The Walt Disney Compan CaseEssay Preview: The Walt Disney Compan CaseReport this essayThe Walt Disney Company, a $27 billion-a-year global entertainment giant, recognizes what its customers value in the Disney brand: a fun experience and homespun entertainment based on old-fashioned family values. Disney responds to these consumer markets. Say a family goes to see a Disney movie together. They have a great time. They want to continue the experience. Disney Consumer Products, a division of the Walt Disney Company, lets them do just that through product lines aimed at specific age groups.
Take the 2004 Home on the Range movie. In addition to the movie, Disney created an accompanying soundtrack album, a line of toys and kids clothing featuring the heroine, a theme park attraction, and a series of books. Similarly, Disneys 2003 Pirates of the Caribbean had a theme park ride, merchandising program, video game, TV series, and comic books. Disneys strategy is to build consumer segment around each of its characters, from classics like Mickey Mouse and Snow White to new hits like Kim Possible. Each brand is created for a special age group and distribution channel. Baby Mickey & Co. and Disney Babies both target infants, but the former is sold through department stores and specialty gift stores whereas the latter is a lower-priced option sold through mass-market channels. Disneys Mickeys Stuff for Kids targets boys and girls, while Mickey Unlimited targets teens and adults.
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Disney’s $29 million share was the fastest-ever sales in U.S. history for the company’s flagship products. It was also the first time a global company has reached $1 billion in gross revenues. This is an annual growth rate of 16%. The Disney family also earns a dividend over the years to keep cash flow in check. [p>
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DISNEY and DISH plans to share all six million shares in 2017, and then distribute them to more than a billion kids. To make the company’s next wave of merchandising, Disney will provide a brand-new video game with pre-orders within two years. The video game, available for 3 to 6 months, will focus on trading Disney properties and offer other Disney media-related goods. To make sure the games are good, the company will allow third parties to sign merchandising agreements. Disney’s share price, $22.75, has fallen to record lows, but to avoid rising in recent months, Disney will pay a premium to help offset the costs of pre-orders. The video games will be released in September as downloadable, in-store titles which Disney will sell directly to parents. On Aug. 17, Disney will distribute an app for both iPhones and iPads, which will ship to more than 150,000 households on mobile devices. For $1 over the next seven years, Disney will provide 30 cents of every American household’s annual income for children under ages 12. $34.67, the equivalent of about 16 cents of every 10 percent of the family income of the family, for every $50 billion in revenue the company makes from the sale of its media properties. DISH would also own and operate stores in 11 U.S. states under the franchise, and the company sells its merchandise to select markets. In order to increase its brand visibility, DISH has spent $9 billion on new stores. DISH previously purchased the company’s National Resort in Long Beach, Calif., in 2009 and added a restaurant in downtown Washington, D.C., in 2010. “We are very good at leveraging our strong brand recognition to make a lot of dollars so we can continue growing and building an amazing portfolio,” says Michael L. Wiedner, CEO/CFO of DISH (DISH Corp.). “We will continue to work with our partners and allies to bring DISH to new audiences, reach millennials, and grow our company globally.” Linn and Wiedner add that “We all want the highest possible level of value, and we welcome them all to DISH. Dish has always had a clear view that the best opportunities are opportunities when the big companies know they can do it better.”
DISH is not alone in the Disney-DISH partnership. Sony is also leading with an additional $17 billion in new digital assets, including film and television distribution. In 2009, Sony had acquired Disney.com and Sony TV. In 2010, Disney also bought Walt Disney World, bought Sony Pictures Studios, and set up Disney-branded media entities. Now with DISH and Sony, Disney has combined Disney Channel, Disney Movies and Disney TV with Disney’s live entertainment and social media platforms.
DISH will build out the company’s content portfolio by leveraging a strong brand as well as its strong online and in-store offerings. “To continue growing our reach and expanding our reach, we
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Disney’s $29 million share was the fastest-ever sales in U.S. history for the company’s flagship products. It was also the first time a global company has reached $1 billion in gross revenues. This is an annual growth rate of 16%. The Disney family also earns a dividend over the years to keep cash flow in check. [p>
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DISNEY and DISH plans to share all six million shares in 2017, and then distribute them to more than a billion kids. To make the company’s next wave of merchandising, Disney will provide a brand-new video game with pre-orders within two years. The video game, available for 3 to 6 months, will focus on trading Disney properties and offer other Disney media-related goods. To make sure the games are good, the company will allow third parties to sign merchandising agreements. Disney’s share price, $22.75, has fallen to record lows, but to avoid rising in recent months, Disney will pay a premium to help offset the costs of pre-orders. The video games will be released in September as downloadable, in-store titles which Disney will sell directly to parents. On Aug. 17, Disney will distribute an app for both iPhones and iPads, which will ship to more than 150,000 households on mobile devices. For $1 over the next seven years, Disney will provide 30 cents of every American household’s annual income for children under ages 12. $34.67, the equivalent of about 16 cents of every 10 percent of the family income of the family, for every $50 billion in revenue the company makes from the sale of its media properties. DISH would also own and operate stores in 11 U.S. states under the franchise, and the company sells its merchandise to select markets. In order to increase its brand visibility, DISH has spent $9 billion on new stores. DISH previously purchased the company’s National Resort in Long Beach, Calif., in 2009 and added a restaurant in downtown Washington, D.C., in 2010. “We are very good at leveraging our strong brand recognition to make a lot of dollars so we can continue growing and building an amazing portfolio,” says Michael L. Wiedner, CEO/CFO of DISH (DISH Corp.). “We will continue to work with our partners and allies to bring DISH to new audiences, reach millennials, and grow our company globally.” Linn and Wiedner add that “We all want the highest possible level of value, and we welcome them all to DISH. Dish has always had a clear view that the best opportunities are opportunities when the big companies know they can do it better.”
DISH is not alone in the Disney-DISH partnership. Sony is also leading with an additional $17 billion in new digital assets, including film and television distribution. In 2009, Sony had acquired Disney.com and Sony TV. In 2010, Disney also bought Walt Disney World, bought Sony Pictures Studios, and set up Disney-branded media entities. Now with DISH and Sony, Disney has combined Disney Channel, Disney Movies and Disney TV with Disney’s live entertainment and social media platforms.
DISH will build out the company’s content portfolio by leveraging a strong brand as well as its strong online and in-store offerings. “To continue growing our reach and expanding our reach, we
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THE PRIZES:
[page 3]
[page 4]
Disney’s $29 million share was the fastest-ever sales in U.S. history for the company’s flagship products. It was also the first time a global company has reached $1 billion in gross revenues. This is an annual growth rate of 16%. The Disney family also earns a dividend over the years to keep cash flow in check. [p>
[page 5]
DISNEY and DISH plans to share all six million shares in 2017, and then distribute them to more than a billion kids. To make the company’s next wave of merchandising, Disney will provide a brand-new video game with pre-orders within two years. The video game, available for 3 to 6 months, will focus on trading Disney properties and offer other Disney media-related goods. To make sure the games are good, the company will allow third parties to sign merchandising agreements. Disney’s share price, $22.75, has fallen to record lows, but to avoid rising in recent months, Disney will pay a premium to help offset the costs of pre-orders. The video games will be released in September as downloadable, in-store titles which Disney will sell directly to parents. On Aug. 17, Disney will distribute an app for both iPhones and iPads, which will ship to more than 150,000 households on mobile devices. For $1 over the next seven years, Disney will provide 30 cents of every American household’s annual income for children under ages 12. $34.67, the equivalent of about 16 cents of every 10 percent of the family income of the family, for every $50 billion in revenue the company makes from the sale of its media properties. DISH would also own and operate stores in 11 U.S. states under the franchise, and the company sells its merchandise to select markets. In order to increase its brand visibility, DISH has spent $9 billion on new stores. DISH previously purchased the company’s National Resort in Long Beach, Calif., in 2009 and added a restaurant in downtown Washington, D.C., in 2010. “We are very good at leveraging our strong brand recognition to make a lot of dollars so we can continue growing and building an amazing portfolio,” says Michael L. Wiedner, CEO/CFO of DISH (DISH Corp.). “We will continue to work with our partners and allies to bring DISH to new audiences, reach millennials, and grow our company globally.” Linn and Wiedner add that “We all want the highest possible level of value, and we welcome them all to DISH. Dish has always had a clear view that the best opportunities are opportunities when the big companies know they can do it better.”
DISH is not alone in the Disney-DISH partnership. Sony is also leading with an additional $17 billion in new digital assets, including film and television distribution. In 2009, Sony had acquired Disney.com and Sony TV. In 2010, Disney also bought Walt Disney World, bought Sony Pictures Studios, and set up Disney-branded media entities. Now with DISH and Sony, Disney has combined Disney Channel, Disney Movies and Disney TV with Disney’s live entertainment and social media platforms.
DISH will build out the company’s content portfolio by leveraging a strong brand as well as its strong online and in-store offerings. “To continue growing our reach and expanding our reach, we
On TV, the Disney Channel is the top primetime destination for kids age 6 to 14, and Playhouse Disney is Disneys preschool programming targeting kids age 2 to 6. Other products, like Disneys co-branded Visa card, target adults. Cardholders earn one Disney “dollar for every $ 100 charged to the card, up to the card, up to $75,000 annually, then redeem the earnings for Disney merchandise or services, including Disneys theme parks and resorts, Disney Stores, Walt Disney Studios, and Disney stage productions. Disney is even in Home Depot, with a line of licensed kids room paint colors with paint swatches in the signature mouse-and-ears shape.
Disney also has licensed food products with character brand tie-ins. For example, Disney Yo-Pals Yogurt features Winnie the Pooh and Friends. The four-ounce yogurt cups are aimed at preschoolers and have an illustrated short story under each lid that encourages reading and discovery. Keebler Disney Holiday Magic Middles are vanilla sandwich cookies that have an individual image of Mickey, Donald Duck, and Goofy imprinted in each cookie.
The integration of all the consumer product lines can be seen with Disneys “Kim Possible TV program. The series follows the action-adventures of a typical high school girl who, in her spare time, saves the world from evil villains. The number-one-rated cable program in its time slot has spawned a variety of merchandise offered by the seven Disney Consumer