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,
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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
Net income increased from $93 million in 1984 to $445 million in 1987, so Disney increased its net income more than four times after Eisner’s takeover in the first four years. Much of this incredible success is due to Eisner’s tough leadership, brand management and his corporate strategies. He not only brought the company back on track, but also made sure, that Disney did not loose its sight in his own corporate values (quality, creativity, entrepreneurship and teamwork) (1, p. 4). Much of Disney’s success in the first four years under Eisner was due to the strategies of simultaneously “managing creativity” and keeping an eye on costs due to well-defined financial objectives (1, p.4). What’s more, Disney
When Eisner connected Disney in 1984, he dedicated himself to maximizing shareholder wealth through annual revenue growth of 20%. For rejuvenate the firm and achieve great revenue margins Eisner took several steps to rejuvenate Disney. His plan was to build the Disney brand while preserving the corporate values of quality, creativity, entrepreneurship, and teamwork. And that’s why Eisner and his team focused on revitalizing Disney’s TV and Movie Business.
By 1995, The Walt Disney Company was becoming one of the largest companies in media and in the same year they announced they were going to acquire ABC Inc. for $19 billion (Fabrikany). This was the one of the largest cooperate take-overs at the time, and to this day The Walt Disney Company owns ABC and all of it affiliated stations, including: ABC News, ABC Entertainment Group, ABC Owned Television Station Group, and Disney/ABC Television Group.
Introduction The Walt Disney Company is an American diversified multinational mass media corporation. It is the largest media conglomerate in the world in terms of revenue. It generated US$ 42.278 billion in 2012. Disney was founded on October 16, 1923, by Walt and Roy Disney as the Disney Brothers Cartoon Studio, and established itself as a leader in the American animation industry before diversifying into live-action film production, television, and travel. The Walt Disney Company operates as five primary units and segments: The Walt Disney Studios or Studio Entertainment, which includes the company's film, recording label, and theatrical divisions; Parks and Resorts, featuring the company's theme
Recent years have seen a major growth in the Walt Disney Company "enterprise" as one would call it. Growing from movies, TV, theme parks, stores to Broadway shows, Disney Company has set a benchmark for other companies. Early in 1996, Disney completed its acquisition of Capital/ABC. The $19 Billion deal brought the country's top television network to the Disney, in addition to 10 TV Stations, 21 radio stations, 7 daily newspapers, and ownership positions in 4 cable networks.
One of these media giants is the Walt Disney Company (Disney). Its dramatic growth from a small company to become an oligopolist in the media industry offers an interesting
Introduction: The Walt Disney Company is on the threshold of a new era. Michael Eisner has stepped down from his position as CEO and turned over the reigns to Robert Iger. A lot of turmoil has been brewing through the company over the last four years; many people are hoping that this change in leadership will put Disney back on the road to success. Issues began around mid-2002; when declining earnings, fleeing shareholders, and
The success of movies and television programs were due to diversity and distribution. It does its own distribution and targets several markets from children to adults. Finally, the Disney character consumer product sector, which includes clothing, home goods, and toys, has been an extremely important asset to the company. For example, by establishing deals such as an agreement with Mattel, Disney was able to manufacture more than 14,000 Disney licensed products. Furthermore, Disney expanded it’s retailing by opening up Disney stores.
Each one of the five divisions focus on achieving all three objectives that make up the Company’s corporate strategy, the first division, media networks, focuses on the domestic and international acquisitions and internal development of cable networks that are comprised of the ABC television network and television production. The Walt Disney Company’s highly concentrated U.S. domestic television production of its ABC television network, led to eight local television stations where six out of those eight television stations are based in the 10 biggest television markets in the U.S. The Walt Disney Company achieved this market position by acquiring the already existing business that was formerly
Disney has major competition from the media industry, competition is high for viewers with other television networks. This competition is also with satellite providers and several media networks to maintain a target audience.
Disney was founded on October 16, 1923, by Walt Disney and Roy O. Disney as the Disney Brothers Cartoon Studio. Guided by Walt Disney?s imagination and willingness to take risk, he influenced
Disney has become a marketing goliath and the #1 entertainment company in the US. They have been able to develop a creativity-driven philosophy that over time was tempered by financial responsibility and that benefitted from powerful synergies between its divisions. From the very beginning, Disney has been synonymous with innovation within the children’s entertainment industry, from their introduction of animations with synchronized audio, full-length animated feature films and then later into theme parks and on-ice and Broadway shows. One important element of Disney’s success was the extent to which they integrated and expanded into different
In the last decades, the number of major corporations that manage to control media has decreased significantly, resulting in a high concentration of ownership. In 2011, only six media companies were responsible for 90% of the things we saw and heard on a daily basis compared to fifty companies in 1983 (Lutz, 2012). The Walt Disney Company is one of them. In this report, we will take a look at how the Company has succeeded in growing into the media corporation it is today.
Starting as a young boy from Missouri, farmer Walter Elias Disney set out to make a mark on society. After first joining the Red Cross in World War I, he came back determined to be an artist. After moving to Hollywood in 1923 with his older brother Roy, they founded Disney Brothers Studio. After diversifying as much as possible, Disney had a firm grasp on the global market share until the 1980’s where the company’s revenues began to slump in the film industry. Luckily Sid Bass invested $365 million in order to rescue the company and bring an end to all hostile takeover attempts. Disney’s billion dollar powerhouse status in the entertainment industry can be broken down and analyzed using the
As Walt Disney Company is famed for its creativity and strong global brand, Disney appear to create value in its business primarily through a differentiation strategy.