On May 21st, NBCUniversal unveiled celebrities, drones, fireworks, large water fountains reminiscent of the Bellagio, and narration by Steven Spielberg to officially launch its largest venture into immersive entertainment experiences: Epic Universe, located in Orlando, Florida.
Just a few hours prior to the festivities, Brian Roberts, Comcast’s CEO, was still contemplating the true significance of this “moment of pride” for his company. From the steps of Epic’s Atlantic Restaurant, he gazed upon the fountains and gardens of Celestial Park, the heart of the theme park (approximately a decade in development at an estimated cost of over $7 billion) that links the entrances to its themed realms via portals.
In this version, I’ve tried to keep the meaning consistent while using simpler and more natural phrasing.
Roberts mentioned that it currently appears as its worst state yet, but reminded everyone that just a while back, it was merely a patch of dirt not far from the Orange County Convention Center. He expressed optimism, stating that it would flourish, develop, and thrive over time.
In a time when conventional media such as pay-TV and movies are experiencing difficulties or inconsistencies, while streaming is expanding but not yet matching the profitability of past media, live experiences have become a significant strategic focus. Among all companies, The Walt Disney Company and Comcast’s NBCUniversal are investing significantly more funds into this area. Disney has publicly pledged $60 billion in capital expenditures, while Universal is also investing billions, though Comcast president Mike Cavanagh jokingly remarks that they don’t discuss the exact billions of dollars invested in detail.
As a gaming enthusiast, I can confidently say that the current trend is seeing an unprecedented surge for theme parks and immersive experiences. It seems like a golden opportunity for many companies to expand, not just in terms of growth but also profitability. Scott Purdy, KPMG U.S. media leader, puts it perfectly: “It’s a lever for growth and profit for these businesses.”
If you compare the profits from these parks and experiences with struggling traditional businesses or even top-tier streaming services, you’ll find that their margins are significantly higher. It’s a trend worth keeping an eye on!
For instance, Disney revealed that its experiences and merchandise segment generated approximately $34.2 billion in sales during fiscal year 2024, yielding an operating income of about $9.3 billion. In comparison, NBCUniversal’s theme park division brought in roughly $8.6 billion in revenue for the same year, with an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $2.9 billion.
The enterprise is seizing the opportunity that the market presents, catering to a need for people seeking a break from their screens, even if it involves characters derived from the very platforms they’re trying to avoid.
As a gamer, I can’t help but feel excited about the present moment in this industry. It’s like a dream come true as we witness the perfect blend of captivating narratives, groundbreaking technology, and tangible experiences merging together. This is what gamers and consumers yearn for – an immersive experience that transports us into another world.
According to Cavanagh, one great aspect of the business world is that nothing can replicate the authenticity of being present in person. He also points out some changes in how entertainment is consumed. “When you’re here, you tend to leave your phone aside, becoming fully engrossed and truly experiencing everything,” he adds.
More and more, these experiences will become worldwide phenomena. While Disney and Universal have set strong foundations in their primary locations like Orlando, Florida, and Southern California, the future growth seems to be taking place globally, with new parks popping up all over the world.
In April, Universal revealed its intention to construct a multi-billion dollar theme park within the U.K., while in May, Disney unveiled a partnership for establishing a resort on Yas Island, Abu Dhabi, which D’Amaro described as their most technologically advanced park so far.
The underlying idea behind global investments is that although numerous consumers travel to Florida or California for theme park fun, opening nearby alternatives could broaden the market to those who can’t afford travel expenses or face other obstacles. Currently, these companies have outlets in China and Japan, while Disneyland Paris serves as their European base.
Each thinks they possess a unique recipe, or “secret sauce,” which sets their theme park experiences apart from the many options available today.
D’Amaro states that no other company matches our level of investment in technology, a trait that remains true for us today. Furthermore, there isn’t another company with the extensive physical and digital infrastructure we possess to share our stories and connect with consumers worldwide. Essentially, due to our unique blend of intellectual property, technology, and platforms, The Walt Disney Company stands alone.
Without a doubt, intellectual property lies at the core of each company’s unique business operations, and their methods for handling it vary significantly.
In this sentence, I have attempted to maintain the original meaning while making it easier to read and understand by breaking down the complex phrase “company’s experiences business” into “each company’s unique business operations.” Additionally, I replaced “their approach to it” with “their methods for handling it,” which is more straightforward.
Disney has always aimed to use all its intellectual properties when developing unique experiences, dating back to the inauguration of Disneyland, where rides based on Peter Pan and Snow White were main attractions. They’ve also been smart about utilizing acquisitions to achieve this goal. For instance, look at the recent and forthcoming expansions in Disneyland, Anaheim, which include areas and attractions inspired by Star Wars (acquired in 2012), Marvel (acquired in 2009), and Avatar (acquired in 2019).
As a gamer, I’m constantly part of Kevin Feige’s creative journey. Whenever he envisions his next Marvel masterpiece, I’m there, along with my team, brainstorming about the intricate worlds and vibrant characters that will spring to life. We’re not just thinking about movies anymore; we’re considering how these tales will unfold beyond the screen – into theme parks, attractions, merchandise, even video games. This planning begins right from the onset of the creative process, making sure every medium is as immersive and exciting as the next Marvel movie.
As a dedicated fan, I can’t help but marvel at the ingenious approach Universal has taken with their Epic Universe project. Instead of relying solely on their own intellectual properties like the Isle of Berk from How to Train Your Dragon and the terrifying duo of Frankenstein and Dracula from Universal Monsters, they’ve also smartly partnered with external parties who possess captivating intellectual properties. This strategic move is all about convincing rights owners that their beloved worlds and characters will resonate even more deeply within the hearts of fans when brought to life in the Universal parks. Just look at the spellbinding success of the Harry Potter lands in Orlando, or the nostalgia-inducing Super Nintendo worlds found in Florida, California, and Japan. It’s a brilliant way to expand the universe of fun!
Cavanagh stated that no creator would resist seeing their intellectual property presented as it will be in these parks. He emphasized that this experience encourages creators to produce additional books, movies, and television shows based on the infused IP.
At Epic Universe by Universal, they’ve fully committed to making each realm feel like a genuine step into the enchanting realms of stories such as Harry Potter or How to Train Your Dragon. This immersive experience is carried over from Celestial Park to every accessible land, allowing visitors to truly believe they’ve been transported into these fictional worlds. Similarly, Disney is expanding its parks with new areas that strive for the same level of immersion, inspired by the success of Star Wars: Galaxy’s Edge and Pandora in Animal Kingdom.
In the vicinity of a Donkey Kong roller coaster within Super Nintendo Land, Epic Universe’s creative head, Steve Tatham, reminisced about the close collaboration with Nintendo creative, Shigeru Miyamoto, during the development process. “We collaborated to highlight the essential elements,” Tatham explained. “Thus, it wasn’t primarily about replicating a specific movie scene or video game level, but rather understanding what makes those characters and tales compelling.
According to KPMG’s Purdy, this move is aimed at profiting from intellectual property, and it’s important to note that this strategy has been successful in the past. In contrast, streaming is the least established method. Purdy also points out that for big-scale projects, there are only a few viable options for expansion.
Beyond building grand global flagship resorts, both companies are also investing significantly in smaller-scale projects too. For instance, Disney has been around for 30 years with its Disney Cruise Line and now plans to boost it substantially. The company aims to double the size of its cruise fleet by 2031, aiming to expand the reach of its elaborately themed ships to more ports and destinations. Later this year, the Disney Adventure is set to debut from its new home port in Singapore.
Universal is testing out two fresh ideas in the United States: a continuous haunted house attraction called Horror Unleashed, set to debut next month in Las Vegas, and another location that will replace an old Chicago Tribune building in Chicago by 2027. Additionally, the company plans to open a smaller-scale theme park in Frisco, Texas, next year, which is a suburb, focusing on families with younger children, offering attractions centered around Shrek, Trolls, and Spongebob Squarepants.
Regardless of the fierce rivalry, executives from both firms secretly (with certain exceptions even acknowledging it openly) recognize that their respective investments benefit each other, particularly in Orlando, where this collaboration seems to be mutually advantageous.
If a new attraction such as Epic Universe is constructed in central Florida, it’s likely that any new tourists drawn by this development will most probably end up visiting Disney’s Magic Kingdom,” D’Amaro stated at the MoffettNathanson conference in May.
In essence, on July 14th, Rob Fishman from the research firm published a report based on his visit to Orlando and supplementary data such as average daily wait times, indicating that the launch of Epic Universe had minimal impact on the demand for Disney’s theme parks in south Florida. Conversely, Universal executives are optimistic that Epic Universe and its themed areas will become must-visit attractions, and they believe that this investment will make their parks a top choice for an increased number of visitors.
Absolutely, both companies are not being complacent. Last year at their D23 event, they unveiled a flurry of upcoming lands and attractions for California, France, and China, inspired by popular intellectual properties such as Encanto, Coco, The Lion King, and Indiana Jones.
Comcast executives are already eagerly brainstorming potential expansions at Epic Universe. In the park’s Atlantic restaurant, where motorized fish sculptures gracefully moved across the ceiling, Mark Woodbury – the chairman and CEO of Universal Destinations & Experiences – shared his vision for the park’s future: “What isn’t visible from here are all the areas for potential growth that lie beyond the spaces you can see,” Woodbury explained. “This is just the beginning of an exciting journey. There’s plenty of space to grow, and we’re already discussing how that might unfold.
Analyst Jessica Reif-Ehrlich from Bank of America posits that, based on the achievement of the Universal film franchise, it seems plausible to envision a “Wicked World” serving as a potential gateway in our perspective at Epic. To put it simply, one could visualize an enchanting Emerald City rising between the Isle of Berk and the Paris depicted in Harry Potter.
While there’s certainly a surge in enthusiasm for the field of experience-centric businesses, it’s important to acknowledge that this growth isn’t without its challenges. The main threats don’t necessarily stem from newcomers breaking into the industry (the hurdles to entry remain quite steep), but rather from financial and external factors.
Creating experiences can be extremely costly and time-consuming. For instance, Disney CEO Bob Iger shares that their parks typically take about two years to develop, followed by another five years of construction. Unlike movies or TV series which have minimal costs once they’re released, experiences demand ongoing staffing and maintenance expenses. These operational costs persist even when demand decreases.
Just as the COVID-19 outbreak demonstrates, demands can suddenly shift unexpectedly. Currently, American executives are worried about a potential decrease in international tourists coming to the U.S., a concern echoed by Disney CFO Hugh Johnston. In May, he shared with Wall Street analysts that this decline has affected Disney by approximately 1 to 1.5 percent. However, domestic demand seems to be compensating for this softness at present.
Effective management of intellectual property (IP) is just as crucial as the IP itself, for any negligence or exhaustion of it could dampen enthusiasm towards the associated attractions. Overseeing such IP and its corresponding attractions for numerous years or even decades can prove to be a challenging task.
Disneyland didn’t originate the concept of theme parks, but undeniably, the idea of a fully immersive theme park can be traced back to its opening on July 17, 1955. It’s not just about constructing an immersive universe where families can live their beloved stories; it’s also about consistently offering fresh experiences each visit. This strategy, focusing on regular updates in hopes of long-term returns, has resonated with many companies.
The idea of a fully immersive theme park can be traced back to Disneyland’s opening in 1955, and it’s more than just creating an immersive world for families to live their favorite stories; it also involves offering fresh experiences every visit. This approach, which focuses on regular updates with the hope of long-term returns, has been adopted by many companies.
D’Amaro states that while it’s important to cherish the childhood memories shared with family along Main Street, there should always be something fresh and exciting on each visit to Disneyland. It’s about striking a balance between the comforting nostalgia everyone seeks and the novelty that our fans expect.
In celebration of Disneyland’s 70th anniversary, they unveiled their latest attraction – a highly realistic robot depicting Walt Disney. This robot employs old recordings of his voice so that the pioneer of entertainment can share with guests his beliefs about storytelling.
There’s nothing hidden about our method – we simply continue progressing, discovering new opportunities, trying out novel ideas, because we’re inquisitive,” Disney declares to the gathering at the Main Street Opera House. “Inquisitiveness guides us onto fresh trails. We’re constantly seeking and experimenting, aiming to provide amusement, joy, and laughter. However, I can only hope that we never forget one essential truth: It all began with a mouse.
You can find this tale in the July 23 edition of The Hollywood Reporter periodical. To stay updated, consider subscribing by clicking here.
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2025-07-23 15:25