Disney's theme parks are their golden goose?

Shocker. Their movies suck. Just kidding, I loved Snow White.

Epic Universe is Comcast’s big bet to challenge Disney’s theme park dominance

Chart R

The streaming wars have been the battleground of choice for America’s largest entertainment companies over the last few years. Now, Comcast is taking the fight to Disney in a more physical way.

Yesterday, Universal opened Epic Universe, the Comcast-owned company’s largest theme park investment ever and its biggest development since launching the Wizarding World of Harry Potter 15 years ago. Reportedly costing some $7 billion, the 750-acre site has five “worlds,” incorporating characters and places from beloved franchises like Nintendo, How to Train Your Dragon, and more.

You have to spend *this much* to build this ride

But, Comcast’s not the only company doubling down on thrills — Disney, too, has announced a royalty agreement for the development of a new enormous park in Abu Dhabi in recent weeks, adding to its ongoing decade-long $60 billion investment into its experiences segment, which includes sales from its parks, resorts, and merch.

Disney and Comcast are betting that visitors will continue to splurge hundreds of dollars on park tickets (and maybe even $35 on a single popcorn bucket). Indeed, even as recession fears grow, the theme park business has been highly profitable, with Disney’s experiences division bringing in 59% of the House of Mouse’s total profit last year with ~$9 billion.

Parks and resorts are also less volatile than the fast-changing television, film, and streaming segments, and are “not at all exposed to the shift in time on screens from one venue to another,” per Comcast President Mike Cavanagh.

But Comcast may have a tough time catching Disney — the iconic entertainment giant has 8 of the top 10 of the world’s most visited theme parks list in 2023, according to a report by the Themed Entertainment Association.