http://www.fool.com/investing/general/2014/10/14/how-disney-is-investing-32-billion-in-its-future.aspx

Just think... a capex of nearly $4 billion per year. I wish we had that.

^

There wouldn't be much FUN left if we did

The article constantly makes the point that Disney's biggest expenditure is in its parks division. Not always true. It wasn't long ago at all that the Parks and Resorts division was left to practically wither as Paul Pressler and his minions cut every team to the bare bones, reduced upkeep, shortened hours, darkened lights, lessened maintenance, and closed rides. They then happily reported massive gains in the division's profit. It looked great on paper, but that strategy has terrible consequences. Those consequences are still being felt and contended with today, which is perhaps WHY the parks division necessitates billions per year today.

It wasn't an absurd strategy. The parks are huge earners and can "coast" for periods without major additions and still be the company's highest earner (see Walt Disney World Resort). Problem is that lack of maintenance, care, and attention trickle down and visitors stop coming.

If it wasn't for the cost-cutting of Eisner's era at the hands of Pressler, Disney California Adventure probably wouldn't have needed a billion and a half dollars just to stand on its own. Walt Disney Studios Paris might not exist at all, and that would probably be for the better. Hong Kong Disneyland wouldn't have needed three new lands just to be a full-day park. New Tomorrowland '98, Epcot of today, The Disney-MGM Studios... The biggest expenditures of Disney Parks & Resorts today are not because the company is charitable. It's because they're recuperating.

By the way, Mr. Pressler took his slash-it-all-then-victoriously-trumpet-profit ideology to his new career at the Gap. It didn't work for long there, either.

And where was it he came from?

Oh, yeah...the old Six Flags.

It is crazy to me that New Fantasyland cost $3.8 Billion.

That annual Capex amount is for all projects for that year at all parks. The article is identifying the major project for that year where the majority of the money went, but it is not saying that each of those projects cost that much. Capex is comprised of all park improvements, refurbishments, additions, repaintings and such.

Yep, Fantasyland was quite a bit less than that. Like, a fraction of that.

To put things in perspective: $4 billion built the entirety of Tokyo DisneySea - the most expensive park on Earth at the time - in 2001.

That same year, Disney California Adventure's opening day version was $1 billion. A second $1.5 billion from 2005 - 2012 practically rebuilt it and easily doubled the park's lineup of attractions (adding Cars Land's three attractions, World of Color, The Little Mermaid, Buena Vista Street, Carthay Circle, Red Car Trolley, Toy Story Mania, and placemaking in each of the park's eight lands.)

$1.5 billion is also the figure associated with Walt Disney World's MyMagic+ and FastPass+. Some estimates say it's cost much, much more.

Ok makes sense. I was walking around New Fantasyland today and was like "How the heck did they spend a billion+ on this?"