Part 5/10:
Analysts and industry observers believe that Disney's increasing reliance on its parks to bolster corporate profitability is a key driver behind these changes. Parks and experiences now constitute the backbone of Disney’s revenue, especially given the declining margins of other segments like media streaming, where Disney+ and Hulu play dominant roles.
Formerly, families could enjoy a once-in-a-lifetime trip to Disney for around $1,800, which provided a broad range of benefits including parking, water parks, and flexible access. Today, with annual passes costing nearly that amount and prices rising annually, the value proposition has eroded. Guests now face a more restrictive experience, with fewer benefits, more restrictions, and fewer incentives for frequent visits.