Comcast wants to add new attractions to its theme parks
Comcast’s (CMCSA) franchise-focused strategy also extends to its theme parks. The company expects its investments in its theme parks to drive up its capex (capital expenditure) by 10% in fiscal 2017. The company is looking at adding one new attraction each year for its theme parks in the United States (SPY). Comcast is also looking at extending the room capacity at its hotel in Florida.
Comcast’s rationale behind adding new attractions to its theme parks is that it expects these new attractions to drive higher attendance. The company expects that the increased attendance would result in higher per capita guest spending at its theme parks.
Comcast’s theme parks comprised 14% of Comcast’s NBCUniversal’s total revenues of $7.8 billion in fiscal 1Q17. According to a forecast from Statista, theme parks in the United States are expected to generate revenues of $21.8 billion by 2020.
Considering these statistics, companies like Comcast and The Walt Disney Company (DIS) are increasingly concentrating on adding new attractions that are centered around their popular franchises.
Comcast’s international theme parks
Comcast is also looking at opening a theme park in Beijing, China (FXI). Disney has already opened a theme park in China, which has been a resounding success for the company. Disney is hoping that Shanghai Disneyland breaks even in fiscal 2017.
At the end of fiscal 1Q17, Comcast also completed the consolidation of Universal Studios Japan (EWJ) by purchasing the remaining 49% stake in the theme park for $2.3 billion.
Later in this series, we’ll examine how China is becoming an important market for media companies like Comcast.