Animated Films Total Lifetime Gross

Table 17. 2014-2016 Animated Films Total Lifetime Gross


2014-2016 Animated

Films Total Lifetime



Pixar 965.84 20.5%

DreamWorks Animation 834.16 17.7%

Illumination Entertainment 704.07 15.0%

Walt Disney Animation Studios 683.69 14.5%

Warner Bros. 329.02 7.0%

Blue Sky Studios 325.78 6.9%

Sony Pictures Animation 277.21 5.9%

Others 583.84 12.4%

Total 4703.61 99.9%

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Figure 18. Big Hero 6, Zootopia, and Moana

In terms of market growth, many articles suggested that animated films is truly

the “box office magic”, animation is no longer targeted towards children, but has

become much more “adult acceptance”. For example, kids can enjoy all the “animals

living like humans” theme in Zootopia; the adults, however, can see through all those

cuteness, and take away the social issue “prejudice” behind Judy’s adventure.

The progress of animation technology also promises a bright future for animated

films, not to mention the up-and-coming tide of future 3D and VR. However, it would

be the scipts, the backbone of a film to really lures the audience into theatres. It is

very exciting to see what WDAS has to bring to the table next, and they rarely fail our


For reasons above, I would categorize Walt Disney Animation Studios as a star

on the BCG matrix.

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8.1.5 Pixar Animation Studios – Star

Pixar Animation Studios, similar to WDAS above, is in the animated film

industry. Pixar made its debut in 1995 with the legendary Toy Story, which we could

say paved Pixar the golden path towards its success. Until this day, even after

Disney’s acquisition in 2006, Pixar continues to offer the world amazing stories and

dazzling images.

Figure 19. Pixar

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From the table below, we can declare that Pixar is very much like the “golden

goose” in the fairytale Jack and the Beanstalk, it literally makes “gold”; this studio is

no stranger to success. We believe it is safe to say that Pixar Animation Studios is also

one of Disney’s stars.

Table 18 Pixar Animation Studios

Film Production Budget

(in million USD)

World Wide Gross

(in million USD) Profit Rate

Toy Story 3 200 1,067 ~534%

Finding Dory 200 1,026.9 ~514%

Finding Nemo 94 899.2 ~957%

Inside Out 175 857.6 ~490%

Monsters University 200 744.2 ~372%

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Table 19. Worldwidw Ranking of Animation

8.1.6 Disney Parks and Resorts – Cash Cows

Walt Disney said that “Disneyland is dedicated to the ideals, the dreams, and the

hard facts that have created America, with the hope that it will be a source of joy and

inspiration to all the world.”

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Walt Disney Parks and Resorts is one of the world’s leading providers of family

travel and leisure experiences, giving millions of guests each year the chance to spend

time with their families and friends, making memories that will last forever.

Figure 20. Disney Parks around the world

Disney finanal report – the fiscal 2016

According to the fiscal 2016, you can see that the total consolidated revenues of

Disney are $55,632 million, and Disney Parks and Resorts are about $16,974 million,

it’s about one third of total revenues.

The Walt Disney Company Case Study

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Table 20. Disney Financial Report – the Fiscal 2016

The revenues for Disney Parks and Resorts consist of the sale of admissions to

theme parks, the sale of food, beverage and merchandise, charges for room nights at

hotels, sales of cruise vacation packages and sales and rentals of vacation club

properties, and are also generated from sponsorships and co-branding opportunities,

real estate rent and sales, and royalties from Tokyo Disney Resort.

The significant operating expenses include operating labor, infrastructure costs,

costs of sales and other operating expenses. Infrastructure costs include information

systems expense, repairs and maintenance, utilities and fuel, property taxes, insurance

and transportation and other operating expenses include costs for such items as

supplies, commissions, and entertainment offerings.

As the following table, you can see the percent % Change between 2015 and

2016 for Disney Parks and Resorts is about 5%, the change for Disney Parks and

Resorts is the second highest percent % change in the four divisions, the first high

percent % change is Studio Entertainment, which is about 28%.

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Operating Income

The growth of the operating income was because of an increase at the domestic

operations, partially offset by a decrease at our international operations.

Higher operating income at the domestic operations was due to guest spending

growth and lower costs, partially offset by lower volumes. The increases in guests

spending were driven by higher average ticket prices at the theme parks and cruise

line. Lower costs reflected decreases in labor and marketing costs from efficiency

initiatives. Costs also benefited from lower infrastructure costs due to timing and a

decrease in fuel costs.

Lower operating income at the international operations was due to higher

pre-opening costs at Shanghai Disney Resort and lower attendance and higher

operating costs at Disneyland Paris. These decreases were partially offset by cost

efficiency initiatives as well as higher volumes and guest spending at Hong Kong

Disneyland Resort.

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