What does Fortnite have to do with Hurricane Milton?

What does Fortnite have to do with Hurricane Milton?

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As I hunkered down this week during Hurricane Milton (more on that shortly), I had time to reflect and read up on some news I first heard about back in February, Disney making an investment with Epic Games in the popular video game Fortnite. Just this week, Forbes reported some on some of the details, like how some Disney characters will not be allowed to hold guns in the game (1). The Verge reported Disney's investment with Epic Games was at least $1.5 billion (with a b). That's a staggering amount to invest in someone else's video game. So why is Disney investing so much, and what does it have to do with a hurricane?

Well, certainly all of Florida was laser focused this week on Hurricane Milton. Making landfall late Wednesday night in Sarasota County, the hurricane came just weeks after Hurricane Helene and has caused extensive damage across the state (3). Both Disney World and Universal Studios closed mid-day Wednesday and remained closed all day Thursday (4), not re-opening until Friday. As a cast member, while Disney did a nice job communicating through emails and cast member websites, it was interesting to me that I still heard about the park actually closing through a blogger hours before receiving official word (5).

So what's the connection between Fortnite and a hurricane? The connection is revenue diversification. While the theme parks have only closed a dozen times over their 50+ year history, it is a reminder that just like during Covid, theme park revenue is not a sure bet. While it accounts for a staggering $32 billion in revenue (6), parks operating project actually declined a bit in the most recent quarter. CEO Bob Iger also talked about how during a recession, parks revenue would likely decrease. So Disney is seeking to broaden its sources of revenue. Movies have helped quite a bit with Deadpool & Wolverine and Inside Out 2 both making over the $1 billion mark. Disney+ streaming has over 150 million subscribers and is close to making a profit. 

So the investment in Fortnite is Disney looking to find other potential revenue streams. By diversifying, Disney is hoping to insulate not just the short-term impact of park closures (hurricane & Covid), but also the recurring impact of economic recessions, when park revenue is likely to dip.

Topic: Multi-Channel Media Marketing

References

(1) https://www.forbes.com/sites/paultassi/2024/10/07/fortnite-and-disney-team-up-means-some-character-cant-use-guns/ (also source of image above)

(2) https://www.theverge.com/2024/10/4/24261555/epic-disney-fortnite-unreal-fest

(3) https://www.fox35orlando.com/news/hurricane-milton-florida-damage-death-toll-rises-october-11-2024

(4) https://apnews.com/article/disney-world-milton-universal-seaworld-reopening-c6393375c33b89e9041faa203784985f

(5) https://wdwnt.com/2024/10/walt-disney-world-closures-hurricane-milton/

(6) https://www.nytimes.com/2024/08/07/business/media/disney-earnings-parks.html?unlocked_article_code=1.Rk4.dQqC.203-G03mTiJd&smid=url-share 


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