Credit: Inside The MagicDisney’s Chief Financial Officer Hugh Johnston took questions today at the UBS Global Media and Communications Conference. In a wide-ranging discussion, Johnston was asked about the future of Disney Parks, given the opening of Universal Orlando Resort’s Epic Universe, and how he sees the future of Disney+.
Disney’s Response to Epic Universe
Like Disney CEO Bob Iger, Johnston admitted that there was a slowdown at Disney’s American parks this summer. However, like Iger, Johnston said that he believes the opening of Epic Universe will be good for both Universal and Disney World.
Johnston said that current reservations for Disney World for summer 2025, which would be the period after Epic Universe opens, are up over last year. However, with the attendance from the previous summer so low, the company only had one place to go, which was up.
He also said that he thinks that Disney World will continue to dominate the theme park industry and offer an experience for families that is “second to none.” Despite the rosy outlook, Johnston also mentioned Universal by name, saying that he believes Disney World’s Central Florida rival will get a more significant market share next year with Epic Universe’s opening
As such, Johnston admitted that Disney has built in some “negatives’ for theme parks next year. He did not specify what those “negatives” were.
Johnston also mentioned that Disney World needs to “be smart” about its pricing, saying that the company wants to make sure that its pricing is at the right spot where families can return multiple times. He also said that Disney World has 100 value days, but the premium days have continued to go up in price.
He also teased that Disney was planning on “investing” large sums of money into its cast; however, he did not elaborate on the details of that investment.
He did not address some of the more significant issues that Disney World faces, including the drastic price increases during school vacations and summers, when families are most likely to visit the parks. Johnston also did not address some future attractions coming to Disney World and a timeline for their completion. He did say that Disney has had some “cautious” building plans over the last few years.
Disney+
Johnston began the discussion on Disney+ by saying that cracking down on password sharing has helped to spawn growth for the streaming service and that Disney+ offers a service that is “second to none.”
Now that Disney+ has added an ESPN tile, Johnston said it is still too early to determine what effect that will have on the streaming product. However, he teased ESPN’s standalone app and said that it will include numerous interactive features, including the ability to interface with BET ESPN on the app.
Johnston said Disney’s success at the box office will only help fuel the success of Disney+, saying, “big movies at the box office drive people to Disney+.”
He also teased that Disney may license other “things” on the platform but did not specify what that meant.
Overall, Johnston did not address some of the more significant issues facing The Walt Disney Company and tried to put a rosy image on the opening of Epic Universe. Only time will tell if his assessment is correct.