Disney is greatly expanding its investment into theme parks and cruises, the company said Tuesday.
Over the next 10 years, it will pour $60 billion into its Disney Parks, Experiences and Products segment, according to an SEC filing which coincided with its investor summit taking place this week. That’s about twice what it spent in the most recent 10-year period.
The investment comes at a time the company is facing revenue challenges in its streaming services, movie and television assets — almost everywhere but its international theme parks.
Parks are a powerful growth engine for the company, which says the expansion should help it reach a multitude of Disney fans who aren’t already visitors. But competition is fierce, and fans might be growing impatient with what they see as Disney’s disappointingly slow-moving park strategy.
NBCUniversal’s Universal Epic Universe is slated to open in Orlando, Florida in 2025. The theme park, which was announced in 2019, is set to include restaurants, hotels and, of course, rides. It will become the third theme park within the Universal Orlando Resort, stepping up its rivalry with Walt Disney World’s four theme parks.
The announcement failed to impress Wall Street. Disney slumped about 3% during trading hours Tuesday.
Disney said Tuesday that it is focused on “expanding and enhancing” its theme parks, in the US and internationally, along with its cruise lines.
Higher prices could be a turnoff for visitors, as well. Disney World increased some ticket prices twice last year.
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