Movies

It’s Universal vs. Disney in an epic ‘prize fight’ for theme park dominance in Florida

BBG News

The theme park rivalry in Orlando, Fla. is heating up.

This upcoming week, Comcast’s Universal is set to debut their new theme park, Epic Universe, which is estimated to cost around $7 billion. This venture represents a significant investment for the company and continues their strategic expansion of their tourism and entertainment dominion.

The heightened competition faced by Walt Disney Company is evident, as its flagship Walt Disney World Resort in Orlando has traditionally reigned supreme in the vacation scene. However, it’s now experiencing more rivalry, notably from Universal Studios.

Extending over 750 spacious acres, Epic Universe stands as our largest Universal theme park expansion since the debut of The Wizarding World of Harry Potter a decade and a half ago.

It boasts five distinct themed zones, four of which are connected to recognized franchises: “Harry Potter”, “How to Train Your Dragon”, the classic monster universe of Universal, and Nintendo video games, along with a central Celestial Park featuring a cosmic theme.

The complex, comprising of three accommodations, boasts state-of-the-art robotic figures and intricate rides such as Monsters Unchained: The Frankenstein Experiment, a thrilling ride that brings together several iconic Universal monsters. The majority of feedback about the park has been favorable, with critics praising its ability to create an immersive experience for visitors.

Dennis Speigel, founder of Cincinnati-based consulting firm International Theme Park Services Inc., noted that Comcast’s advancements in Orlando have significantly narrowed the gap between Universal Studios and Disney. He described the current state as a ‘prize fight‘, with both competitors pushing each other to their limits in an incredibly competitive environment, making it the most intense and cutthroat situation within the industry over the past 15 years.

Hollywood Inc.

As a devoted cinephile, I find myself bracing for a tougher challenge amid the bustling landscape of Orlando, Florida. Not only do I have a formidable new theme park competitor to deal with, but also an economically challenging climate that might impact visitor numbers.

Disney entered the Orlando market first, opening the Magic Kingdom at Disney World in 1971. Universal didn’t open its Orlando park until 1990, meaning Disney had about twenty years of advantage over Universal in this market.

By that time, Disney had already launched Epcot and Disney-MGM Studios (later renamed Hollywood Studios) theme parks in Florida. Additionally, SeaWorld Orlando, opened in 1973, and present-day Busch Gardens Tampa Bay, which first appeared in 1959, were also part of the attractions in the Sunshine State.

Currently, Disney World offers four theme parks and two water parks, whereas Universal Orlando encompasses three theme parks – the original Islands of Adventure (opened in 1999) and Epic Universe (yet to open), along with a water park called Volcano Bay, which opened in 2017.

Despite arriving late to the market, Universal’s 2010 unveiling of the Wizarding World of Harry Potter land within both Universal Studios Orlando and Islands of Adventure sparked unprecedented levels of competition among theme parks. The unique approach of creating a land centered around a specific intellectual property, like Harry Potter, was relatively new in the industry at that time. This innovative concept would later be replicated by Disney, seen in attractions such as Cars Land in Anaheim and subsequent “Star Wars” lands in California and Florida.

Travel & Experiences

Universal Studios’ Epic Universe is overwhelmingly successful and will quickly earn the title as a beloved theme park for many. It’s expected to revolutionize the entertainment industry.

According to Spiegel, the desire for the “Harry Potter” themed area significantly boosted Universal’s annual visitor count by approximately 36%, as compared to the previous year.

He stated that following ‘Harry Potter’, they understood it marked a shift in the global landscape. Since then, they’ve been pushing hard on every aspect related to expansion and personal development.

There’s good reason for that.

Both Universal and Disney have focused on their theme parks as a profitable and stable aspect of their businesses, compared to the unpredictable nature of media, television, and film markets. For Disney, the revenue generated by its experiences division (comprising theme parks, cruise lines) has traditionally accounted for a significant portion of the company’s profits, becoming even more crucial as pay TV services dwindle.

According to Carissa Baker, an assistant professor in theme park and attraction management at the University of Central Florida’s Rosen College of Hospitality Management, Disney has been maintaining a steady pace, while Universal is rapidly growing. In fact, they are actively promoting growth within their theme park division at this time.

Both Disney and Universal have recently unveiled new ventures – Disney is setting up shop in Abu Dhabi, while Universal is expanding with a children’s resort in Texas, a theme park in the UK, and an all-year-round horror event similar to Halloween Horror Nights in Las Vegas.

According to Comcast Corp. President Mike Cavanagh in a recent conference call with analysts, our strategy is to maintain the expansion of our business, which we believe is one of only two key players within a media market that is not significantly affected by the transition of screen time between different platforms. He further stated that live events and theme park experiences have been captivating for people, and we intend to capitalize on this trend and continue moving forward in this direction.

To date, he mentioned that pre-sales of tickets and reservations at hotels have been “robust” for Epic Universe and other Universal theme parks in Orlando. Prices for a one-day pass begin at $139.

Analysts have frequently brought up the impending park during conference calls discussing earnings with rival Disney, asking executives about the possible impact on Disney World and their strategies for competition.

However, despite apparent concerns, Disney seems to be keeping a calm front. Last week, their Chief Financial Officer, Hugh Johnston, disclosed that hotel bookings for the third fiscal quarter have increased by 4% compared to the previous year, with approximately 80% of nights already booked. For the fourth quarter, reservations are up by around 7%, with roughly half to two-thirds of capacity already filled, according to Johnston’s statement.

Despite wider apprehensions that fears over a possible recession, caused by President Trump’s tariffs on imported goods, might suppress both travel plans and consumer expenditures, this particular scenario is not being observed.

Disney regards experiences as both crucial to its operations and a significant area for expansion, according to CEO Bob Iger during a recent financial conference call. Despite uncertainties in the broader economy or potential competition, I am optimistic about the robustness and adaptability of our company.

Previously, the company disclosed their intention to invest $30 billion in their theme parks located in Florida and California. This investment will facilitate the creation of areas such as a “Monsters Inc.”-inspired land and a villains land within Disney World. Additionally, over the past decade, these parks have expanded by adding numerous attractions, one example being the updated Tiana’s Bayou Adventure ride that took the place of Splash Mountain.

Disney anticipates that people traveling to Florida for Epic Universe will also visit its theme parks, as they often do when new attractions open in central Florida, regardless of who owns them. Last year, Orlando welcomed over 75 million visitors, marking a 1.8% increase compared to 2023, as reported by the Visit Orlando trade association. At an investor conference last week, Josh D’Amaro, head of Disney Experiences, stated that Disney consistently attracts tourists whenever something new is unveiled in central Florida.

In simpler terms, five or ten years ago, things at Walt Disney World were very different. As D’Amaro mentioned, we’ve always been proactive, not reactive. For instance, when something new like Epic Universe is built in Central Florida and attracts more tourists, it’s almost certain that these new visitors will also visit the Magic Kingdom.

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2025-05-18 13:31

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