Universal Orlando Resort Expansion (Part 1)

[zg44]

Do we have any guess how much WB makes off the Potter deal? I'm just curious how lucrative it is for both Uni and WB. Clearly they're all counting money hand over fist- but I'm curious how sizeable for each party.

If WB is making solid change here with minimal risk- I could see them pushing LoTR hard because, well... free money. And better brand recognition to boot done in a fantastic manner.

HP is such a phenomenal selling point for Universal. They can show that to any franchise, like LoTR- and prove to them how they are able to keep their franchise authentic, immersive, not corny as hell (Darth Goofy, anyone?), profitable, and genuinely good for the brand.

They get a fixed annual fee and the merchandise fees; based on the fact that it's not an exclusive rights deal, I'd guess that it's somewhere around $8-10m a year fixed + somewhere around $20m+ in merchandise share every year that WB takes home (off probable HP merchandise sales somewhere in the $200m+ range across the 3 park groups). An incredible earning power for a license; their take from their exclusive US deal for DC-Six Flags is somewhere in the low single digit millions for perspective like most deals of this nature (Six Flags paid $3.3 million for DC + Looney Toons in 2011, when they disclosed that on an SEC form).

It'll be interesting to see what happens at renegotiation post-2028; obviously WB won't want to ruin a good thing, but let's be clear here, the deal has paid off many times over for Universal.

 

[Frank Drackman]

Do we have any guess how much WB makes off the Potter deal? I'm just curious how lucrative it is for both Uni and WB. Clearly they're all counting money hand over fist- but I'm curious how sizeable for each party.

If WB is making solid change here with minimal risk- I could see them pushing LoTR hard because, well... free money. And better brand recognition to boot done in a fantastic manner.

HP is such a phenomenal selling point for Universal. They can show that to any franchise, like LoTR- and prove to them how they are able to keep their franchise authentic, immersive, not corny as hell (Darth Goofy, anyone?), profitable, and genuinely good for the brand.

I have no clue, but theme parks using IPs, well to me, I think WB gets advertising for something they distribute....but when I hear about how many issues HHN seems to have, I guess IP stakeholders see it differently...

Anyway, does WB own the look of the films or something? Is that what would give them a stake?

But to me, I wonder if (outside of the consulting fees), is it just to help keep the product in the public’s eyes for DVD/on demand/tv stations/netflix....I mean in that it might help drive up fees for other use fees of the films....dang, I keep recalling stuff...I worked for Warner at some point in my life, but that was distribution in a time when records and vhs were on top, laser disk and cds were pretty new...there were still phones where you had to dial a number...

 

[zg44]

I have no clue, but theme parks using IPs, well to me, I think WB gets advertising for something they distribute....but when I hear about how many issues HHN seems to have, I guess IP stakeholders see it differently...

Anyway, does WB own the look of the films or something? Is that what would give them a stake?

But to me, I wonder if (outside of the consulting fees), is it just to help keep the product in the public’s eyes for DVD/on demand/tv stations/netflix....I mean in that it might help drive up fees for other use fees of the films....dang, I keep recalling stuff...I worked for Warner at some point in my life, but that was distribution in a time when records and vhs were on top, laser disk and cds were pretty new...there were still phones where you had to dial a number...

It's because Warner's deal with JK Rowling is fairly comprehensive and makes them effectively her salesman for all things Potter. Warner effectively controls the theme park rights, movie rights, game rights, etc. but she gets to keep a significant say in how things are sold and what things look like, and of course she gets a huge percentage of any profits.

 

[Teebin]

zz44, you must tell us why you know so much about contracts and Wall Street and financial dealings... your perspective is much appreciated.

On another note, someone from here is attending the IAAPA. Is it Brian? If so how did you get entrance tickets? I’ve been under the impression that admission is to the trade only.

 

[pat_naughty05]

zz44, you must tell us why you know so much about contracts and Wall Street and financial dealings... your perspective is much appreciated.

On another note, someone from here is attending the IAAPA. Is it Brian? If so how did you get entrance tickets? I’ve been under the impression that admission is to the trade only.

I’ve seen a few other theme park blogs posting pictures and videos as well. I don’t know if this is any different than prior years, but it looks like they allow media in.

 

[AlexanderMBush]

I’ve been under the impression that admission is to the trade only.

From what I can gather, non-members of IAAPA can get in the event for a higher price point; and that would count external individuals who want to see what's going on.

 

[Teebin]

From what I can gather, non-members of IAAPA can get in the event for a higher price point; and that would count external individuals who want to see what's going on.

Ah, I didn’t know that. I had a “friend” offer to get me into the show once a time back, that’s why I asked.

 

[JoeCamel]

Ah, I didn’t know that. I had a “friend” offer to get me into the show once a time back, that’s why I asked.

I saw a couple (Midway Mayhem) flashing media passes yesterday so I think they got an invite. Maybe Brian made the "A list".

 

[JungleSkip]

*cough*

In historic move, Christopher Tolkien resigns as director of Tolkien Estate | Hobbit Movie News and Rumors | TheOneRing.net™

 

[zg44]

*cough*

In historic move, Christopher Tolkien resigns as director of Tolkien Estate | Hobbit Movie News and Rumors | TheOneRing.net™

And we're off, this is pretty much confirmation that we're going to see the LOTR theme park rights deal announced soon.

 

[JungleSkip]

And we're off, this is pretty much confirmation that we're going to see the LOTR theme park rights deal announced soon.

Something to note: Christopher resigned in August. I'm pretty sure Disneyhead said Uni locked up the rights in the past few months.

Seems like it matches up, timeline wise

 

[Miketheboss]

And we're off, this is pretty much confirmation that we're going to see the LOTR theme park rights deal announced soon.

Ewww. Is LOTR still relevant?

 

[zg44]

Ewww. Is LOTR still relevant?

Amazon's spending somewhere in the range of $1 billion to produce a multi-season show (and a spinoff) for the pre-Fellowship story. So I'd say very relevant considering that might be the most expensive TV show of all time.

 

[Brian G.]

Ewww. Is LOTR still relevant?

 

[JungleSkip]

Ewww. Is LOTR still relevant?

Come on, you can do better than that

 

[youhow2]

And we're off, this is pretty much confirmation that we're going to see the LOTR theme park rights deal announced soon.

My body is ready.

 

[Nick]

I'm no LOTR fan, but looking forward to what UC can do with it if this truly happens.

 

[jrn14]

Yeah Im sure there is some great attractions and a beautiful land in there ... I think the barrel scene from The Hobbit 2? would be a great ride..

 

[LieutLaww]

Breaking news.... Volcano Bay to be rethemed as Mount Doom !!!

 

[Magic-Man]

What about the new Dynamic Attractions All Terrain Dark Ride and Flightcycle? Could we see those in a future park? (not sure if this belongs in this thread or blue sky)