Sarah Lorenz
Mr. Reuter
Economics
March 24, 2015
Frozen: Economic Effect
The Walt Disney company has been making a name for themselves since 1923, with the introduction of cartoons. This is where is it all started. Their first blockbuster, Snow White and the Seven Dwarfs hit screens on 1937. It’s international earrings was around $8 million. From this point on Walt Disney company made a huge impact on the worlds economy. But nothing quite like their newest film, Frozen. This movie took the world by storm. Frozen’s earning were $1.27 billion just over the course of 2013. Most brands seem to come and go, and most people are willing to try something new. But not in this case, Frozen has been in demand since opening day. The movie has made a ton of gross profit from the movie, but the real money maker has been the merchandise that has followed.
Florida has seen the biggest economic growth, along with employment growth due to the film. The recession in 2010, really hit the theme parks, and Disney in particular hard because families were canceling trips. But with the popularity of Frozen has boosted Disney’s capital. The merchandise and trips had become an inferior good. Without any competition from other companies, Disney has been able to set the price and continue to sell merchandise at sometimes unthinkable costs. With the demand only growing for Frozen, how does Disney meet the demand? The biggest supply determinant affecting Disney is that they are the only supplier, but also resources play a big role. Frozen on Ice, says to charge $15 for a snow cone. Seems crazy, but they are a monopoly, so they can charge whatever they want in order to make a profit. Disney has control over price and high barriers. Frozen has helped Disney create a stronger economic empire.
It is easy to say that Frozen is a success story, but the real success has come from the high demand of it after the movie. It has become much more than just a fad. People want more and more of Frozen. Disney being the only company with the merchandise has created a scarcity. This scarcity has allowed Disney total control of price and supply. So many positive externalities has come from the brand and will only have exponential growth. Frozen has not only help build a strong economic company but also has helped with the job market. Frozen has made a very big impact on the United States economy.
Works Cited
Morath, Eric. "‘Frozen’ Characters Heat Up Florida’s Economy." Real Time Economics RSS. The Wall Street Journal. Web. 24 Mar. 2015.
Tankersley, Jim. "Frozen and the U.S Economy." The Washington Post. Web. 24 Mar. 2015.
This is such an interesting topic! I love the fact that you went the Disney way. I love that you connected the use of Disney and costs related to Florida. I think its crazy that they made that much money off one movie and still is in high demand. I think a chart of current and past demands of the movie would make an even larger impact on your post.
ReplyDeleteI can agree completely with this post because all of my younger cousins own Frozen memorabilia. They have Frozen clothes, Frozen wands, and plastic Frozen jewelry. As you said, Disney is the only true supplier to these goods, so their profit skyrockets. It is no doubt that Disney has benefited from Frozen.
ReplyDeleteNice. Very nice and succinct way of explaining this, but I'm a little flummoxed by how the visual doesn't seem to fit. It is plausible that it does fit but you haven't verified it any in your writing. It was great to take a look at what Disney has done to our economy though.
ReplyDeleteNice. Very nice and succinct way of explaining this, but I'm a little flummoxed by how the visual doesn't seem to fit. It is plausible that it does fit but you haven't verified it any in your writing. It was great to take a look at what Disney has done to our economy though.
ReplyDeletePersonally I love Frozen so to read how this movie made such a huge economical change for Disney is really interesting. One question though, do they actually charge $15 for a sno-cone? Anyway, I totally agree with Disney being a monopoly, they own virtually everything. Overall this essay was really interesting to read, good job!
ReplyDeleteThis topic is very interesting! Everyone always talks about how much of an impact Frozen has had on society, but I haven't thought about how much money they made on it all. The movie made a ton of money, of course, but all the other surrounding merchandise makes an insane amount too. Disney will continue to make millions off of Frozen, now and in the future.
ReplyDeleteWow, I knew Frozen racked in a lot of money, but $1.27 billion is crazy. Almost everyone I know absolutely loves the movie (or used to love the movie until their 20th time seeing it with their younger siblings). Still, imagine all the money made not only from the movie, but from toys as well. Your comment about the snow cone charging $15 is completely absurd. As you said though as a monopoly, Disney can do whatever they want with their prices. Overall, great topic and great job analyzing how Frozen effects the economy.
ReplyDeleteI think that's insane that they think they can charge $15 for a snow cone, but you're right, they still get people to pay for their merchandise because of their monopolistic nature. Disney is the only one that can make and sell these goods so of course they are making a ton of money off this, I can't even count the number of various Frozen products. Everywhere you go there is Frozen pajamas, toothbrushes, toys, games, clothes, wrapping paper and whatever else, and the prices are insanely high because people pay and they are the only ones that sell these things. I liked this post because I never really thought of Disney as a monopoly but it really is, and everyone has been crazy about Frozen for about a year and a half so this is relatable to a certain degree.
ReplyDeleteDisney has outdone themselves , yes, but since frozen earned them so much money and was so enjoyed by the public, Disney now has to keep up their reputation. So the opportunity cost of making Frozen is that fact they could potentially make less money because consumer tastes do change and none of their new movies could be as good. Making the supply for Disney movies increase but the demand for them decrease. This would then cause a surplus of Disney movies. Plus movies are a luxury and peoples preferences change, meaning that this product is an elastic good. This being an elastic good means that people will be fine without it and they will soon get bored of all the apparel and movie itself and look for something new.Therefore Disney has been going strong but this movie can set them way back and they have now created a really high standard for themselves.
ReplyDeleteDisney has outdone themselves , yes, but since frozen earned them so much money and was so enjoyed by the public, Disney now has to keep up their reputation. So the opportunity cost of making Frozen is that fact they could potentially make less money because consumer tastes do change and none of their new movies could be as good. Making the supply for Disney movies increase but the demand for them decrease. This would then cause a surplus of Disney movies. Plus movies are a luxury and peoples preferences change, meaning that this product is an elastic good. This being an elastic good means that people will be fine without it and they will soon get bored of all the apparel and movie itself and look for something new.Therefore Disney has been going strong but this movie can set them way back and they have now created a really high standard for themselves.
ReplyDeleteThis was a great movie and it was so successful for many reason, the biggest I think being that like you said merchandising after the movie. Frozen is going to be a movie that no one ever forgets because they have items of cast members and animals in their house. There is no target market for the movie, it is just a family movie and people from every age can enjoy the movie and merchandise from the production.
ReplyDeleteMost disney movies are big hits because kids will watch anything that is animated. But what makes the money is what you said the merchandise. In Frozen the Olaf was a funny and loving character. Kids loved it and wanted to have their own cozy, funny, loving Olaf. There really is no substitute for that item so parents would buy their kids the stuffed Olaf and any other characters that they connected to. The movie brought it a lot of money but what's always the big money maker is the products they sell later.
ReplyDeleteNever really thought about Frozen and other movies merchandise as monopolies, but they are. The can indeed change whatever they want for all the stuffed animals and other things because they have to copy right.
ReplyDeleteIt's crazy to think that a movie like frozen could be so successful. I thought that the buzz of the movie would die down but it does not look like that is coming anytime soon. Also with the monopoly snow cone stand it's crazy that such an innocent movie could produce these kinds of businesses.
ReplyDeleteDisney has always been big but Frozen has out done any movie that they have made. You made really good points on how much money they have profited from this because kids and even adults love this movie and everyone wants a little bit of it in someway. $127 billion dollars is huge to make out of one movie and since they are coming out with a second one, I think everyone will want to be apart of that movie as well as they introduce new characters and songs that people dont like to admit but love singing too. Good topic!
ReplyDeleteI really think Frozen needs to stop. It was a good movie, but with all of the merchandise and children screaming the "Let it Go" a million times, everyone is sick of it. We should all just forget that it was ever made. I am sick of seeing those ugly winter hats with long fake hair like Elsa's. Like, ew. But, the worst thing that Frozen has done was they ruined Halloween of 2014. I decided to hand out candy this year during trick or treating, and literally every little girl was dressed like Elsa or Anna. I wanted to see funny costumes, like hot dogs or cupcakes or dogs, but no. I was very disappointed. Frozen may have been really good for Disney, but it was terrible for me.
ReplyDeleteAnyways, great job incorporating the things we have learned in class!
It doesn’t really come as a surprise that Frozen has had such a big impact on the economy, because it’s pretty much everywhere. They have dolls, stuffed animals, sing along versions, and now it’s expanding into Disney parks, Frozen is bringing in some profit for Disney. I think that it’s a bit ridiculous however, for Disney to charge $15 for a snow cone at the Frozen on Ice show. Like stated, Disney is a monopoly and I suppose I understand how they can do that, but I don’t think they should actually be charging that much. It’s also crazy to think that 1 movie could cause Disney Parks to do so much better. Basically, Frozen helped create jobs for people.
ReplyDeleteThe Disney franchise is a great example of a monopoly. I never realized just how important it is to the economy especially that of Florida where Disney is located. Unsurprisingly Frozen has been the biggest money maker for Disney and I agree that the frozen fanatics are just going to continue to shell out money for frozen merchandise. Disney has a great setup in the way that they have total control over frozen, and other popular movies for that matter, and they can charge whatever they want for their products.
ReplyDeleteMost of the Hollywood movies are blockbuster in that some movies make huge money like Disney movies are super hit because it's animated and children love watching animated movies. Kids ask their parents to take them to animated movies. I did not like frozen movie because it's animated but I love that snow man character like this people may like other character but it made billion dollar I am like surprise. Disney movies also release other countries it make money.
ReplyDeleteIt is pretty interesting to see the extreme economic success of the Disney movie, Frozen. Disney movies are generally popular, but this kind of ongoing, constant demand for Frozen is insane. It totally objects the 'Law of Demand,' in which consumers buy more of a good when its price goes down and less when its price is higher. Frozen products are inelastic goods - despite the increasingly high prices, the demand continues to remain steady. This is partly because there are no other alternative substitutes, as Disney is the only company which sells authentic, unique Frozen products. Disney is basically a monopoly because it controls all aspects of production and it would be nearly impossible for any similar markets to break through Disney's barrier. Also, Disney can definitely control their own price changes, increasing or decreasing prices exactly how and when they want. There seems to be no price ceilings established either - Disney has virtually no maximum price they must restrain themselves to, allowing them to easily dominate their product market. I believe Frozen will continue to economically grow at a steady rate, especially when Disney comes out with a sequel to the film. Overall, a very interesting topic to analyze.
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