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Why Is Hollywood Studios Closed?

Adam Scott

The largest and most successful film studio in the world is the Walt Disney Studios. They have theaters in nearly every major city in the United States as well as some other countries around the world.

Now, that doesn’t seem that huge until you consider the fact that Disney runs a whopping 30% of the United States cinemas. This figure seems enormous, especially when you consider the fact that

Disney has plans to almost double the number of theaters in the next few years.

Hollywood studios are closed at some states in the United States or the entire state of California. This is because it is because of the wildfires in the state that have been raging through California since last month.

It is also the same thing in Florida where Disney World and many others are also closed. Florida has had to evacuate some parts of the state as well.

The fires in California are burning through the various hills and valleys in the state, thus the cause of the issue. As a result of this, the constant access to these sets has been blocked.

Those of you who are wondering about if you can access these Hollywood Studios are now out of luck as Disney has blocked access and you cannot do that now. We are glad that the fires have been contained at the moment but unfortunately, more wildfires are going to pop up soon and if they do, then the same thing is going to happen to the Hollywood studios and a lot more places in the state.

Always make the best out of everythingWhite screen projector by the beach

So why is this so? Well, Disney’s answer to this is that their idea is to make the best movie possible. This leads them to make their films on as wide a scale as possible and to distribute them across as many screens as possible.

This leads to higher profits for the studio and is what Disney is banking on when they plan on doubling the number of theaters.

The studios that Disney doesn’t run are in predominantly small towns and have very limited theaters. So as a result, Disney has opened these theaters in the United States, but also in cities such as Singapore and Shanghai.

This is a strategy that other studios are doing as well in an attempt to compete with Disney. Unfortunately, this doesn’t make sense and is in no way a good business strategy.

Why is this?

Let’s look at the numbersIphone laptop macbook technology

Since Disney opened the first Disney-owned theater in 1989, they have opened 180 Disney owned theaters. Each of these theaters have 100 to 500 seats, but can seat up to 500 more in the auditoriums that they do not own.

The problem here is that they do not own these 100 to 500 additional seats. So how can Disney manage to make an increase in profits when the only thing they are increasing is the number of seats they manage to own?

It’s simple.

Instead of investing in their own theaters, Disney opens an average of four to five different locations in a city at a time. The good news is that they are able to open these locations because they can increase their ticket prices.

The bad news is that they are operating in the red, and that is not going to get better.

The reason why this does not make sense is because an individual looking to watch a movie in a theater should not be concerned with the theaters that the studios own because they already have access to their entire franchise. The person that is looking for a new movie is more concerned with the theaters that the studios do not own.

If the person is happy with the theaters that the studio does not own then he will not be making a trip to that particular location but will continue to choose from the theaters that the studios do own. This makes no sense, and leads to a large loss of income for the studios.

Thus, Disney needs to reevaluate their decisions to continue generating profit. While they are quite in demand, there's only so much patience fans can shell out at a given amount of time.

ConclusionRapunzel with Fairy Godmother in Silhouette, Magic Kingdom

So the reason that Disney does not make as much money from their theaters as they could is because they are wasting money on multiple locations. They could have opened the theaters across the United States and focused on making the films that they wanted to make, rather than creating multiple theaters in several cities in the United States.

Then instead of wasting money on these theaters, they would be making money from the audiences that they are now able to reach. Unfortunately, this is just one of the many reasons why Disney’s acquisition of Fox may not make sense for them.


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