PLANET PROFIT
Disney takes a major gamble with its upcoming Avatar-themed amusement park,
NEW YORK— You may not have thought much about the 2009 movie Avatar over the past eight years, but Disney sure has.
The Magic Kingdom is wagering a reported half-billion dollars that you and zillions of other people will line up for new theme park attractions based on the movie’s bioluminescent world of Pandora.
It’s a major gamble, even by Disney standards. While the movie smashed box-office records thanks to its dazzling 3-D effects and higher 3-D ticket prices, it’s also left little but a fading echo in pop-culture consciousness. There are no Avatar sequels, at least yet, and no spinoffs; memorable characters and catchphrases are also in short supply.
“I’ve never seen anybody ever walking down street wearing an Avatar T-shirt,” says Martin Lewison, a theme park expert and business management professor at Farmingdale State College in New York. “There’s no real emotional connection with Avatar among the public despite the movie being so popular.”
But theme parks are big business, and Disney is counting on what its executives call “Avatar Land” — the official name is Pandora—World of Avatar — to help keep that engine humming. In the fiscal year that ended in October, parks and resorts accounted for 31 per cent of Disney’s nearly $56 billion (U.S.) in revenue, though only 21 per cent of its nearly $16 billion in operating profit.
Disney also wants to prove it can turn its newer cultural properties, which include Star Wars and the Marvel superhero franchise, into popular theme-park attractions. In that, it’s basically playing catch-up with rival Universal Studios, which launched a hugely successful Harry Potter theme park in 2010.
On Tuesday, Disney reported earnings of $2.39 billion for the quarter ended April 1, up 11 per cent from $2.14 billion a year earlier. Revenues rose 3 per cent to $13.34 billion in the period, up from $12.97 billion. Parks and resorts revenue rose 9 per cent in the period to $4.3 billion; operating profit in the segment jumped 20 per cent to $750 million.
James Cameron, the mercurial director famous for Titanic and several other blockbusters, has been promising Avatar sequels almost since the original premiered. One had been in development since 2010. Disney licensed the park rights in 2011, when a sequel didn’t seem that far off.
Little did Disney know. In 2013, Cameron announced his intention to film three follow-on films simultaneously, for release starting in 2016. But the date was pushed back until 2017, then 2018. In March, Cameron said 2018 was “not happening.” In April, he announced the start of production on four sequels now scheduled to roll out from 2020 to 2025.
That left Disney to plunge ahead on its own with Avatar Land, which opens May 27 at Disney’s Animal Kingdom theme park in Florida. If all goes well, the park “will promote the films and the new films will of course circle back and promote the land,” Lewison says.
But for the moment, Disney seems to be selling the opposite of such synergy. The company currently aims to wow parkgoers with attractions focused on the landscape and wildlife of Pandora, whether or not they remember the original movie.
Joe Rohde, the park’s design and production leader, makes that disconnect explicit, describing the park as a way to visit part of Pandora that has nothing to do with the movie’s clash between Pandora’s blue Na’vi race and mineral-hungry human industrialists. Now, he says, “you’re free to have your own adventure without worrying about what happened to somebody else some other time.”
“There’s a rule in the theme-park industry right now, ‘Keep building, keep building up capital infrastructure,’ ” Lewison says. “That is driving attendance — everybody wants to go check out all the new stuff.”