Disney quietly working on $1 billion-plus “next generation” technology project
Featured, Jason Garcia, News — By Jason Garcia on January 17, 2010 at 6:46 am
The Kim Possible World Showcase Adventure, a wireless treasure hunt rolled out at Epcot last year, could be a precursor to some of the projects Disney is developing through its "next generation experience" project. (Courtesy of Walt Disney World)
The Walt Disney Co.’s theme-park division is quietly working on a major technology initiative that boosters hope could radically transform the theme-park experience.
Details of the project, which has been dubbed within Walt Disney Parks and Resorts as “next generation experience” or “NextGen,” are being closely guarded. But there is widespread speculation among former Disney executives and bloggers who follow the company that at least part of the project involves wireless-communication technology that could be used in concepts ranging from keyless hotel-room doors to rides and shows in which the experience varies based on an individual guest’s preferences.
The budget for the program totals between $1 billion and $1.5 billion, according to former Disney parks executives who spoke only on the condition that they not be identified. The amount is roughly comparable to what Disney is spending to build a pair of 4,000-passenger cruise ships.
Just before Christmas, Disney assigned oversight of the project to Nick Franklin, the head of global business and real-estate development for the company’s theme-park unit. Franklin’s newest title is “executive vice president of next generation experience.” At Walt Disney World, the project is being led by Jim MacPhee, a vice president who once ran the Epcot theme park. MacPhee’s title was changed last month to vice president of park operations and next generation experience.
Disney would not discuss specifics of the project. “Our company has a long history of leveraging technology to enhance the experience of our guests, and we are constantly exploring new opportunities to build on that legacy,” spokeswoman Tasia Filippatos said.
Though Disney typically keeps a tight lid on projects in development, the strict silence surrounding the NextGen initiative has surprised some company veterans. Disney has required employees assigned to the project — “several dozen” people are currently working on it, according to one of the former executives — to sign confidentiality agreements forbidding them from discussing their work, even with colleagues.
One former Disney manager described the climate surrounding the project as “super quiet.” Yet another likened the hush-hush atmosphere to the silence that surrounded the development of Disney’s Magical Express, the airport shuttle-and-luggage service introduced in Orlando in 2005.
“Usually you hear a lot of different things leak out,” added Michael Crawford, publisher of Progress City USA, a Web site devoted to Disney. “This has been really locked up.”
Several other people in and around Disney said they are aware of the NextGen initiative. But all said they were either unfamiliar with details or that they could not discuss them.
The secrecy, of course, hasn’t stopped speculation. Though the “NextGen” work has multiple components, several Disney bloggers, including Crawford, have reported that a key part involves the development of radio-frequency identification microchips that could be implanted into park passes or wrist bands. Guests would supply personal information ahead of their arrival — from their names and credit-card numbers to their favorite Disney characters — that would be downloaded onto the RFID microchips, which would then interact with sensors deployed throughout Disney’s resorts.
Disney has discussed the technology with Precision Dynamics Corp., a San Fernando, Calif.-based company that manufactures RFID wristbands. A representative for the company said he could not elaborate on those talks because Precision Dynamics has signed a non-disclosure agreement with Disney.
RFID technology has “certainly been on Disney’s radar as well as the other major [tourism] players in the Orlando area,” said Tom Foster, sales manager for Precision Dynamics’ RFID solutions group.
Crawford said he has been told that Disney’s work includes what is being called a “personal experience portal,” which he thinks could be the online site that guests would use to provide personal details and preferences. The blogger noted that posts he has written in recent months on Disney’s RFID efforts have attracted unusually heavy Internet traffic from IP addresses associated with Disney offices in Orlando and California.
RFID technology is already used in many areas of everyday life, from the contact-information chips that pet owners have implanted in their dogs and cats to the bracelets that hospitals use to track patients and their treatments. The technology is spreading through the amusement industry, too.
Indoor-waterpark operator Great Wolf Resorts now uses RFID wristbands manufactured by Precision Dynamics at seven of its 12 resorts in the U.S. and Canada. The wristbands function both as hotel-room keys and personal charge cards for guests, allowing them to buy food and souvenirs without carrying a credit card or cash.
“Given this new technology, guests who otherwise may not have wanted to go all the way back to their room for their credit card or cash and be inconvenienced may now be making purchases due to the added convenience of having their wallet on their wrist,” said Rajiv Castellino, chief information officer for Great Wolf Resorts. “The ease of use and convenience have proven to be big hits with guests at our properties.”
Though Disney is also interested in both keyless hotel entry and cashless transactions, its full RFID plans are said to be more ambitious.
Former employees and bloggers say Disney is looking at using RFID sensors in attractions, so that experiences could be tailored based on individual guest preferences. For example, as guests wander around a park or advance through a ride, their favorite animated character might appear and address them by name.
Another goal, according to the former Disney managers, is to greatly reduce or eliminate lengthy wait times at popular attractions — waits that can top three hours on particularly busy days and which a current Disney World executive said are routinely cited as a “key negative” by guests who visit the resort. One possibility is to allow guests to select preferred ride and show times and then use RFID scanners at attraction entrances to verify that they are showing up at the correct time.
RIFD tracking could also give Disney much more detailed data about its guests’ spending habits and movements, which could in turn be a powerful sales tool. Disney might be able to tell, for instance, that a family wandering one of its theme parks in the evening has no dinner reservations, and so could contact the family by cell phone to suggest nearby restaurants with available seats or promotions.
“The back story of this is they’re going to be able to track everything you’re doing,” said Al Lutz, editor of MiceAge.com and someone who also has written about Disney’s RFID development efforts.
The project isn’t without risks. Some former employees have expressed skepticism about whether the technological advances would do enough to boost attendance or guest spending at Disney’s theme parks to justify the $1 billion-plus price tag — or whether such money would be better spent on projects such as new resorts or attractions.
Disney also faces questions about whether guests would want to put so much thought into planning their vacations — and how such advance planning by some guests might affect others who could conceivably miss out on a popular attraction because time slots have been reserved ahead of time by those who planned.
Even eliminating attraction lines could be tricky: A theme park could actually feel more crowded if a certain percentage of people were no longer spending time waiting in ride queues.
Although Disney would not discuss its NextGen concepts, the company has said improvements to its guests’ vacation experience will lead to bottom-line gains, because happier customers are more apt to make return trips. There can be other advantages, as well: After launching its Fast Pass ride-reservation system in 1999, for instance, Disney said guest spending in its parks rose as guests spent less time in queues and more in shops and restaurants.
Jason Garcia can be reached at jrgarcia@orlandosentinel.com or 407-420-5414.
Tags: Disney World, News, Walt Disney Co.
Tweet This
Digg This
Save to delicious
Stumble it
Follow Dewayne on Twitter
50 Comments
This type of technology offering interactive experiences everywhere you go (including the resorts) has been talked about for quite a while but I have yet to see anyone suggest any real practical application of it, other than it’s just a fascinating thought.
One word you have missing in your article is privacy. And rest assured, with all the detractors of the current MYW finger scanning system (and even Pal Mickey had its share), there’s really no way under this current big brother environment that the theme parks will be able to pull it off without some sort of backlash, large privacy agreements, and/or a way to opt out of it.
As far as Disney folks googling for RFID, while it’s possible (and no one can deny the practical applications for RFID, even in far less stealthy applications such as The Kim Possible Worldshowcase Adventure or potentially a form of inventory control), the reality is the bulk of searches are probably coming from employees who have probably heard murmurs themselves and are trying to find additional information moreso than execs are trying to determine who knows the secret. That said, I have witnessed myself on multiple occasions, a phenomenon that once something gets out that shouldn’t necessarily be out, there will be a steady flow of incoming visits from Disney.com visitors, but they would be going to a specific link, not likely through searches as the internet source would already be known.
While I don’t doubt there’s something in the works, if it were truly significant, I imagine there’d already be patents/applications filed to protect the technology. Even if Disney has no or little intention of using a certain technology, they’d file a patent to protect it just in case. And if they’re spending $1B on some super technology, with industrial espionage being a key factor besides having Kim Possible and NDAs on your side, wouldn’t that be a logical step?
Instead of thinking about the “Big Brother” effect. Look at it from a safety standpoint.
You can pinpoint a missing child to the exact location. God forbid if someone is abducted, you can scan and see who,what where and when.
I will only assume that empolyee’s will have the same RFID chips in their ID cards. This can help prove guilt or innocense of accused inapropriate behavior from castmembers.
That is just one application you can see positive coming out of the RFID technology.
That’s a waste of money for Disney. My family would never use this half the fun is walking around the parks deciding what we want to do. We do not want to plan anything and I am for sure never leaving my wallet at the hotel, it stays with me at all time. This Disney project is a FAIL!
Why spend the money for this? It’s stupid. Why not rehash Honey I Shrunk The Kids which is decades old? Or open a new park. Anything would be better than this. It’s totally completely absolutely useless.
These turkeys refused to decorate the bridge at epcot this year because they said the technology was old. Same technology they use in the Osbourne Lights. People liked the decorated bridge.
They screwed up Coca Cola by ”improving it”. Now it’s nothing special. They screwed up Edie’s Ice Cream by making a long line to order outside the restaurant. They could do something about the frequent sewer smell coming from the underground bathrooms in Mouse Gear. They screwed up the big golf ball by making it ”educational” and taking out all of the disney fun from it. Nothing of walt in that ride any longer. They could try revamping the Carousel of Progress which looks rattier and rattier by the week. Same for Tiki birds. They could take Tiki Birds back to the original program instead of what they have now. It was better.
The only thing they have done to improve the parks in the last ten years that actually worked was adding Captain Jack to Pirates and half the time, the Davy Jones smoke thing is on the fritz.
So I don’t think this is a good idea. IF they want to spend some money, there are better places to spend it.
They can afford this project because of the $billions they are saving hiring more Haitians. Third world labor is paying for this “major technology initiative”.
You do realize that Disney can’t just go to Haiti and hire a bunch of people and pay them nothing right? That’s illegal…
If someone interviews at Disney and happens to be from Haiti, they get paid the same base pay as everyone else. Also, they have to show proof that they are a US citizen, like everyone else.
It’s ignorant comments like this that continue to amaze me.
Can’t say I’m overly thrilled about it. In the end, will it be just another way to streamline profits? If thats the case, kiss your favorite nonprofitable non tie in attractions good bye. And yet, there is Jim MacPhee… stay away from the dark side, we’re counting on you bud!
I see a previous post asking about practical uses for this application. To start with it was discussed at one time to embed tickets with this technologyh and have sensors around the park that could monitor guest traffic and flow on a general level not specific as far as knowing Joe Smith is in Fantasyland. At that point FastPass machines would print out a ticket for another attraction to help disperse crowds.
For instance lets say that the end of Sunset Blvd. at Hollywood Studious is a traffic jam as it usually is near the Tower of Terror and Rockn’ Rollercoaster. These sensors would detect the chips and the dense population of that area. At that time if the crowds were sparse on the other side of the park at Star Tours then the Tower of Terror Fast Pass machines would not only give you a fast pass for that attraction but print a second one for an attraction in an area that is not so congested. This is a brilliant way to help decongest areas of the parks making it more enjoyable for guests and labor not to mention the safety aspect.
I agree, a FAIL. We have been Disney nuts for 30 years and now go there to walk or ride our bikes. We love to eat at their many restaurants but Disney screwed that up with their meal plans, now we can’t get seating.
Disney is already using rfid in many situations, its how they know the wait times at the parks, some guests see these frequently as a red card on a shoe lace that they are asked to carry threw lines, They’ve been using them a very long time to track parade floats to choreograph music along with them and safari trucks to help pin point where a vehicle is blocked by an animal or when to relieve the driver, its old technology being used in new ways is what this story is about, because rfid many people have used for years in their toll transponders
I hate to say it but the disney parks are getting old, QUICKLY, they need to clean up the parks, Sea world while under anheiser bush was definatly the cleanest, and best maintained
they could lower the price of a $9.00 hambuger first
and they dont hire haitians..they outsourse haitians
Yes, groups could opt fill out an favorites and receive an itinerary discount price and proceed with a schedule
that will optimize attraction flow control, for optimized daily efficiency at attractions allowing for priority admission given a wf device with talking host characters at gate all controolled by central trafic systems
and updated park venue info Steve
JUST A THOUGHT STEVE
I just got back from WDW and while I still enjoyed it, I found myself getting bored. There is nothing new, and the existing attractions and hotels are showing their age.
I’d love to see a new park, or a couple of new attractions.
This really is pointless and stupid. The technology problem is the same in theme parks as it is in the movies — give us a great story, a great experience, and we’ll be pleased. If you put technology in service of story, that’s fine … but this is technology for its own sake.
Maybe this is why Disney has to slash its cost and reduce the overall guest experience? Instead of spending $1 billion on THIS, spend $1 billion on making Epcot truly relevant again, spend $1 billion to remove that Godawful hat, but this is literally throwing money away.
How stupid. How pointless. I don’t want a room that remembers who I am, I want a BELLPERSON who remembers who I am. I don’t want a Fastpass for some ride across the way when someone can simply tell me, “You know, the line here is very long, but I understand there’s no wait at ‘Star Tours.’” You can get that for the cost of a walkie-talkie and a well-trained cast member.
Bob Iger and Tom Staggs, if you’re reading this — stop giving yourself raises, firing your employees and operating rides at half-capacity. Just PUT THE MONEY IN THE PARKS in a way that is meaningful and relevant to visitors.
What a horrible waste …
I’d rather they spend it on new attractions and keeping up employee standards if higher pay would do that. At some point increased technology doesn’t deliver dividends. With added complexity comes unforseen problems as well. I’d guess that 10-15 top tier new attractions would bring in more revenue than some system half the guests won’t use and the other half won’t understand how to use.
As with all things in the last 10 years from the helpful souls at Disney Marketing, it’s all about controlling the punters and controlling the flow of money from your pocket into their coffers.
The WDTC has been eroding away whern you go, where you stay and what you eat by their “packages”. Gone are the days where you chose when you wanted to go, where you stayed and what you ate. Now they drive you to what they want through their “discounts”.
If Disney really has 1 – 1.5 billion to waste, why not reduce the costs of everything for the visitors. $300-400 a night for a deluxe hotel? Really? $70-odd bucks a day to get into a park? Constantly escalating car parking fees? Where are we now $14-15??? Strollers have become punitive to rent.
All this RFID technology will do is allow them to track people to better control your spending money. The management team since Eisner came on board has been all about two things: share price and end-of-year bonuses.
A billion dollars in this economy? I sure hope it is worth it but knowing Disney I am sure that it will be. Can’t wait to hear more.
With all the bailouts and buyouts going on in this economy, these guys have the horns to drop a billion on this useless crap. I know what the good and bad point are of this technology. But between this and the less than exciting refurb of Fantasyland. The guys at the mousehouse maybe shooting themselves in the boot. But maybe I am not seeing the big picture or the bottom line.
I love disney and always will, but man a billion dollars could go towards so much more experience enhancing endeavors. Like badly needed new attractions and desperately needed more affordable food and admission prices.
Where has the magic gone? Where is the genius? Where is the endless childhood?
Up to 1.5 BILLION?! Wow.
It sounds like this is more for their benefit than the the guest.
Sure the line for Tower of Terror is long, but telling me that Star Tours is quiet doesn’t necessarily help me. Some of the other attractions have short lines for a reason – there just isnt the demand for them.
Giving me dining suggestions? Obviously this is to help increase revenue. I’m just wondering how bombarded some people are going to get with all these “helpful tips”?
It seems to be getting away from the things that made Disney what it was… it will soon be about automation and maximizing revenue streams, instead of being about helpful cast members, good service and good value.
I think that 1.5 Billion could get better returns by investing in the attractions. My mom still raves about Soarin – and that’s great word of mouth to potential guests. I know people who’ve been to Great Wolf Lodge, and the last thing they ever mention (if at all) is the RFID wristbands.
I’m a huge Disney fan, but I have to admit the last trip was less magical. I think the people running the place need to go watch One Man’s Dream and get a refresher — stop letting the accountants and MBAs ruin the place.
A billion dollars on what amounts to a Marketing scheme. I am reminded of Doug Adams Hitchiker’s Book when, at the end, Ford scolds the gerginfrenchs for not having even invented fire yet and the marketing Broad at the round table discussion defends ‘not inventing’fire yet because they were still doing marketing studies to find out “what people really wanted from fire.” Ford tells the Broad to stuff it up her nose to which she replies, “That’s just it. We need to find out if people want fire that can be fitted nasally?”
When will marketing stop trying to control the world!!!
There should be a ban on movie studios who use market study groups to see what people want from the movie. Just let the artist tell the story. That’s their job!!!
Ya Morons. Disney, what if I don’t want you to record my “vacation” habits. Are you justifying usurping my privacy!!????
Are you farking insane????
Okay. One more thing.
DISNEY, why don’t you BANK the billion dollars and LOWER your farking ENTRANCE FEE!!!
85 dollars to get into magic Kingdom. Are you INSANE!!
Okay, the purchasing convenience and the queue reservations have a certain (but limited amount of) appeal. But are they really going to drop that much coin on a system that adds so little to the overall experience,; or are they just spinning something to make it sound much greater than it actually is (which this company has all but mastered)? what a shameful waste of a billion dollars.
I would much rather see them apply those resources to something much more hands on and dynamic. Take for instance the stodgy old methods of ride character animation: The old “animatronics” are too limited and dated and that billion could be used to R&D a revolution in mechanized animation. That would be much better that this proposition when you consider “Lucky” the animated dinosaur that required a 2-wheeled cart in place of a functional tail for balance in which the facial animation is still very stiff and unlifelike.
Who care if the mouse or pooh calls you by name in the attraction. Universal did that with the ET attraction 2 decades ago. It would be much more impressive if they would finally animate the facial features of the costumed greeters in the park. Now if the Mickey greeter called you by name convinvingly (without being creepy) with a moving mouth and looked you in the eye, THAT would be revolutionary.
Disney’s idea of revolutionary is whoefully dated. This company is again becoming a dinosaur just like what threatened it 30 years ago.
Sounds like something Disney would invest in. Disney does not care about their guests unless it DOES increase their bottom line. That’s really all the top executives look at. Their real goal in this is not to increase guest satisfaction, but to increase the bottom line. They could care less if their guests are happy about something as long as they keep handing out cash. Otherwise, certain attractions that many guests dislike (such as Stitch’s Great Escape) would have been replaced with something better long ago. It just so happens the Stitch plush dolls are some of the best selling merchandise they have. Although guest satisfaction is down (from its previous Alien Encounter), they keep the attraction there to make money. The reason why is because Disney doesn’t care about their guests happiness in itself, they care how the guests spend their money.
It’s all about the bottom line. I know all companies are like that, but the think is Disney’s too prideful to admit that’s really what their purpose is rather than to entertain guests of ALL ages as they try to make it look like. They try to make these “new” things look like they’re for the guests, but really they’re for Disney to make a few extra dollars.
The best place for freelance projects is freelancing sites. Freelancing sites are the best option for part time home based business and freelance jobs. There are many types of work available at freelancing sites
http://www.onlineuniversalwork.com
Can I get one of these freelancers to lance a boil for free?
Being in the systems and security business for a looong time, I can tell you without a doubt that ANY RFID system implemented to include credit cards WILL be comprimised. All it takes is someone walking around with disguised equipment in a stroller, scooter, backpack, etc and they could skim the information VERY easily.
No doubt Disney will encrypt it, but when you wireless to capture things, you can do it on the stealth and hammer at it at your leisure. Or they could just pose as a tourist and ride different busses all day with their backpack…sitting right next to you! And as with all “air-tight” security systems using technology, the human factor cannot be bypassed. Someone will either leak or sell the encryption keys or someone will just brute force break it.
Look no further than DVDs, BluRay, DirecTV, cellphone messaging, etc. All of these “super proofed” technologies were broken in little time which allows someone to capture some if not all the information in the stream.
I just can’t imagine how they are going to be able to use these things for credit cards without fear of being comprimised rather easily.
I really hope someone from Disney is reading these comments. That is pretty much what we thought the last time we were there. My husband’s favorite refrain was, “Walt would never have let that happen when he was around.” I know that WDW is a business and all businesses need to make money but I know that some of the people I see there must be putting themselves into debt to bring their family to the parks. The ticket prices are outrageous and even the resort hotel rates even more so.
I could care less about a character calling me by name but I would love some new rides. I am also not crazy about giving out any more personal information. And spiff the place and the personnel up a bit. WDW used to be known for its cleanliness and customer service but now—not so much anymore.
All these are good comments and I hope the top execs are reading them. I found the restrooms dated and dirty, the eating areas dirty and dingy. I don’t understand the concept of EPCOT any longer…when it made it’s debut it was incredible, but is so far behind the times now. We only spent a half a day there – unheard of. There is nothing new in the World Showcase or Future World areas to get excited about. SOARIN’ is awesome…but I rode it in California where it belongs. Why would you put a major attraction in one state that highlights another state? It should have been SOARIN’ OVER THE UNITED STATES, or better, the WORLD. I don’t get it. Walt would have never approved of this.
Disney doesn’t need a “next generation experience”, it needs a previous generation experience. I would prefer they spend the $1 billion tearing down the crap they’ve built in the last 15 years and rebuilding Horizons & World of Motion.
There’s a movement to radically change California government, by getting rid of career politicians and chopping their salaries in half. A group known as Citizens for California Reform wants to make the California legislature a part time time job, just like it was until 1966.
http://www.onlineuniversalwork.com
Absolutely amazing what a bunch of finicky whiners people make themselves out to be.
If you don’t like Disney’s policies, prices, cleanliness, food, products, attitude, etc., don’t patronize them. When you stop going, I for one will enjoy the less crowded parks.
The funniest thing is, if Disney started refusing admission to those fitting my first sentence, they would howl like a wolf in heat, complaining that they weren’t allowed to get in the parks.