Disney Headlines for August 14th, 2022

This week, Walt Disney World experiences Biblical levels of flooding, Magic Key fans wonder what’s next, and Texas sues Disney…well, Disney+.

We’ve got an odd assortment of Disney Headlines to cover.

Photo: Disneyplanning.com

Texas Rolls the Dice on a Weird Gamble

Okay, let’s talk about the strangest story of the week. We should start by acknowledging that people sue Disney every day. It’s a thing that happens.

Sometimes, government officials sue Disney as well. For example, we recently witnessed Disney destroy an Orange County elected official in court.

Photo: Miriam-Webster

The person overbilled Disney for its property taxes, thereby costing his voters millions of dollars. He…lost the next election.

However, some gambles make more sense than others. The Headline I’m about to discuss falls into that category as what gamblers call a pot-odds bet.

Photo: Texas Tribune

Let’s say you only need to spend a small amount of money to win a bet with impossibly long odds. It’s like betting on the 100:1 long shot at the Kentucky Derby.

Several Texas officials are currently approaching the law from a similar perspective. They’ve individually decided to sue various streaming services.

Photo: ESPN

Texas cities including Austin, Houston, Dallas, and Fort Worth have sued Disney in what they consider the most favorable locale, Dallas County.

Disney isn’t the only target, either. The lawsuits include Netflix and Hulu as well.

Photo:cnet.com

What’s the source of a Texas-sized grudge against streaming services? The argument involves the Texas Public Utility Regulatory Act (PURA) that applies to cable carriers.

This law requires the traditional broadband providers to pay a 5 percent franchise fee for using communication lines, ones that local governments have paid to build.

You can think of the matter as an infrastructure tax. Businesses like Comcast or Charter must pay for the privilege of utilizing local communication technology.

Some enterprising legal minds believe that streaming services should also pay these fees. So, cities are suing in an attempt to claim that money.

Photo:ofx.ie

Could Disney Lose This Lawsuit?

The lawsuit argues that these three streaming services haven’t paid an outstanding debt.

According to Texas law, companies must pay if they deliver their products “via wireline facilities located at least in part in the public right of way, such as utility poles over the streets or sidewalks or beneath the roads.”

Odds are good that streaming services do access that infrastructure to deliver their services. And that could be a problem for Disney and Netflix.

Some Texas legal experts believe these two companies shouldn’t merely pay for 2022 usage. Instead, they should owe back taxes all the way back to 2007!

Photo: Walt Disney Company

That’s the year when Netflix and then Hulu launched their streaming services. They’ve operated for 15 years in violation of this law…maybe.

Obviously, Disney and Netflix keep plenty of the best lawyers on retainer. So they’re unlikely to do something brazenly illegal if the matter were cut-and-dried.

Image: The Wall Street Journal

Instead, these services believe that the law in question applies to broadband companies, i.e., cable carriers only.

Texas and cities in a handful of other states are trying this for a notable reason. The number of cable carriers is shrinking due to cord cutting.

Photo: Moneycrashers.com

This lawsuit represents an attempt to regain that tax revenue from a more modern source. Since cable is dying, they’re trying to make streaming pick up the tab.

Will that strategy work? Legal experts sound dubious on the point. However, it’s a fascinating risk/reward proposition.

Photo:florida Supreme Court

Texas cities could feasibly split tens of millions of dollars in tax back pay if they win. So, it’s worth a shot, right?

Have You Seen Any Locusts Yet?

I’m not saying that Revelations is happening or anything, but the recent flooding in my area has made me a bit nervous.

Photo: USA Today

I’ve lived in my new home for six weeks, and we’ve already lost power four times due to lightning and rain. I don’t think we’d lost power that much in the past decade.

We’re about 600 miles away from Orlando. I can confirm that the weather isn’t any better in Central Florida. Here, watch this:

Folks, that’s imagery from EPCOT, not Noah’s Ark. While I treasure the joy in those children’s laughter, I’m just like the rest of you. I’m wondering what is going on.

Look at that footage around Crossroads at the front gate of Disney’s Hollywood Studios! You could waterski on that!

Photo: Youtube

MickeyBlog posted an article about this on August 3^rd. Remarkably, Walt Disney World got bombed again this past weekend.

Here’s a clip of Kali River Rapids Expedition Everest.

Obviously, when such inclement weather happens, Disney cannot operate many of its attractions.

Photo: disneytouristblog.com

The surprise this time involved indoor attractions at EPCOT. Several buildings experienced flooding, forcing guests to leave.

Living with the Land took the worst beating. Imagine the poor cast members on the overnight cleaning crew who started their workday with this:

Looks like some serious water damage at The Land pavilion. Water still dripping from the ceiling pic.twitter.com/CAa28FgDXf

— DiscMan (@DiscMan2000) August 3, 2022

You, uh, might want to bring an umbrella, a rain slicker, and/or some rubber boots for your next Disney visit.

Silence Isn’t Golden

We’re just getting warmed up with this Headline. It’s probably the most significant August story for Disney.

Photo: Disneyland

On August 25^th, we’ll reach the one-year anniversary of the Magic Key program at Disneyland. That’s the new branding term for annual passes.

As a reminder, the sale went terribly for Disney…because they sold too many annual passes. No, really.

Photo: DIsneyland

Executives believe that annual passholders understood the new system.

Disney believed these loyal Disneyland enthusiasts would accept that they needed Park Passes to enter the Happiest Place on Earth. That…didn’t happen.

Image Credit: Disney

Instead, longtime Disneyland annual passholders swarmed social media with complaints about sold-out park dates.

Disney had promised exclusive Park Pass inventory for Magic Key owners. They never specified how much, though. That’s the source of all the problems.

Many annual passholders have joined a class action suit centered on the alleged broken promises of the Magic Key program.

For its part, Disney listed the top tiers as sold-out and then eventually stopped selling any annual passes for out-of-state guests.

Photo: Disneyland

As of August, we’ve reached a cutoff point for annual passholders. They’re approaching their expiration dates, many of which will occur on August 25^th.

In fact, for arcane reasons, some Magic Keys have already expired. Frustrated owners haven’t renewed yet because, well, they can’t.

Disneyland no longer offers annual passes, including renewals. Park officials are waiting for the current batch to expire before proceeding.

What happens next is anyone’s guess. However, speculation has centered on Disney bringing back Magic Keys with new terms of service.

Image: Disney

In the interim, Disneyland’s most loyal fans must purchase standard admission tickets to enter the park.

Buckle up. This situation is about to turn plaid, and the anger will overwhelm social media.

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Feature Photo: Disney