Your Move, Disney. There’s Now Increased Competition in Central Florida
Universal’s Epic Universe has finally shown its hand after several years of rumors and delays.
Universal Orlando Resort has promised to build easily its most immersive theme park to date.
In the process, Disney’s primary competitor in the American theme park industry has applied a bit of pressure.
Photo: Universal
Now it’s your move, Disney. How much should our favorite company react to the increased competition in Central Florida?
The Pressure Mounts
Photo: Universal
As I recently explained, Universal’s impending plans don’t impact Disney as much as other competitors.
The American theme park industry is increasingly becoming a two-player game.
Universal
Disney currently claims such a massive amount of market share that Universal’s attempt to gain more territory is a trivial concern.
In Simpsons terms, Disney would need to suffer nine misfortunes to lose the game.
Universal’s plan all along isn’t to overtake Disney. No, it’s simply to make more money.
Those of you who also read UniversalParksBlog have probably grown tired of me saying, “Universal Studios had another record quarter.”
Photo: WESH
I keep saying it because it keeps happening. Remarkably, that statement applies to Disney as well.
Both companies have enjoyed explosive growth and vastly increased profit margins over the past two years.
Not coincidentally, they’re trying to build more attractions, amenities, theme parks, and hotels.
They’re in this arms race because their data suggests that neither company has even come close to matching demand yet.
With Epic Universe, park strategists don’t expect to overtake Walt Disney World in terms of total attendance.
Photo: Universal
Instead, the goal is more modest, yet it IS disruptive to Disney.
The “hidden plan” for Epic Universe is to persuade guests to stretch their Universal Orlando Resort visit by a couple of days.
Right now, many tourists perceive one or two days as plenty for a Universal visit.
Universal
Universal executives hope to increase that number to four or five days, thereby boosting the bottom line by a significant percentage.
That possibility definitely applies pressure to Disney, as Walt Disney World is a weeklong vacation destination.
Photo: Universal
The arrival of Epic Universe could persuade tourists to choose a split stay at Universal and Disney.
Such a change in consumer behavior would impact Disney.
Is Disney Doing Enough?
Photo: Disney/Universal
You can already identify Disney’s problem here.
If the company acknowledges Universal’s plans, Disney effectively says that its competitor is a growing threat.
Conversely, should Disney ignore Universal, it’ll appear arrogant about its market position and maybe a bit out of touch.
Photo: Disneyplanning.com
After all, customers have been begging Disney to announce some new projects for a while.
Instead, Disney has taken the unusual approach of teasing possibilities like the Tropical Americas-themed land.
Also, Disney World may receive an American version of Shanghai Disneyland’s Zootopia or possibly even a fifth gate.
Photo: Disney Parks Blog
Nobody knows for sure because Disney has used recent D23 Parks panels to tease fans rather than provide concrete plans.
That strategy wasn’t a problem for a while because Disney has kept adding at the parks.
Photo: Disney
Since the summer of 2017, Walt Disney World has opened:
- Pandora – The Word of Avatar
- Toy Story Land
- Star Wars: Rise of the Resistance
- Mickey & Minnie’s Runaway Railway
- Remy’s Ratatouille Adventure
- Guardians of the Galaxy: Cosmic Rewind
- Tron Lightcycle / Run
- Journey of Water | Inspired by Moana
I could actually keep going with other mentions like World Celebration Gardens, but you get the point.
Credit: Disney
Still, I should stress that this is just Walt Disney World.
If we included Disneyland, I’d throw in plenty more, starting with Avengers Campus.
Later this year, both parks will add Tiana’s Bayou Adventure, proving that additional enhancements are still to come.
Tiana’s Bayou Adventure in Magic Kingdom
However, once the Tiana water ride opens, the story takes a turn.
Disney hasn’t announced anything major for the timeframe after that, leaving 2025 as a blank canvas.
What happens in 2025? Oh, yeah. Epic Universe opens.
Should Disney Respond?
Photo: Universal
That’s the fascinating part of the conversation.
At the moment, Disney’s current strategy appears to be ceding 2025 to Epic Universe.
Josh D’Amaro and Bob Iger seem to realize that Central Florida’s first new theme park in a quarter-century is a big deal.
(Charley Gallay / Getty Images for Disney)
Nothing that Disney does to respond would be enough to counter a theme park as ambitious as Epic Universe.
We’re talking about upcoming themed lands like Super Nintendo World, Dark Universe aka Universal Classic Monsters, and another Wizarding World.
Photo: Disneyland
Realistically, the only Disney expansion idea that could compete with all that in the short term is an East Coast version of Avengers Campus.
We know that won’t happen because Universal Studios holds the Avengers rights in perpetuity east of the Mississippi River.
Photo: Universal
Universal definitely wouldn’t cede those rights right now since their upcoming theme park possesses all the momentum.
So, we can arbitrarily dismiss most of Disney’s potential counters to Epic Universe.
Even if Disney revealed Zootopia or the Indiana Jones/Encanto conversion of DinoLand, U.S.A., I’m skeptical that would be enough.
Photo: Bethesda
As I just demonstrated, theme park fans have become jaded about expansion.
Critics frequently lament that Disney isn’t doing more at the parks despite the many enhancements I listed above.
It’s Your Move, Disney
Photo: Disney
For Disney to counter Epic Universe, there’s really only one hole card it could play. And you know the one I mean.
If Disney wants to steal attention away from Epic Universe, it must announce an impending fifth gate coming to Walt Disney World.
That’s the bold gambit here that would slow down Universal’s increasing momentum.
Photo: Disney CEO Bob Iger (Getty Images)
The question is whether you or I believe that Disney is ready and willing to do that yet.
Also, even if they did, would Disney work faster than usual in building the park?
If not, we still might not be looking at an opening before 2029, which is an eternity from now.
Photo: Discover Universal
In that scenario, Epic Universe would still siphon attendance from Walt Disney World for roughly four years.
That’s part of the reason why I’m fascinated by Disney’s next move.
Based on any objective analysis, Disney has waited too long to respond to Universal.
Photo: CNBC
Was that by design, or has the Bob Chapek chaos negatively impacted long-term theme park planning?
Only a select few people know the answer to that question, but it’s an important one.
This miscalculation has placed Disney on the defensive in protecting its home turf against Universal’s impending threat.
Mandatory Credit: Photo by JUSTIN LANE/EPA-EFE/Shutterstock
Now, it’s Disney’s move, and nobody’s quite sure which tactic D’Amaro and Iger will take.
All we know for sure is that Disney’s got $42 billion it plans to spend specifically on theme parks.
Depending on who you believe, Epic Universe costs somewhere between $550 million and $1 billion.
Radiator Spring Racers
Disney already spent $1 billion on Radiator Springs and another $1 billion on Star Wars: Galaxy’s Edge.
Friends, Imagineers could do a LOT with $5 billion.
This seems like a good time to mention that Disney has promised $17 billion in Disney World expansion.
Photo: orlandoattractions.com
Right now, we’re just all waiting to see what form this expansion takes.
So, it’s your move, Disney, and the pressure is mounting.
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