The Ticker

Theme Park Wars: Disney Edging Out Universal, But Everybody Is Losing

By Kirk Shinkle

Posted: April 17, 2009

It's The Mouse Vs. The Movies in the theme park fight, and right now the rodent seems to have a slight upper hand (paw?).

On its blog (sub. req.), Pali Research analyst Richard Greenfield takes a look at theme parks through the lens of GE's earnings (home to the NBC Universal Studios park franchise), and sees Disney coming out ahead in what looks to be a very difficult 2009.

Pali says GE theme park attendance declined 11 percent year-over-year, while Walt Disney World managed to hold traffic flat with a year ago during the March quarter. Pali says Disney is stealing visitors from NBC Universal and Seaworld, and luring a good chunk of vacationers with aggressive promotions.

But Pali is keeping its "sell" rating on Disney, predicting tough times at theme parks won't bottom until fiscal '10 with operating income at parks dropping by half. At least the lines will be shorter.

 

Universal versus Disney

In my opinion Universal blows Disney out of the water. It has all the thrill rides people are looking for, and envelops a memorable experience to share with the entire family. Disney parks get more attendance because they are geared towards the younger crowds. Disney may be doing aggressive promotions right now, but the quality of hotels and parks is inferior to Universal.

melissa of RI @ Apr 27, 2009 19:19:19 PM

disney

Maybe the top executives at Disney and Universal will forego their megamillion compensation packages instead of firing and laying off theme park workers. Then again, maybe not.

murph of IL @ Apr 18, 2009 22:37:09 PM

To Muser

It is the worst thing happening to the employees of those parks, or did you think they were run by Disney and movie characters? Not to mention the suppliers of all the food stuffs/toys/souvenirs that are for sale in those parks. Or how about the employees at the hotels that serve the theme park customers? I think all of these people would beg to differ.

z3irty of IL @ Apr 18, 2009 19:19:53 PM

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The Ticker

The Ticker

Kirk Shinkle is a senior editor at U.S. News. He writes daily about ups and downs in equity markets, sectors and stocks. Formerly, he covered business and economics on both coasts for Investor's Business Daily.

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