Disney Parks Chairman Josh D’Amaro Discusses Star Wars: Galactic Starcruiser, Walt Disney World’s Planned $17B Investment, and More
This morning Disney Parks Chairman Josh D’Amaro participated in a question and answer session at the JP Morgan Global Technology, Media & Communications Conference.
Disney Parks, Experiences, and Products Chairman Josh D’Amaro answered various questions today at the JP Morgan Global Technology, Media & Communications Conference.
D’Amaro said coming off of the 50th anniversary of Walt Disney World, that the results at the resort will be lighter this year. D’Amaro praised his team at the domestic and international parks for how they’ve been able to handle all the challenges of the pandemic and the continuing challenges of economic uncertainty.
D’Amaro spoke very highly of Disneyland Paris Resort and noted that there is still plenty of expansion to go there. He mentioned that Frozen will be coming and other developments. He also highlighted that Avengers Campus out in Paris has been doing extremely well. He didn’t mention any other properties coming to Disneyland Paris but it seems inevitable that some major projects will be announced later this year.
One of the highlights of this question and answer session is the fact we got confirmation that Disney is working on synchronizing all of its data across all of its divisions. This data plan is very similar to Disney’s abandoned plan for Disney Prime. The synchronization of data for consumers going to the parks and watching Disney+ is long overdue. Essentially Disney utilizing all its data could create more customized experiences for its guests.
D’Amaro was also asked a question about how Disney vacations have become more “work.” This was a question that really struck a chord with D’Amaro as he would explain that Disney is trying to make things easier on the guests, like removing the reservation system. D’Amaro also said when he’s not in his office that he’s in the parks and he asks for feedback from the guests and fans. He also said that Disney will continue to invest in technology to make the experience even easier.
D’Amaro also reminded everyone that Disney has more room to grow and they have opportunities to expand capacity at Walt Disney World and Disneyland. D’Amaro quickly plugged the DisneylandForward project. He also went on to explain how attractions like Mickey and Minnie’s Runaway Railway at Disneyland and TRON: Lightcycle Run at Magic Kingdom add capacity. D’Amaro said they will continue to invest in these parks and that he always wants them to look good for the fans. The example he used was, “That Main Street will always look like Main Street.”
When D’Amaro was questioned on what intellectual properties they could bring to the parks. He talked about Kevin Feige and Marvel Studios and how that has already translated well. He also said all the new Star Wars series excite him. But he also reiterated that Disney has a deep and powerful portfolio of IP and that even something that is classic like Mickey Mouse still draws.
Despite Disney announcing its intention to make $5.5 billion in cost cuts, D’Amaro said none of the cuts will be front-line cast members. D’Amaro also said that the political turmoil in Florida has not affected Walt Disney World’s business at all. Speaking of Florida, D’Amaro reiterated that the Lake Nona campus was canceled due to new leadership and changing business conditions. The Lake Nona campus wasn’t a part of the $17 billion investment plan for Walt Disney World.
He said the $17 billion investment to Walt Disney World will include things like the transformation of EPCOT, new Star Tours scenes, Tiana’s Bayou Adventure, and some of the projects he teased at D23 Expo like Moana and Zootopia attractions at the Animal Kingdom and attractions beyond Big Thunder that would include Encanto, Coco, and the Disney Villains.
In regards to the closure of the Star Wars: Galactic Starcruiser, D’Amaro noted that the experience raised the bar but it just didn’t perform to the level that they hoped. D’Amaro also said in Q3 and Q4 you will see accelerated depreciation for the project around $100-$150 million. Which could result in a potential write-down in the $200 million to $300 million range.
D’Amaro and Disney are bullish on the Disney Cruise Line business. D’Amaro mentioned that they are still relatively small in the cruising space. The Disney Cruise Line still has three more ships on the way. D’Amaro then shared a stat that 40% of Disney Cruise Line guests said they wouldn’t cruise if Disney Cruise Line didn’t exist. Disney certainly has some untapped potential for its Disney Cruise Line business.
D’Amaro was then asked about Universal’s plans to build a regional theme park in Texas and if that plan interests Disney. “I think it must be interesting for them,” said D’Amaro. “For us, we think that focusing on our core assets is where we should be spending most of our opportunity.” I’d love for D’Amaro to get asked more about Universal.
D’Amaro was then asked about Disney’s approach to gaming and if they would ever do it themselves. D’Amaro said that Disney’s recent strategy of working with publishers has proved beneficial and that it’s the right strategy but he also acknowledged that Disney is always open to what the future could look like.
D’Amaro ended the call by saying that Disney Parks, Experiences, and Products has no shortage of space and creative ambition. Let’s hope he lives up to that motto at this year’s Destination D23.
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Zach Perilstein is the Editor-in-Chief of the Boardwalk Times
