The Walt Disney Company is the world’s largest media conglomerate. The company has the ability to be a successful conglomerate due to its Board of Directors, content theme of quality, as well as customer ordination in all its operating segments. The company has television holdings in ABC and ten other broadcasting stations, as well as cable networks including; ABC Family, A&E (37%), and ESPN (80%). Each of these divisions that Disney owns and operates are leaders in their respective industries and capitalize multiple channels that have been created to additional products and other tangible goods account for 10% of Walt Disney’s revenue. Media Networks - $17,162,000,000 is up 6%
InteractiveMedia- $761,000,000 is up 7 %
ABC/Disney’s Target Market
Based on the statistics we gathered. The average age is 44.5 years old, Female, $75,000+ household income, 42% have 1+ child per household, home owners, 32% have some sort of education, median household income is $42,360.00. Children are the base but the parents are the deciding factor. Therefore, Disney aims at the parents.
Political – Legal
Many broadcasters and advertisers dodged a bullet when the NFL solved its labor issues, however, this was not the case with the NBA. With over half of the NBA season being postponed due to negotiations and court hearings are causing billions of dollars worth of losses for broadcasters and advertisers such as one of the two biggest rights holder, TNT and Disney’s ESPN/ABC. Together they are paying $930 million per season through the end of their contracts in 2016.Various projections say that Turner's TNT, ESPN and ABC could collectively lose out on about $1.25 billion in advertising revenue. Should the entire season be lost, the league itself will eat that broadcast licensing revenue, as well billions of dollars. Not to mention that TNT and ESPN especially will have hours of empty programming to fill. Given that NBA TV ratings have grown steadily since 2007 and have reached record highs, the potential damage is immeasurable. In 2009, a recessionary year for the media business, revenue for regional sports networks as a whole grew 6.6 percent to $4.6 billion, according to SNL Kagan. In terms of filling the programming void left by an NBA lockout, ESPN would seem to have the biggest challenge. Not only will it have to fill the time-periods of missing game coverage, but key programming components such as "Sports Center" could be hit hard. Starting in January, when the NFL begins to wind down, NBA highlights and analysis are coverage pillars for ESPN's flagship news show. And unlike that lockout that crippled the NBA back in 1998-99, ESPN does not have a National Hockey League contract to fall back on. According to Kantar Media, TNT and ESPN/ABC took in $417.7 million in ad revenue just from the 2009-10 postseason alone. That two-month campaign culminated in a compelling seven-game championship series between the L.A. Lakers and Boston Celtics with costs for one 30-second commercial on ABC: $402,000. Another example, Chinese government limits foreign ownership to 49%, when the right to control directly a subsidiary requires 51% of ownership. It means that a company shall look for potential partners to form joint ventures or strategic alliances which greatly affect Walt Disney’s Media chances of continuous growth worldwide. Technological
Rapid development of new technology has made Disney continue to stay ahead. A few examples would be investing in digital and interactive media, pioneering distribution of online full-length episodes of TV shows, and increasing films and TV program available for download through Apple’s iTunes store. Steve Jobs was Disney’s largest individual stockholder with 7% holding acquired when Disney purchased Pixar. Finally, Disney has combined Disney Online and Disney Interactive Studios, to focus on rolling out new...