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The Walt Disney Company: the Art of Brand Building Keeps Disney Center Stage

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The Walt Disney Company has evolved from a wholesome family-oriented entertainment company into a massive multimedia conglomerate. Not only is Disney a producer of media but it also distributes its and others’ media products through a variety of channels, operates theme parks and resorts, and produces, sells, and licenses consumer products based on Disney characters and other intellectual property. CEO Michael Eisner has been instrumental in many of these changes. How can such extensive changes occur while trying to maintain the Disney brand?

Disney Through the Years
After his first film business failed, artist Walt Disney and his brother Roy started a film studio in Hollywood in 1923. The first Mickey Mouse cartoon, Plane Crazy, …show more content…

The deal came in the same week as Westinghouse Electric Corporation’s $5.4 billion offer for CBS Inc. Disney represented one of several consolidations of the media conglomerates that increasingly control the distribution of entertainment programming in the United States. Disney ranked as the third largest media conglomerate behind AOL Time Warner and Viacom.
Eisner appreciated the importance of both programming content and the distribution assets needed to deliver it. (4) As a result of many of Eisner’s decisions, The Walt Disney Company has been transformed from a sleepy film production studio into a major entertainment giant, with its revenues of over $2 billion in 1987 increasing to $22 billion in 1997. (5) Its stock price has multiplied over 15 times, creating enormous wealth for both stockholders and executives of Disney.
One of the biggest questions arising from the ABC deal is whether Disney paid too dearly for declining network assets. Viewership among all the major networks was declining. According to Michael Jordan, the CEO of CBS, “the pure network television business is basically a low-margin to breakeven business.” (6) The networks were squeezed by having to pay extravagantly for programming and were attracting an audience of older viewers who were scorned by advertisers.
However, another way to look

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