The Walt Disney Company

Summary

The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. It operates through two segments, Disney Media and Entertainment Distribution; and Disney Parks, Experiences and Products. The company engages in the film and episodic television content production and distribution activities, as well as operates television broadcast networks under the ABC, Disney, ESPN, Freeform, FX, Fox, National Geographic, and Star brands; and studios that produces motion pictures under the Walt Disney Pictures, Twentieth Century Studios, Marvel, Lucasfilm, Pixar, and Searchlight Pictures banners. It also offers direct-to-consumer streaming services through Disney+, Disney+ Hotstar, ESPN+, Hulu, and Star+; sale/licensing of film and television content to third-party television and subscription video-on-demand services; theatrical, home entertainment, and music distribution services; staging and licensing of live entertainment events; and post-production services by Industrial Light & Magic and Skywalker Sound. In addition, the company operates theme parks and resorts, such as Walt Disney World Resort in Florida; Disneyland Resort in California; Disneyland Paris; Hong Kong Disneyland Resort; and Shanghai Disney Resort; Disney Cruise Line, Disney Vacation Club, National Geographic Expeditions, and Adventures by Disney as well as Aulani, a Disney resort and spa in Hawaii; licenses its intellectual property to a third party for the operations of the Tokyo Disney Resort; and provides consumer products, which include licensing of trade names, characters, visual, literary, and other IP for use on merchandise, published materials, and games. Further, it sells branded merchandise through retail, online, and wholesale businesses; and develops and publishes books, comic books, and magazines. The Walt Disney Company was founded in 1923 and is based in Burbank, California.

Operations

How did the idea of the company come about?

The idea for The Walt Disney Company originated from the creative vision of its co-founder, Walt Disney, and his passion for animation, storytelling, and innovation. His dedication to creating high-quality entertainment experiences for people of all ages paved the way for the company's establishment and growth into the global entertainment conglomerate it is today.

What is the mission of the company?

"To entertain, inform and inspire people around the globe through the power of unparalleled storytelling, reflecting the iconic brands, creative minds and innovative technologies that make ours the world’s premier entertainment company."

What are the main offerings of the company?

Offering	Comments	Place to Purchase
Movies/Film Studios	Disney is known for its iconic animated and live-action films. It owns several major film studios, including Walt Disney Pictures, Pixar Animation Studios, Marvel Studios, Lucasfilm (creator of Star Wars), and 20th Century Studios.	You can watch Disney movies in cinemas when they are released. After their theatrical run, you can find them on Disney + or on various platforms for purchase or rental.
Television Networks	Disney owns a significant number of television networks, including ABC, ESPN, Disney Channel and National Geographic. These networks cover a broad range of content, including sports, news, entertainment, and educational programming.	Cable and satellite TV providers offer Disney-owned channels like ABC, ESPN, Disney Channel, and National Geographic as part of their packages. Some content may also be available through streaming services that include live TV channels.
Theme Parks/Resorts	Disney operates some of the most famous theme parks and resorts globally, including Disneyland and Walt Disney World. These parks offer immersive experiences based on Disney characters and stories, along with attractions, entertainment, and accommodations.	Tickets to Disney theme parks and resorts can be purchased directly from their official websites. You can also purchase merchandise, food, and experiences within the parks.
Merchandise/Consumer Products	Disney's characters and franchises are widely recognized and beloved, leading to a vast array of merchandise and consumer products. These range from toys and clothing to home goods and collectibles.	Disney merchandise is widely available in physical retail stores, including Disney stores, toy stores, department stores, and specialty shops. Additionally, you can find a wide range of Disney merchandise on the official Disney online store and through various e-commerce platforms like Amazon and eBay.
Streaming Services	Disney has entered the streaming industry with its own platforms. Disney+ is its flagship streaming service, offering a vast library of Disney movies, TV shows, and original content. Additionally, Hulu (majority-owned by Disney) offers a diverse range of programming, including original series and licensed content.	Disney+ and Hulu subscriptions can be purchased directly from their respective official websites. Download the respective apps on your preferred device and sign up for a subscription.
Media Networks	In addition to television networks, Disney owns various media assets, including radio stations and online properties, which contribute to its overall media presence.	You can access Disney-owned radio stations and online properties through various platforms and apps, often linked to the respective station's website.
Interactive Media/Video Games	Disney has a history in interactive entertainment, producing video games and interactive experiences based on its properties. It has also been involved in the acquisition of video game companies like Marvel Entertainment and Lucasfilm.	Disney video games can be purchased from online marketplaces such as Steam, Epic Games Store, and console-specific stores like PlayStation Store and Xbox Store. Additionally, you can find physical copies of games at retail stores.
Studio Entertainment	This encompasses the distribution, marketing, and exhibition of Disney's films. It involves partnerships with theaters and the distribution of content in various formats, including physical media and digital platforms.	Disney movies and related content are available for purchase through digital platforms like iTunes, Amazon Prime Video, and Google Play Movies. Physical copies can be found at retail stores and online retailers.
Educational/Publishing Content	Disney creates educational content for children and families, including books, magazines, and digital learning platforms.	Disney educational content, including books and digital learning platforms, can be purchased from bookstores, educational supply stores, and online retailers.
Cruise Lines	Disney Cruise Line offers themed cruises that combine the magic of Disney with the experience of a cruise vacation.	You can book Disney Cruise Line vacations directly through their official website or through authorized travel agents

Team

1. Bob Chapek: Chairman of Disney Parks, Experiences and Products; CEO of The Walt Disney Company (as of my last update).
2. Alan Bergman: Co-Chairman of Disney Studios Content; CEO of The Walt Disney Company (as of my last update).
3. Kareem Daniel: Chairman of Media and Entertainment Distribution; President of Consumer Products, Games and Publishing (as of my last update).
4. Peter Rice: Chairman of General Entertainment Content for Disney.
5. James Pitaro: Chairman of ESPN and Sports Content for Disney.
6. John Landgraf: Chairman of FX Networks and Content for Disney.
7. Sean Bailey: President of Walt Disney Studios Motion Picture Production.
8. Kevin Feige: President of Marvel Studios and Chief Creative Officer, Marvel.
9. Kathleen Kennedy: President of Lucasfilm.
10. Gary Marsh: President and Chief Creative Officer of Disney Branded Television.
11. Rebecca Campbell: Chairman of International Operations and Direct-to-Consumer.
12. Josh D'Amaro: Chairman of Disney Parks, Experiences and Products.

Market

Industry Chain Analysis

Industry's Key Drivers

Industry's Trend

Risks

Macroeconomic Conditions: COVID - 19

• The 2020 Coronavirus pandemic led to the temporary closure of Disney's theme parks and resorts around the world, resulting in substantial revenue losses. as theme parks are Even after reopening, attendance levels were limited due to health and safety measures.
• The pandemic disrupted film production schedules, leading to delays in the release of many highly anticipated films. Additionally cinemas were closed, impacting box office revenues for both Disney's own films and films from other studios (e.g. Cruella, Black Widow and Mulan)
• Disney Cruise Line operations were suspended due to health concerns and travel restrictions. This affected the company's cruise business and resulted in significant financial losses.
• The cancellation of live sports events and the decline in advertising spending had an impact on Disney's media networks, especially ESPN.
• The closure of physical retail locations, including Disney stores, led to reduced merchandise sales and revenue losses in this sector.
• The overall revenue decline across these multiple divisions put financial strain on the company, leading to cost-cutting measures, layoffs, and reduced investments in certain areas.

The ongoing recovery from the COVID-19 pandemic, including the emergence of new variants, could continue to influence Disney's operations, especially in areas like theme park attendance, film production/distribution and consumer behaviour.

Uncertain Forecasts

• The Walt Disney Company may be unable to grow its products and services globally, which affects operations and growth
• Profits may fluctuate significantly from different periods, which causes expectations to become more uncertain.
• Could enter streaming wars with other streaming services as the industry is growing and becoming increasingly competitive, impacting subscriber growth and content strategy.
• Changes in consumer preferences for entertainment formats, including shifts from traditional cable TV to streaming, could impact Disney's media networks and content distribution strategies.
• Economic trends and macroeconomic factors could influence consumer spending on entertainment and travel, affecting theme park attendance and other revenue streams.
• Increasing focus on environmental sustainability might lead to changes in business practices and consumer perceptions, affecting various aspects of Disney's operations.
• Political instability, trade tensions, and other geopolitical events could impact international operations, including theme parks, content distribution, and partnerships.

Competition

• The Walt Disney Company operates in highly competitive markets, where differentiation is key in order to challenge for market power and profits.
• Exclusive deals and content for Disney +, like Marvel and Star Wars, have helped propel and increase demand for a subscription.
• Examples of competition:

1. Entertainment Studios:
   • Warner Bros. Entertainment: A major competitor known for its film and television production, including the DC Extended Universe and Harry Potter franchise.
   • Universal Pictures: Known for its film franchises like Fast & Furious, Jurassic Park, and Despicable Me.
   • Sony Pictures Entertainment: Produces films like Spider-Man, Jumanji, and Men in Black.
2. Streaming Services:
   • Netflix: A dominant player in the streaming industry, offering a vast library of original and licensed content.
   • Amazon Prime Video: Part of Amazon's services, it offers original programming and a wide range of movies and TV shows.
   • Apple TV+: Apple's streaming service that produces original content and competes for subscribers' attention.
3. Theme Parks and Resorts:
   • Universal Parks & Resorts: Competes with Disney's theme parks through attractions like Universal Studios and Islands of Adventure.
   • Six Flags: Known for its amusement parks and thrill rides
4. Animation Studios:
   • DreamWorks Animation: Known for franchises like Shrek, Madagascar, and How to Train Your Dragon.
   • Illumination Entertainment: Creator of the Despicable Me and Minions franchises.
5. Toy and Merchandise Industry:
   • Mattel: A major toy company with brands like Barbie, Hot Wheels, and Fisher-Price.
   • Hasbro: Known for brands like Transformers, My Little Pony, and Nerf.
6. Sports and Live Events:
   • ESPN: While a part of Disney, it competes for sports viewership with other sports networks and streaming services.
7. Video Games:
   • Electronic Arts (EA): Produces popular video game franchises like FIFA, Madden NFL, and The Sims.
   • Activision Blizzard: Known for games like Call of Duty, Overwatch, and World of Warcraft.

Legal Challenges

• Disney's valuable intellectual property, including characters, films, and brands, has led to numerous copyright and trademark infringement lawsuits. These cases can involve allegations of unauthorized use of Disney's characters or content.
• Disney has faced labour and employment disputes related to issues such as wage and hour violations, discrimination, and workplace conditions.
• Disney's contracts with various partners, vendors, and talent can lead to disputes over terms, obligations, and royalties. This can include disputes with actors, directors, and other creative professionals.
• Disney's acquisitions and market presence have sometimes drawn attention from regulators, leading to antitrust investigations and legal challenges related to competition and market dominance.
• Given the widespread distribution of its content, Disney also faces challenges related to digital piracy and copyright protection.
• Accidents or injuries that occur in Disney's theme parks could result in legal claims related to premises liability or negligence.
• As a large corporation, Disney must adhere to various environmental regulations and other regulatory requirements, and any violations could result in legal actions.