Is Disney Only For Rich People Now?
With affordability America’s top worry, the studio’s push toward big spenders could alienate the next generation of fans
I offer analysis for paid subscribers every other Thursday. I wrote about the overhyped valuations of A24 and Angel Studios; covered 7 sleeper hits of the Streaming Wars; and explored why animation continues to make bank and IP dominates the box office.
Throughout the fall, as Zohran Mamdani surged to a lead he never relinquished in the mayoral race for America’s second-best city (Los Angeles being first, naturally), the public heard one word a lot: “affordability.” His winning race, among others in the Democratic electoral victory of last week, proved that affordability is the new (and winning) topic for Democrats.
I wrote about our diverging economy last March for The Ankler and have since seen more coverage of the “K-shaped” economy. That’s an economy which does well for the wealthy — who enjoy higher income, wealth and spending — but not for the bottom 80-95 percent who have been essentially left behind. This imbalance threatens many sectors of American life and could easily upend entertainment.
While all this electioneering was going on, I happened to take a trip to Orlando, Fla. and Walt Disney World. So let me tell you…
I get the “K-shaped” economy thing.
Going to Disney parks is really, really, really expensive. I mean, we paid more than $170 per person per day at the park. For a group of seven for two days, that ran to more than $2,500. (Yeah, some single-day tickets are as low as $104 per day… but good luck finding those on the calendar.) Toss in $100 meals, $30 “Lightning Lane” add-ons and the requisite merchandise, and it was a very pricey trip. (To see how much it used to cost, see below!)
As such, my family may not return to a Disney park anytime soon. And I say this as a SoCal native whose family typically treks to Disneyland at least once a year, if not more. In fact, we may not go back to Disneyland or Disney World until 2027. Sure, I’m just one person, but the price inflation at Disneyland has pushed our middle income family out of the annual visit group.
This got me wondering, has Disney really gone all-in on the rich over the poor? The bourgeoisie over the proletariat? The patricians over the plebes? And should the company and its market-defining theme parks be targeting all-in on the wealthiest Americans? Indeed, in Disney’s earnings call today the company reported more profitable numbers, thanks in no small part to a lot of price increases over the last year across theme parks and streaming.
Since I last warned about the bifurcation of the economy six months ago, the trends have gotten worse.
What does this imply about how companies should target their customers? Let’s use Disney as the case study.
In today’s newsletter, there’s plenty of shocking stats and also insight into Disney strategy. I’ll tell you:
What Disney risks by chasing the top 10 percent of spenders — and why the next generation of fans may be the collateral damage
The hard numbers behind America’s widening K-shaped economy
How Disney raised prices, lowered attendance — and still hit record profits
The math that explains why your last Disney trip felt packed even as the parks report fewer visitors.
How soaring movie-ticket prices are pushing families out of theaters (and why studios aren’t motivated to fix it)
Streaming price hikes are creating a two-tiered entertainment system and what that means for ratings
Why Disney’s next decade hinges on one question: can a luxury brand still create mass-market fans?