Walt Disney Co.(NYSE:DIS)supersedes all other companies which offer theme parks and entertainment. Its superiority is maintained not only in U.S. but also around the world. Disney parks are visited from tourists all over the world and 2014 holiday season broke all the records. The number of guests overflowed so much that some of them even had to be turned away because of lack of accommodation. As a corollary, the financial results of 2014 delineated an increase in profits of approximately 20%. Since, Walt Disney Co.(NYSE:DIS)has been very innovative in its ideas of theme parks, therefore this creativity and innovation compelled its stock prices to escalate to about 30%.
In contrast, Walt Disney Co.(NYSE:DIS)rival entertainment company i.e. Seaworld Entertainment Inc. (NYSE:SEAS)has been the victim of a notorious publicity which has also paved way for many financial hardships to follow suit. While Walt Disney Co.(NYSE:DIS) visitors and consequent profits are escalating; SeaworldEntertainment Inc. (NYSE:SEAS) saw a decline in its number of visitors in the year 2014 as compared to people who came in the year 2013. Owing to these reasons, the company’s stock has also suffered and within a year, has gone downhill, by almost 50%.
While both the companies used to be at the summit of American theme parks, what are the reasons which have led to Walt Disney Co.(NYSE:DIS)astounding success and Seaworld Entertainment Inc.’s (NYSE:SEAS)failure in contrast?
Use of Animals for entertainment
There are two significant circuses in America which have still continued their performance and acts. These circuses are Ringling Brothers and Barnum & Bailey respectively. The history of this circus can be traced back almost 133 years. It has continued its trends and hasn’t changed much over the years. Consequently, animals are still deployed there for its three-ring act. However, with changing times, people have started protesting against this. There is one group called PETA which is especially vocal and strongly protests against the deployment of animals for entertainment purposes.These activists have started awareness programs on internet and have also began recruiting followers so that there is huge wave of protest out there.
This continual protest and resentment against the use of animals has led both Ringling Brothers and Barnum & Bailey to quit their elephant act gradually.The companies have claimed that by the year 2018, there would be no elephants left to perform the act. The companies have private estates in Florida which serve as breeding ground for elephants, and this is the place where they would be retired by 2018.
With the growing awareness among people, the use of animals for entertainment purposes has been the focal attention of many negative sentiments. There are speculations that SeaworldEntertainment Inc. (NYSE:SEAS )has been a violator of not only animal rights but also human rights and this fact has played an important role in the company’s bad publicity, resulting in its bad profits.
On the hand, Walt Disney Co.(NYSE:DIS)has continued innovating its attractions and this is what matters at the end. So its continual progress will also have a direct effect on its shares; while Seaworld Entertainment Inc.’s (NYSE:SEAS)shares will probably continue to fall. This assertion will remain sound even if it stops the use of animals, manages to change the public point of view and adds new and innovative attractions; since currently its financial prospects aren’t that bright.
