actually when I was, when I knew I was coming here, that one of thing things that I really liked about my old job was that all of you when you had issues you wanted to discuss, would call and talk about them. So shouldn’t there be a few more billion that you’re putting into share purchase or, you know, digital media that ultimately good or bad for the business. The answer is still good, by the way. And now I’m glad to see that that hasn’t changed. I got two questions last night about what time the gym opens, and another person wanted to know if I could give them FASTPASS assets, access for their kids. So, it’s good to know you still come to me for the big stuff.

It has been a fantastic year. It was weird to go sort of cold turkey, though on the regular cadence of investor meetings and quarterly conference calls. As you’d imagine, I’ve listened in to a number of the calls, and I can tell you this… I haven’t missed me a bit. In all seriousness, Jay has done a great job, as you’ve seen firsthand, of jumping into the role. And I’ve had a bit of jumping in to do myself as I’ve tried to travel through all of our locations and immerse myself as much as possible into the world of Disney Parks And Resorts.

Now, this day and age, there’s always someone around with a video camera, which allowed us to pull together a few clips to show you a little bit about what my last year has been about. Take a look.

So right after we shot that video, Gary Marsh marched me straight over to Bob Cavallo’s office at Hollywood Records. That meeting didn’t go so well. Really, though, it has been a really fun and fascinating year, and fulfilling as well. And it’s a great time to be in this job. As a number of you have pointed out, the parks are really well-positioned to take advantage of the economic recovery, which should help fuel strong growth for the segment over the next couple of years.

We will capitalize on that economic recovery as it solidifies, but at the same time, we have a significant number of long term initiatives underway in our business, and that’s really what I want to talk to you

So now having spent considerable time with you over the years, I know that when I say “initiatives” in the parks business, your thoughts immediately turn to capital requirements. And, to be sure, we are putting substantial capital to work – especially this year and in 2012. But let me say up front that I am very confident in our ability to create value with these investments.

Our principal financial objectives, for Parks and Resorts, are to deliver attractive double-digit returns on investment capital along with continued profit growth over the long term. As we look out over the next decade, we fully expect to deliver on those objectives. That confidence is bolstered by our tremendous competitive strengths and sources of differentiation in this business.

At Disney Parks, we are known for the iconic assets that we build -- our castles, hotels, cruise ships… but at the end of the day, these aren’t our core products. We aren’t in the attraction business, the hotel business, the cruise ship business… we are in the guest experience business. The great shared memories that guests cherish and create every day at our parks help keep people coming back year after year. Understanding that is essential to understanding how Disney’s unique assets and competitive strengths set Parks and Resorts apart. So let me briefly touch on four of these key strengths.

The first is, of course, the Disney brand. In the Family Travel and Leisure business, the Disney name truly stands apart. It’s uniquely powerful, is synonymous with quality, it evokes trust and it generates loyalty. It allows us to establish a connection with our consumers unlike any other company. We have the extraordinary benefit of having customers who actively seek a relationship with us, a relationship that is based on emotion and trust. And we understand that we must be relentlessly consumer-focused to sustain and grow those relationships. Our second major differentiator is the incredible wealth of fantastic intellectual property and creative talents available to us. At Parks and Resorts, we bring the company’s creative content to life in an immersive and tangible way. Many of our properties are evergreen, as Jay pointed out. They provide an ongoing source of strength and relevance for us. At the same time, the constant flow of stories, characters and music generated across the Disney company allows us to infuse our parks, resorts, cruise ships, etc. with vibrant new content on an ongoing basis.

The third competitive strength I want to touch on is our long-standing focus on leveraging technology and innovation throughout our business. While it may be chic to talk about innovation these days, it’s been a key focus at Disney since Walt famously said, “It’s kind of fun to do the impossible.” Trust me, if you spend time with our Imagineers, you’ll see that the drive for innovation is still inherent in everything that we do. And it’s inspiring because our opportunities to leverage technology and innovation are greater now than they’ve ever been.

The fourth strength I’ll highlight is one that I’m not sure we talk about enough, and that is our incomparable cast. It might surprise you, but in our research, people cite interactions they have with our cast as the single biggest factor in their satisfaction and intent to return. The excellence of our cast members is borne out of a deeply-rooted cultural commitment to quality and service that has been part of the organization for over half a century. What I’ve really come to appreciate this past year is that our cast’s commitment to guest experience is holistic – from designing our parks, attractions and resorts, to creating our entertainment offerings, and even down to the food that we serve - we want to wow our guests with every interaction.

Maintaining this culture of excellence across all the various disciplines required in our business is extraordinarily difficult, if not impossible, for others to replicate. The guest service orientation of our business does require a significant labor commitment, and operating labor comprises about a third of the segment’s cost base. But when so many of our guests single out interaction with our cast as the most important part of their visit, we know this continued investment is worth it.

So capitalizing and building on the key sets of competitive advantage that I’ve just listed is central to our investment decisions, and it’s an essential part of the initiatives we now have underway. Our current initiatives fall into three areas: Growing our established assets; Building out our new businesses; And expanding in geographic markets.

So looking first at our established assets, here at the Disneyland Resort we’re well under way with our expansion of Disney’s California Adventure. Since its inception, Disney’s California Adventure has featured some of Disneyland’s most popular attractions… But from the standpoint of delivering on the fundamental Disney differentiation and immersive storytelling, we missed the mark. So now, we are bringing more beloved characters, more atmosphere and more Disney DNA into it.

Last night you all saw World of Color, which opened just last summer. I hope you really enjoyed it. But I hope you also noticed that it’s not only astounding on a creative and technical level… it’s also firmly anchored by classic Disney characters, stories and music that people love. It’s been a huge hit with guests, and so far it’s been seen by over two million people. Since opening World of Color, through the end of our first quarter, attendance is up nearly 20% at Disney’s California Adventure. And that increase gives us even greater confidence in our ability to grow our attendance and better distribute it between the two parks.

This spring, we’ll open Little Mermaid – Ariel’s Undersea Adventure, and construction has already begun on Buena Vista Street, the re-imagined entry to the park that will transport guests into a romantic, idealized Hollywood of the 1920’s. In the summer we’ll open, of 2012, sorry, summer of 2012, we’ll open CARS LAND - a new 12-acre land that will transport guests to Radiator Springs and immerse them in the world of CARS.

Later this afternoon, Bob Weis, our lead Imagineer on this expansion, will give you a deeper look at our plans, and I think you’ll see that we’re transforming DCA into a park that is truly differentiated and truly Disney.

Meanwhile, we’re also investing for growth at Walt Disney World… which is, of course, our biggest and most profitable asset. For most of our guests, the centerpiece of a Walt Disney World vacation is a visit to the Magic Kingdom. And the most popular land in the Magic Kingdom is Fantasyland, with its iconic characters and popular characters. But Fantasyland has seen relatively little expansion since the park opened in 1971. Consequently, it can be extremely congested and difficult to
navigate on busier days. That decreases the number of experiences guests can enjoy, which in turn directly impacts guest satisfaction. With this in mind, we are well into the expansion that is the largest in the Magic Kingdom’s history, and it will double the size of Fantasyland once complete. By expanding the offerings of our most popular land, we have a real opportunity to drive guest satisfaction even higher.

And we know that when we increase guest satisfaction, guests spend more time and more of their vacation dollars with us… and intent to return and positive word of mouth increase as well. We also have an opportunity to better utilize some of our most beloved stories and characters in new attractions, dining experiences and immersive environments to create a differentiated experience that no one else can match, like Under the Sea: Journey of The Little Mermaid, which will take guests into the world of Ariel, Sebastian, Flounder and all their friends.

Not far from Ariel’s new home, guests will be able to relive their favorite moments from Beauty and the Beast in Belle’s Village and Beast’s Castle. One of the most popular attractions of the Magic Kingdom, Dumbo the Flying Elephant, will double in guest capacity, and will also feature a circus-themed interactive queue that will delight guests of all ages as they enter the Big Top.

Finally, we’re adding an innovative new mine coaster based on one of our most iconic and enduring films, Snow White and the Seven Dwarfs. This attraction will feature a new ride vehicle that we patented, which twists and turns on its track… adding atmosphere, kinetics and adventure to Fantasyland.

We have additional opportunities at our resorts as well. In 2013, we’ll open our new Art of Animation Resort at Walt Disney World. This new property celebrates some of our most popular animated stories, including The Little Mermaid, Lion King, Finding Nemo, and Cars. The resort will have nearly 2,000 rooms, including 1,200 family suites, giving us significant boost in our attractive value-priced room inventory. Now our value resorts, and especially our family suites, play an important part in providing our guests with a broad range of hotel and pricing options. They’ve been extremely successful and have generated some of the highest occupancy rates on our property.

We believe these initiatives in Florida and California will allow us to deliver attendance growth that outpaces population growth by several percentage points. By delivering better value, we also feel we can generate real increases in per capita spending. For example, we’re already seeing a pricing benefit from World of Color. While previously, crossing between Disneyland and Disney California Adventure was essentially free for people on a two-day passes, there is now a $10 premium to park hop.

In addition to focusing on expanding and enhancing our physical assets, we’re also spending considerable time and energy to fundamentally change the way our guests experience our properties. As we’ve discussed in the past, consumers are changing: they have increasing access to information, an increasing array of choices, and an increasing desire and expectation for recognition and personalization and recognition. So we need to transform the guest experience to reflect that.

We know that our guests love creating great Disney memories with their friends and their families. We also know that they don't exactly relish waiting in line, checking at the resort, worrying about missing their favorite attractions or feeling uncertain how to best navigate and access our properties. In the coming years, we’ll introduce a broad, integrated set of systems and tools that will help us create a more seamless, personalized experience, and help guests to get more out of their visit with us. That’s our ultimate goal – to welcome more and more people, while making their experience more satisfying, more personal and more immersive.

We’ve launched a number of initiatives over the years, including FASTPASS and Magical Express, and they’ve been incredibly popular with our guests. But we plan to take these kinds of enhancements even further. Giving our guests faster and better access to the fun is the centerpieces of our investment in technology. As a result, we are currently developing an innovative system that will, in essence, create a version of FASTPASS for their entire Disney vacations. Now we define the guest experience as beginning from the time a potential guest sits down at a computer or picks up a phone to make a reservation. Our new tools will help them better understand all that we have to offer and better plan their time with us. They’ll be able to create a personalized itinerary that gives them the exact Disney vacation they want.

Guests will be able to reserve times for their favorite attractions and character interactions… secure seats at our shows and spectaculars… make dining reservations… and pre-book many other favorite guest experiences – all before even leaving their house. We also plan to simplify the check-in process so that guests will arrive at the resort with room key in hand. They will be able to go straight to their room or a theme park – again, allowing them to get to the fun faster.

We are also creating innovative new ways to pull guests into our stories. A picture with a Disney princess is a quintessential part of a Disney experience for many of our guests. So, in Fantasyland at the Magic Kingdom, our Disney princesses will soon have dedicated homes complete with Disney magic. And the tools that we’re creating will allow them to greet and interact with our guests in an immersive and highly personalized way.

We are rethinking the queue lines at many of our attractions, and are enhancing them in ways that make them part of the show, essentially creating a new “Scene One” for the attractions, if you will. For example, the Winnie the Pooh attraction in Florida we just opened has a new hands-on area where our younger guests can explore and play in the Hundred Acre Wood. It’s been so successful that we’ve heard kids asking their parents NOT to use FASTPASS in order to enjoy the new first scene that much longer. You know we are doing something right if kids are asking to wait in line.

We’re also developing the means to better assess and manage guest traffic throughout our theme parks so that we can use entertainment experiences, characters, and other forms of Disney magic to help improve the flow of guests during peak periods… and drive increased utilization as a result for our parks. Through this work, we will put better information into the hands of our cast, so they can deliver even better and more personalized service for our guests. Now, it will be some time before we roll out the bulk of these initiatives, but we are well into development, and in fact have a number of patents pending on our approach. So it’s too early for me to say much more than that… but our vision here is clear, and we see a real opportunity to further enhance and differentiate the Disney vacation experience.

We’re excited about our growth prospects at our existing sites, but at the same time, we have a real potential at our new and expanding businesses, with the most important of these being Disney Cruise Line. Cruise is a great example of Disney’s competitive strengths giving us the opportunity to successfully enter a new area of the vacation industry. In so doing, we created the blueprint for family cruising. In fact, over a third of our passengers say they would not have chosen a cruise vacation if it hadn’t been for Disney. From stem to stern, our ships have been designed to deliver a great Disney cruise vacation for every member of the family.

We’ve carved out a very attractive niche in this business, generated strong returns, and created a new avenue for growth. But the most gratifying aspect is the response of our guests. Virtually everyone who sails with us says they will recommend the product to others. And over 80 percent say they will come back to cruise with us again within five years.

I was just on the maiden voyage of our new ship, and I met a couple who was on their 80th Disney cruise. No, not 8th, not 18th – 80th! Their 80th Disney cruise. I love them.

At the breakout session later, Bruce Vaughn, head of creative for Walt Disney Imagineering, is going to give you an overview of our two new ships - the just-launched Disney Dream and the Disney Fantasy, which arrives next spring. I think you’ll be impressed with how beautiful these new ships are and how innovative we’ve been in their design and development. There’s literally a surprise around every corner – from the magic artwork to the virtual portholes.

Expanding in cruise allows us to take more guests to more parts of the world and test new markets, as well. We have repositioned the Disney Wonder to the West Coast, which will allow us to take, to sail to Mexican destinations, and for the first time ever… to Alaska this summer. Now while we’ve incurred significant costs to launch the Disney Dream this quarter, we expect our new ship to start contributing nicely to our profits beginning in Q3. Our cruise business has generated double-digit returns, and we anticipate having a similar return for the business after the two new cruiseships come fully online. Given our capacity increase, I am particularly pleased that our booked occupancy across the fleet is 12 percentage points above where it was at this time last year.

Now just as we were able to create a unique Disney vacation experience with Disney Cruise Line, our aim is to do the same in Hawaii with Aulani… our first stand-alone family destination resort, which is scheduled to open in late August. We are creating a stunning vacation destination in one of the most beautiful places on earth that will allow us to deliver an incredible Disney experience that captures the very best of Hawaii. The project will feature 359 hotel rooms and 481 of our popular Disney Vacation Club villas. Like our cruise vacations, Aulani will offer something for everyone. It will feature: a family friendly lagoon; a pool and water play area that literally needs to be seen to be believed; dedicated clubs and activities for kids and teens; an 18,000 square foot spa; and access to special Disney-created guided tours and adventures on Oahu.

We know the Disney Parks brand is already powerful in Japan, but we’ve been pleasantly surprised by the interest in Aulani and Disney Vacation Club in the Japanese market. As such, we fully expect this to be both a domestic and international tourist destination.

The experiences we create translate extremely well across geographic and cultural boundaries. And in the longer term, we expect expansion outside the United States to be our most important growth opportunity. And in building great guest experiences and destinations and around the world, we also are laying important foundations for the Disney brand. As you know, our current principal focus in new markets is China, and we think our timing here is right. Roughly 30 million Chinese enter the middle class each year, which will lead to significant growth in leisure travel. In fact, spending on domestic leisure travel in China is expected to more than double to over $200 billion by 2015.

Our first entry into China is, of course, Hong Kong Disneyland, where we are celebrating our 5th anniversary. Last year, Hong Kong generated record attendance, hotel occupancy and guest spending… and that momentum has continued this year. We opened Hong Kong with an eye towards expansion, so I’m pleased to say that construction is currently underway in Hong Kong on three themed lands: Toy Story Land opens this fall and will take guests into the world of Buzz, Woody and all the toys from Andy’s room. We opened a similar version in Paris last summer and it’s been a huge hit with guests there. In 2012, we’ll open Grizzly Gulch, Hong Kong’s take on Frontierland, but this time we have an Old West mining town built on erupting hot springs. Mystic Point, opening in 2013, is reminiscent of the Haunted Mansion and features a Disney take on a widely-known Chinese character called the Monkey King.

With the addition of these three new lands, we expect the upward momentum we’re seeing at Hong Kong resort to continue. Bear in mind that more than 40% of visitors to Hong Kong Disneyland come from Mainland China. Given that our penetration rate in Southern China is currently just 1% per year, we certainly have room to grow.

As we announced this fall, we’ve signed an agreement with the Shanghai government to build a new theme park there, and are awaiting final approval from the central government in Beijing. Again, we think there is huge potential for a Disney property in Shanghai, and I couldn’t be more excited about our prospects there.

We are well into our blue sky development, and once Shanghai opens in about five years, we know we will have a park that is distinctly Disney, yet authentically Chinese.

Taken as a whole, we believe China is the most exciting opportunity we’ve had since Walt first bought land in Florida in 1964. Walt Disney Parks and Resorts is a dynamic business - one that will continue to be enjoyed by guest around the world for generations. It’s a business with high barriers to entry and sustainable competitive advantage that provides attractive opportunities for us to profitably invest our capital.

The current investments we’re making in our existing assets, new businesses and new geographic markets leverage and expand our competitive advantages, and they enhance our growth prospects over the near, medium and longer term. They are right for our brand and for our business, and they will help us create value for our shareholders for many, many years to come.

Thanks very much, great to see you all again.

I can't tell you how much I respect Staggs, and what a great improvement he is over Jay Rasulo. In fact, most of the management in charge right now is the best they've had in decades. The only caveat are some of the questionable management at Walt Disney World. The jury is still out with a few of them.

But Tom gives me the feeling that there could be a great big, beautiful tomorrow...

To Be Made In Japan...

Thirty-one years ago today, the Oriental Land Company received confirmation that its loans were approved for a new little project...

The Japanese real estate company was granted loans for the creation of a Disneyland park inside Japan: the first Disney Park outside America.  Drawing on the Japanese people's love of Disney, Walt Disney Productions enters into a partnership that will produce the third Magic Kingdom styled park some three years later.

Three years to opening, twenty-one till the crown jewel...

Second World/Sixth Kingdom...

What a Onederful Wurld...






There seems to be a lot of news coming out from the Chinese media about the Mouse's Middle, Magic Kingdom...

Over at my friend Alain's website, Disney and More, he's been posting a great deal of coverage of the news about Shanghai Disneyland. Great stuff if you haven't read his blog.

From what I've been told, the media has had very limited knowledge of what Disney and the Shanghai government are planning. This is by intention and one of the reasons you haven't seen or heard much about it. This is Bob Iger's first park on his own and not fixing up Eisner's messes. I believe he wants to get it right and he wants it to be a surprise. Getting details about this park/resort has been very difficult. Put all the secrecy together with a weak economy and you can imagine the trouble prying open those Bothans mouths.

There was an article the other day that Alain quoted as saying the total cost of the 107-square-kilometer project would exceed 100 billion yuan ($15 billion). Now, while the resort is not as big as Walt Disney World (twice the size of Manhattan Island), it is far bigger than any other resort I believe except Disneyland Paris (which is 20 km, like Shanghai). Far bigger than Hong Kong Disneyland which will tap out at two parks and a half dozen hotels approximately, far bigger than the Tokyo Disney Resort or the original Disneyland Resort. And now officials have come out to discount this as they say final cost have not been determined. I have no inside knowledge as to how much exactly will be spent, but my suspicion is that the article was quoting an estimate as to what the final resort price would be. That is, over a three phase period. As in three gates, multiple hotels, retail environment, etc. and so on. This would make that projected cost of 15 billion much more reasonable as it would occur over decades, not years. The initial cost I've heard is somewhere around/between 3 and 4 billion. Of this amount, the Shanghai government and the partnership company, Shanghai Shendi Group Co. Ltd. will assume the majority of that cost. The Mouse will retain a minority interest similar to the contract with Hong Kong, while still running the actual resort.

From what I've gathered, the first phase will be the "Magic Kingdom" style park and two or three hotels and a version of the Downtown Disney retail area (something that has yet to come to HKDL, but will soon enough). This phase should be done by late 2014 with a planned opening of early 2015. The style may be similar to past parks, but it will also strike out in a different direction, perhaps being the most different of any Disney theme park that shares the trademark style fans are used to. From what I hear, the area around the park will be more extensively used than in Hong Kong as well.

While the public face of Honk Kong Disneyland Suits is that they have nothing to fear from a Shanghai Disneyland, the behind the scenes are a different matter. As work on their expansion winds to a close in 2014, expect a new announcement to counter the opening of the second Disney park in China. Bothans have already told me that work and proposals, all blue sky of course, are quietly underway in Glendale. The scope and grandeur of Shanghai will be bigger and different. The plan will be to offer a different reason to go to this theme park as opposed to the one in Hong Kong. Just as there are reasons to visit Disneyland versus Disney World, there will be reasons to travel between these two parks/resorts. And if you were wondering, Shanghai is WDW to Hong Kong's Disneyland. Each Disney, both different. I like that. I hate the idea of cloning and if they're going to have these two parks on the Asian mainland, it's good that they will have their own personalities.

When 2015 rolls around it's going to be interesting to see what the birth of this Sixth Kingdom means to our world and the Disney world...