Home Disney News Park Attendance and Disney+ Subscriptions Down, Disney Stock Tanks after Chapek Call

Park Attendance and Disney+ Subscriptions Down, Disney Stock Tanks after Chapek Call

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Park Attendance and Disney+ Subscriptions Down, Disney Stock Tanks after Chapek Call
credit: Disney

Disney CEO Bob Chapek participated in a Q&A where he shared information on park attendance, the Disney+ streaming service, and more. But, it wasn’t all dole whips and castles. See what he had to say and the affect it had on Disney stock.

Goldman Sachs 30th Annual Communacopia Conference

Credit: Disney

Disney CEO Bob Chapek participated in the Goldman Sachs 30th annual Communacopia Conference today, September 21. We were able to follow along and learn more from Chapek about where the company is headed.

Pandemic

Credit: Marisol

The conversation started with talk of the pandemic and its effects on the company. Chapek believes they emerged well – mostly due to the company’s knack for storytelling.

The pandemic also brought increased investment in content and direct-to-consumer efforts. We saw this the bypass of theatrical releases for many films like Cruella and Black Widow.

Interestingly, he said that they used the park closure to focus on the Guest experience. As we all know, so many things have been eliminated from the parks while new things have been added.

Credit: Disney

He says the park pass reservation system has been a success and it allows them to control demand between theme park/resort guests and annual pass/Magic Key.

I would venture to guess most people would disagree with him on both counts. Many claim the magic has disappeared from the parks with the lack of entertainment and new procedures.

The company has also learned to be flexible in all operations.

Destinations

Credit: Disney

When asked about the delta variant’s impact, he does note that park attendance dropped since the last earnings call, but it did rebound a bit after Labor Day. You may remember the extremely low waits that took place at the end of August. September is generally a slow time anyway, but this month has been slower than past years.

The 50th anniversary is just days away, and we know that crowds will be flocking in to see what Disney has to offer. We also know Genie is coming some time this fall, hopefully before or right around October 1.

Credit: Disney Parks Blog

Chapek says Genie will continue to be more robust as time goes on and new features will be added. That is all that was mentioned about that new service, much to my dismay.

Turning to Disney Cruise Line, he notes that cruise demand is higher in the second half of 2022 than the first half of 2022. I’m assuming many are delaying cruises to see how the virus progresses or regresses.

Streaming Services

Credit: D23

The next topic to be covered was streaming, and this is where Chapek spent most of his time. he says the company wants a multi platform strategy versus an all-in-one package to allow customers the choice to bundle or go a la carte depending on their needs.

Next, he talked about Star+ and its slow start. He mentioned that it has been successful despite the challenges they had to overcome launching across multiple markets and currencies.

The company admits it has been slow, but he expects it will ramp up quickly. He also points out that subscriber numbers are not linear, meaning it hasn’t followed the trend they were anticipating, but he is optimistic about long term trends.

Credit: Disney+

Chapek encourages analysts to not put too much thought into the numbers.

He also discussed shortened theatrical releases and how that may be a possibility in the future. For example, he mentioned a film debuting in theaters at Thanksgiving and streaming on Christmas.

Disney+ Day

Credit: Disney+

There are currently 61 movies and 17 shows currently in development. Disney+ Day will take place on November 12 and will be a yearly event. The point of it, Chapek says, is to celebrate Disney+ and its fans.

It will be a “surprise” and “delight”, and he hinted that Shang-Chi will be available to stream on Disney+ Day.

Currently, the company is happy with the streaming service strategy, but they are open to changing it in the future. That could include putting ads on Disney+.

Disney Stock

Credit: Disney

During the call, Disney stock dropped big time. The call began at 2:05 pm Eastern time, and stock was at $179. By 2:25 pm, it dropped to $171. To give you a better idea, it has stayed $180-$185 for most of the past month.

It rebounded a bit, dropped, and so on throughout the call. At time of writing, it is at $172 which is a drop of 3.5%.

It seems to me that investors didn’t like to hear him talk about the decrease in park attendance and Disney+ subscriptions.

What do you think of this conference? Share your thoughts with us on Facebook.

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32 COMMENTS

  1. A publicly traded company that no longer pays dividends. The stock price probably tanked because of the disappointing information in addition to no mention about when dividends will return. All this price gouging and shareholders still get nothing? I am a shareholder and a Cast Member. Even Cast Member perks have been taken away. There is a reason an employee class action case is moving forward in California.

  2. I agree. I am a DVC member and an AP holder at DW, but don’t know what to expect when we try to go to DL in the spring. The other issue we have a family of 11 going to DW in November and we couldn’t even make dining reservations for over 6 so we will have our family eating at different times at the restaurant. We can’t even make reservations for the family. This has to change as who wants to go on vacation together and not be able to eat together?
    Do not understand the Genie or Genie + and resent having to pay for fast passes on top of higher park tickets, not so great room cleaning, park cleaning and having to be on the phone to order meals and watch everything else. We go on vacation to get OFF our phones on be glued to them more on vacation then when home. And then you pay to go into a park for a ride that you can’t even get onto unless you were lucky and got a boarding pass OR I have paid for park admission and then have to pay more to get on a ride or spend the day in line. It is all so disappointing!

  3. Disney has prioritized profit at the expense of quality in all aspects of its business. They also have become inherently political and also immoral in their behavior alienating major sectors of their customer base.
    The way they treat their hired talent is disturbing. The mouse has become a tyrant in many ways.

  4. I notice nothing mentioned about the rest of Disney Stores closing this month except for twenty. Did Paycheck say anything about that? If the company is focused on guest experience, why close the best guest experience you have outside the parks?

  5. I’m a stockholder AND regular at Disneyland. Cheapek has ruined it. I bought a Magic Key and hate it and I’m not looking foreward to Genie. I bought srock in the Magical Disney of old; not this all for the big bucks over the experience Disney. I hate having to deal with my cellphone outside and inside the park. I highly doubt that I’ll renew my Magic Key and will sell my stock (for whatever the price will be) if this crap continues. I’m sure that Walt is turning over in his grave.

  6. Chepak is the problem. He does not share Walt’s values nor does he care about his customers, employees or actors.

    Investors are just starting to realize that they bite into this poison apple stock. Chepak thinks he is Prince Charming, and that his special magic will resurrect this Sleeping Beauty.

    However he is confused, as he really is the Genie which granted temporary stock wishes to his investors.

    He has one last wish, so the investors better rub his head and wish for everything to go back to the way it was, before Disney goes poof!!

  7. The magic key basically sucks. The whole reservation system sucks. I have to do all my planning at midnight or continually check my phone to try and go. The last thing I really want is to spend more time looking at my phone. Which is what it seems like you have to do while you are in the park getting in a “virtual” line or trying to reserve food. Pretty much sucks all the way around

  8. “Focus on the Guest experience”… LMAO!! That’s an interesting way to say ” we’re raising prices on everything so the people who can still afford it will have shorter lines and fewer crowds”. Is anyone else old enough to remember when the Disney park experience was accessible to almost everyone??

  9. The system is too massive and confusing, especially for someone that hasn’t been there. I have eleven family members coming with me from ages 2-69. How can we possibly decide for everyone and make such advance reservations. This isn’t fun!

  10. At this rate. Bob cheapek is starting to become one of the worst CEOs in Disney’s history. Yes, even worse than Micheal eisener. Heck even Micheal eisener vision was more creative than cheapek. Cheapeks vision looks like something that EA or Activision should hire him for. Oh how the mighty has fallen. The downfall of Disney could be one reason why I stopped going on vacations with my mother because she’s a DVC member. In fact, the downfall of Disney could also be another reason why I would now prefer going to kings Dominion (a cedar fair park) as my theme park vacation destination. Because at least cedar fair has consumer friendly prices and perks where as Disney nowadays on the other hand has now unfortunately has become the most anti-consumer place on earth, thanks to their grave mistake of a CEO

  11. The magical guest experience is gone. It’s become complicated to go to the parks and ride rides. It’s all about gouging. I mean look at the prices to stay in one of their value hotel rooms now. It’s just outrageous especially for the middle man. For the past 20+ years I’ve flown from upstate NY to Disneyworld but now I’m done. I’m not going to pay more money to have an unmagical expensive time.

  12. Y’all know Disney is a publicly traded business right? They’ll raise prices and discontinue services until the customer base stops attending.

  13. Disney+ doesn’t have enough adult content and the good shows ar not getting released fast enough. And with COVID going on the prices are still going up??? Baffles me how that works. I have been separating my ticket and flight purchase 6-7 months in advance before my hotel payment to make it more affordable for myself a solo Disney traveler this year.

  14. I am a planner so the park reservation system works for me. The only thing I do not like is the mask policy. With the new variant and many people still not vaccinated, I think the mask policy should be kept in place. I was there in March, and we felt safe with the physical distancing and the masks outside. I was there the second week in September, and I did not feel safe — no physical distancing and no masks outside. I will go again in December, physically distance myself and my family, and we will all wear masks. It is hard for me to understand why people complain about safety. As for pricing, everything everywhere is getting more expensive.

  15. People are voting with their feet around the hotels
    There will be decreased UK attendance due to reductions in what was previously offered- no magical express- the missing Disney dining plan: magic bands – all these things balanced the cost to some degree.
    I may as well stay off site now and save my bucks and use them to ensure my holiday is as special as I can make it as opposed to Disney doing their upmost to define the magic for me

  16. I agree!! We are planning a trip for next year, but the more I read of all the things gs changing, I am not so sure. Money hungry is how I feel they are becoming.

  17. Okay. I’ve said it before and I’ll say it again. I think he’s full of it. The Park Reservation system is horrible. I have to plan day, weeks, months in advance for what days I want to go where. I HATE it. How do I know what park I want to visit months in advance. What if its hot or colder or rainy the days I chose months in advance and I need to change days and there’s no availability. For 50 years they’ve been handling crowds and now all of a sudden they can’t. I feel bad saying this but right now I have no desire to visit WDW and I’m a DVC Member and have been visiting the parks since 1972. It’s sad and I’m feeling blue. You all my not agree with me but thieve are my feelings. One more thing (it’s only MY feeling). I feel like Disney does not care about the guests. It’s all about the MONEY and that makes me even sadder. Thank you Monica for your honest and informative reports. They are appreciated. :) Stitch Fan

  18. Maybe attendance is down because they have failed on so many levels giving us The “guest” experience. Does any one know what exactly the 50 ann day festivities actually are? I don’t. I hear there are still rooms available……who is in charge of this planning?

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