Happy Halloween Week! What’s the Scream Economy?
This week marks the official Halloween holiday, something you may have forgotten.
After all, Disney started decorating its parks with spooky themes and spiderwebs all the way back in July.
Halloween time in Magic Kingdom
So, Halloween itself may feel like a bit of a formality for Disney fans, but it represents so much more to theme parks.
These businesses refer to Halloween festivities by a different term: the Scream Economy.
Halloween decor in Magic Kingdom
What’s the Scream Economy? Read on to find out!
Defining the Scream Economy
In simplest terms, the Scream Economy opens the moment you notice the first Spirit Halloween of the year.
These pop-up stores vampire leases from dead businesses that previously built infrastructure.
Photo: Spirit Halloween
Since the landowner is making zero money from a large retail space, it leases the building to Spirit Halloween for a modest fee.
Here’s a recent CNBC video explaining how Spirit Halloween became a billion-dollar business:
Long story short, they buy low and sell high. It really is that simple because the business is seasonal.
Spirit Halloween is in the business of selling the cheapest Halloween costumes and decorations imaginable at massive mark-up prices.
In fact, Spirit Halloween is trying something new year: Spirit Christmas.
Photo: Spirit Halloween
By adopting this approach, it’ll get two paychecks since it doubles the business model.
The Halloween aspect of the business has proven so lucrative because some people are so passionate about the holiday.
Photo: Spirit Halloween
Halloween has grown into an obsession for its most dedicated fans, and it’s been true for many years now.
If you don’t believe me, here’s an NPR article from 2008 (!) discussing the explosive growth of this niche industry.
Trick-or-Treat Bag
Even during the economic collapse of that era, people spent more than $5 billion annually on Halloween.
So, the Scream Economy has been a thing for a while now. It merely lacked a catchy name.
The Scream Economy at Theme Parks
You may not realize this, but Spirit Halloween has been in business since 1983.
However, you likely never heard about it until the past 25 years. That’s after Spencer Gifts acquired the business in 1999.
Photo: Mike Mozart/Flickr
In a way, 2005 was the year that changed everything, as Spencer Gifts added an online store for its merchandise.
Since then, the business has quadrupled its stores to roughly 1,600 in operation today…but not next week since that’s after Halloween.
Photo: Spirit Halloween
Only a few of these stores remain open throughout the year.
That seasonal philosophy describes theme parks as well. Several of them have been in fierce competition for ages now.
Photo: Disney
Not that long ago, fans considered Fall the offseason. Nowadays, people spend August-October embracing the Scream Economy.
You could argue that the race in Florida began in 1991. Universal Studios Florida had opened the previous year.
Universal Orlando
As a holiday offering to survive a slow Fall, Universal unveiled Halloween Horror Nights (HHN), and the rest is theme park history.
I’m not exaggerating when I say that Universal executives privately – and sometimes publicly – refer to HHN as the theme parks’ “thirteenth month” of revenue.
Halloween Horror Nights
You can imagine how much money Universal must make on HHN to feel that way.
The Rise of the Scream Economy at Theme Parks
Walt Disney World officials noticed that HHN had proven an unusually strong draw at Universal Orlando Resort.
So, the more family-friendly version of the concept, Mickey’s Not-So-Scary Halloween Party, debuted a few years later in 1995.
Mickey’s Not-So-Scary Halloween Party in Magic Kingdom
That’s not to say that Universal Studios invented the concept. No, that honor belongs to Knott’s Berry Farm, a Southern California institution. In 1973, more than 50 years ago, the park transformed into Knott’s Scary Farm and unveiled its horror mazes.
The rest is theme park history, and Disney knows it. Disneyland’s Oogie Boogie Bash – A Disney Halloween Party “borrows” elements from Knott’s Scary Farm.
Oogie Boogie Will Take Over DCA!
You can compare these two videos to recognize how much inspiration Disneyland has drawn from its local neighbor/competitor:
In watching them, there’s a good chance you thought, “I gotta visit Southern California at Halloween!”
You wouldn’t be the only one. All the Oogie Bash tickets for this year’s after-hours events sold out. In June.
Mickey’s Not-So-Scary Halloween Party offers many more dates, yet it sold its entire ticket allotment by September.
Mickey’s Not-So-Scary Halloween Party sold out
Yes, five weeks before Halloween, every related Disney event had sold out.
According to Forbes, Universal Studios spends more than $100 million creating and marketing its signature Halloween event.
Photo: Discover Universal
If we use the “thirteenth month” quote literally with regards to overall park revenue, Universal would gross nearly $700 million for HHN.
In fiscal 2023, Universal theme parks earned just under $9 billion. When we divide that by 13, it’s $688 million.
Photo: Discover Universal
That’s sloppy math, to be sure, yet it underscores how lucrative the Scream Economy is at theme parks.
Not coincidentally, Universal Studios has licensed a permanent installation of Halloween Horror Nights at Las Vegas’ upcoming expansion of Area15.
Photo: Universal
Their version of the Scream Economy is about to become a year-round business.
Disney Embraces the Scream Economy
Earlier, I mentioned the July theme park transformation. That’s not accidental.
Disney officials are substantially less worried about the absurdity of the thought than they are about the potential revenue.
Halloween Balloons
Mickey’s Not-So-Scary Halloween Party tickets range from $119-$199 per adult.
Legendary Disney analyst Len Testa recently speculated that the combination of party tickets and ancillary food/merchandise revenue totaled $125 million.
Mickey’s Not-So-Scary Halloween Party Ears
That’s just for Walt Disney World’s Halloween party, not including any additional daily park revenue. And that’s just one Disney park!
Disney has meticulously crafted a cottage industry of Halloween merchandise, some of which is exclusive to the after-hours party.
Scary Teddy Bucket
At Disneyland, demand for the Oogie Boogie Bash regularly shuts down Disney’s entire ticket system.
The event is simply too popular for Disney’s tech to handle the traffic surge.
Photo: Disney
So, you understand why Mickey’s Not-So-Scary Halloween Party starts earlier than ever and includes more dates than just a few years ago.
Disney wants to squeeze every penny from the Scream Economy during the season, even if that means forcing the season to start on August 9th.
Mickey’s Not-So-Scary Halloween Party
Like Universal and Knott’s Berry Farm, Disney is all-in on the spooky season as a lucrative business model.
In 2025, the company will add a show attraction based on Disney Villains. Then, in 2029 or so, an entire Villains-themed land will debut.
Photo: Disney
That’s Disney’s attempt to turn the Scream Economy into a year-round revenue stream. It’s that lucrative a business.
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