Walt Disney-Pixar Merger
Brief Industry Analysis
Because of the technology nowadays, one successful film can be distributed all over the world, which is in a form of motion pictures or DVD. Animation is one media that is spread all over the world; push it to be one of fastest growing industry. The demand for the animation is increasing from the emerging number of cables and satellite TV and the popularity of The Internet. In addition, in the past, the target market of the animation industry was just kids, but now, it expands market to cover all ages of customers. The companies can be range from a big company such as Walt Disney to an individual artist with a PC.
The trend of the industry has changed from drawing and photographs, which is labor-intensive, to using computer technology in order to create the realistic and higher quality pictures. However, producing the animation is still labor intensive and take a long time, this push the cost of production to be high. Therefore, now we see the trend of outsourcing the production from North America to Asia Pacific area, which has a lower cost, high quality computer animation production, and lower cost.
Walt Disney Company Overview
Walt Disney is one of the leading companies in the world that provides entertainment experience since its founding in 1923. Walt Disney Company and its subsidiaries and affiliates have four business segments, which are media networks, parks and resorts, studio entertainment, and consumer products.
The Walt Disney studio, which is the first segment of Walt Disney since its foundation, produces animated features and live-action motion pictures. The Walt Disney studio is not only produces motion pictures, but also distributes Disney and other films to the rental and home entertainment markets around the world. It is also one of the largest producers of Broadway musicals, included Disney on Ice and Disney Live Entertainment. Moreover, it has the music group under Walt Disney studio produces original music and motion picture soundtracks.
Another segment is Parks and resorts. The first park established is in 1952, when Walt Disney constructed the Disneyland Park in Anaheim, California. Since then, Walt Disney expands its Parks and Resorts around the world. This includes Disney Cruise Line, eight Disney Vacation Club resorts. Walt Disney also has five resort locations, which composed with 11 theme parks on three continents.
The third segment is Disney consumer products. The Walt Disney product first occurred in 1929, when one businessman approached Walt Disney in order to put the Mickey Mouse logo on the cover of children’s writing tablet. Disney Consumer Product (DCP) produces various kinds of products such as toy, apparel, home decoration, books and magazines, interactive games, foods and beverages, stationary, electronics, and fine arts. To be able to produce all of this, DCP has various lines to produce the products. In addition, Walt Disney owns the largest publisher of children books and magazines, which distributed into 75 countries. Walt Disney also provides the website for shopping portal and Disney stores retail chain. However, the Disney store retail chain is owned by the other party in Japan, under the license agreement with the Walt Disney Company.
The last segment is Media networks. They present the wide array of broadcasting, cable, radio, publishing and Internet businesses. They owned two well-known television groups, which are ABC and ESPN.
The Disney-ABC Television group broadcast all of Walt Disney entertainments and news television properties. The customer target markets are focusing on Children and family. Moreover, Walt Disney also own ESPN, which is one of the leading channel in sport entertainments.
Pixar Company Overview
Pixar is an Academy Award-winning computer animation (CG animation) studio with technical, creative, and production capabilities to make a new generation of movies,...
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