Disney Profits Drop 32 Percent

Jacca5660 · Post by **Jacca5660** » Feb Wed 04, 2009 4:32 am

Here's the story:

http://www.cbsnews.com/stories/2009/02/ ... arch_story

I wonder how this is going affect what's going on in the parks?

agingerbugg · Post by **agingerbugg** » Feb Wed 04, 2009 1:48 pm

Probably more job cuts or at least a hiring freeze, reduction of shows/events, upping of prices (but they would do that with a 320% increase in profits), outsourcing of non-essentials.

Or if we don't want to see the glass half empty, better deals to bring in the tourists. Perhaps special rates for Florida residents, like they did after 9/11. Extending the buy four get three deal all year. Rescind Iger's bonus (stop laughing, I couldn't help myself)?

The economy is just bad all around, I saw yesterday that the only auto company to increase sales was Hyundai last month and that is because they are offering to let you return your newly purchased car if you loose your job (and meet all the strict conditions that apply).

One thing that would help a lot, I think, would be to reduce the ticket price to match with the rate of inflation. I think I read somewhere that it should only be around $35, not $76. If they reduced the cost of entry, but not the cost of the food or merchandise, I think that would be enough to increase the number of people coming to the parks. If a family of four could enter the park for around $120 instead of $500 more people would be willing to vacation there.

Josh Q · Post by **Josh Q** » Feb Wed 04, 2009 2:19 pm

If a family of four could enter the park for around $120 instead of $500 more people would be willing to vacation there

I agree 100%

Gymfan15 · Post by **Gymfan15** » Feb Wed 04, 2009 3:58 pm

Y'know...if you reverse the numbers here...it's 23! The secret to the Disney campaign! We've figured it out!

........

Ok, lame attempt at a joke.

Obviously any time of profit drop is bad, especially in times like these. We'll probably see a lot of entertainment cuts...I know Disneyland has had a bunch already, with more likely to come. That means less performers in the parades, less characters walking around, less shows...if it can be cut, it probably will.

I don't know how much they can get away with cutting ticket prices, especially in Disneyland, because if you cut the normal ticket prices, then you have to cut the APs, and then suddenly everyone and their dog are buying AP's, and those people rarely spend money in-park anyway and wouldn't help Disney at all.

Post by **Len90** » Feb Thu 05, 2009 2:16 am

This is not as bad as it could have been. Remember in these tough economic times, Disney is STILL making a profit.

elizabethswann · Post by **elizabethswann** » Feb Thu 05, 2009 2:17 am

Len90 wrote:This is not as bad as it could have been. Remember in these tough economic times, Disney is STILL making a profit.

Pretty much, yes.

Jacca5660 · Post by **Jacca5660** » Feb Thu 05, 2009 2:38 am

Len90 wrote:This is not as bad as it could have been. Remember in these tough economic times, Disney is STILL making a profit.

Also remember..it's says profits are down. That means Disney isn't making as much money as they want to make. It's not a loss. Disney will react like they've loss money. If from what I hear is correct, Disney has been looking for any reason to cut back services. Now they'll make like they're in the red. Somebody said something about Disney lowering prices...YEA RIGHT!! Disney will give us less for more, WATCH!

agingerbugg · Post by **agingerbugg** » Feb Thu 05, 2009 8:27 am

Jacca5660 wrote: Also remember..it's says profits are down. That means Disney isn't making as much money as they want to make. It's not a loss. Disney will react like they've loss money. If from what I hear is correct, Disney has been looking for any reason to cut back services. Now they'll make like they're in the red. Somebody said something about Disney lowering prices...YEA RIGHT!! Disney will give us less for more, WATCH!

I agree totally, the mention of Disney lowering prices was my optimistic (and by "optimistic" I mean pigs are flying and Hell has frozen over) view.

gymfan15 wrote:I don't know how much they can get away with cutting ticket prices, especially in Disneyland, because if you cut the normal ticket prices, then you have to cut the APs, and then suddenly everyone and their dog are buying AP's, and those people rarely spend money in-park anyway and wouldn't help Disney at all.

Not necessarily. With an AP you get more benefits and the price really isn't that unreasonable considering you can access any of that resorts parks 365 days a year. The place where they would see the most increase in sales is the one-day, one-park passes. Especially for the locals who want to kill a Saturday but don't want to commit to an AP or resident pass. Or if they won't drop the ticket price, at least get rid of the parkhopper option, make it inclusive with a one-day ticket (like back in the day) and don't put expiration dates on the tickets.

My parents still have passes from the mid-80's when we moved to Florida, back when they stamped the date of entry. They are still valid, even after 25 years.

disneydreamer58 · Post by **disneydreamer58** » Feb Thu 05, 2009 9:26 am

I have a friend who has a friend who works in the HR dept at WDW (exact location I am not sure) anyway...she said the parks attendance is high and hotels are full Where Disney is feeling the crunch is in it's merchandise sells, they have gone way down. She said that is where this bad economy is hitting them hard. People just can't justify buying a $40 t-shirt just because it's "Disney" during these hard times.

I asked my friend to ask her about applying for jobs with Disney. She told my friend that they are looking at laying off or offering exit plans for executives. Thus secretaries will be affect and those that can be re-assigned will be the others, not so sure on their fate.

Now is when I might consider buying Disney stock since it is low, cause we all know you can't keep a good Mouse down!!!!

Jacca5660 · Post by **Jacca5660** » Feb Thu 05, 2009 9:30 am

disneydreamer58 wrote:I have a friend who has a friend who works in the HR dept at WDW (exact location I am not sure) anyway...she said the parks attendance is high and hotels are full Where Disney is feeling the crunch is in it's merchandise sells, they have gone way down. She said that is where this bad economy is hitting them hard. People just can't justify buying a $40 t-shirt just because it's "Disney" during these hard times.

I asked my friend to ask her about applying for jobs with Disney. She told my friend that they are looking at laying off or offering exit plans for executives. Thus secretaries will be affect and those that can be re-assigned will be the others, not so sure on their fate.

Now is when I might consider buying Disney stock since it is low, cause we all know you can't keep a good Mouse down!!!!

Disney stock is down some, but it HAS been stagnate for sometime now, like the last 10 or 12 years or more.

disneydreamer58 · Post by **disneydreamer58** » Feb Thu 05, 2009 9:39 am

Jacca5660 wrote:
Disney stock is down some, but it HAS been stagnate for sometime now, like the last 10 or 12 years or more.

*stagnate for sometime now* Kinda like my salary at work

Jacca5660 · Post by **Jacca5660** » Feb Thu 05, 2009 10:26 am

WOW!! I wish salaries were just stagnate. It seems like they are always looking to take something away. I mean we all have to sacrifice so our bosses won't be second homeless. How embarrassing not to have a beach house!

Post by **Len90** » Feb Thu 05, 2009 7:41 pm

Jacca5660 wrote:
disneydreamer58 wrote:I have a friend who has a friend who works in the HR dept at WDW (exact location I am not sure) anyway...she said the parks attendance is high and hotels are full Where Disney is feeling the crunch is in it's merchandise sells, they have gone way down. She said that is where this bad economy is hitting them hard. People just can't justify buying a $40 t-shirt just because it's "Disney" during these hard times.

I asked my friend to ask her about applying for jobs with Disney. She told my friend that they are looking at laying off or offering exit plans for executives. Thus secretaries will be affect and those that can be re-assigned will be the others, not so sure on their fate.

Now is when I might consider buying Disney stock since it is low, cause we all know you can't keep a good Mouse down!!!!
Disney stock is down some, but it HAS been stagnate for sometime now, like the last 10 or 12 years or more.

It's pretty low right now. My personal opinion is that in this tough economy, if you have money, buy stocks. Disney is at the cheapest price that I recall seeing in recent years. The merchandise being hit first makes a lot of sense. I guess next would be the deluxe hotels as people look to make it more affordable.

elizabethswann · Post by **elizabethswann** » Feb Thu 05, 2009 7:44 pm

This should tell Disney to drop their ticket prices at least twenty or thirty bucks. 70 bucks for a single park ticket it still too much to pay (even though I have an AP, I shouldn't say anything) and merchandise can be a bit cheaper too. Let's go back to the early 90s (say 1990?) when the tickets were only $25.50. Sigh, I miss the past too much.

agingerbugg · Post by **agingerbugg** » Feb Fri 06, 2009 9:11 am

In late 2000/early 2001 when the tech bubble burst and Disney lost profits from that they offered a special ticket to Florida residents. For only $99 we got a four-day parkhopper. It was a great deal, I ended up buying two of them, which allowed me to see the MSELP when it returned briefly in 2001. Something like that would be nice again.