The Walt Disney Company is a diversified international family entertainment and media enterprise business. They have five business segments which are media network, parks and resorts, studio entertainment, consumer products and interactive media. Disney Media Network consists of broadcast, cable, radio, publishing and digital businesses within the Disney/ABC Television Group and ESPN, Inc. Walt Disney Parks and Resorts is comprised of family oriented parks and resorts all around the world. They are the world’s largest provider for family travel. The Walt Disney Studios is the foundation in which The Walt Disney Company was built. It provides movies and music to consumers. Disney Consumer Products is the business segment in which Disney brand merchandise is sold. It consists of apparel, toys, home décor, books, animation art, etc. Disney Interactive is the business segment that provides digital media entertainment to consumers such as console games, online virtual worlds, and websites. These five diverse areas bring great success to Disney.
The Company started as a cartoon studio in 1923 when Walt Disney signed a contract with M.J. Winkler to produce a series of Alice comedies. The Company was first known as The Disney Brothers Studio. November 18, 1928 marks the release of the first Mickey Mouse Cartoon. The 1930’s brought the first color cartoon, Donald Duck and Disney’s first feature-length film Snow White and the Seven Dwarfs. In the 1940’s, Disney issues its first stock and Walt Disney Music Company is formed. In 1955 the first Disney Park opened in Anaheim, California. In 1971, Walt Disney World Resort opened in Orlando, Florida. In 1983, the Disney Channel began broadcasting. On May 6, 1991 the Company joined the Dow Jones Industrial Average. Throughout the 2000’s Disney acquired Fox Family, renaming it ABC Family, Pixar Animation Studios, Club Penguin and launched a new cable network, Disney XD. While only a few highlights of Disney’s history have been mentioned, it is obvious that Disney has continued to grow through their existence and has a monopoly on family entertainment. They also have cruise ships, Disney stores, radio stations, websites and many other Disney ventures.
Disney’s gross revenue has increased dramatically over the years. The 2002 Annual Report reports $25.3 million of gross revenue and the 2012 Annual Report reports $42.2 million. That is a $16.9 million dollar increase in revenue over 10 years. Each year their revenue increases between $1.5 million and $3 million a year. That is an extremely large increase in revenue each year. Disney is doing something right with all their ventures.
As Disney’s gross revenue increases, their net income also increases. Their 2012 net income after taxes was $5.6 million. In most recent years, Disney has been growing faster than ever thanks to smart decisions by management such as the addition of Marvel Entertainment.
Disney’s brand, image and ability to stay diverse are what have caused their continued growth. Disney is a recognized and well-known brand. The characters (Mickey, Mini, Donald Duck, etc.) that have been created under the Disney brand help their image. Such characters have assisted in the ability for Disney to capitalize the market of children. While the brand and character recognized have played into the continued growth of Disney, their largest asset of being and staying diverse is what has sustained their growth. They have a solid domination in the entertainment and theme park industries.
While the theme parks have helped in the growth of Disney, they hold exceptionally high costs. They have the cost of maintenance and updating. If you have ever been to a Disney Park, they are exceptionally clean. This is wonderful but costly. If the guest volume at the parks was to suddenly decrease, then their revenue would decrease, but the costs would not decrease and then such high costs could get in the way of future financial abilities for...
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