News, Analysis and Reviews of the Disney Entertainment Business
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Brought to fans, investors, entrepreneurs, executives, teachers, professors, and students by columnist, economist, novelist, reviewer, podcaster, business reporter and speaker Ray Keating
There’s been a good deal of talk about the underperformance of The Walt Disney Company’s stock. Since Disney is a company that seems to get a great deal of criticism – sometimes for good reason and many times without a sound basis – DisneyBizJournal has been overdue in taking a look at the Disney stock over the long haul.
It's standard practice to see how a stock performs compared to the market overall. The following chart comes courtesy of PortfoliosLab.com, and it compares the Disney stock price (DIS) versus the S&P 500 Index (as captured by SPDR S&P 500 ETF (SPY)). By the way, these prices are adjusted for stock splits and dividends.
The chart goes back ten years. From July 2014 to March 2021, Disney’s stock largely went along with the S&P 500. However, since March 2021, the divergence has been stunning, with the market climbing higher and Disney declining. Over this ten-year period, as PortfoliosLab noted, “DIS has underperformed SPY with an annualized return of 2.19%, while SPY has yielded a comparatively higher 12.93% annualized return.”
Over the past five years (see the first chart below from PortfoliosLab.com), the S&P 500 gained 102.8 percent, while Disney declined by 29.5 percent. And over the past year, the S&P was up by 24.1 percent, with Disney experiencing a gain of 12.7 percent (the second chart is below).
Finally, what about stock performance since Bob Iger returned as CEO on November 20, 2022? The S&P has been up 40.5 percent, while Disney’s down by 34 percent.
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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.
The views expressed here are his own – after all, no one else should be held responsible for this stuff, right? Keating also own stock in Disney.
The Disney Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement and fun for Disney fans, including those who love Mickey, Marvel, Star Wars, Indiana Jones, Pixar, princesses and more.
Never miss any new book by Ray Keating by joining the Pastor Stephen Grant Fellowship with Ray Keating at
• The Alliance of Saint Michael novels – Cathedral and Subversion – are at Amazon.
• Order The Weekly Economist III:Another 52 Quick Reads to Help You Think Like an Economist, The Weekly Economist II:52 More Quick Reads to Help You Think Like an Economist, and The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist at Amazon.com.
Should Disney and CEO Bob Iger feel angsty about Universal Orlando Resort’s Epic Universe opening in 2025? Bob says “no,” but the answer is “yes.”
And it has been a “yes” for a while now, but after seeing Universal’s video introducing its Dark Universe at Universal Epic Universe, now it’s a BIG “YES.”
Watch the following video, and decide for yourself. But especially as a fan of the Universal monster movies, this looks, well, epic.
When asked about Epic Universe at the MoffetNathanson’s Media, Internet & Communications Conference in mid-May, Iger did what any good CEO should. He sounded reasonable and confident. As noted by CinemaBlend, Iger reportedly said, “As we’ve seen in the past, when Universal’s expanded it does bring more visitation to Orlando. That’s fine. We've had competition from them for a long time. I'm mindful of what they're doing. But I’m confident. I like our hand. I’m confident in what we’ve built and I’m confident in what we’ll continue to build. It's not something that should be distracting to us or anxiety-provoking.”
Well, okay. But given the creative lull – to be generous – that Disney clearly is currently suffering, I’m not sure Iger would say the same thing a few drinks in at a bar and the conversation off the record. (I’m buying, Bob.)
While that’s pure, tongue-in-cheek speculation, the reality is that Universal Epic Universe looks like a formidable challenge for Disney – more so than what it’s faced before from Universal Orlando – with five lands opening in 2025. Consider what’s coming.
Courtesy of Universal
First, Dark Universe, according to Universal, “will envelop guests in monstrous adventures across various attractions, shops, restaurants and character meet and greets that will thrill everyone from families to classic Monster fans alike.” Dark Universe will bring together legends like Dracula, The Wolf Man, Frankenstein’s Monster, and the Bride of Frankenstein, with a new generation of monsters and characters. And this promises to be family-friendly, but also pushing the boundaries of such friendliness with greater “intensity.”
Courtesy of Universal
Darkmoor is the “ravaged village within Dark Universe,” and among its features will be:
• “Monsters Unchained: The Frankenstein Experiment – Universal Orlando’s most terrifying attraction yet, this state-of-the-art dark ride takes guests deep into the catacombs of Frankenstein Manor, where Dr. Victoria Frankenstein conducts her twisted experiments. In a vain display of her genius, she invites guests into her laboratory to witness a demonstration of her ability to control monsters – but her plans go awry when her attempts to control the most dangerous of monsters, Dracula, fails, unleashing a horde of enraged monsters. Guests are then thrust into an intense ride through the darkness as they try to evade the grasps of The Wolf Man, The Mummy, The Creature from the Black Lagoon, the Brides of Dracula and others.”
• “Curse of the Werewolf – Deep in the woods that sit on the edge of Darkmoor, guests will find Curse of the Werewolf, a spinning family coaster inspired by ‘The Wolf Man.’ Guests will enter the encampment of The Guild of Mystics where they’ll be greeted by the Maleva, the guild’s all-knowing seer and leader, who warns them that they bear the mark of the werewolf. Guests then board a wagon and venture into the forest – racing to escape the werewolves before they become one themselves.”
• “Das Stakehaus – Darkmoor’s most ominous restaurant, this establishment is a dining hall run by vampire ‘familiars’ who size up unsuspecting patrons to be part of the vampires’ feast. Surrounded by artwork and artifacts detailing the history of the village’s creatures of the night, guests can enjoy a menu of kebabs, burgers, sandwiches and more.”
• “The Burning Blade Tavern – Despite the blades of the windmill still smoldering and flaming periodically, Darkmoor’s monster hunters have transformed this old fiery mill into their favorite hangout. While enjoying a menu of burgers, wings, bratwurst, pretzels and specialty beverages, guests will hear stories of the infamous ‘Hounds’ – boastful hunters from beyond Darkmoor – all while surrounded by an impressive display of the monster heads they consider their ‘trophies.’”
And there’s more. Yes, Iger should feel anxious.
Courtesy of Universal
Consider some choice features for SUPER NINTENDO WORLD. Universal explains, “Inside SUPER NINTENDO WORLD, guests will be able to explore Super Mario Land – where they’ll enjoy adventures alongside Mario, Luigi, Princess Peach and other characters; and Donkey Kong Country– where they’ll encounter thrills featuring Donkey Kong, Diddy Kong and other members of the Kong family.” Among the experiences will be:
• “Mario Kart: Bowser’s Challenge: Guests are invited to join Team Mario and battle Team Bowser for the Golden Cup in this groundbreaking attraction that fuses augmented reality, projection mapping technology and elaborate environments to bring the fun of the Mario Kart video game series to life in a compelling ride-through experience. Guests up for the challenge will enter through Bowser’s Castle – where they’ll wind its corridors and get a glimpse of Bowser’s deceptive plans to stack the odds in his favor – before boarding their kart and heading to the starting line. Then, guests steer through a variety of Mario Kart courses – collecting coins, tossing shells at Team Bowser, dodging obstacles, and more – as they join their favorite characters and compete to help Team Mario win the race.”
• “Yoshi’s Adventure: The delightfulYoshi’s Adventure attraction will make its U.S. debut when SUPER NINTENDO WORLD opens at Universal Epic Universe. On this family-friendly ride, guests of all ages will enjoy breathtaking views of Super Mario Land as they join Yoshis and travel through Mushroom Kingdom landscapes in search of glowing eggs – encountering many familiar characters along the way.”
• “Mine-Cart Madness: Guests will hop into a mine cart and careen through the jungle to help Donkey Kong and Diddy Kong protect the coveted golden banana on this first-of-its-kind family coaster. Utilizing an unprecedented ride system, innovative technology and a unique coaster design, Mine-Cart Madness will send riders on a thrilling adventure where they will experience the jaw-dropping maneuvers that they’ve seen Donkey Kong and the mine carts perform in the video games – including getting blasted out of a barrel, seemingly jumping over gaps as they speed along a rickety track, and so much more.”
Hey, Bob, still no angst? Well, there’s still more. How about “dragons in a colorful, fully-alive world filled with Viking adventures in How to Train Your Dragon – Isle of Berk”? Among the experiences in this land will be:
• “Hiccup’s Wing Gliders – On this family thrill coaster, Hiccup invites brave new Vikings to take a ride in his latest glider contraption – a winged flying machine that launches aspiring Dragon Riders into the sky for a dragon’s eye view of Berk. Guests will fly alongside Hiccup and Toothless and reach speeds up to 45 mph as they soar around the perimeter of Berk – and even throughthe lagoon – while experiencing firsthand what it’s like to fly on a dragon.”
• “The Untrainable Dragon – Inspired by Universal Beijing Resort’s wildly successful ‘Untrainable’ show, this dragon-filled live spectacular takes guests on an unforgettable journey with beloved characters Hiccup, Toothless, Gobber, and Astrid as they work together to solve the mystery of The Untrainable Dragon. This heartwarming story comes to life with captivating musical numbers, breathtaking sets and life-sized dragons soaring overhead.”
• “Fyre Drill – Mischievous Viking twins Ruffnut and Tuffnut invite teams of Vikings to compete to out score and out-soak each other on this wet-and-wild boat battle. Guests will board a colorful dragon-headed boat and blast water cannons at flame-like targets to practice putting out fires – a crucial skill to master when living with dragons.”
• “Dragon Racer’s Rally – Berk’s new Vikings racers can practice aerobatic maneuvers and high-speed barrel rolls on two Viking-made dragon-riding trainers that reach heights of up to 67 feet in the air. Guests can control how ‘wild’ or ‘mild’ their experience will be as they perform high-flying, gravity-defying, swooping and soaring skills that are necessary to earn the accolades worthy of a true champion dragon racer.”
• “Mead Hall – The beating heart of Berk and the village’s main gathering hall, Mead Hall is where guests can feast like a Viking and enjoy a savory menu featuring a variety of meats, fish, sandwiches and more along with a collection of meads and ciders.”
And what about Celestial Park, which is referred to as “the heart of Universal Epic Universe and the first world guests will encounter at the new theme park.” What could possibly be included there that would warrant noting? Well…
Courtesy of Universal
• “Stardust Racers, a dual-launch racing coaster that sends guests rocketing through the skies aboard comets in a race to see who’s the fastest of them all. Reaching speeds up to 62 mph and heights up to 133 feet along 5,000 feet of track, Stardust Racers will be Epic Universe’s most thrilling coaster experience with unique maneuvers such as the ‘Celestial Spin,’ in which the two coaster vehicles perform an inverted crisscross while speeding through the air – creating an ‘out-of-this-world’ adrenaline rush.”
• “Constellation Carousel – the grand centerpiece of Celestial Park. Here, explorers of all ages will take a fantastical whirl aboard constellations that glide forward, backward – and even make 360-degree rotations – through the milky way in a choreographed dance of music and starlight.”
• ‘Astronomica,an interactive wet-play area that also doubles as a giant compass rose to the many wonders of Epic Universe, featuring crystal blue fountains that spring to life and dance around guests.”
• “An array of unique dining experiences” will include “Atlantic –a full-service restaurant set inside aVictorian aquarium complete with captivating views of Celestial Park.”
• Located “inside Epic Universe at the end of Celestial Park is Universal Helios Grand Hotel, designed to transport guests to a world where the heavens and earth unite – complete with 500 rooms, one-of-a-kind views and its very own dedicated entrance into the theme park.”
I admit that one word comes to mind: Wow! And we’re still waiting on key details for “The Wizarding World of Harry Potter – Ministry of Magic” land.
Courtesy of Universal
Finally, while there is some truth in what Iger said about Universal’s expansion bringing more people to Orlando, and that can be good for everyone, including Disney, that effect only goes so far. Why? Because individuals and family budgets only go so far, especially given our inflation challenges over the past two-and-a-half years.
And it needs to be understood that Epic Universe will have, as Universal puts it, “more than 50 awe-inspiring attraction, entertainment, dining and shopping experiences.” Yes, given the size of Disney World, Universal is still playing catch up. But catch-up also can lead to leaping ahead in key areas.
As an economist, I understand the benefits of competition, and having businesses vying to better serve consumers. And Walt Disney World apparently is going to see a major step up by its chief competitor, and that’s good news for theme park lovers. Whether it will be good news for Disney depends on how it responds.
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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.
The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?
The Disney Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement and fun for Disney fans, including those who love Mickey, Marvel, Star Wars, Indiana Jones, Pixar, princesses and more.
Never miss any new book by Ray Keating by joining the Pastor Stephen Grant Fellowship with Ray Keating at
• Cathedral: An Alliance of Saint Michael Novel is at Amazon.
• Order The Weekly Economist III:Another 52 Quick Reads to Help You Think Like an Economist, The Weekly Economist II:52 More Quick Reads to Help You Think Like an Economist, and The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist at Amazon.com.
A unanimous vote on June 5 by the Central Florida Tourism Oversight District board gave an initial thumbs-up to a proposed $17-billion Walt Disney World expansion plan. Disney fans want to believe that this will mean the opening of a fifth park – or fifth gate – in Disney World, though Disney has made no such declaration.
Final approval for the development plan requires a second vote on June 12, according to a report from the Orlando Sentinel.
Disney hasn’t served up any real details on their spending plans, with Woody Rodriguez, director of external affairs for Disney Parks, Experiences and Products, being quoted, “The development agreement will enable us to continue to invest significantly in the district.” In Disney’s most recent earnings call, CEO Bob Iger danced around the question.
Speculation about a fifth park lies with the fact that Universal Orlando’s Epic Universe opens in 2025, and many assume that Disney will need to respond in some way. According to the Sentinel report, the agreement covers 17,300 acres owned by Disney, and “allows a maximum of five minor theme parks, such as a water park, nearly 1.3 million square feet of office space, 1.7 million square feet of restaurant/retail space and 53,467 hotel rooms.”
This deal, of course, represents quite a shift in the relationship between Florida Governor Ron DeSantis and Disney – from one featuring politics, confrontation, a state takeover of the Reedy Creek Improvement District, and lawsuits, to one of economic cooperation. According to a Business Insider article published at Yahoo News, Stephanie Kopelousos, administrator for the Central Florida Tourism Oversight District, said, “With Walt Disney World's substantial investments, we anticipate economic growth, job creation, and support for local businesses, alongside environmental stewardship and workforce housing initiatives, benefiting Central Florida's community.”
Dennis Speigel, CEO and founder of International Theme Park Services, was quoted in another report, “What you’ve seen is a huge kiss and make up between Florida and Disney.” Indeed, about Disney’s expansion plans, DeSantis said, “It’s going to be a huge game changer for this region. I got to think Disney would have an interest in maybe offering another one. The district will be ready to negotiate something to be able to be good for the state of Florida, be good for jobs, be good for all those things.”
Golly, it’s amazing how things can change after a governor drops out of the race for president.
Speigel is one of the industry people who sees a fifth gate coming, declaring, “The fifth gate will be the most highly technologically driven attraction park in the world. And it has to be because it has to eclipse Universal Epic Universe.” He predicts a tab of $5 billion to $6 billion for such an endeavor. Other watchers, however, see Disney expanding current parks rather than opening a new one.
At this point, only Disney knows if a fifth gate will be opened at Disney World, and it’s not even clear that they have settled on anything just yet.
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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.
The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?
The Disney Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement and fun for Disney fans, including those who love Mickey, Marvel, Star Wars, Indiana Jones, Pixar, princesses and more.
Never miss any new book by Ray Keating by joining the Pastor Stephen Grant Fellowship with Ray Keating at
• Cathedral: An Alliance of Saint Michael Novel is at Amazon.
• Order The Weekly Economist III:Another 52 Quick Reads to Help You Think Like an Economist, The Weekly Economist II:52 More Quick Reads to Help You Think Like an Economist, and The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist at Amazon.com.
The Walt Disney Company had a solid earnings report for its second quarter ending March 30, 2024.
Total revenues were up by 1 percent in the quarter versus the same quarter in the previous year, i.e., $22.8 billion compared to $21.8 billion. And diluted earnings per share excluding certain items beat expectation, rising by 30 percent, i.e., $1.21 versus $0.93.
A goodwill impairment issue having to do with Star India operations did hit earnings. As The Wall Street Journalreported: “The company took a roughly $2 billion charge in the March quarter related to the India deal and to its linear television networks and swung to a loss of $20 million, from net income of $1.27 billion a year earlier.”
The company’s earnings per share growth target for the full year stands at 25 percent.
On the streaming front, losses shrank notably in the quarter, and Disney+ core subscribers increased by 6 million to 117.6 million. Total Hulu subscribers increased from 49.7 million to 50.2 million. Meanwhile, ESPN+ subscriptions were down slightly (from 25.2 million to 24.8 million), though average monthly revenue per paid subscriber increased due to “retail pricing and higher advertising revenue.” The ESPN+ subs decline was attributed to “seasonality,” by Disney CFO Hugh Johnston.
Disney CEO Bob Iger was quoted in the company’s statement: “Our results were driven in large part by our Experiences segment as well as our streaming business. Importantly, entertainment streaming was profitable for the quarter, and we remain on track to achieve profitability in our combined streaming businesses in Q4.” The company acknowledged that the forthcoming third quarter will return to streaming losses, including a decline in Disney+ subscribers, but again, followed by a fourth quarter bounce back.
Iger also remained bullish on sports and ESPN, asserting that ESPN programming is solid for the coming decade.
The Experiences division – parks and resorts, cruise line and consumer products – stood out as a growth driver, “with revenue growth of 10%, segment operating income growth of 12%, and margin expansion of 60 basis points versus the prior year,” and the company continues “to expect robust operating income growth at Experiences for the full year.” Iger noted that “we are turbocharging growth in our Experiences business with a number of near- and long-term strategic investments.”
Revenue growth at domestic parks grew by 29 percent in the second quarter versus the same period last year, and operating income rose by 87 percent.
CFO Johnston noted that the Experiences division will face some challenges in the coming quarter, namely, higher wages, increased costs due to cruise line expansions, and some demand moderation due to a return to pre-COVID levels. Healthy, strong growth is expected, but there is some demand normalization, along with near-term one-time expenses.
Finally, it's also worth noting that Iger’s emphasis regarding Marvel looking ahead was on reining in content, that is, to two, perhaps three, movies per year, as well as a couple of streaming shows per year.
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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.
The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?
The Disney Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement and fun for Disney fans, including those who love Mickey, Marvel, Star Wars, Indiana Jones, Pixar, princesses and more.
Never miss any new book by Ray Keating by joining the Pastor Stephen Grant Fellowship with Ray Keating at
• Cathedral: An Alliance of Saint Michael Novel is at Amazon.
• Order The Weekly Economist III:Another 52 Quick Reads to Help You Think Like an Economist, The Weekly Economist II:52 More Quick Reads to Help You Think Like an Economist, and The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist at Amazon.com.
The announcement that the Walt Disney Company and Florida Governor Ron DeSantis have agreed to move on from their dueling lawsuits is a case of politics and business as usual.
Disney has a major shareholder meeting coming on April 3, and, no doubt, wanted this controversy to go away. Meanwhile, since DeSantis’s attempt to become the Republican presidential candidate for 2024 crashed and burned, the governor had little reason to drag on his political show of attacking Disney to gin up the GOP base.
So, it was time to move on for all parties. In fact, new development deals between Disney and Central Florida Tourism Oversight District, which signed off on the settlement with the House of Mouse, will be hammered out.
A trial was set to begin in June. But now, Disney holds that prior agreements are null and void and intends to negotiate a new deal that likely would be beneficial to Disney’s development plans in the area.
Separately, in January a federal judge dismissed a lawsuit Disney filed accusing DeSantis of weaponizing his political power to punish the company for exercising its right to free speech. Disney quickly filed an appeal, but it will now put that on hold “pending negotiations” on a new development deal, among other matters, with the district.
Additionally, both parties agreed to drop the various state-wide lawsuits they’ve filed against one another. Instead, both agreed to resolve their differences outside of the courtroom in way that would not require either to admit any fault or liability, according to text of the settlement.
That’s nice.
Of course, serious questions are left on the table. For example, does it make sense for a business to weigh in on political issues that have nothing to do with its actual business? Can politicians get away with abusing the powers of government to attack particular businesses with whom they disagree on an issue?
Anyone thinking that a company like Disney would stand on principled ground regarding free speech and fighting government overreach fails to understand that publicly traded businesses will go only so far as management believes it will benefit the company. (That is, unless a company is captured by a leftist social agenda, and then management tends to blindly step into politics even if it creates risks and uncertainties for the bottom line.) None of this should surprise anyone.
Meanwhile, anyone thinking that politicians today take stands based on principle fails to understand politics as it particularly has further degraded over the past decade-and-a-half or so. On both sides of the aisle, few, if any, serious thinkers hold elected office. Instead, Democrats make a point of pandering to the party’s hard-core leftist base, and Republicans pander to its recently emerged populist base.
If you doubt these points, consider that for all of the attacks Governor DeSantis had hurled at the Disney company, including the special treatment it received, CNN noted the following from the press conference this week announcing the Disney-DeSantis deal: “DeSantis suggested the settlement could give Disney more of an edge to compete with neighboring Universal Orlando’s theme park, which recently announced an expansion slated to be complete next year.”
If it weren’t all so sordid and dangerous, it might be funny.
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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.
The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?
The Disney Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement and fun for Disney fans, including those who love Mickey, Marvel, Star Wars, Indiana Jones, Pixar, princesses and more.
Never miss any new book by Ray Keating by joining the Pastor Stephen Grant Fellowship with Ray Keating at
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