Effects of Coronavirus (COVID-19) On Entertainment & Tourism Industry

[JoeCamel]

While I have ZERO clue on numbers, Comcast is still having cash flow and about to launch a streaming service. While I'm sure they are not rolling in the bank, I think they have the resources to at least continue on things like Epic Universe and get as much work done as they can to make sure that 2023 date sticks, as hopefully the world will be a bit more normal by then. They could seriously capitalize on that if they keep their pricing structure lower than Disney's. Idk I could truly see Universal pulling Disney people away after all this with their prices being so much more reasonable, and, Nintendo. I know I'm speaking from a biased fan perspective but idk, I really think things will just simply be different after all this and not that Disney will go away but I could see them being ridiculous with prices once things are "normal" again, they've proven they'll continue to raise prices lol.

Here is a clean take on the state of their business going forward

Comcast’s internet service should withstand coronavirus, but everything else is worrisome

Comcast Corp.’s story during the COVID-19 crisis is a tale of two businesses — A broadband internet service provider business that is essential to users, and...

www.marketwatch.com

 

[Nick]

I’m pretty convinced every major project gets shifted by at least a year to make up for this.

Bourne is basically done, so that’ll be launched ASAP to get people into the parks. If park attendance is looking healthy, I think Velocicoaster will he pushed back a year. If it isn’t, it’ll launch on time to entice attendance.

I just can’t see EU launching on schedule. It’ll launch, but I really see Comcast setting it back a year to conserve cash flow.

Even with Bourne they can’t launch right away. The cast will have to rehearse again and possibly do more TM rehearsals before opening to public. And even once it does open, I expect they won’t pack the theater, but maybe sit people every other seat?

 

[Scott W.]

I’m pretty convinced every major project gets shifted by at least a year to make up for this.

Bourne is basically done, so that’ll be launched ASAP to get people into the parks. If park attendance is looking healthy, I think Velocicoaster will he pushed back a year. If it isn’t, it’ll launch on time to entice attendance.

I just can’t see EU launching on schedule. It’ll launch, but I really see Comcast setting it back a year to conserve cash flow.

I think the JP coaster will open as planned. Works ongoing and the track is ready waiting to be installed.

 

[PerceptiveCoot]

I think the JP coaster will open as planned. Works ongoing and the track is ready waiting to be installed.

I agree. Seems like it's in a similar place as Hagrid's in 2018 in terms of progress.

 

[Cup_Of_Coffee]

Here is a clean take on the state of their business going forward

Comcast’s internet service should withstand coronavirus, but everything else is worrisome

Comcast Corp.’s story during the COVID-19 crisis is a tale of two businesses — A broadband internet service provider business that is essential to users, and...

www.marketwatch.com

The "V" shaped curve for the theme parks sounds accurate. As long as their prices are better than Disney, I think by 2022 their numbers will be back to being a bit better and profitable but it is difficult to project that now. In my eyes, if Universal misses HHN entirely (limited capacity still means some $ and maybe less houses for less staffing) that'd be a major major loss for them. I can't help but imagine that is a major $$ mover for them. But if things recover by 2022, having a brand new world class theme park opening in 2023 when we may not see anything new at Disney until like 2025, I think they could capitalize.

I obviously do not speak for all consumers, but for me (while I naturally like Universals parks more in general), it is really their hotels and hotel pricing that has made them my vacation destination. The hotel prices across Disney are just crazy, pure crazy. The trip we originally booked for April I was paying 1/2 for cause traveling with mum but without that I couldn't afford it. And the value resorts don't seem great epseically when you have Surfside and Dockside. A lot will depend on how Disney responds, and Universals marketing of the new resort. Nintendo is so huge that crowds will come, just gotta get them to do what I do and stay with them. Should be interesting.

 

[Scott W.]

The "V" shaped curve for the theme parks sounds accurate. As long as their prices are better than Disney, I think by 2022 their numbers will be back to being a bit better and profitable but it is difficult to project that now. In my eyes, if Universal misses HHN entirely (limited capacity still means some $ and maybe less houses for less staffing) that'd be a major major loss for them. I can't help but imagine that is a major $$ mover for them. But if things recover by 2022, having a brand new world class theme park opening in 2023 when we may not see anything new at Disney until like 2025, I think they could capitalize.

I obviously do not speak for all consumers, but for me (while I naturally like Universals parks more in general), it is really their hotels and hotel pricing that has made them my vacation destination. The hotel prices across Disney are just crazy, pure crazy. The trip we originally booked for April I was paying 1/2 for cause traveling with mum but without that I couldn't afford it. And the value resorts don't seem great epseically when you have Surfside and Dockside. A lot will depend on how Disney responds, and Universals marketing of the new resort. Nintendo is so huge that crowds will come, just gotta get them to do what I do and stay with them. Should be interesting.

I think everything that Disney is building now will be completed but whether it gets staggered is a different story.

I've preferred Universal since day 1 as a 5 year old kid. Not wanting to sound sexist but Disney was a girl's park with princesses and castles but Universal had Ghostbusters, Back to the Future, Jaws, Kongfrontation and the love for Universal has never left, it's only got stronger, especially when Islands opened.

As an adult though, the cost difference isn't a big thing for me but the perceived value is but the most important thing is that Universal is a relaxing place to visit. For my upcoming family trip, trying to get the rest of my family on board with the whole Disney process has being a massive pain in the arse with booking restaurants and getting a plan ready for booking our FPs but for Universal, we simply show up on the day and play it by ear.

 

[Cup_Of_Coffee]

I think everything that Disney is building now will be completed but whether it gets staggered is a different story.

I've preferred Universal since day 1 as a 5 year old kid. Not wanting to sound sexist but Disney was a girl's park with princesses and castles but Universal had Ghostbusters, Back to the Future, Jaws, Kongfrontation and the love for Universal has never left, it's only got stronger, especially when Islands opened.

As an adult though, the cost difference isn't a big thing for me but the perceived value is but the most important thing is that Universal is a relaxing place to visit. For my upcoming family trip, trying to get the rest of my family on board with the whole Disney process has being a massive pain in the arse with booking restaurants and getting a plan ready for booking our FPs but for Universal, we simply show up on the day and play it by ear.

I mean I also preferred Universal as a kid. But now growing up and paying for these things, I’m 100% with you on value. That last Disney trip I had wasn’t the greatest. There seems like there is so much to do but when you’re at the parks everything is relatively limited, unless you’re willing to consistently wait 35, if not 45+ minutes. And if I’m gonna wait in a queue that long Universal has proven to me their queues are better.

I’ll never forget about my first trip (now 9 years ago, wow) I said to my dad who did not travel with us “WAITING IN LINE WAS FUN.”

Im in agreement with everything you said though. God Universal is so much more relaxing and accommodating even when I’ve been there during busy weeks.

 

[PerceptiveCoot]

That last Disney trip I had wasn’t the greatest.

That's also personally why I started to like Universal more. Most of what they were doing wasn't really on my radar till I went to Epcot and Animal Kingdom. My sister and I grew up on Disneyland and we were surprised at how little there was to do (at least in terms of rides).

Unfortunately, that works both ways and she remains unconvinced about Universal Orlando because her only reference point is Hollywood where everything is screenz :shrug:

 

[Cup_Of_Coffee]

That's also personally why I started to like Universal more. Most of what they were doing wasn't really on my radar till I went to Epcot and Animal Kingdom. My sister and I grew up on Disneyland and we were surprised at how little there was to do (at least in terms of rides).

Unfortunately, that works both ways and she remains unconvinced about Universal Orlando because her only reference point is Hollywood where everything is screenz :shrug:

USF to be fair is also a lot of screens if she can’t do coasters... IOA is where she needs to visit. I feel it’s the best theme park in America personally but maybe I’m biased. I think other than a show it offers every single thing a theme park guest could want

 

[Scott W.]

I mean I also preferred Universal as a kid. But now growing up and paying for these things, I’m 100% with you on value. That last Disney trip I had wasn’t the greatest. There seems like there is so much to do but when you’re at the parks everything is relatively limited, unless you’re willing to consistently wait 35, if not 45+ minutes. And if I’m gonna wait in a queue that long Universal has proven to me their queues are better.

I’ll never forget about my first trip (now 9 years ago, wow) I said to my dad who did not travel with us “WAITING IN LINE WAS FUN.”

Im in agreement with everything you said though. God Universal is so much more relaxing and accommodating even when I’ve been there during busy weeks.

I forgot to add, that the pain in the arse with the parks being closed is that I'm now back to square 1 with all my planning. For the same reasons I prefer Universal to Disney World is also the same reason why I prefer DL to WDW.

The problem with Disney is that when you have a bad trip, it's a double insult when you think about the price you paid.

 

[Andysol]

So Trump had a conference call with all sports commissioners today. One of the main things that came out of it was this:


Packing 60,000 into an arena as early as August/September seems unlikely.

I’ve read a few articles and had some discussions about this.
I was actually hopeful they would find a way to finish the NBA or NHL season.
From what I understand, if you test negative, you aren’t contagious. So immediate testing prior to the game should suffice. Between both teams, coaches, team trainers, officials and a very limited press crew; you’re talking less than 100 tests.
The only complaint would be the “why do they get to test daily, but we don’t” argument. Which I personally think sports there as a distraction outweighs the cost, but also understand the argument.

But by July-September, they’ll easily be able to test daily and take necessary precautions.

Football doesn’t mean stadiums have to be packed. Same with MLB. There’s enough money on the line that they can figure it out how to be profitable and safe.
As for the grasping at straws knock about Vince McMahon on the conference call from the other poster here: The guy does own >70% of the WWE which hauls in a billion in revenue and year and sells out multiple stadiums every single week. He is just as important to be on that call as any NFL owner is.

 

[Mad Dog]

I’ve read a few articles and had some discussions about this.
I was actually hopeful they would find a way to finish the NBA or NHL season.
From what I understand, if you test negative, you aren’t contagious. So immediate testing prior to the game should suffice. Between both teams, coaches, team trainers, officials and a very limited press crew; you’re talking less than 100 tests.
The only complaint would be the “why do they get to test daily, but we don’t” argument. Which I personally think sports there as a distraction outweighs the cost, but also understand the argument.

But by July-September, they’ll easily be able to test daily and take necessary precautions.

Football doesn’t mean stadiums have to be packed. Same with MLB. There’s enough money on the line that they can figure it out how to be profitable and safe.
As for the grasping at straws knock about Vince McMahon on the conference call from the other poster here: The guy does own >70% of the WWE which hauls in a billion in revenue and year and sells out multiple stadiums every single week. He is just as important to be on that call as any NFL owner is.

German Bundesliga is scheduling practices soon and plans on restarting their schedule in May and finishing the remainder in June, with the caveat they'' play in empty stadiums. ....Most American sports revenues are from TV rights anyway.

 

[Cup_Of_Coffee]

I forgot to add, that the pain in the arse with the parks being closed is that I'm now back to square 1 with all my planning. For the same reasons I prefer Universal to Disney World is also the same reason why I prefer DL to WDW.

The problem with Disney is that when you have a bad trip, it's a double insult when you think about the price you paid.

Totally! I think the 2 park set up is perfect. Tbh, I have always wanted to go to Disneyland and LA but I mean I'm only 22, my first vacation I could take on my own with my own money was always gonna be Universal so I could do it the way I wanted haha. Disneyland seems like it'd be great for and seems like a great resort overall. Also, seems far less crowded in general minus Disneyland itself on most days. I definitely plan to make a trip there one day.

Ive worried actually that EU would possibly ruin that 2 park experience but it more so justifies a full week at Universal now and repeat trips so I think they're in a perfect spot with 3 full parks comping up in a few years. I already think a full week at Universal isn't ridiculous for people right now. If you're everyday park goers open-close maybe 6 days is a lot (if you don't do Volcano bay like I wouldn't) but idk, gives you more time to space out your vacation and rides, I think its great. Can easily make a day out of each park without the Wizarding World, then do a Wizarding Day, do your favorite park again one day or Volcano Bay, then again favorite rides or hang by the pool and relax. Best part is, unlike Disney you really don't need to get up at the ass crack of dawn to get on the rides. Never been during Peak crowds though.

But ya, obviously 3rd park is dope and I could see that being a multi-day park experience in itself.

 

[Nick]

The only complaint would be the “why do they get to test daily, but we don’t” argument. Which I personally think sports there as a distraction outweighs the cost, but also understand the argument.

You would need 1,740 tests just to have all 30 teams play ONE GAME (The Utah Jazz tested 58 players & staff on the day the season got cancelled and that was considered the whole team).

Sports are a distraction, yes, but when we're low on tests already, doing that many tests per game day is absolutely unjustifiable when the only reason they would be getting the tests would be so you could be entertained. There's people out there very sick who are having a hard time getting a test still.

 

[Happytycho]

You would need 1,740 tests just to have all 30 teams play ONE GAME (The Utah Jazz tested 58 players & staff on the day the season got cancelled and that was considered the whole team).

Sports are a distraction, yes, but when we're low on tests already, doing that many tests per game day is absolutely unjustifiable when the only reason they would be getting the tests would be so you could be entertained. There's people out there very sick who are having a hard time getting a test still.

And that's just one league. If you do all of NBA, NHL, MLB, MLS, NASCAR, etc. you're easily looking at >5% of our current national daily testing capacity.

 

[Mad Dog]

From Theme Park insider..."Six Flags has gotten it's lenders to agree to add $131 million to it's revolving credit facility......The company said in a press release it has $25 million in cash on hand.....To cut costs, Six Flags said is deferring or eliminating at least $40 to $50 million of discretionary projects planned for 2020."

 

[JoeCamel]

From Theme Park insider..."Six Flags has gotten it's lenders to agree to add $131 million to it's revolving credit facility......The company said in a press release it has $25 million in cash on hand.....To cut costs, Six Flags said is deferring or eliminating at least $40 to $50 million of discretionary projects planned for 2020."

Gasping, amazed the lenders agreed to this

 

[Nick]

Gasping, amazed the lenders agreed to this

Could be someone waiting to buy them out.

 

[Scott W.]

German Bundesliga is scheduling practices soon and plans on restarting their schedule in May and finishing the remainder in June, with the caveat they'' play in empty stadiums. ....Most American sports revenues are from TV rights anyway.

This is interesting about the tv rights. There was talk last year about the Premier League moving to an online streaming model. As it stands right now in the UK, you need two separate subscriptions to watch games and you maybe get 40% of the games live.

For the streaming model, all games would be shown and instead of paying about $80 a month, you'll pay $15 with the idea that more people will pay, the clubs will get a far better deal and money isn't wasted going to the broadcasters.

If games are going to happen behind closed doors, all games need to be shown live.

 

[Mad Dog]

Gasping, amazed the lenders agreed to this

The 2 trillion dollar bill gives lenders incentives to extend credit etc., so this may actually be a time where it's easier to get a credit line extension than during normal times. The concept behind the bill is to give companies life lines to get them through this period intact.