Disney originally intended to reopen the various theme parks on April 1, but in light of the rapid spread of the new corona virus and recommendations from both local authorities and health experts, Disneyland and Disney World remain closed until further notice.
“While there is still much uncertainty about the impact of COVID-19, the safety and well-being of our guests and employees remains the top priority of The Walt Disney Company,” tweeted from an official Disney Parks account.
The company will continue to pay its hourly wage park and resort employees until April 18, the statement said. It is unclear whether this also applies to parks around the world, including in Paris, Tokyo, Shanghai and Hong Kong, but The edge has contacted for more information.
Disneyland and Disney World are closed on Sunday March 15. They would initially say until March 31. Some of the resorts remain open, including shopping and dining experiences at Disney World Resort. Disney’s parks in the United States joined Paris, Shanghai, Hong Kong, and Tokyo, closing for the first time in history that all seven resorts, including their various parks, were all closed at the same time. Disneyland was closed only twice before: on November 23, 1963, on a day of national mourning for President John F. Kennedy, and on September 11, 2001, due to the attacks in New York and Washington, DC.
Disney’s parks company generates about $ 20 billion a year in revenue for the House of Mouse. Keeping the parks closed will have major consequences for the company’s financial situation. Disney executives outlined this in a recent SEC filing for investors, noting that “the impact of the new corona virus and measures to prevent its spread affect our businesses in a number of ways.” Disney parks are closed, cruises have been suspended, and theater videos have been delayed. Production delays and sports leagues pausing have also impacted content creation for both film and television and have brought ESPN into trouble.
“We expect that the ultimate significance of the impact of these disturbances, including the magnitude of their negative impact on our financial and operating results, will be determined by the time that such disturbances continue,” the submission said.
Those disturbances will also depend on the “currently unknowable duration of the COVID-19 pandemic”. Disney’s SEC filing also states that they must take into account “the impact of government regulations that can be imposed.” For example, the governments of Florida and California could ban large gatherings over a long period of time, meaning that Disney World and Disneyland may have to operate within those guidelines.
While many entertainment companies are making a hit, Disney feels extra hard. Unlike NBCUniversal and WarnerMedia, owned by major telecom companies Comcast and AT&T, respectively, Disney has no bigger conglomerate it can rest on. Analytical company MoffettNathanson released a research paper last week explaining how hard extended park closures, production delays and other forces could hit Disney in the coming months.