Disney’s pouring $60B into its parks-and-cruises biz as cable and streaming struggle

Big bet on Main Street… Disney announced plans to nearly double its spending on its parks-and-cruises biz with $60B in investments over the next decade. The world’s largest theme-park owner also runs a cruise line that visits ports in 40 countries. Parks are on pace to earn the Mouse House $10B in profit this year (up ~5X from a decade ago). Despite some recent dips in attendance, overall guest spend at Disney parks is up 42% from 2019 as fans splurge on higher-priced tickets, Mickey merch, and $22 loaded pretzels. 

• Disney’s parks, experiences, and products unit made up over a third of its sales last quarter, growing 13%, while its media and entertainment division sagged.

“Let’s watch a Disney Channel movie”… or not. Its ambitious park plans come at a tough time for its media biz. Last month Disney reportedly held talks to sell its ABC network and TV stations to broadcaster Nexstar as cord-cutting intensifies. It’s also exploring “strategic options” for ESPN. Movies and streamers aren’t doing so hot either.

• Box-office blues: Despite the buzz around “Little Mermaid,” ”Indiana Jones,” and ”Elemental,” this summer Disney lost an estimated $900M at the box office.

• Streaming pause: Disney+ is expected to be tens of millions of subscribers short of its 2024 target after hiking prices, jeopardizing Disney’s goal of making its streaming biz profitable by next September.