How Epic Universe Will Impact Disney
The Walt Disney Company just announced 7,000 layoffs and a reduction of $700 million in theme park capital expenditures.
While we don’t know the long-term alteration in plans caused by Disney’s sudden cost-cutting, the timing raises questions.
Photo: Disney
In approximately two years, Universal Orlando Resort will likely raise the bar for theme parks when it unveils its third theme park, Universal’s Epic Universe.
Importantly, this new park will operate a highly anticipated themed land, Super Nintendo World. And the impending popularity of this place could cause problems for Disney.
Photo: Universal
Will Epic Universe impact Disney’s plans? Let’s talk through an odd situation developing in Orlando.
A One-Sided Battle
Photo: WHO
In 2019, the last full year of theme park operation before the pandemic, Disney dominated the entire industry.
Disney parks claimed approximately 156 million guests. The theme park vendor in second place, Merlin Entertainment, registered 67 million guests.
Universal Logo
Universal Studios finished fourth in the world with 51.2 million. Yes, while people make the phantom claim that Universal is gaining on Disney, the data doesn’t reflect it.
Some would claim that Universal Studios finished with two of the top three parks in the world in 2021, which is technically correct.
Photo: Universal
However, that statement comes with the world’s biggest asterisk since the pandemic forced the closures of many Disney theme parks.
Specifically, Disneyland didn’t operate for roughly four months of calendar 2021. Meanwhile, Universal Orlando Resort opened to the public year-round that year.
Image Credit: Universal Orlando
We compare apples to oranges when we pretend everything was equal and normal during the heart of the pandemic.
In truth, we won’t know whether Universal has closed the gap until 2023 stats come out…and that won’t happen until 2024.
Photo: Universal
Still, we can conclude that two statements are true. The first is that Universal Studios will do well for itself if it can surpass Merlin Entertainment (and OCT Parks China) for second place in the industry.
Even after that, Universal’s gap will remain somewhere in the 80-100 million range…and that is still a misleading data point.
Disney has calculatedly chosen to reduce theme park attendance while asking guests to pay more.
That’s something that only the company at the top of the food chain could do. It’s like Apple’s pricing combined with Amazon Prime’s necessity.
The Looming Threat
Photo: Universal Orlando Resort
We shouldn’t sleep on the evolving threat of Universal Studios, though.
Let’s be realistic about the last 15 years of theme park history. Remember that Disney passed on the opportunity to build Harry Potter attractions.
Credit: Universal
That’s in the conversation for worst Disney mistake of the 21st century.
The author of the Harry Potter books, J.K. Rowling, signed a letter of intent with Disney.
(Photo by Samir Hussein/WireImage)
Then, the two sides suffered a falling out over the modest plans for the Potter intellectual property.
Have you ever ridden Buzz Lightyear Space Ranger Spin or one of its variants? That allegedly would have been the same concept but with wands.
Photo: Disney
Also, there would have been a magical creature petting zoo and maybe a Harry Potter restaurant. That’s about it.
Once Rowling realized that Disney planned so little, she soured on the deal. Meanwhile, Disney disliked her requests to control some of the decisions.
(Photo by Bruce Glikas/Bruce Glikas/FilmMagic)
Soon afterward, Rowling went to Universal, which was – let’s be honest – desperate for any semblance of relevance at that time.
Universal gave Rowling anything she wanted, and the rest is theme park history.
Source: Universal
When The Wizarding World of Harry Potter opened, Universal Studios ascended. I’m not even joking.
In 2009, 4.6 million tourists visited Universal’s Islands of Adventure. By 2016, that number had more than doubled to nearly 9.4 million.
Photo: Universal
In calendar 2019, Islands of Adventure crossed 10 million guests. And Universal Studios park planners got the point.
Universal signed an agreement with Nintendo to license a themed land based on various video game franchises. That will be The Next Big Thing.
(Photo by PHILIP FONG/AFP via Getty Images)
Universal Studios Japan’s version of Super Nintendo World has excelled so much that it’s already planning an expansion.
The belief is that Epic Universe will similarly expand Universal’s footprint and market share…and not just because of Nintendo.
Your Move, Disney
Photo: Universal
We should discuss Epic Universe and how it will quietly pressure Walt Disney World.
Currently, virtually everyone agrees that Disney provides a superior experience to Universal Orlando Resort.
Photo: CNBC
I say this because tourists vote with their wallets. Disney dwarfs Universal Studios in attendance, revenue, and other essential metrics.
In a way, Universal is fighting a heroic but unwinnable war. It’s never gonna beat Disney in the tourism battle, at least not during any of our lifetimes.
Photo: NBC Universal
What Universal can do is act like the bratty younger sibling. It can talk lots of smack and irritate for the fun of it. Universal’s doing that, too.
The head of NBCUniversal recently made a delusional comment that indicated Disney was in trouble. Spoiler: Disney’s not.
Photo: Disney
Still, Disney can lose in other ways. Specifically, Disney appears likely to spend the next two years playing defense.
Whenever anyone discusses upcoming theme parks, the conversation starts and ends with Epic Universe.
Photo: Playbuzz.com
How can Disney counter? Wow, that’s tough. I don’t even have a good answer here. Disney has grown…slow with its development.
Remember that Disney announced Pandora — The World of Avatar in 2011, but the themed land wouldn’t open until 2017.
Similarly, Star Wars: Galaxy’s Edge took four years from its announcement and even longer when we include the blue sky phase.
Now, Universal has scheduled the development of an entire theme park to take about three years. Universal’s agility makes Disney look even slower.
Photo: Universal
I mean, the development of the VelociCoaster took, what, a quarter of the time of Tron: Lightcycle Power Run?
Disney’s precision comes at a price and leaves the company vulnerable to criticism.
Epic Universe will make sure that the people in the business of criticizing Disney bring this up repeatedly.
Disney loses the instant Epic Universe opens.
What Happens Next?
Photo: Pexel.com
Universal has remained cagey about the themed lands coming to Epic Universe. We know them, but they remain “speculative” for now.
Still, each one promises to deliver a state-of-the-art experience, just as Super Nintendo World has at Universal Studios Hollywood.
Photo: People
We’ll witness the most modern version possible of The Wizarding World of Harry Potter, with a ride track structure that’s never been attempted.
Similarly, a Super Nintendo World roller coaster will simulate the mine kart levels from Donkey Kong Country. And fans will soar through Berk via well-trained dragons.
Photo: Universal Orlando
As a reminder, neither Universal Studios nor Disney has built a Florida theme park during the 21st century.
So, Epic Universe’s infrastructure will possess an almost unprecedented technological advantage. Universal officials are designing it from the ground up to embrace the internet.
Photo:Rappler
Nobody knew what Google was when Disney’s Animal Kingdom opened in 1998. AOL was still the dominant search engine.
Now, we live in a TikTok era and prepare for Web 3.0. Walt Disney World was built during Web 0.0.
Photo: TikTok
Disney’s management performs admirably in catching up to all the latest innovations, but there are practical limits. Epic Universe won’t face those.
Meanwhile, when Epic Universe debuts, a subplot will be how Disney responds to the local threat in its backyard.
Photo: travellemming.com
For more than 50 years, Disney has dominated Orlando. Once the new park opens, we will witness numerous headlines stating that Universal has surpassed Disney.
None of those claims will have the ring of truth, but they’ll happen, nonetheless. Universal has gotten quite clever in putting Disney on the defensive this way.
How Universal Can Hurt Disney
Photo: Shutterstock
Just the other day, as Disney faced criticism for its layoffs and union negotiations, Universal cleverly raised its minimum wage. Once again, the optics of that hurt Disney.
In short, we’re reaching a point where Disney must start taking Universal seriously. The bratty sibling has discovered all the hurtful pressure points.
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Feature Photo: Universal
