Is the Walt Disney Company actually in trouble?

It seems everything in the media now is written with a negative perspective. It apparently is the greatest form of click bait. And right now, Walt Disney is the target of much disdain. It seems like there is an endless stream of criticism.  People are reportedly ubhappy about prices, annoyed with decisions and upset about the direction of the company. A less than stellar earnings report has fueled the flames of contempt. Previous blog posts have touched on this topic. So why is Disney everyone’s favorite target of complaint?

There is no simple answer to this question.  It may be as simple as human nature to attack the company that is on top. Disney is an entertainment giant and has a massive following.  People want to read all about it, the good and the bad. But is the bad all that it is made out to be?

EPCOT

Many of the complaints I see about Walt Disney World focus on two things that seem to be in conflict.  The price is too high, and it is too crowded. Simple supply and demand will dictate the market for travel to Walt Disney World. If you consider the supply is the finite number of guests that can fit in parks and resorts, then the price will have to increase with the intense demand from vacationers. The criticism on price is something I don’t understand and I honestly find it annoying. Again if the price was much lower, there would be even more demand and it would be harder to find resorts and park reservations. The experiences provided at Walt Disney World are second to none. Yes, the cost is high, but what guests actually get for price of admission is essentially priceless.

The fact is that Walt Disney is a business much like many others. There are costs, profits, losses, boards and shareholders. The entertainment landscape is changing with streaming services and the way people consume media. Universal Studios is becoming a bigger competitor. And obviously Disney is not immune to the rising costs of inflation. But Walt Disney has an amazing catalog of characters from Frozen and Marvel, to Star Wars and Mickey Mouse. They will always have that advantage.

All of these inputs into the decision making process have resulted in changes to Walt Disney’s operations. So if they need ways to increase revenue, I can understand that. I can also see why they may need to cut costs by other means, including layoffs. I always have the option to decide if the product is worth what it costs as the consumer. So when I see these stories that predict financial ruin for Walt Disney, I do the smart thing and don’t click.

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