Writer: Andrea Teran
3 min read November 2023 — The Walt Disney Company’s recently released fourth quarter and full year earnings report for FY23 showcases a mixed financial picture, with revenue growth and notable performance in various segments. However, beyond the numbers, a closer look reveals the impact Disney has on local economies, particularly on small businesses.
“Disney’s impact goes far beyond the gates of its theme parks and positively touches our lives in nearly every corner of our community. Disney not only pioneered Orlando’s theme park industry with its own investments over the last five decades, they also paved the way for others to invest in our city and help make it the tourism destination it is today. It’s been an honor working alongside Disney as they help continue to move Florida forward,” said City of Orlando Mayor Buddy Dyer.
The earnings report highlights a 5% growth in revenue for the quarter and a 7% increase for the year. However, the earnings per share saw a mixed trend, with an increase for the quarter but a decrease for the year. In the streaming and direct-to-consumer services segment, the combined revenue for Disney+, Disney+ Hotstar, and Hulu increased by 12% for the year, with notable decreases in operating losses.
The entertainment segment showed resilience with a slight revenue increase, while the experiences segment highlighted a 13% increase in revenue for the quarter and a 16% increase for the year. The streaming services also played a crucial role, contributing to revenue growth and decreasing operating losses.
A deeper dive into Disney’s impact on the local economy reveals a story beyond the financial figures. A study commissioned by Disney showed that Walt Disney World Resort alone generated $40 billion in economic impact across Florida in fiscal year 2022. The study, conducted by Oxford Economics, emphasized Disney’s role in job creation, with 263,000 direct and indirect jobs in the state – equivalent to 1 in every 32 jobs in Florida.
The study also highlighted the symbiotic relationship between Disney and small businesses. James Petrakis, owner of the Polite Pig at Disney Springs, shared, “From day one, the experience and the relationship that Disney has offered us is better than anything I’ve ever seen. Our business has grown in the last three years by about 25 to 30%. We are pushing numbers that we never expected.”
The report emphasized that 2,500 Florida-based small businesses are contracted to supply products and services to Disney World. These businesses span a wide range, from painters maintaining Cinderella Castle to vendors providing treats in the parks. The economic impact is wider than the East Coast, as California-based companies, like BriteWorks, Inc., have experienced growth through partnerships with Disney.
“Disney is an economic catalyst to the state of Florida generating billions in economic activity, either directly, or indirectly through its supply chain and the spending of employees. Disney is also vital to the funding of public services, as it generated taxes of $6.6 billion in 2022, including state and local taxes of $3.1 billion,” said Adam Sacks, president of tourism economics, a division of Oxford Economics.
Disney’s commitment to investing in experiences extends beyond theme parks and streaming services. In September, Disney announced plans to double capital expenditures to approximately $60 billion over the next decade, with a focus on expanding its Experiences segment. This commitment suggests continued opportunities for small businesses involved in construction, maintenance, and various services related to Disney’s expansion plans.
Beyond economic contributions, Disney remains a positive influence in local communities. The company has donated hundreds of millions of dollars to Florida nonprofits, with cast members contributing over 233,000 volunteer hours in 2022.
Jeff Vahle, president of Walt Disney World Resort, expressed pride in how Disney has impacted lives in Florida for generations.
“I am incredibly proud of how Disney has created meaningful change and benefitted people’s lives in Florida for generations, not just in establishing our area’s theme park industry, but also in how we have worked with other sectors across the state to do the same. The numbers speak for themselves on why Disney is so important to fueling jobs, the economy and tourism throughout our region, and the future investments we’re looking to make will continue to provide even more opportunities for Floridians,” said Vahle.
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