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Disney World Has a Problem of Its Own Making | Variety Goes After Disney Parks
The Walt Disney Company’s latest earnings report revealed that even its iconic theme parks are struggling to keep up growth in these financially tight times. The lackluster performance is a reflection of broader trends in the industry, but years of increasingly testing park guests’ tolerance for high ticket prices and added fees may finally be catching up with the House of Mouse.
While Disney had a net positive third quarter, the Experiences sector brought in just $8.4 billion in revenue, representing a paltry 2% growth compared to the same period last year. Operating profit, meanwhile, fell 3% to $2.2 billion. The company attributed the results to "moderation in consumer demand … which exceeded our previous expectations" and noted that the downturn will likely impact its domestic parks for "the next several quarters."
Despite Disney’s ever-expanding portfolio, parks are still a vital part of the bottom line. Disney Experiences, which includes Disney parks and cruise ships, will make up 70% of the company’s total operating revenue in 2023 alone, according to Fast Company. So far this fiscal year, Experiences have accounted for about 40% of Disney’s total revenue.