- On Tuesday, Disney announced that it will nearly increase its planned investment in its parks business to approximately $60 billion.
- While struggling to generate profit from streaming, the theme parks have been a relatively positive aspect for the company.
- Despite this, the attendance and hotel room purchases at the domestic parks, particularly Walt Disney World in Florida, have experienced a decline.
April 2022 marked the 50th anniversary of Disney World.
Aeronp | Bauer-Griffin GC Images | getty images
Disney revealed on Tuesday that it will almost double its planned investment in the company’s parks and cruise business.
In a securities filing, the company stated that it would nearly double its planned investment, totaling around $60 billion over the course of 10 years.
Amidst navigating the changing media and entertainment landscape and striving to make its streaming business profitable, Disney’s theme parks, experiences, and products division has been a bright spot.
However, the attendance and hotel room purchases at the domestic parks, particularly Walt Disney World in Florida, have decreased. Conversely, the division experienced strength through its international parks, with a revenue increase of 13% to $8.3 billion in the third quarter.
Further details about the investment will be disclosed at Disney’s investor day on Tuesday.
Disney emphasized the remarkable outcomes of the parks and experiences business since 2017 due to increased investment. Like its counterparts, Disney’s parks also suffered during the pandemic lockdowns.
Similar to Disney, Comcast’s Universal Park in Florida encountered a comparable decline.
The increased investment coincides with Disney’s involvement in lawsuits with Florida Governor Ron DeSantis, which could impact the planned expansion of the Orlando location in the coming years.
Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC.
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Source: www.cnbc.com
