Netflix, Inc. (NFLX), Comcast Corporation (CMCSA): The Walt Disney Company (DIS) May Be Making a Big Mistake

The bigger challenge, though, will be Universal Orlando. Comcast Corporation (NASDAQ:CMCSA)‘s Steve Burke also spoke at the conference, and the parent company of the Universal Orlando resort in Florida seems ready to invest heavily in taking on the House of Mouse.

Burke feels that his Universal Orlando resort can hold as many as 15,000 hotel rooms, considerably higher than the 2,400 rooms that it currently has across three on-site hotels. There’s already a fourth resort going up that will increase the resort’s capacity to 4,200 rooms. As Disney knows, encouraging guests to stay at a resort makes them more captive than the tens of thousands of rooms available nearby. 

For Burke, this could also be personal. He was a key part of Comcast Corporation (NASDAQ:CMCSA)’s failed buyout bid for The Walt Disney Company (NYSE:DIS) nine years ago. Burke was a longtime Disney exec, and his father was the head of Capital Cities/ABC until just before Disney acquired the ESPN parent in 1996.

However, it’s undeniable that Universal Orlando’s Universal Studios Florida and Islands of Adventure have been gaining momentum since opening a Harry Potter-themed area that will expand next year.

Disney may think that the days of investing heavily in its theme parks may be over, but now is not the time to be complacent.

The article Disney May Be Making a Big Mistake originally appeared on Fool.com and is written by Rick Munarriz.

Longtime Fool contributor Rick Munarriz owns shares of Walt Disney and Netflix. The Motley Fool recommends and owns shares of Netflix and Walt Disney.

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