« Universal » challenges Disney with an amusement park for $ 7 billion in Florida
For decades, the entertainment Universal Orlando has been just a stop on the way of the vacationers to the « most magical place on Earth » – Walt Disney World. Now COMCAST, the owner of NBCuniversal, seeks to redraw the travel route with the opening today of Epic Universe, a large new amusement park in Central Florida.
An investment of approximately $ 7 billion has doubled the entertainment area to over 6070 acres. The place is « inhabited » with familiar characters from movies and games that the company owns or has rights to give them under license.
This is a complex of five thematic worlds:
- Harry Potter’s magical world – Ministry of Magic;
- Super Nintendo World;
- « How to Train Dragon » – Burke Island;
- « Heavenly Park »
- « Dark Universe ».
The Epic Universe is the biggest investment that Comcast has made in Universal entertainment parks since taking control of business in 2011. Analysts say this is an increased competitive threat to Walt Disney World, whose last major expansion was in 2019.
« This is the only part of the media ecosystem that is not vulnerable to redirecting from the big screen to the Television, Company, smartphone. It is still loved as something that is done with friends and family, » Comcast President Mike Cavano told Reuters on Tuesday. « It would be foolish not to press the throttle. »
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Comcast’s big investment in parks is one of the six areas to contribute to growth.
- The « Experience » group experimented with new concepts, including starting in August of Universal Horror Unleashed – Permanent attraction in Las Vegas. It includes four ghost houses, inspired by films such as « The Texas Motor Cutter » and « The Exorcist: The Believer. »
- Universal Kids Resort – Regional park, suitable for families, will debut next year in Frisco, Texas, inspired by Shrek, Minions and Sponge Bob square pants.
« One of our key growth pillars is how we present the Universal brand to a new audience in new markets, » Mark Woodbury, chairman of the Universal Destinations & Experiences, said in an interview. « And you can see this in our children’s resort in Frisco, as well as in our place in the horror genre in Las Vegas. »
Universal is also planning another large amusement park in the United Kingdom – the first of Comcast in Europe.
Business with such parks is not without risks. It is vulnerable to economic downturns – something that the industry is experiencing during the Covid -19 epidemic.
COMCAST CEO Brian Roberts said he felt comfortable making long -term, capital -intensive bets.
« When you find something extraordinary, then you make these bets, » Roberts said, citing the example of the first Harry Potter theme park in Orlando. « When the one with Harry Potter opened its doors, I think there was a huge increase in attendance the next day and that never decreased. »
- Disney dominates Orlando’s scene with Walt Disney World’s « Magic Kingdom » in 1971.
- In 2023, Walt Disney World attracted 48.8 million visitors
- This is more than twice the Universal attendance of 19.8 million in the same year, according to a report by TheMed Entertainment Association and Aecom.
Epic can « divert at least part of the search, » writes Craig Mofet, an analyst at Moffettnathanson, in an investor report on the potential influence of Epic Universe on Disney.
Mofet predicts that Epic Universe could attract 9.5 million visitors in 2026 and bring over $ 1.3 billion in revenue. Some of these profits will come to the expense of other parks, including Disney’s, which, according to Mofet, can lose 1 million guests over the next two years. Over time, he could attract 13 million visitors a year – more than any of his « sister » parks, according to his estimates.
« In the long run, I think this makes Orlando an even more attractive rest destination, » said TD Cowen analyst Doug Cruitz. « This is probably good for Disney. »
The business with the so -called. Universal thematic parks are rooted in the creation of films from its earliest days, offering studios a century ago. When the Universal Studios Florida opened its doors in 1990, they advertised the park as offering the opportunity to « ride on movies ».
The opening of The Wizarding World of Harry Potter marked a turning point for the Universal resort in Orlando, helping to increase attendance with an experience that correctly recreated Warner Bros.’s films. Second attraction on Potter, The Wizarding World of Harry Potter-Diagon Alley, opened its doors in 2014.
Since Universal has benefited from the fantasy world of J. K. Rowling, Mofet said he was « in an unconditional victorious series ».
Prior to the launch of Epic Universe, Disney reassured investors for his themed park business. The company told them that reservations in Walt Disney World remain strong in the next two fiscal quarters. Disney makes constant improvements to his resort in Florida to keep the experience fresh for visitors, including adding a horror of « Guardians of the Galaxy: Cosmic Rewind » in Epcot in 2022 and the same attraction TRON LIGHTCYCLE RUN at the Magic Kingdom « Accelerate » the growth of your parks and cruise businesses.
In April, Disney began offering tickets at half the price for children between the ages of three to nine this summer and halved the original contribution that Florida residents make to buy annual cards.
