- Disney announced Tuesday that it will nearly double its planned investment to about $60 billion in its parks business.
- Theme parks have been a bright spot as the company struggles to turn a profit on streaming.
- Yet national parks, including Walt Disney World in Florida, have seen a slowdown in attendance and hotel room purchases.
Disney World celebrated its 50th anniversary in April 2022.
Aaronp | Bauer-Griffin | GC Images | Getty Images
Disney announced Tuesday that it will nearly double its planned investment in the company’s parks and cruise businesses.
The company said in a securities filing that it would nearly double its planned investment to about $60 billion over 10 years.
As the company grapples with the changing media and entertainment landscape – and tries to make its streaming business profitable while considering sales from its traditional television networks – the theme parks, experiences and products division was a positive point.
Yet national parks, including Walt Disney World in Florida, have seen a slowdown in attendance and hotel room purchases. Instead, the segment’s strength comes from its international fleets. During the third quarter, the division saw its revenue increase 13%, to $8.3 billion.
The company will reveal more details about the investment at its investor day on Tuesday.
Disney highlighted historic results for the parks and experiences business since 2017 thanks to increased investments. Disney parks, like their peers, suffered from confinement due to the pandemic.
Its peers, including Comcast’s Universal parks in Florida, have seen a similar slowdown.
The increased investment comes as Disney is embroiled in legal action with Florida Gov. Ron DeSantis that could affect its plans to expand the Orlando location in coming years.
Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC.
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