Is Disney becoming a symbol of out of control corporate greed?

[Dreamer10]

Let us set aside for the moment that Disney is a public company, providing a very non-essential consumer product. Let us also set aside that Disney management owes a fiduciary responsibility to increase the value its stockholders’ investments. And, momentarily suspend the economic principles of ‘supply and demand.’

Imagine what Disneyland, or any U.S. Disney park for that matter, would look like if Disney was to roll back prices too… say 1990 level? I would imagine that the turnstiles of these parks would be closing down early on an almost daily basis because of capacity crowds.

The pricing accomplishes more than just profits; it is also a means of crowd control.

Not many people are going to like this, but, I posit that those who are complaining of Disney being greedy, are themselves being bit greedy…and are ticked because they now can’t go to a Disney Park as often as they’d like.

You may not like it, but it is free enterprise working the way free enterprise is suppose to work.

As always, just my 2 cents.

Don't think anyone posted anything about rolling back prices prior to your first post. The question is "Is Disney becoming a symbol of out of control corporate greed?" Here "Disney" refers to The Walt Disney Company as a whole, not just the "Disney Resorts" segment of the company. Some people here referred to the boats, the Disney Cruise Line.

Regarding the Disney Resorts segment, you mention pricing as a means of crowd controls. Then why does the Disneyland Resort do things to promote crowds such as recently allowing people to camp out overnight for leap year and the opening of Cars Land?

Here are other ways to control crowds (these are just rough ideas so kinks are not worked out):

• Some annual passes are blocked out during times the park anticipates that it will be busy, but they allow for the purchase of a discounted ticket during a blockout date. One way to control crowds is to take away this option.
• Limit the number of annual passes sold per year
• Remove the monthly payment plan
• Offer season passes valid for a "season" of 3 months
• Remove some tiers of the annual passes
• Come up with a type of "rewards program" for passholders where they are given points to spend if they don't go to the parks during certain times; e.g. "We apologize, but the Disneyland Resort is busiest during the Holiday Season. We would like to invite you to participate in our rewards program if you choose to postpone your visits until after this busy season passes" then so many points get you free soda or whatever

You also said, "Not many people are going to like this, but, I posit that those who are complaining of Disney being greedy, are themselves being bit greedy…and are ticked because they now can’t go to a Disney Park as often as they’d like."
The reason I looked at the financial statements for the Walt Disney Company was because I was going to try talk my Disney buddy into using the monthly payment plan option and I was trying to find "proof" that Disney "needs" to raise prices to convince them. But in my case this backfired because I started doing more research and saw news articles online that talked about employees getting laid off even though profits are huge and all while Mr. Iger gets a $26 million bonus. This $26 million is in ADDITION to whatever salary he gets. I'm not talking about whether or not Mr. Iger does or does not deserve a bonus. The issue is that employees are getting laid off throughout the entire company (not talking about the Disney Resorts specifically) while Disney is making billions in profits and giving away large bonuses. This is why I will not renew my annual pass. Yes, I realize that The Walt Disney Company will not miss my $650 from the sale of my annual pass and whatever it is I spend in the resort (because this is pennies to them) and yes this may be how as you put it "free enterprise is supposed to work," but this doesn't take away that there is out of control greed here, not just plain old greed, out of control greed.

[JerrodDRagon]

To be honest Disney is a hard company for me to hate...or LOVE

I do love "Disney" but I like the dreams the guys who come up with the great movies and rides I see soo many times.

Disney does good when it builds new attractions..land and theme parks because it brings more money and jobs to the state...but they also don't pay Employees very much or give many benefits

They also make a few bad movies...blame 2D animation and lose it for years...it had to be brought back by someone at Pixar (a 3D company)

Overall the biggest mistake Disney makes is trying to say they are there to make memories for you and your family...cause the company is not they want your money....its the lower people who want that to truly come true

[Disney Wrassler]

For the most part prices go up due to the fact that our dollar is weak and continues to grow weaker every day. As prices for gas and food go up, then everything else will go up as well. So to me it's hard to tell. Yes there may be a little greed in it, but people need to realize that in order to stay out of debt in an economy where our dollar gets cheaper by the day, prices must go up. Another reason why Disney's prices are going up is because of all the new attractions they placed on their Disneyland resort property. They need to be able to pay for that some how and the only way to do that is by raising park prices to cover those expenses.

[jsmith11618]

Actually, it has been that way for over a quarter century -- since 1985, when the Eisner regime took over and applied their current business model to all aspects of Disney theme park operation.

From raising customers' prices to slashing employees' training, from charging $3 to have your name stitched on your Mouse Ears (formerly free) to paying CMs fast-food wages, Disney under Eisner and Iger is a classic, ruthless Wall Street corporation. The difference with other ruthless Wall Street corporations is that this one likes to masquerade in a cloak of pixie dust.

Ask anyone in town who's done business with them.

Disney pays the wages the unions agree to. In a union workforce, not like Disney can just say oh we are paying you less now, oops. The union and workforce agreed to the contract, if the pay was too low vote it down and strike.


People say the wages are dirt low compared to years past, but does anyone really know what they paid back in the 60's or 70's and how the wages compared to similar jobs in other companies.

How much did a food service work at Disney make vs Mcdonalds in the 70's?

[Jo4brains1]

I hate the excessive character licensing, the outsourcing of film sequel-animation, and the building of lands based exclusively around movies. I also don't want the third park to be built so tickets prices don't go up. (it could also possibly be that DIS hasn't been doing well on Wall St. lately.)

[LittleImagineer]

Honestly, I'm young and have only known Disney in my lifetime. When I first began to love Disney in my very young years I thought it was all happiness and gumdrops. However, these past two or three years I've matured and realized Disney is greedy. They're a mean corporation and sometimes I feel foolish now for thinking otherwise.

Everyone talks about how things were different when Walt was in control. I would absolutely love to believe that. But I still wonder, was it really? Did he really not care about money? I hope he was as great as everbody and the books and the movies say, but every once in a while we hear of this "dark" side of Walt.

I hope something will come up in the next few years that will make me change my mind on Disney and their greediness. I guess I used to think of my relationship with Disneyland as personal, but I've come to realize I'm just another pawn in their money game.

I feel terrible and awfully pessimisted!! :O Really, normally I'm better than this!

[4th Gen Disney Fan]

Sadly, this question was answered about 30 years ago. Disney has been greedy for as long as I can remember.

[DisneyAvenue]

Is Disney becomming a symbol of out of control corporate greed? The answer is yes for one HUGE reason.... The sad amount they pay their front line cast members!! The executives know the people who work for nothing do so because they love what Disney is all about... This is why each park employee not on salary goes through a strict highering process. When Walt was king, people made an honest, well paid career out of Disney. Ride operators were older people who were being paid appropriately and Walt took care of his own. I think it is utterly ridiculous that Disney feeds off of the passion it's park employees have and is why they are willing to except minimum wage. If you can pay Iger millions of dollars in bonuses, and the companies profits are through the roof, there is no reason they should be able to get away with this... This is my number one complaint with the company. Go on youtube and watch "mousetrap" it is very said what these hard working people go through because they love the companies rich history and values, or because of their greed, lack there of!!! Pay your employees what they are worth....the ones who actually make the magic a reality!

[TCadillac]

The point of a business is to increase the value of the stockholder's equity. Disney is a business so they try to create a product that is profitable and generates an optimal revenue stream. Disney is not a corporate greed machine they do what every other business does try and make $$$. It's not the good will. Prices of goods (tickets, merchandise, food, etc) increase because of rising operational costs and inflation. Quality products such as the Disney experience are at a premium. You pay for what you get.

[JerrodDRagon]

^what if you don't have stocks?

I would not say that's the point of a business, the point is to make money yes but also create jobs and help the world.

Greed is when a company cares more about simple dollars then the people who make them the money to run the company

[TCadillac]

^what if you don't have stocks?

I would not say that's the point of a business, the point is to make money yes but also create jobs and help the world.

Greed is when a company cares more about simple dollars then the people who make them the money to run the company

If a company does not offer stocks to finance their company then they would be classified as a sole proprietorship or a partnership, not a corporation, and their goal is still to maximize profits while minimizing costs.

On your second point I would not say Disney would be classified under the "Greed" definition you present. You should check out this link to Disney's corporate governance page Corporate Governance | The Walt Disney Company

Click on the link "Standards of Business Conduct". If you read through the documentation Disney operates their company through 6 core values: Integrity, trust, teamwork, honesty, play by the rules, and respect. In regards to caring more about dollars than the people that make the money you should check out core value #3 "Teamwork". Quoting Disney "Our Cast Members and employees are the cornerstone of our magic. We are committed to a work environment where everyone is afforded the dignity and respect that they deserve." Another quote "We promote professional development. We are also committed to offering opportunities for Cast Members and employees to develop and advance professionally, in a manner consistent with their abilities."

A corporation such as Disney can not achieve and sustain success and growth without a commitment to their shareholders which include employees, customers, the community, the environment, etc.

[TimmyTimmyTimmy]

Ehm... Disney is a symbol of greed since the 70´s.

[TCadillac]

I'm just curious? What is everyone's definition of a corporation that symbolizes the opposite of greed... generosity?? Examples please? Fox, NBCUniversal, Turner, Dreamworks, Cedar Fair Entertainment, Comcast?? I'd really like to know.

[DCArocks]

Yes it has in my opinion! Universal has some great rides and attractions for cheaper, plus the one on hollywood is authentic like Disneyland. Universal has cheaper food and great meal deals! When you make a ton of money don't you think that you would make even more if you make things Cheeper and more accessible to millions of more people?

[swampymarsh]

I'm just curious? What is everyone's definition of a corporation that symbolizes the opposite of greed... generosity?? Examples please? Fox, NBCUniversal, Turner, Dreamworks, Cedar Fair Entertainment, Comcast?? I'd really like to know.

The few that are not household names where the owner gives the company to the empoyees.