Table 17. 2014-2016 Animated Films Total Lifetime Gross
Firm
2014-2016 Animated
Films Total Lifetime
Gross
Percentage
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
expectation.
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.
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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.