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  • [Chat] Could Star Wars Purchase help Ease Prices?

    As much as I love Disney, I have been overwhelmed by a lot of the prices hikes at the parks. I understand that the quality service has to come out of someones pocket. Though something has come to my mind recently.

    Now that Disney has purchased Lucasfilm, their incoming profit is gonna skyrocket. Besides owning THX and Industrial Light and Magic, the Star Wars franchise is really gonna bring in more from Disney (not to mention the merchandising cow that Star Wars already is). Assuming that the economics with the company don't change, Disney could possibly net in an additional $1 Billion.

    Do you think there's a chance that the new merger can help with the price hikes? I'm hoping that this will help slow down the price increases that have been hitting us hard.
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  • #2
    Re: Could Star Wars Purchase help Ease Prices?

    I see where you're going with this. I hope it does help ease prices. But then again everything in this world is centered around greed so I doubt it will help. "The rich gets richer while the poor get poorer". inch:



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    • #3
      Re: Could Star Wars Purchase help Ease Prices?

      I have a feeling that this will actually have the opposite effect. Disney paid over $4 Billion for LucasFilm. They will have to make that money up somehow.

      If the rumors hold true of additional attractions based on Star Wars, this will increase demand for tickets. We all know that the parks are pretty much at maximum capacity every day. The only lever that Disney has pulled so far to offset all the visitors is price increases. I think this trend will continue.

      I would not be surprised to see single day/single park tickets pushing $125 within the next 2 years.
      "I do not like to repeat successes. I like to go on to other things." - Walt Disney

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      • #4
        Re: Could Star Wars Purchase help Ease Prices?

        As a publicly traded corporation, it is mandatory by law that Disney seeks to maximize their profits. They won't lower profits in one area of the company just because they sky-rocket in a different sector.

        Indeed this acquisition and the new park expansions that will follow both Marvel and Lucasfilm will most likely raise gate prices even higher.

        The only thing that will lower prices or at least stall an increase is if attendance drops due to the park being too expensive. It seems, even though many people are being priced out of the park, there is still room to increase the price further and still meet attendance goals.

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        • #5
          Re: Could Star Wars Purchase help Ease Prices?

          That $4 Billion does nothing for the parks. Disney is already benefitting from the transaction with more revenue from the merchandising.

          There are 2 reasons to increase prices. (1) If Disney decides to create Star Wars rides, they will attract more guests. The increased demand mean they will have to increase prices to moderate the demand. (2) They will also increase prices to pay for the Star Wars addition.

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          • #6
            Re: Could Star Wars Purchase help Ease Prices?

            Originally posted by Robert3377 View Post
            Do you think there's a chance that the new merger can help with the price hikes? I'm hoping that this will help slow down the price increases that have been hitting us hard.
            Price hikes won't stop no matter how much Disney's profits increase. As long as there is high demand for their theme park product, Disney will continue to raise prices and cut spending to maximize profits.
            "With the acquisition of Marvel and now of Lucasfilm,
            Disney may have finally found the grail. You don't need
            imagination or art. All you need is a brand."

            - Neil Gabler

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            • #7
              Re: Could Star Wars Purchase help Ease Prices?

              so i cam going to say NO to your question... i do not think that it will help prices..



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              • #8
                Re: Could Star Wars Purchase help Ease Prices?

                Originally posted by Mr Wiggins View Post
                Price hikes won't stop no matter how much Disney's profits increase. As long as there is high demand for their theme park product, Disney will continue to raise prices and cut spending to maximize profits.

                This...unfortunetly. :shy:
                For the love of Disney....:yea:

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                • #9
                  Re: Could Star Wars Purchase help Ease Prices?

                  Originally posted by Usul831 View Post
                  As a publicly traded corporation, it is mandatory by law that Disney seeks to maximize their profits.
                  Not necessarily true. There are a number of factors in play. I think you are referring to the fiduciary duty of those controlling the corporation to make reasonable decisions with the money invested by the sharehloders. There are quite a few factors that would determine what "reasonable" is, and profits are only one of them.
                  "Greetings, Starfighter! You have been recruited by the Star League to defend the Frontier against Xur and the Ko-Dan Armada."

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                  • #10
                    Re: Could Star Wars Purchase help Ease Prices?

                    Prices are determined by supply and demand. Profits from the aquisition are irrelevant.
                    My Micechat cruise trip report, Part 1:http://micechat.com/14795-disney-wonder/

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                    • #11
                      Re: Could Star Wars Purchase help Ease Prices?

                      Right. In the same way Supreme Chancellor Palpatine vowed to give up his emergency powers once the the Clone Wars crisis was over.
                      "If we cut the budget are you going to be the one standing at the exit explaining to guests why the ride they just rode is a piece of crap?" - - John Lasseter

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                      • #12
                        Re: Could Star Wars Purchase help Ease Prices?

                        Not any chance of that ever happening.

                        Name one time Disney prices were reduced for other than an event promotion.





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                        • #13
                          Re: Could Star Wars Purchase help Ease Prices?

                          Originally posted by Robert3377 View Post
                          As much as I love Disney, I have been overwhelmed by a lot of the prices hikes at the parks. I understand that the quality service has to come out of someones pocket. Though something has come to my mind recently.

                          Now that Disney has purchased Lucasfilm, their incoming profit is gonna skyrocket. Besides owning THX and Industrial Light and Magic, the Star Wars franchise is really gonna bring in more from Disney (not to mention the merchandising cow that Star Wars already is). Assuming that the economics with the company don't change, Disney could possibly net in an additional $1 Billion.

                          Do you think there's a chance that the new merger can help with the price hikes? I'm hoping that this will help slow down the price increases that have been hitting us hard.
                          You are assuming Lucasfilm made that much money before.. and it didn't. Estimates are anywhere from about $200mil to as high as $800 mil. The higher end is more inline with normal revenue to cost ratios in buyouts. 3-4 times revenue is a common ball park price.

                          Second, the films or consumer products division doing well... isn't really going to affect the profit/loss pressures in the completely different parks&resort division.

                          Basically... this should have nothing to do with prices at DL. The only saving grace would be licensing costs paid to Lucasfilm for existing attractions.. but even those will continue to exist to a degree depending on the amount of independence Lucasfilm will be ran as.

                          ---------- Post added 11-06-2012 at 06:19 PM ----------

                          Originally posted by Usul831 View Post
                          As a publicly traded corporation, it is mandatory by law that Disney seeks to maximize their profits. They won't lower profits in one area of the company just because they sky-rocket in a different sector.
                          Untrue - their requirement is to act in the interest of the shareholders. That doesn't always mean 'maximize profits'. Maximizing profits so you go out of business in 10months would not be seen as sound fiduciary duty. Such blanket claims confuse the situation and are not sound.

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                          • #14
                            Re: Could Star Wars Purchase help Ease Prices?

                            Originally posted by Wally View Post
                            Right. In the same way Supreme Chancellor Palpatine vowed to give up his emergency powers once the the Clone Wars crisis was over.
                            Exactly

                            Welcome to capitalism.

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                            • #15
                              Re: Could Star Wars Purchase help Ease Prices?

                              I would say no. The only thing that will effect the prices is if we stop spending.
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