Disney plans to double its investment in theme parks over the next decade, with a whopping $60 billion!

On Tuesday, September 19th, Disney announced its plan to nearly double its investment in its parks and resorts division over the next 10 years, reaching $60 billion. Disney is the world's largest theme park operator. The company stated on Tuesday that it has over 1,000 acres of land available for development and highlighted the increased profits gained in recent years through investments in amusement facilities, cruises, and other attractions related to its movies and characters. Disney also plans to introduce more cruises and establish a new homeport in Singapore. According to Disney, visitor spending at the theme parks has reached record levels in the past two years, although the number of discounted tickets sold has significantly decreased compared to before the COVID-19 pandemic. However, the market reacted negatively to this news, with Disney's stock price falling over 3% during trading. After the end of the COVID-19 pandemic, Disney's parks, experiences, and products business has once again become the company's cash cow, providing financial support for its transformation while its streaming business continues to incur losses. In the third quarter ending July 1st of this year, Disney's parks, experiences, and products revenue increased by 13% YoY to $8.33 billion, surpassing market expectations of $8.25 billion. Among them, Disney's parks and experiences revenue in North America grew by 4% YoY to $5.65 billion, while operating profit decreased by 13% to $1.44 billion. Disney's parks and experiences revenue internationally increased significantly by 94% YoY to $1.53 billion, driven by Shanghai and two other parks, with operating profit turning positive at $430 million. Consumer products revenue decreased by 3% YoY to $1.15 billion, with operating profit declining by 6% to $560 million. However, according to media reports in July, Disney theme parks were emptier than usual this summer. Industry analysts and travel consultants attribute this in part to Disney's increased ticket prices. Disney executives have stated that they expect a decline in revenue from their U.S. theme park business this year. Disney's competitor, Comcast, has also been investing in its Universal Studios theme park business, with plans to develop smaller theme parks in Texas and Nevada, as well as a massive new resort in Orlando. As consumers increasingly watch programs on streaming services rather than traditional TV and movie theaters, Disney has been grappling with significant changes in its TV and movie business. Disney management has previously indicated that the company may sell traditional television channels like ABC and is actively seeking strategic partners for ESPN. The market expects that Disney's increased investment in its parks business is also aimed at achieving a transformation towards its streaming business.