The Walt Disney Company has announced plans to double its capital expenditures over the next decade in its Parks, Experiences and Products segment. The goal? To reach a staggering $60 billion investment that will further cement Disney's position as the world's leader in theme park experiences.
This announcement was made during an investor summit held at Walt Disney World Resort in Orlando, Florida. High-ranking Disney executives, including Chief Executive Officer Bob Iger and Disney Parks, Experiences and Products Chairman Josh D’Amaro, gathered with Wall Street analysts and investors to outline this bold strategy.
The key to Disney's growth strategy lies in three critical areas: stories, scale, and fans. By leveraging its ever-growing library of enchanting stories, Disney aims to create immersive experiences that fans around the globe will love.
Disney is no stranger to large-scale projects. With the largest physical footprint in the global theme park business, Disney operates 12 parks across six sites worldwide. Add to this Disney Cruise Line's visits to 94 ports in 40 countries and the reach of Disney's consumer products division, it's clear that Disney is a global force.
And yet, there's room for even more growth. Disney is sitting on over 1,000 acres of land earmarked for future development, which could expand theme park space across its existing sites. This is equivalent to about seven new Disneyland Parks. As CEO Bob Iger aptly puts it, "There are far fewer limits to our parks business than people think."
But what about the fans? According to Disney's internal research, there's a vast, untapped market of over 700 million people with high Disney affinity yet to be reached by its Parks. That's more than ten people for every guest who visits a Disney Park. By introducing more characters and stories, expanding its global footprint, and leveraging its global talent, Disney hopes to forge new relationships with these fans.
Disney's newest resort, Shanghai Disney Resort, opened in 2016, offering a glimpse of the company's continued global expansion. With seven of the top ten most attended theme parks in the world, including Walt Disney World’s Magic Kingdom Park, it's clear that Disney Parks are beloved by millions of guests each year.
This latest announcement is a testament to Disney's commitment to growth and innovation. By doubling down on its investment in Parks, Experiences and Products, Disney is set to turbocharge its growth trajectory, promising an even more magical future for Disney fans around the world.