MagicBands streamline Disney experience

Technology exploration and assessment
ISYS1186 The Global Network
GROUP ONE
Indika Wickramanayake (S3316580)
Phuong Nguyen (S3279008)
Trine Christensen (S3447986)
Rui Yu (S3426835)
Kai Guan (S3407535)
Qing Zhu (S3316294)

Assessment 2: Technology exploration and assessment
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GROUP ONE
Contents
Abstract................................................................................................................................. 1
Introduction........................................................................................................................... 2
Target users.......................................................................................................................... 2
MagicBands technology........................................................................................................ 3
Benefits derived from technology to consumers.................................................................... 3
Benefits derived from technology to business ....................................................................... 4
Potential issues..................................................................................................................... 5
Recommendations................................................................................................................ 6
References ........................................................................................................................... 6
Abstract
The MagicBand is one of the latest product of Disney Company by using potential RFID
technology to gain control over the level of engagement they have with customers and
connect with social media, which may revolutionize how we use the security passes and entry
tickets. It has been developed and currently use by Walt Disney World pass holders and
guests staying at select Walt Disney World Resorts. The MagicBand can be used as an
alternative to traditional entry passes/ticket for events (e.g. theatre, gaming zones, themes
parks) or security key (e.g. door keys, swap cards) for hotel rooms, offices etc. Users can just
swipe the MagicBands against the sensors or any appropriate devices to gain access to
relevant areas. MagicBands are water resistant, very durable and easy to wear around your
wrist. In this report we will discuss how this technology benefits customers and how it can be
utilized in different industries to enhance the efficiency and simplify the current business
processes. MagicBands are currently at the implementation and trial stage, where developers
still trying to find out potential threats like privacy and security issues with this new
technology and recommendations to address those issues.

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Introduction
The number of mobile-connected devices will surpass the total number of consumers,
globally, and by 2017, there will be nearly 1.4 mobile devices per person expected.
Understanding the rapid growth of smartphone users and its affect to e-business by mobile
payment, Disney is launching the MagicBand by using Radio-frequency identification
(RFID) technology, which is the most growing to improve in technology and cost decline of
smartphones (Bendavid, 2010).
The use of RFID is to wirelessly transmit data from cases of merchandise. In recent years
RFID emerged as powerful and disrupting technologies with hype and deep implications for
organizations B2B E-Commerce, it is still an emerging phenomenon with a relatively rapid
speed of adoption to spanning over industries in different continents. It has been proven
between 2008 and 2012 are of 23.2 percent with a RFID market size for 2008 of $3.7 billion,
$4.04 billion for 2009, and $4.7 billion in 2010, by 2012, it had valued at about $8.42 billion
(Bendavid, 2010), with expected the annual growth of over 12 percent until 2016 (Low,
2011).
"Businesses must consider upgrading their existing infrastructure, such as network and
storage, to enable RFID systems to work seamlessly, as opportunities will proliferate if a
more robust infrastructure is in place." says Frost & Sullivan Research Analyst Susan
Sahayan (Low, 2011). With the experiences in Walt Disney World Resort and having
positive feedbacks, RFID is continuing to be used as a way to expand, link and connect with
Disney’s customers. (Smith, 2007)
Target users
Disney is one of the largest multinational media business in the world. By using multi-
segment targeting such as geographic (Europe, Japan, India, and of course the United States),
demographic (people of all ages; whether it is a child, teen, or parent which refer to all age,
genders, income and their life cycle), and psychographic (which is intended to satisfy the
parents' wants as well as their children's, while the child is browsing through the toys, the
parent is browsing through the Home Decor section). Disney’s core constituency is the urban,
median-income family who wants to have fun. ((Bui, 2012)
By understanding the target market inside out, the new coming MagicBands is a highlight in
product and apply potential technology of social market into their business which is based on
delighting the customer and it believes in continually improving its products and service
offerings.

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MagicBands technology
The MagicBand carries a small data chip inside, which can memories each person’s
information and it can transmits a 2.4 GHz signal to an indoor wireless infrastructure. The
band has no on off switch and is powered with a non-replaceable coin cell (Brown, GS.
2012). At the same time, the MagicBand also has a Radio-Frequency IDentification (RFID)
chip, which is a wireless system, used for transfering data through radio frequency
electromagnetic. (Want, R. 2006) That means people do not need to put up their hands and
touch the machine with the MagicBand at the entrance. What the consumers need to do is just
walk towards the entrance as normal, and the MagicBand will autoly transfer the individual
personal data to the entrance gate which may be 20 feet away. On the other hand, the
Disneyland has a huge database, which carries each person’s personal information, such as
name, photo and ID numbers; tickets information (which tickets he already bought); and also
the playing information (where he already visited and where not). People could check the
information through the internet and make a perfect plan for the next travel. Furthermore,
because every Disneyland’s data could be shared through the internet, people can use this
MagicBand in the Disneyland on matter they are in the American Disneyland or Hong Kong
Disneyland. (Brown, GS. 2012)
Figure 2: Disney-Magic Band
When people walk to the entrance with magic band, the RFID chip inside the magic band will
transmitting signal to the induction machine (see Figure 2). After this machine, which is
connected to the Internet and the Disneyland database, receive the signal, each person’s
individual information will be downloading from the database. With this individual
information, this machine could identify which magic band has paid for the entrance and
which is not. After identifying, this machine will show different colours to let people know
whether they can do inside or not. At the same time, the staff of the Disneyland who carry a
small displays and stand nearby the induction machine can also receive a photo when people
touch their magic band. This photo could help the staff to make sure that the magic bands are
using by their real owner. (Cha, B. 2013)
Benefits derived from technology to consumers
There are great deals of benefits, which are derived from MagicBands to
consumers. MagicBand is a multifunctional tool for consumers who are using in Walt
Disney World. Firstly, MagicBand can serve consumers to unlock the doors of hotel rooms in
Disney Resort hotel, which act as a “room key” and can become consumers’ tickets for
entering theme and water parks. Becoming a very convenient way to adorn for consumers

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only need to wear around their wrists (Walt Disney World, 2013). Fourthly, MagicBand can
also serve consumers to check in at FastPass+ entrances by using MyMagic+ account will
allow consumers of a new app and Web site that is called My Disney Experience to pre-select
three FastPasses before leaving homes such as character meet-and-greets, seating for parades
(Barnes, 2013). Moreover, MagicBand can connect Disney PhotoPass images to consumers’
account (Walt Disney World, 2013). Besides, it can also be stored and encoded with all kinds
of consumers’ details for interacting with Disney employees. For example, generally, Disney
employees only say, “Hello” to the consumers when they enter the theme and water parks. In
contrast, Disney employees can clearly see consumers’ information when the consumers
touch their MagicBand to the machine of entrance. Hence, the Disney employees can call
consumer’s name such as “Hi, Angie,” It is necessary and beneficial to improve the quality of
service in Walt Disney World (Barnes, 2013). In addition, the MagicBand system will not be
concentrated to use by consumers. Consumers can select in an online options menu. With the
online options menu, it will provide different controls such as “Would you like Disney theme
park employees to understand your name?” “Would you like Disney theme park to provide
you special offers when you go home?” The consumers can select these different controls in
an online option menu so that the employees can understand the consumer's requirement
(Barnes, 2013). The MagicBand has a variety of attractive and popular Disney characters and
icon such as Tinker Bell, Mickey Mouse ears, rhinestone Minnie heads, Phineas & Ferb,
Sorcerer Mickey, Mickey Ice Cream Bars, etc. The purpose of different MagicBand designs
can attract the consumers to proudly use and display as their favourite MagicBands,
especially for the kids (Mancini, 2013).
Benefits derived from technology to business
The MagicBand has boosted the guests spending because the technology makes it easier and
more fun to spend money. Disney has be testing the wristband in December 2012 at their
park at Florida resort with great results. The wristbands, which serves many functions for the
guest by being linked to the customer’s own database, is fast to use while the technology
allows the guests to easily purchase items in Disney World's hotels, four theme parks and
water parks in Orlando just by putting their wristband on a sensor. The wristband does not
only enhance retail transactions and the fun factor for visitors, it also helps with crowd
control and to reduce the time guests spend in queues by allowing them to book rides and
restaurants in advance (Buss, D. 2013).
Jay Rasulo the Chief Financial Officer stated in an interview on May 7th, 2013, that by
getting guests to plan ahead, they're less likely to be enticed by other parks and tourist
offerings. He goes on by saying they have known for a long time that getting their visitors to

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make decisions about where they spend their time before they leave home is a powerful
driver of visits per guest. "So if we can get people to plan their vacation before they leave
home, we know that we get more time with them. We get a bigger share of their wallet. […]
And the second thing is what happens to purchases when they become much more
convenient, and you don't spend time queuing up for a transaction, queuing up to get in the
park, and you actually have more time to enjoy the entertainment and, subsequently, spend
more money doing things — other than standing in line, which, of course, you can't spend
any money while you're doing that." (Businessweek, 2013).
Together with all the above; Disney will gain deep insight into how guest uses the resorts by
tracking the guests’ touch points and using the information to create tailored marketing
programs and generate additional revenue. The MyMagic+ system is completely under
Disney's control while no third party is involved and is thereby leading the way for mobile
wallet technologies, which others would want to follow. The system is maintaining the
customers trust with stringent data privacy policies, which is a core part of a mobile wallet
strategy. The well-designed mobile wallet solution extends the customer engagement and the
MagicBand handles the importance of a physical token in building customer relationship
(Clark, M. 2013).
Potential issues
As James Mullock, head of privacy and data law at Osborne Clarke said "there's nothing
inherently illegal with the use of RFID chips so long as this and other data protection law
obligations – such as keeping the information secured – are met. Through openness they need
to win the confidence of their customers, and therefore their consent to being tracked”, the
MagicBand’s RFID technology security and privacy which concerned Disney have been
approved. The reason for the approval is that the bands contain only a randomly assigned
code rather than personal information, and they are securely linked to an encrypted database.
In case of lost or stolen, the bands can be disabled remotely and the associated credit card
cannot be accessed since a PIN code is required to authorize any purchases. Parents can also
place restrictions on their kids’ spending amount or completely disable that ability on through
MagicBands. Furthermore, the bands are not GPS-based devices and do not enable
continuous collection of location signals. Instead, MagicBands utilize both short and long
range readers located throughout the resort to make use of their functionalities (Marsden,
2013).
MagicBands have been tested with Disney employees and limited number of guests for
approximately two years with MyMagic+, the updated My Disney Experience website and
mobile app which allow visitors to plan various parts of their trips, make changes to
restaurant reservation and coordinate plans with friends and family, etc. Beside the benefits,
there are still several issues arose from trial period such as crashing in MagicBands system,
the occasional inability to purchase food and the delay in accessing rooms at the resort when
multiple bands are used (Mancini, 2013).
In addition, there remains a large portion of IT infrastructural work to deliver better customer
experiences of new technologies such as FastPass+, an attraction planning and reservation
system and Disney-wide Wi-Fi coverage project.

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GROUP ONE
However, while the advance planning might be a plus for some, it is likely to be a notice for
many others. A large percentage of Disney visitors are on non-routine basis and these guests
may feel unwelcome without FastPass+ as they need to queue for rides or wait for tables at
restaurants since the reserved spots are already allocated to register much smaller early
adapter FastPass+ users (Cha, 2013).
Acknowledging that no security measures are impenetrable, Disney promises that it is trying
to be more efficiently appealing to customers by paying more attention to the security,
integrity and confidentiality of personal information as well as increasing efforts in protecting
guest information from unauthorized access, disclosure, use and modification with technical,
administrative and physical security (World, 2013).
Recommendations
 This technology can be utilized as a security pass where users can have one access pass to
multiple security access points (e.g. hotel room, car door).
 This can be used in supermarkets where user can swipe their MagicBand on price tag
when they take items from the shelves and at the register all they have to do is swipe the
MagicBand and walk out of the shop. MagicBand is link to their bank account and
payment will be directly deducted from their account. This will help to improve the
efficiency of the checkout process at the super markets.
 Adding a display screen to this MagicBand can increase its potentials because then it can
be used to display information.
 Online system or support line where users can go in and activate or deactivate their
MagicBand in an event like loss, stolen or damaged.
References
BUSS, D. 2013. Disney's MyMagic+ Proves to be a Boon for Business at Parks [Online].
Available:http://www.brandchannel.com/home/post/2013/07/12/Disney-MyMagic-
Success-071213.aspx [Accessed 10 September 2013].
CLARK, M. 2013. Disney MyMagic+ sets a new bar for mobile wallet design [Online]. NFC
World. Available: http://www.nfcworld.com/2013/03/12/323001/disney-mymagic-
sets-a-new-bar-for-mobile-wallet-design/ [Accessed 11 September 2013].
BUSINESSWEEK. 2013. On the Call: Disney CFO explains MyMagic+ [Online].
Businessweek: Bloomberg Businessweek News. Available:
http://www.businessweek.com/ap/2013-05-07/on-the-call-disney-cfo-explains-
mymagic-plus [Accessed 9 September 2013].
BROWN, G. S. 2012. Disney Parks Reportedly Eying 'Magic Band' for Customer Entry
[Online]. ABC News: ABC News. Available: http://abcnews.go.com/Travel/disney-
world-reportedly-eying-magic-band-customer-entry/story?id=17442502 [Accessed 10
September 2013].
WALT DISNEY WORLD. 2013. Unlock the Magic with Your MagicBand or Card [Online].
Disney: Disney Parks & Travel. Available:

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https://disneyworld.disney.go.com/plan/my-disney-experience/bands-cards/
[Accessed 26 August 2013].
BARNES, B. 2013. At Disney Parks, a Bracelet Meant to Build Loyalty (and Sales) [Online].
The New York Times. Available:
http://www.nytimes.com/2013/01/07/business/media/at-disney-parks-a-bracelet-
meant-to-build-loyalty-and-sales.html?pagewanted=all&_r=1& [Accessed 27 August
2013].
MANCINI, N. 2013. Disney’s MagicBand Accessories…Revealed! [Online]. WorldPress:
DIS. Available: http://blog.wdwinfo.com/2013/06/20/magicband-accessories-
revealed/ [Accessed 26 August 2013].
CHA, B. 2013. Tomorrowland Today: Disney MagicBand Unlocks New Guest Experience for
Park Goers [Online]. All Things Digital Dow Jones & Company Inc. Available:
http://allthingsd.com/20130529/tomorrowland-today-disney-magicband-unlocks-new-
guest-experience-for-park-goers/ [Accessed 5 September 2013].
MANCINI, N. 2013. Disney MagicBand News for Annual Passholders [Online]. DIS:
WorldPress. Available: http://blog.wdwinfo.com/2013/04/06/disney-magicband-news-
for-annual-passholders/ [Accessed 5 September 2013].
MARSDEN, R. 2013. Mickey is watching you: Does Disney's new 'Magic Band' infringe on
consumer freedoms? [Online]. UK: The Independent. Available:
http://www.independent.co.uk/life-style/gadgets-and-tech/features/mickey-is-
watching-you-does-disneys-new-magic-band-infringe-on-consumer-freedoms-
8503823.html [Accessed 5 September 2013].
WORLD, W. D. 2013. My Disney Experience [Online]. California, USA: Walt Disney
World. Available: https://disneyworld.disney.go.com/faq/my-disney-
experience/privacy-policy/ [Accessed 10 September 2013].
BUI, D. 2012. The Best of Disney’s Marketing Strategies [Online]. Saleschase.
Available:http://www.saleschase.com/blog/2012/05/14/best-disneys-marketing-
strategies/ [Accessed 10 September 2013].
WANT, R. 2006. An Introduction to RFID Technology. RFID TECHNOLOGY.
SMITH, I. 2007. The Growing Importance of RFID around the World [Online]. BCS.
Available: http://www.bcs.org/content/ConWebDoc/39239 [Accessed 16 September
2013].
BENDAVID, Y. 2010. R D na led B B - o erce Technologies and A lications.
lo al AM niversit d ec Montr al anada A AD M A R D
Canada.
LOW, D. J. C. 2011. Global RFID Market Thrives as Solutions Drive Efficient and
Intelligent Businesses [Online]. Frost & Sullivan, the Growth Partnership Company:
Frost & Sullivan, the Growth Partnership Company. Available:
http://www.frost.com/prod/servlet/press-release.pag?docid=240308102 [Accessed 9
September 2013].

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