1. Disney is the Largest Media and Entertainment Company
In The World .The Walt Disney Company was founded on
October 16, 1923 in Los Angeles, California by brothers
Walter Elias Disney and Roy Disney.
Walt Disney was the voice of Mickey Mouse for two
decades. Walter Elias Disney was born in Chicago, Illinois
on December 5, 1901.
2. The Walt Disney company have its headquarter in
Burbank, California. the president and CEO of the
company is Robert lger since 2005 and chairman is John
E. Pepper, Jr.Walt Disney first motion picture in 1928
short titled "Steam boat International sales of Disney-
branded products now out strip US sale Walt Disney won
a total of 32 Oscar Awards- more than anyone else ever
has!- during his 43 year career.
3. Walt arrived in California in the summer of 1923 with
dreams and determination, but little else. On October 16,
1923, a New York distributor, M. J. Winkler, contracted
to release the Alice Comedies, and this date became the
formal beginning of The Walt Disney Company.
Originally known as the Disney Brothers Cartoon
Studio.
4. With his chief animator, Ub Iwerks, Walt designed a mouse
whom Walt first wanted to name Mortimer, but his wife Lilly
preferred Mickey. And so a star was born. November 18,
1928, Walt Disney soon produced another series -- the Silly
Symphonies. a Silly Symphony and the first full-color
cartoon, won the Academy Award for Best Cartoon for 1932,
the first year that the Academy offered such a category. For
the rest of that decade, a Disney cartoon won the Oscar every
year.
5. WALT DISNEY MOTION PICTURES GROUP
Walt Disney Motion Pictures Group, Inc. is a corporation
which develops scripts and oversees theatrical
production for The Walt Disney Company's production
companies was initiated in 1998 .
6. WALT DISNEY PARKS AND RESORTS
The Parks and Resorts division was founded in 1971
.The chairman of Walt Disney Parks and Resorts is
Thomas O. Staggs . In 2009, the company's theme parks
hosted approximately 119.1 million guests, making
Disney Parks the worlds most visited theme park
company ever.
7. DISNEY LAND RESORT
Disney land was dedicated as a single park by Walt
Disney on July 17, 1955, and opened to the public on
July 18, 1955 in Anaheim, California .It consist of two
hotels, one new and one themed; and the Downtown
Disney retail, dining and entertainment district.
8. Walt Disney died December 15, 1966 .Roy was
determined to realize his brothers vision, and
honored him by naming it Walt Disney World. It
opened October 1, 1971 with a Disneyland-style
theme park, hotels, campgrounds, golf courses,
shopping villages and a monorail connecting
them all.
9. MISSION AND VISION
Walt Disney Company's mission is to be one
of the world's leading producers and
providers of entertainment and information
using an portfolio of brands to differentiate
our content, services and consumer
products. We seek to develop the most
creative innovative and profitable
entertainment experiences and related
projects in the world.
10. STRATEGY
When Disney makes a movie today, the
company thinks beyond the motion
picture to how the story can be
leveraged into merchandise,
experiences, and spin-offs. It's not just
a film: it's a theme park ride, a chapter
in a larger saga, an action figure, a
musical on ice. Every new investment/
acquisition is strategically chosen and
usually assists at least one of it’s its
five market segments.
11. TIMES AND CONDITIONS CHANGE SO RAPIDLY THAT
WE MUST KEEP OUR AIM CONSTANTLY FOCUSED ON
THE FUTURE.
I do not like to repeat successes, I like
to go on to other things.
12. ACQUISITIONS
2009 Marvel
2009 Disney joins Hulu venture
2011 Disney acquires 49% of seven tv
2012 Lucasfilm Ltd
Disney has announced it’s intentions to sell
23 of it’s 24 U.S based radio Disney stations.
13.
14. FINANCIAL BACKGROUND
Media Networks segment includes broadcast and cable
television networks, television production operations,
television distribution, domestic television stations and radio
networks and stations
Total media network accounted for:
5 percent of the revenues in 2012 versus 2013 and 4 percent
in 2013 versus 2014.
3 percent change of segmented operating income (LOSS) in
2012 versus 2013 and 7 percent change in 2013 versus 2014.
15. 2010 AND 2011
affiliate fees increased by six percent (6%)
14 percent increase in cable networks and 6 percent in
broadcasting
13 percent increase was due switching price levels between studio
entertainment and media networks
decrease in costs and expenses by 208 million dollars in 2011 due
to the absence of FIFA World cup
operating income to increase by an impressive 20%
16. 2011 AND 2012
Affiliate fees increased by six percent (6%)
Increase in revenue from cable networks of 263 million
and a decrease in broadcasting of 162 million
Operating expenses increased to by 231 million
production also decreased by 128 million due to the
absence of Oprah Winfrey show
17. 2013 AND 2014
total revenues form media networks increased by four percent (4% - form
20,356 to 21,152)
Affiliate Fees which increased by six percent (6%)
revenues increased by 75 Million due to “the inclusion of revenues from Maker
Studios, Lucas film SVOD sales
Equity from investments increased by 114 million
operating expenses decreased by five percent (5%), and selling, general,
administrative and other expenses also increase
18. DISNEY MEDIA NETWORKS INCOME
STATEMENT
Year Ended
2014 2013 2012 2011 2010
(in millions) % Increase Better/Worse
Revenues
Affiliate Fees 6% 7% 6% 9% 9%
Advertising 1% 3% 1% 8% 7%
Other 3% 2% 4% 13% 8%
total renvenues 4% 5% 4% 9% 6%
Operating expenses 5% -7% -2% -5% -4%
Selling, general,
administrative and
other 5% -4% -1% -8% -2%
Depreciation and
amortization 3% -9% -7% -8%
Equity in the income of
investees 15% 18% 7% 33% -23%
Operating Income 7% 3% 8% 20% 8%
21. FINANCIAL BACKGROUND
Walt Disney World Resort in Florida, the Disneyland
Resort in California, Aulani, and Disney Resort & Spa in
Hawaii, the Disney Vacation Club, the Disney Cruise
Line and Adventures by Disney.
It owns 51% in Disneyland Paris, 48% in Hong Kong
Disneyland Resort and 43% in Shanghai Disney Resort
22. 2010 AND 2011
2010
increased by 1 percent(from 94 million to 10.8 million)
Operating income during this period was listed at 1,318 million
2011
increases in domestic and international parks and resources totaling 10
percent
3 percent of the international revenue decrease in value of of the US
dollars against the Euro
Disney sold property at Disneyland Paris
temporary closed the Tokyo Disney resort location due to an earthquake
in Japan in March 2011
New hotel was also opened in Hawaii on August 2011.
23. 2012, 2013, AND 2014
The introduction of Cars Land at the California Disney adventures
Resort reflected the 2011 impact from the earthquake and tsunami
in Japan
the launch of Disney Fantasy in March 2012 and the opening of
Disney’s Art of Animation Resort in May 2012
more guest in Hong Kong Disneyland resort offset by a decrease
in the nightly stays in Disneyland Paris
increasing by 5 percent in guest spending
1 percent increase in foreign currency as the US dollar continues
to decrease.
Disneyland Paris also continues to decrease in volume.
24. PARKS AND RESORTS INCOME
STATEMENT
Year Ended
2014 2013 2012 2011 2010
(in millions) % Increase Better/Worse
Revenues
Domestic 8% 10% 11% 11%
International 3% 4% 3% 6% 6%
total renvenues 7% 9% 10% 10% 1%
Operating expenses -7% -8% -7% -9% -2%
Selling, general,
administrative and
other 5% -6% -9% -12% -3%
Depreciation and
amortization 7% -10% -7% -2% 1%
Operating Income 20% 17% 23% 18% -7%
26. PARKS AND RESORT V.S MEDIA NETWORKS
2014 2013 2012 2011 2010
Media Networks
total renvenues 4% 5% 4% 9% 6%
Parks and Resorts
total renvenues 7% 9% 10% 10% 1%
30. BOX OFFICE
Highest-grossing films of 2014
Rank Title Studio Worldwide gross
1
Transformers:
Age of Extinction
Paramount
Pictures
$1,104,039,076
2
The Hobbit: The
Battle of the Five
Armies
Warner
Bros. / New Line
Cinema / MGM
$956,019,788
3
Guardians of the
Galaxy
Marvel Studios $774,176,600
4 Maleficent
Walt Disney
Pictures
$758,410,378
5
The Hunger
Games:
Mockingjay – Part
1
Lionsgate Films $755,356,711
6
X-Men: Days of
Future Past
20th Century Fox $748,121,534
7
Captain America:
The Winter
Soldier
Marvel Studios $714,766,572
8
The Amazing
Spider-Man 2
Columbia Pictures $708,982,323
9
Dawn of the
Planet of the Apes
20th Century Fox $708,835,589
10 Interstellar
Paramount
Pictures / Warner
Bros.
$675,020,017
31. MAGIC TOUCH
Disney Frozen accounts for 1.274 billion
dollar at the box office.
Budget of 150 million dollars
Grossing 1.124 billion dollars
32. DISNEY BOX OFFICE
Notable Box Office Numbers
Pixar: Planes gross of 189.3 million dollars
Pixar: Monsters University gross of 543.6 million
dollars
Marvel: Captain America 2 gross of 544.8
Marvel: Thor: The Dark World gross of 474.8 million
dollars
34. The Consumer Products sector is the
4th profitable segment of The Walt
Disney Company. It handles the
merchandise licensing, publishing and
the retail of all of the property that the
company creates, designs and
develops.
35. Merchandise
Licensing
The Company licenses a wide mixture of
products that include everything that
consumers use from apparel, home
goods, and food to toys, electronics and
health and beauty goods.
36. It licenses characters from all its company
properties such as its films and television
shows for use on third-party products and
earn revenue from the royalties on these
products; revenue is from either a fixed
percentage of the wholesale cost or from the
retail selling price.
Merchandise
Licensing
37. Publishing
The Company’s publishing business called Disney Publishing
Worldwide creates, licenses, publish, and also distributes
children books, magazines and learning products in all forms
of communication and within multiple countries and
languages. Disney Publishing Worldwide also operates,
develop and delivers Disney English, which offers an English
language program to Chinese youth across 9 cites of China.
38. Publishing
In addition, Disney’s 2nd publishing business called
Marvel Publishing also creates and publishes comic
books and graphic novel collections of comic
books in both print and digital forms. Marvel
Publishing also licenses the rights to translate these
comic books in mostly European and Latin
American countries.
39. Retail
As for the Disney retail stores, the
company markets all of its Lucas
films, Disney and Marvel-themed
products within its stores and
through internet sites.
40. The Walt Disney Company currently
owns and operates over 328 retail stores
with 64 percent of them located all
across North America.
42. Through these 3 divisions, the consumer
products segment earns revenues from sales
of its merchandise in both retail stores and
online sites, the wholesale profits from
publishing all its books and magazines,
licensing it characters, and from earning
usage fees from its English learning centers.
43. Operating income for the consumer products segment
increases by the millions annually. Based on a trend analysis
of the last 5 years using the company’s 10-k filings, its
revenues has increased by over double the percentage since
2009. A big element that produced most of this segment’s
profits is its licensing and publishing; it increased
astonishingly by 60 percent since 2009. And even though
licensing and publishing accounts for most of the revenue, the
company’s retail and other sources of revenue has played a
big factor as well with an increase of 72% since 2009.
44. CONSUMER PRODUCTS
Operating results for the Consumer Products segment are as follows:
% of Change Better/
Worse(-) 2009 vs.
2012
Year Ended
(in millions)
29-Sep-12 1-Oct-11 2-Oct-10 3-Oct-09
Revenue
Licensing and publishing $2,056 $1,933 $1,725 $1,584 30%
Retail and other 1196 1116 953 841 42%
Total revenues 3252 3049 2678 2425 34%
Operating expenses -1514 -1452 -1236 -1182 -28%
Selling, general, administrative and other -686 -676 -687 -597 -15%
Depreciation and amortization -115 -105 -78 -39 95%
Operating Income/Loss(-) 937 816 677 607 54%
45. CONSUMER PRODUCTS
Operating results for the Consumer Products segment are as follows:
% of Change Better/
Worse(-) 2013 vs. 2014
Year Ended
(in millions)
27-Sep-14 28-Sep-13
Revenue
Licensing and publishing $2,538 $2,254 13%
Retail and other 1447 1301 11%
Total revenues 3985 3555 12%
Operating expenses -1683 -1566 -7%
Selling, general, administrative and other -778 -731 -6%
Depreciation and amortization -168 -146 -15%
Operating Income/Loss(-) 1356 1112 22%
46. Expenses for the consumer product segment has also increased over
the past 5 years. Due to many acquisitions of new Disney retail stores
and the purchase of Marvel, more expenses to operate, promote and
sell were required. In analysis of the last 5 years, operating expenses
has increased by 42% since 2009. Also, selling, general, administrative
and other expenses have increased by 30% since 2009. In addition,
due to all the company’s plant and equipment in this segment
depreciation and amortization have been dramatically increased by
over 4 times the percentage since 2009. Reasons for the expenses is
explained by The Walt Disney Company below from its 10k filings
since 2009.
48. The interactive media sector is the 5th and the lowest profitable
segment of the company. This sector produces mobile, console and
virtual world games and is responsible for the designing and web
management for all the company’s businesses; it also licenses the
content for games and mobile devices and develops branded online
services. Some of the games developed and published by The
Company include, Disney Infinity which is a console game released
in 2014, Marvel Avengers Alliance which is a mobile device game
accessible on all smartphones, social networking websites and
tablets, and Disney’s Club Penguin which is a virtual world game.
The interactive media sector earns it revenue from sales of the
games to retailers and distributors; it gains revenue from micro
transactions within the virtual games and from subscription fees; it
earns revenue from licensing content to third-party game publishers
and mobile phone providers and also from online advertising and
sponsorships.
49.
50. Within this interactive media segment, profits were at a
loss for about 4 fiscal years until 2014 fiscal year
primarily due to the company accumulating more
expenses than what it was earning. This segment loss
the most profit during 2010 to 2011 by 30 percent due to
the acquisition costs of Playdom, a social networking
game, for the year as stated in the cost and expenses
section of this sector. Although this occurred, total
revenue for the past 5 years since 2009 has increased by
82 percent due the impressive performance of Disney
Infinity 1.0 in the 2014 fiscal year.
51. INTERACTIVE MEDIA
Operating results for the Interactive segment are as follows:
% of Change Better/
Worse(-) 2009 vs.
2012
Year Ended
(in millions)
29-Sep-12 1-Oct-11 2-Oct-10 3-Oct-09
Revenue
Game sales and subscriptions $613 $768 $563 $565 9%
Advertising and other 232 214 198 147 58%
Total revenues 845 982 761 712 19%
Operating expenses -583 -675 -581 -623 7%
Selling, general, administrative and other -429 -561 -371 -336 -28%
Depreciation and amortization -49 -54 -43 -50 2%
Operating Income/Loss(-) -216 -308 -234 -292 35%
52. INTERACTIVE MEDIA
Operating results for the Interactive segment are as follows:
% of Change Better/ Worse(-) 2013 vs.
2014
Year Ended
(in millions) 27-Sep-14 28-Sep-13
Revenue
Games* $1,056 $812 30%
Other Content 243 252 -4%
Total revenues 1299 1064 22%
Operating expenses -700 -658 -6%
Selling, general, administrative and other -400 -449 -2%
Depreciation and amortization -23 -44 48%
Operating Income/Loss(-) 116 -87 nm
*Certain reclassifications have been made to the revenue amounts
presented for fiscal 2013 to conform to the fiscal 2014 presentation.
The principal change was to reclassify game-related revenue from our Japan
mobile business from Other content to Games.
54. PROFITABILITY RATIOS
Gross profit margins of 45.88%
Operating profit margin of 23.64%
Net profit margin of 16.4%
Net return on total assets of 9.51%
Return on stockholder equity of 17.8%
Return on invested capital of 12.6%
55. ASSETS
Fiscal year is October-September. All
values USD millions.
2010 2011 2012 2013 2014
5-
year
trend
Cash & Short Term Investments 2.72B 3.19B 3.39B 3.93B 3.42B
Cash Only 2.72B 3.19B 3.39B 3.93B 3.42B
Short-Term Investments - - - - -
Total Accounts Receivable 5.78B 6.18B 6.54B 6.97B 7.82B
Accounts Receivables, Net 5.45B 5.95B 6.31B 6.69B 7.43B
Accounts Receivables, Gross 5.78B 6.21B 6.47B 6.85B 7.58B
Bad Debt/Doubtful Accounts (326M) (261M) (161M) (155M) (154M)
Other Receivables 330M 235M 227M 273M 394M
Inventories 1.44B 1.6B 1.54B 1.49B 1.57B
Finished Goods 0 0 0 0 0
Work in Progress 0 0 0 0 0
Raw Materials 0 0 0 0 0
Progress Payments & Other 1.44B 1.6B 1.54B 1.49B 1.57B
Other Current Assets 1.6B 2.12B 1.57B 1.72B 2.36B
Miscellaneous Current Assets 1.15B 1.67B 1.1B 1.28B 1.93B
Total Current Assets 11.55B 13.08B 13.03B 14.11B 15.18B
60. Strengths:
Brand reputation
Disney has its well known brand name and
reputed status around the world. The
products of the Disney have been perceived
positively by the people because of its brand
reputation.
Has own Walt Disney studios (second largest media
conglomerate in terms of revenue)
Disney has its own studios which includes
Disney's motion picture studios, music labels,
theatrical production company, and distribution
companies.
61. Diversified business
Disney has variety of its productions and
extensions of its production units around the
world. For example, it has The Walt Disney
Studios, Disney Consumer Products and
Interactive Media, Walt Disney Parks and
Resorts, Disney Media Networks, Marvel
Entertainment etc.
Loyal customers
Disney has its millions of loyal customers that
it achieved through strong relationship and by
providing them maximum satisfaction from its
products.
62. Top management
Disney has experienced, well-trained,
enthusiastic and motivated top work force.
Strong financial position
Disney financially stands strong in the
competitive market and is able to continue its
company sustainably.
63. High quality
Disney is able to win people's positive
attitude towards it through consistent quality
productions.
Strong advertising
Disney has its strong advertising strategy
through which it is penetrating into the
markets, reaching to its potential customers,
and is gaining its popularity over rivals.
64. Weaknesses:
Decline of Cinemas
People are going less to the cinemas due
to the release of home theaters and
increasing ticket prices.
Changing viewership trends
The habits of people viewing the movies
have changed with the introduction of new
technologies. People are engaged in watching
movies on their smart phones, ipads, laptops
etc.
65. Lack of Access to Web viewership platforms
Inaccessibility of people to the web
viewership platforms puts the company away
from the potential customers and cannot achieve
the maximum benefits from the markets.
High operating cost
The operating cost of Disney is high in
maintaining the consistent quality
production.
66. frequent change in top management
The frequent changes in top management
make the management difficult to drive the company
at the same speed as before competing with the
rivals.
Opportunities:
Disney music channel
Growing popularity of Disney music channel
increases the scope and opportunity of Disney.
67. Disney school of management and training
Disney school of management and training
institute conducts workshops, seminars,
presentations and special programs for professionals
enhancing their managerial skills.
Online websites
Now, the accessibility of online websites
helps to promote its business and reach to more
customers throughout the world.
68. Advancement in technology
Technological advancement and introduction of
the new techniques and equipment are increasing
efficiency of work and reducing operating costs.
Demographic changes
The change in demography such as
migration of population into an area adds
opportunity to a company to foster its
business.
69. Threats:
Changing animation trends
Change in animation trends and technologies
might change the taste of customers and they might
shift their old habits to the new one.
Strong competition
The increasing competition in the market
and entry of the new entrants might
increase the possibility of losing the
business.
70. Increasing piracy
Issue of copy rights, and increasing piracy
threats the company to lose its business.
Change in customers preferences and behaviors
People's preference and behavior change
with time and it is hard to predict whether a
company would be preferred by the customers for
long time or not.
71. Economic (recession/inflation/unemployment) condition
Unfavorable economic condition inside and
outside the country would affect the
company. The recession, inflation and
increasing unemployment rate have direct
impact to the company.
Increasing salaries and labor costs
The increasing salaries and labor cost in
the markets make the operation costs high
and reduce the company's overall income.
72. SUGGESTION
Introduce More Parks
Re-acquire Marvel Character from Sony
Partnership with other animation studios
Madhouse
