Disney’s experiences division, which includes its theme parks, is the best-performing part of Disney’s business as the company tries to adapt to changes in movie and TV viewing habits
Three years ago, Josh D’Amaro stood in a nearly empty Disneyland. In a bold move that has fans and families buzzing, Disney’s Parks is poised to redefine the theme park experience. With a staggering $60 billion investment, they’re set to create magical worlds that will leave visitors spellbound.
From cutting-edge attractions that blend technology and storytelling to expansions that promise even more enchantment, Disney is doubling down on its commitment to joy, wonder, and imagination.
You can also read: Zimbabwe Unveils “Mosi-oa-Tunya” Gold Coins
The California theme park’s Main Street was quiet: no cheery tunes from famed barbershop quartet the Dapper Dans, no clanging railroad bell, and no wafting scent of waffle cones from the Gibson Girl Ice Cream Parlor.
It had been more than a year since the Covid pandemic had forced Disney’s domestic parks to shutter, but D’Amaro, chair of Disney’s experiences division, was confident guests would flood back in when the gates reopened.
His confidence was well-founded. D’Amaro’s division is now Disney’s best-performing segment, rebounding and offering stability in recent quarters as Disney shuffles to adapt its entertainment business to match consumer habits that changed after the pandemic.
Revenue Decline in Disney’s Experiences Division
Key Metrics:
- 2020 Revenue: $26.2 billion
- 2020 Revenue Decline: 35%
- 2020 Revenue Loss: Nearly $10 billion
- 2021 Revenue Decline: Additional 3%
Navigating the Storm
On that quiet day in 2021, D’Amaro had been in charge of the parks, experiences, and consumer products division, now just called experiences, for only a little more than a year. He took the helm when Bob Chapek was tapped as CEO in early 2020. D’Amaro spent much of those 12 months dealing with substantial operating losses from global park closures, a docked fleet of cruise ships, and a plunge in hotel visits.
Revenues fell 35% in 2020, a nearly $10 billion decrease from the $26.2 billion the experiences division had tallied in the year before the pandemic. Then the revenue dropped an additional 3% in 2021.
But a lot has changed in three years. D’Amaro — sitting in a conference room in Burbank, an hour north of Disneyland and just a few miles from the heart of Disney’s theme park creative engine, Walt Disney Imagineering — has much to brag about.
Disney’s record revenue and operating income in fiscal 2023
- Record Revenue: $32.5 Billion in Fiscal 2023
- Revenue Growth: 16% Increase from Prior Year
- Operating Income: $8.95 Billion
- Income Growth: 23% Jump from Previous Year
A Swift Recovery
The experiences division posted record revenue of $32.5 billion in fiscal 2023, a 16% increase from the prior year. Operating income jumped 23% to $8.95 billion.
D’Amaro described the pandemic as ‘an opportunity to take a breath’ and a time for his division to ‘think about what we wanted the future to look like’.
“So, as difficult as that situation was, we saw it as a platform, a new vantage point for us to look at the operation,” he said.
While its parks were shuttered, Disney continued construction of its Avengers Campus-themed land in Disneyland and touched up old favorites such as the King Arthur Carousel. And it built new rides, and refurbished others, in the years that followed.
Investing in the Future
Additionally, the company has revamped attractions and themed park areas, turning the Pacific Wharf area of Disneyland’s California Adventure into San Fransokyo Square, based on the animated hit ‘Big Hero 6’, updating Mickey’s Toon Town at Disneyland and making major transformations at Epcot.
Those investments, coupled with new technology in mobile ordering and the ability for guests to pay to skip to the front of the line for certain rides, have kept guests coming and boosted Disney’s earnings at a time when the entertainment division is struggling to recapture its late-2010s boom.
Disney’s $60 billion investment plan
- Total Investment: $60 Billion over 10 Years
Allocation
- 70% for New Experiences
- 30% for Technology and Infrastructure
A Commitment to Innovation
The division’s strength is why Disney has pledged to invest $60 billion in experiences over the next 10 years — a key part of its strategy to keep the parks fresh and relevant in a competitive segment.
D’Amaro said about 70% of that money will go toward ‘new experiences’ in domestic and international parks, along with cruise lines. The other 30% will go toward technology and infrastructure, including maintenance of existing attractions.
Innovation at theme parks has been a central goal since Walt Disney ran the company. Disney’s founder used to say that its theme parks would ‘never be finished’ and would evolve to meet consumer demand and changing tastes, along with developments in technology.
Looking Ahead
Disney’s experiences division has immediate expansion plans — even before the bulk of the planned $60 billion investment kicks in.
Next to open for Disney is Fantasy Springs, an eighth port at the Tokyo Disney Sea Park. The land will be home to three new areas — inspired by the films ‘Frozen’, ‘Tangled’ and ‘Peter Pan’ — as well as the new Tokyo DisneySea Fantasy Springs Hotel.
Concept and design work is also underway for the Tropical Americas area at Disney’s Animal Kingdom in Florida. There have been no official updates on the previously announced third ride at Avengers Campus in the California Adventure area at Disneyland.
Conclusion
Disney’s commitment to innovation and storytelling continues to drive its experiences division forward. With substantial investments in new attractions, technology, and infrastructure, Disney aims to keep its parks fresh and appealing to guests for years to come. As the company looks to the future, the $60 billion investment stands as a testament to its dedication to creating magical experiences for visitors worldwide.
