Melanie Gray-Trier
Mr. Reuter
Economics
10 November 2015
The Walt Disney Company
Walt Disney is an iconic name that has been around for almost a century. Walt and Roy Disney are the two brothers who had founded film company in October of 1923. Walt was the creative mastermind and his lesser known brother, Roy, was in the background handling the extensive financials. The two made history by entertaining children for decades, prompting them make a significant amount of money. The Walt Disney Company has made a huge economic impact and is worth $179.5 billion by developing cartoons, movies, merchandise, and theme parks (Forbes).
The Walt Disney Company first started out as a studio, producing cartoons. Disney’s first film of many was Snow White and the Seven Dwarfs in 1937, which has grossed to $184.9 million (Box Office). As time continued the demand for movies produced by Disney has increased and so has their profits. 54 feature films later, Walt Disney Studios has made a total of $7.278 billion (Nudelman). which is only 4% of their total revenue. The movie that made the most money was the The Lion King and made over $422 million in 1994 and is still grossing, but in the last year Frozen has generated an astounding $398.4 million (Variety). Disney is so iconic that even as they create new films and generate profit from them, the oldies are still in demand. As long as Disney Studios makes available new and old films, the demand never decreases, because the love for classics live on.
Although Disney started out in movie making, they now generate the most money from media networks, in other words, television. When Disney channel debuted in 1983, it was and still is devoted to children’s movies and shows. Later on they debuted a second channel that is strictly devoted to young children with popular shows such as Dora the Explorer and Mickey Mouse Clubhouse. After tons of classic Disney shows from DuckTales and Recess to Kim Possible and Hannah Montana along with several rerun and Disney Channel movies later, Disney has made a total of $21.152 billion from being in the television industry.
Another major part of The Walt Disney Company is of course its world famous theme parks. Walt Disney wanted to create a theme park that was safe and fun for children. His first park opened in 1955 in Los Angeles, California and was dubbed Disneyland. After much success in opening Disneyland, Walt wanted to open a park that would model the future and be newer and bigger than Disneyland: Disneyworld. Disney World spans 27,258 acres in Orlando, Florida and contains four separate parks. The first park that opened was The Magic Kingdom in 1971 and proceeding Walt Disney’s death, his favorite park was built: Epcot (WDWmagic). Together along with the many others such as Paris and Japan, Disney’s theme parks have generated over $15 billion. This includes merchandise and revenue generated from the hotels. Every child’s dream is to go to Disney World, so the demand will always be on the rise because old generations want the new generations experience the larger-than-life adventure.
Since Walt and his brother opened Walt Disney Studios, they have become the 11th most valuable brands in world. The ever evolving TV shows, movies, and theme parks averages $2.2 billion a year and grossing. Disney’s supply of quality entertainment will always be in demand. The Walt Disney Company is a legacy that will continue to live on for generations to come and the need for that Disney magic will never die.
Bibliography
Nudelman, Mike. "This Is Where Most of Disney’s Money Comes From." Web. 22 Sept. 2015. <http://www.slate.com/blogs/business_insider/2015/01/14/disney_the_majority_of_their_revenue_comes_from_their_media_networks.htm>.
"The Walt Disney Company." Wikipedia. Wikimedia Foundation. Web. 22 Sept. 2015.
<https://en.wikipedia.org/wiki/The_Walt_Disney_Company#1966.E2.80.931971:_The_deaths_of_Walt_and_Roy_Disney_and_the_opening_of_Walt_Disney_World>.
"Walt Disney." Forbes. Forbes Magazine. Web. 22 Sept. 2015.
<http://www.forbes.com/companies/walt-disney/>.
"'Frozen' Becomes the Highest-Grossing Animated Film Ever." Variety. 30 Mar. 2014. Web. 10 Nov. 2015. <http://variety.com/2014/film/news/frozen-becomes-the-highest-grossing-animated-film-ever-1201150128/>
"Snow White and the Seven Dwarfs (G)." BoxOffice® — Snow White and the Seven Dwarfs. Web. 10 Nov. 2015. <http://pro.boxoffice.com/statistics/movies/snow-white-and-the-seven-dwarfs-1937>
"Walt Disney World History." Walt Disney World History. Web. 10 Nov. 2015. <http://www.wdwmagic.com/walt-disney-world-history.htm>
I have so much respect for the Disney company because they have done so much while creating a great profit that hasn't slowed down. I wonder where most of their profit comes from because they have so many products on the market. Also, Disney lacks competition because no other company has had success when creating theme parks, shows, movies, and other retail items. Although Dreamworks has made great movies, I believe that Disney has had the greatest lasting success story.
ReplyDeleteJust saying, but it would have been really interesting if you added in something about how much the tickets are just for the parks. It's so interesting to hear about Roy too, since I've never actually heard of him... I will agree though, that Disney will never go out of style, and it will always be demanded. I know for sure that I will want to go back and visit sometime when I'm older.
ReplyDeleteI absolutely love Disney like I don't think I will ever get old of it. I travel to Disney every year with my family and I just love it. I actually never knew that Walt had a brother because they never really mentioned him in anything. It's nice knowing that Walt had help from his brother Roy with creating Disney.
ReplyDeleteI think that this was interesting to read about because I never really thought about all that Disney has done over the years, like all the movies, tv shows and the theme parks. There is nothing like Disney world or old Disney movies and It is interesting that no one has tried to top them. I also didn't know that there were other places in the world like in Paris and Japan. I think that Disney is so successful because of everything that they have accomplished and they will never get old and keep building which is great for them.
ReplyDeleteThis essay really caught my attention because I still watch Disney movies from time to time and I've been to Disney World twice. There really is no other competition that has lasted this long in success, yes there is DreamWorks and Pixar but Disney has been in business for a lot longer than the other two and their always working on new and exciting projects.
ReplyDeleteI believe it is safe to say that Disney has always been apart of everyone's childhood, whether it was a black and white Mickey Mouse debating suicide that Minnie left him, Tarzan's parents getting horribly slaughtered by Sabor the Leopard, or Hanz using two innocent girls with intent to kill them both in order to usurp their kingdom (yes these are all true). It is good to see that their profit has and most likely will continue to grow so that Disney can continue telling wonderful stories such as a queen trying to kill a random woman simply because of jealousy, and other wonderfully crafted tales designed for the innocent children of the world. Personally I believe that Pixar is better because they have made arguably the greatest movies of all time, but that's just me.
ReplyDeleteI'm surprised I've never heard of Roy. You'd think with the huge success of the Disney name, that Roy would be mentioned at some point, and remembered just as Walt. It's also surprising that the demand for Disney hasn't slowed. They just keep generating more and more profit, without any real losses, and is starting to dominate the entertainment market. With Disney buying all of the other major entertainment sources such as Marvel, they could be the next monopoly.
ReplyDeleteI was surprised to hear that Walt had a brother Roy especially because Roy did help found the company. I agree with the fact that there will remain a high demand for anything Disney for a long time because it is almost every kids dream to visit Disney World or Disney Land. It does amaze me how much revenue has been made from the movies, t.v network, Disney World and Disney Land.
ReplyDeleteThe Walt Disney Company has developed a huge brand recognition and loyalty with its consumer base over the years. Even other big movie companies such as Warner Bros could never even compete on the same level as Disney. Warner Bros don’t have amusement parks or as much brand recognition. Disney offers such a wide range of goods, it’s doubtful they will decrease in monetary value anytime soon.
ReplyDeleteDisney is definitely an important part of everyone's childhood. When I think of kids movies and cartoons, that usually the first name to pop into my head. It was a little surprising to hear about Roy. It is pretty cool how Disney started small then kept growing until it is what it's at now being one of the largest film companies in the world and is only increasing in size. The theme parks only help with that because they bring in so much additional money, and I don;t see it slowing down anytime soon.
ReplyDeleteI think that this is an awesome topic that I'm surprised that no blog post has covered until now. The Disney empire is an ever expanding entity that has been the pinnacle of child entertainment for a very long time. It is interesting to see just how much money this company has made over the years and it is quite astounding. In my opinion you did a nice job incorporating the economics of Disney, how much revenue its made, the weight of the demand of the populace, and overall expansion. To make it better, however, I think that you could have added a graph or some chart to prove how much the people wanted Disney. We all know that people want it, but it wouldn't hurt to show that statistical proof.
ReplyDeleteI can vaguely remember that Walt Disney had a brother, but I am surprised that he did not receive as much recognition, considering he played a huge role in helping this company become successful. I agree that Disney will always be popular, because it has created a reputation that sparks nostalgic memories for the people who were watching the classic films as children, and the company continues to make more movies and products that appeal to the children today. Their success could not have been easy to earn; there were probably other film companies they had to compete with. However, the creation of Disneyland and Disney World have probably helped to distinguish the Disney company from others. Like you said, every child's dream is to go to Disney World, so surely the demand for Disney will never die.
ReplyDeleteI find it amazing how many different ways one company can make so much money. They had movies, then they had the channel, and then they had the theme parks. Along with all these comes merchandise from their movies and characters. I also agree with you that the company will continue throughout generations, because there is always some new movie coming out, whether it’s a sequel or a new one. Some are more successful than others it seems, but people will still want to see their movies, go to their parks, and buy their stuff for as long as it’s around. They offer such a variety of goods for everyone all over the world, it doesn’t seem like it will die down very soon (especially considering they’ve been around since 1937.
ReplyDeleteI think Disney owes it's success to the fact that they don't really have competition, I mean yes there is Pixar but Disney is a classic, it's like someone says Cartoon movies and first thing that pops up in your mind is Disney! besides Disney land is like a dreamland for kids, there are no theme parks that can compare. Plus toys and tv shows, that's a lot of profit.
ReplyDeleteNot only has the Walt Disney brand been successful for itself, but it has affected the global economy positively for years. Through the thousands of jobs created in the making of the movies and in the box offices and at the theme parks, all those people are paid wages. These wages are transferred back into the economy and creates a constant flow of cash, causing economies to flourish.
ReplyDeleteI think it is very interesting how the demand for Disney and the company's many product lines continues to increase. It definitely helps that Disney is very recognizable to consumers, and that they do not have much competition. And they have also done a good job adapting to the changes that have occurred in society such as improved technology and new, innovative ideas to entertain families. All of this leads to an increase in demand. But, I wonder if the demand for Disney products will ever decrease. It seems unlikely since "the classic Disney" is still in high demand. I personally think Disney is unbreakable because they are pros at always improving and adapting to the changes in the market and in society.
ReplyDeleteI find it amazing on how Disney can make a boat load of money in numerous different ways. They have a wide variety of money making opportunity's through their theme parks, television shows, movies, and other merchandise. Disney has in the past and will in the future to continue to have success because they are have a lack of competition in their market and their brand is recognizable through numerous markets. With their brand being so massive, Disney is able to create thousands of jobs through all their activities they take part in. With being able to support thousands of workers those works are able to transfer that money back into the economy. Since they have customers throughout the world, I don't see the companies success to be stop soon at all based on the size, structure, and capital that the company has today.
ReplyDeleteIt doesn't surprise me that Disney has a higher demand. With the ways that they reach the public,whether it's a movie or Disney Channel and the theme parks. They have created a widely advertised company that everyone has heard of and little kids dream about.I believe that Disney is going to keep growing and continue to bring in a huge profit and they don't really have a big competitor, they are unique and they couldn't be replaced. Overall I believe that Disney will continue to bring in money.
ReplyDeleteI actually didn't know that Walt Disney had a brother. Nonetheless, It's amazing how much money they've made, and how they've exponentially grown.since they've started. I wonder how much it costs to run such a large company on a daily business.
ReplyDeleteIt amazes me how much money that Disney has raked in over the almost 100 years that they have been in business for, but personally I feel like with how much Disney is talked about and is presented in every day life they would've made more money than they have. Perhaps some day they will be in the trillions for the amount of money Disney takes in. Maybe alongside movies, television, and theme parks, there could be something else such as 'disney' themed restaurants or something in the future...
ReplyDeleteIndeed, Disney is a huge company today and people still love the old movies, however, I can't really say if the company will last forever, after the first few movies were released by Disney there was a short period of time where they could come up with any ideas good enough that Disney wanted to make them into a movie. If there is a delay or period where the movies made by Disney aren't very good, it could seriously hurt the company.
ReplyDeleteI found this topic interesting because there were things that I didn't know about Disney with the given background information. I never really thought about the process that Disney first started with films and then later added the Tv shows and theme parks. It makes sense that old movie are still in high demand because personally I like them more than the newer movies. Disney made a huge profit by introducing TV shows, and they will continue to bring in a profit with their theme parks. I don't think the demand for Disney will ever go down.
ReplyDeleteI enjoyed how you broke down the profits of Disney between the Disney Channel and the theme parks. It would have been even more interesting to see how much comes from the Disney Channel vs. the merchandising vs. the movies vs. the theme parks. While I am vaguely aware of the existence of the other parks around the world, it would have been interesting to see the breakdown of profits from the Orlando location vs. the California location vs. the Paris location and so on.
ReplyDeleteI never knew about Roy. Usually you would hear at least something about him. They mind Disney possible and many children and myself happy. But I completely agree with, that Disney will never die and that Disney will increase. The demand of the Disney will increase or stay the same because as technology is getting better, there is better advertisement which would promote Disney.
ReplyDeleteIts crazy to see how one person in a successful partnership can be completely overshadowed. As long as Disney continues to release quality product, I don't see how the demand for Disney products could lessen. This probably won't happen very soon because with all of the products that Disney produces, from theme parks to movies, they are known for sustaining a high degree of quality over a long period of time.
ReplyDeleteDid you know that, just a few months ago, Disney World admission tickets rose to nearly $100? This is a huge amount of money already, and even larger when you assume that a person is bringing their family along. An average four-person family would be paying the same amount of money on one day of experiences that could easily be spread over several weeks for gasoline or groceries. Yet, people keep buying into the wonder of theme parks. It is actually a very interesting market, when you consider the height of some prices in comparison to their marginal utility: Is a day full of long lines and screaming children actually worth the few attractions that the pricy ticket allows?
ReplyDeleteI had never thought about all of the ways that Disney makes money. Whenever I think of Disney, I think of the theme park in Orlando. However, as you mentioned, Disney makes movies and TV shows as well. I believe that Disney will continue to grow in upcoming years since it is still popular after over 90 years! On the other hand, the rising price of theme park tickets, draws consumers away from attending the park and enjoying it with their families. Personally, I would go back to Disney if ticket prices were cut in half. I believe that if the ticket prices were lowered, Disney would increase their revenue because the number of people attending the parks would greatly increase and outweigh costs. Great article!
ReplyDeleteI feel as though,the Walt Disney franchise will continue to be high in demand not only because of consumers but because of the constant expansion of the company. Because of their brand if they were ever to fall in profits or consumer wants they would just invest in something new. Radio Disney,Disney channel and many Disney movies are examples of the companies efforts to keep it going. If Disney were to have just left it at making movies their profits and brand name would not be as big as they are today with their many investments to appeal to consumers.
ReplyDeleteI feel as though,the Walt Disney franchise will continue to be high in demand not only because of consumers but because of the constant expansion of the company. Because of their brand if they were ever to fall in profits or consumer wants they would just invest in something new. Radio Disney,Disney channel and many Disney movies are examples of the companies efforts to keep it going. If Disney were to have just left it at making movies their profits and brand name would not be as big as they are today with their many investments to appeal to consumers.
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