Universal Studios Plots Its Future Path
Comcast president Mike Cavanagh just spoke at a conference.
During his conversation, he discussed the struggles of Peacock but spoke much more optimistically about the crown jewel of Comcast’s NBCUniversal empire.
(Jeff Fusco/Comcast via AP Images)
Cavanagh and others are deciding how to maximize a thriving business.
Universal Studios is plotting its future path, and you’re gonna love it.
What the Boss Said
As a reminder, Comcast owns NBCUniversal. Last year, NBCUniversal’s President, Jeff Shell, resigned in scandal.
While Cavanagh was always Shell’s boss, the Comcast President never refilled the position.
So, Cavanagh works as the de facto head of NBCUniversal and, thereby, Universal Studios. He’s also in line to become CEO of Comcast.
You don’t need to know much about business to understand how lofty a position that is in the corporate world.
In short, Cavanagh knows what he’s doing, and he just listed six divisions across the Comcast empire that will drive its fortunes.
According to Cavanagh, “The top line will drive the bottom line for a sustained period in the future.”
Photo: NY Times
When you see Universal Studios theme parks as part of the top line, that’s his way of saying the empire is growing.
The executive was feeling a bit chipper because Disney just wrote its perceived competitor, Comcast, a check for $8.6 billion.
That money represents most of the payment for NBCUniversal’s share of Hulu, which Disney now owns in its entirety.
Drew Angerer/Getty Images
However, Cavanagh suggested that Disney’s grip on theme park dominance is slipping in at least one integral way.
Comcast’s president believes that Universal Studios holds one significant competitive advantage over Disney.
““There is nobody at the caliber and scale (in the theme park industry) other than ourselves and Disney.
Photo: Disneyland
“Interestingly Disney typically — I mean never say never — but they’re capitalizing on their own IP, which puts us in a very interesting position to be able to take our own IP but also others, as you see with Harry Potter and now Nintendo, and be a partner that can take advantage of all the cool IP out there.”
What Does This Mean?
372284 01: Copies of author J. K. Rowling’s Harry Potter series story books sit in a bookstore July 6, 2000 in Arlington, Va. Rowling’s fourth book, “Harry Potter and the Goblet of Fire,” is due for release just after midnight on July 8. (Photo by Alex Wong/Newsmakers)
Cavanagh doesn’t even mean it that way, but his comments reinforce an unforgivable mistake Disney made back in the day.
J.K. Rowling, the creator of the Harry Potter franchise, originally discussed adding Wizard attractions at Disney theme parks.
When Disney suggested ideas, none of them showed enough reverence for the product.
Ultimately, Rowling worked a better deal with Universal Studios, who was frankly desperate at the time, and the rest is history.
Nobody could have anticipated the blockbuster success of The Wizarding World of Harry Potter. Even Universal officials were caught off-guard.
For multiple years, viral images and videos showed massive lines outside Universal Orlando Resort as guests lined up to enter the park.
Despite the jaw-dropping triumph of this themed land, Disney has maintained its practice of prioritizing its own intellectual property.
Sure, Disney sometimes purchases something new like Star Wars, Avatar, or The Simpsons, but the song remains the same.
Disney’s unwillingness to reach outside its ecosystem provides Universal with its choice of theme park expansion ideas.
Photo: Universal Studios Hollywood
Everything non-Disney in pop culture is up for grabs, which explains how Universal snagged Super Nintendo World.
Yes, NBCUniversal has focused on its own intellectual properties for the most part, as demonstrated by the impending arrivals of new Universal Epic Universe attractions.
I’m referencing the Classic Monsters and How to Train Your Dragon/Berk themed lands as well as another Wizarding World.
Image: Universal
Still, should something become an overnight pop culture sensation, Universal remains at the ready to swoop in and add it to the parks.
In the process, Universal has staked its turf as the Burger King to Disney’s McDonald’s and the Pepsi to its Coke.
For anyone seeking a theme park representation, businesses would go to Universal Studios first since Disney is mainly off-limits. That’s a powerful asset.
The Other Universal Studios Changes
Universal Kids Resort
As our Kristin Sabol reported the other day, Universal Studios just revealed a vital detail about its new theme park coming to Frisco, Texas.
Universal has named this park Universal Kids Resort. We already knew that the target demographic was much younger, but this identification clearly spells it out.
You won’t hear many single adults saying, “Let’s go to Universal Kids Resort!”
Photo: USA Today
However, Universal Studios hasn’t forgotten that high-paying demographic, either.
The Las Vegas installation of Halloween Horror Nights at Area16 will cater to fans who don’t care about what day/month it is when celebrating Halloween.
In short, Universal intends to direct dial more consumers at these two specific locations.
Photo: Lynette Granger Rep/Facebook
One will be a child-friendly theme park that caters exclusively to families.
The other will entice Universal fans to visit Las Vegas just to experience Halloween Horror Nights throughout the year.
Meanwhile, Universal Studios Hollywood and Universal Orlando Resort will continue searching for new IPs like Nintendo and Harry Potter.
Photo: Universal Blog
Should everything break right, Universal could feasibly close the gap with Disney in just a few years.
Even if Disney maintains most of its market share, Universal has clearly established itself as the second-biggest company in the thriving theme park industry.
Importantly, Universal has managed that at a time when Six Flags and Cedar Fair Entertainment Company just had to merge to survive!
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Main image: Universal Studios
