Amber Kumpfmiller

Universal Studios: Comcast’s Disney

I have long been a fan of Universal Studios living in Orlando. I saw firsthand the mile

long line for the Harry Potter Wizarding World on its opening day and for this reason I have

chosen to look at Comcast Corporation’s balance sheet, Comcast being the parent company.

First, we must look to how Comcast came to own Universal Studios. Comcast had its humble

beginnings in 1962 when purchased as a cable company. Slowly it began to acquire more

channels with more revenue, including channels as innocuous as the Golf Channel and QVC.

By the late 1980’s it had grown significantly when purchasing rights into the fledgling cellular

phone phenomenon. Eventually what would turn into a partnership with AT&T plus dozens of

other acquisitions and mergers with competing cable companies. Comcast was able to grow to

what it is today but having a diversified business strategy in providing cable and internet,

television programming, and even including theme parks. Even though Comcast is much more

than the theme park it is what I will use as my agenda from being an observer in Orlando. Also

being in Orlando, I will be using Disney as Comcast’s closest competitor. By reviewing the

material that I have found, it seems they have been rivals and friends for quite some time.

I chose Universal Studios because I do love going to the park. The corporation is

currently building a new park which will be located 2 miles from the current Universal Studios

theme park. And through all transparency I have a close family member that works for Universal

Studios and has been part of the management team for close to 17 years. The plans for the

expansion have been in the pipeline for quite some time. The new park, which is being called

Universal’s Epic Universe and will be referred to as Epic from here on out, was supposed to be

completed by 2021 and slated for opening. The Covid-19 pandemic destroyed that timeline. I

thought it would be interesting to look at their balance sheet to see exactly how they had done
through these turbulent years. The balance sheet did not disappoint. It truly is a story of the

pandemic.

2019 is the first year of the 5-year trend period. 2019 was not a terrible year for

Comcast. Its closest competitor Disney was on the same level for most of the balance sheet.

This makes absolute sense when really looking at how each of these companies are diversified

and not just using their theme parks as the only reason with holdings in both the creative

industries and distribution. 2020, I think, tells the story of everyone staying home. I could not

find the exact numbers for the theme parks only for each corporation which is the part of the

portfolio that had to have had a negative effect on. However, the numbers significantly rose for

both. As just a fan and not as a business insider, I thought that each company would have taken

a nosedive. However, after researching and seeing who controls the theme parks and what

other business they control, the increase in numbers makes sense. Everyone around the world

was asked to stay indoors as much as possible and with the new normal of working from home

there was a considerable increase in the need for internet and home-based entertainment. Even

though the competitors both had an increase in 2020, I am surprised that Disney did top the

numbers of Comcast, the latter being one of the largest internet providers. For example, the

total current assets in 2020 for Disney was 33,080 and Comcast was 26,741. Both companies

were providing what was needed at the time.

Currently, Comcast is still going strong in terms of their profitability. It is, however, still

behind its competitor Disney. Looking at the balance sheet, Comcast has stayed in the same

range over the last 5 years. 2020 is still its biggest year. There is growth from 2022 to 2023

which I believe shows its commitment. Building a new theme park is a great risk but could

ultimately be a great opportunity. It is an example of a company listening to not only the

shareholders but to the public which uses its goods and services. Living in Orlando surrounded

by tourists you must keep the brand fresh to keep the tourist money incoming.
 I do think this venture in to a new and exciting world with Epic, Comcast may see sizable

growth in 2024. A new ride or a new opening always brings in new crowds of fervent fans. With

that new crowd comes a new income. Now, would it be considered superior performance? That

will have to wait to see how the rollout goes. If the Harry Potter introduction is an indication,

which increased visitation by roughly 80%, then I think their new risk will pay off. New visitors,

new merchandise sales, and new profits. The investment in this risk exemplifies a good

business strategy. Looking towards the future and seeing where growth can be made is the first

step in achievement.

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https://corporate.comcast.com/press/timeline
Havard, C. (2020). Disney vs. Comcast: Lessons Learned from a Corporate Rivalry. Graziadio
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https://www.wsj.com/market-data/quotes/CMCSA/financials/annual/balance-sheet
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https://www.wsj.com/market-data/quotes/DIS/financials/annual/balance-sheet
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