History is full of many important dates for Walt disney‘s (NYSE: DIS) Industry leading resort in Central Florida. From the debut of Disney World almost 49 years ago to the addition of new parks, theme grounds, hotels and admission technology, there are many impressive entries in the timeline of the world’s most visited theme park complex. Good luck finding one that’s as revealing to the media giant’s prospects as this new week.
Professional basketball and soccer players will arrive at Disney World earlier this week, before the resumption of their interrupted seasons at the resort’s ESPN Wide World of Sports complex. The theme parks will reopen to select guests later in the week, ending the historic 117-day closure of iconic private attractions. There are so many things that can go wrong in this scenario. Fortunately, there are also so many things that can go well.
Image source: Disney World.
Nothing but net
The resumption of the NBA and MLS seasons will either burn Disney or exalt it as the savior of professional sports. Leagues have established protocols if some players contract COVID-19 within Disney’s “bubble”, but things can spiral out of control if a widespread outbreak occurs. Disney has smooth navigation for both leagues to increase brand awareness of both its sports complex and its complex in general. This scenario can quickly backfire if Disney is viewed as a broadcast hotbed.
An outbreak among athletes will tarnish Disney World’s reputation as a safe haven for family fun. That could even quickly turn this into a cool decision to save Disney World, majority-owned Disney, ESPN, and the leagues themselves in total disaster.
The gradual reopening of Disney World theme parks later this week will also set an important tone. Pass holder previews will take place on Thursdays and Fridays at Magic Kingdom and Disney’s Animal Kingdom. The two parks will officially reopen on Saturday morning. The complex’s other two theme parks will follow early next week.
Disney has had nearly four months to prepare for the reopening, much longer than local rivals who unlocked their turnstiles to guests about a month ago. There are safeguard controls and social distancing measures that will limit the possibility of short-term profitability, but with the complex closed which also costs Disney money, it makes sense to return to the new normal.
The timing is not ideal. Florida cases have been emerging in recent weeks. Hospitalizations are on the rise, even though death rates for now remain well below the pandemic’s peak spring levels. Disney waiting more than four weeks longer than the competition to reopen gave him the opportunity to study the competition’s best practices. It also gave the tourism market very limited in what will be a wasted summer time to gel. As a well-diversified media giant, Disney was able to wait almost four months to get back up and running, knowing that it is still making money on other fronts.
Disney is about to do something great or horrible this week. There is no middle ground here. The center leans toward both ends, and the story will either praise or blame Disney for what will happen next.
