Universal's $7B Theme Park, First In 20 Years, Sets Stage For Disney Battle

Universal’s parent, Comcast, spent $7B to create and build the first major U.S. amusement park to open in more than 20 years. 

The park, called Epic Universe, is a critical element of Comcast's push to make the Universal Orlando Resort into a Disney-esque weeklong destination, The Wall Street Journal reported.

Epic Universe, which sits on a sprawling 750-acre site, has some staggering effects. A theme park reviewer told the WSJ that one of the park's attractions "was the first time that I actually questioned my reality while on a ride." Universal received over 160 patents in developing the park. 

Though Universal's Florida resort already has three parks — Universal Studios Florida, Universal Islands of Adventure and the Volcano Bay water park — Epic Universe is seen as a launchpad that will take the company's resort game to the next level. 

Theme parks are an important piece of the revenue puzzle for entertainment companies like Comcast and Disney as they traditionally provide a reliable income stream that balances out riskier businesses such as streaming media or films, according to the WSJ. By contrast, some theme parks not associated with media brands, such as Six Flags, have struggled over the last few years and announced location closures. 

Disney's theme parks, cruises and other travel experiences brought in approximately $7.9B in revenue in Q1, roughly a third of the company’s total revenue. In the same period at Comcast, theme parks brought in about $1.9B, or 6% of the company's revenue. 

Disney executives have said that Epic Universe could be a boon to all parks in Orlando, as new additions have driven higher attendance to both Disney and Universal properties in the past, the WSJ reported. But analysts have said that the new park could be a threat to Walt Disney World, which hasn't had a major expansion since 2019, Reuters reported. 

“We’re always on the offensive,” Josh D’Amaro, chairman of Disney Experiences, the division that includes its theme parks and cruise line, said at a recent conference. “We’re constantly investing for the long term, fortifying each one of our theme parks.”

Overall economic uncertainty is affecting vacation plans for many Americans as well as international travelers. Theme park vacations are a fairly costly expense when factoring in tickets, hotel stays, meals and travel to the park, but analysts say that may work in the parks' favor. Comcast said that current and future bookings for the park, which opened Thursday, don't seem to show that attendees are going to stay away, CNBC reported.