Disney again confirms their Star Wars Galaxy’s Edge theme parks suffer from low attendance with mention of the high costs associated with visiting the parks.
In Disney’s Quarter 4 financial report, while it is reported their Parks, Experiences and Products division saw revenues increase by 8%, it is mentioned that the growth was due to higher guest spending, not because of a large number of people visiting the parks. Prior to the opening of Star Wars: Galaxy’s Edge, Disney significantly jacked ticket prices.
The report offers (note: bold my own):
Growth at Disneyland Resort was primarily due to higher guest spending, partially offset by expenses associated with Star Wars: Galaxy’s Edge, which opened on May 31, and, to a lesser extent, lower attendance. Guest spending growth was primarily due to increases in average ticket prices and higher food, beverage and merchandise spending.
Results at Walt Disney World Resort were comparable to the prior-year quarter, despite the adverse impact of Hurricane Dorian in the current quarter. Increases in guest spending and, to a lesser extent, occupied room nights and attendance were offset by higher costs. Higher costs were driven by costs associated with Star Wars: Galaxy’s Edge, which opened on August 29, and cost inflation. Guest spending growth was primarily due to increased food, beverage and merchandise spending and higher average ticket prices.
Star Wars Galaxy’s Edge continues to suffer from low attendance
So we see the report confirms that while attendance is low at their parks, which includes Star Wars: Galaxy’s Edge, the cost to go to the parks with food, merchandise, and ticket sales is high, which is the source of the revenue.
Rumors off that if things don’t pick up by February Galaxy’s Edge may get rebranded.
Regarding Star Wars merchandise, which the previous report confirmed has been on the decline, the Q4 report makes no mention of Star Wars merchandise:
Higher operating income at our merchandise licensing business was due to an increase in revenue from sales of merchandise based on Frozen and Toy Story, partially offset by lower sales of merchandise based on Mickey and Minnie.
Star Wars at Disney has been suffering a bumpy ride as just recently saw the Game of Thrones showrunners depart their planned trilogy, with rumors also offering that Rian Johnson is gone.
And C-3PO actor Anthony Daniels did just say he is disappointed with Disney Star Wars.
In an attempt to get the franchise off life support, Marvel’s Kevin Feige was recently announced to be tackling Star Wars, and Jon Favreau’s The Mandalorian Disney Plus series looks promising.
(source: Disney)
