Universal Destinations & Experiences does not own the Harry Potter IP; instead, they pay significant licensing fees to Warner Bros. and J.K. Rowling. While the exact total of the initial 2007 deal is a closely guarded corporate secret, industry analysts estimate the licensing rights cost Universal an initial fee of roughly $50 million to $100 million, plus a high percentage of all merchandise, food (especially Butterbeer), and ticket sales. Universal reportedly spent over $265 million just to build the first "Hogsmeade" area in Orlando. The deal was considered a massive gamble at the time, but it paid off spectacularly, increasing Universal's attendance by over 30% in its first year. Under the agreement, Warner Bros. and Rowling maintain strict creative control over every detail, ensuring the theme parks remain "canon" to the books and films.