COMPANY PROFILE
The Walt Disney Company
REFERENCE CODE: 8C7AE530-4ECC-4EF5-AC18-370E646FD097 PUBLICATION DATE: 31 Jul 2013 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED.
TABLE OF CONTENTS
Company Overview………………………………………………………………………………….3
Key Facts…………………………………………………………………………………………………3
Business Description……………………………………………………………………………….4
History…………………………………………………………………………………………………….6
Key Employees………………………………………………………………………………………..9
Key Employee Biographies……………………………………………………………………..11
Major Products and Services………………………………………………………………….18
Revenue Analysis…………………………………………………………………………………..19
SWOT Analysis………………………………………………………………………………………21
Top Competitors…………………………………………………………………………………….27
Company View………………………………………………………………………………………..28
Locations and Subsidiaries…………………………………………………………………….33
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The Walt Disney Company TABLE OF CONTENTS
COMPANY OVERVIEW
The Walt Disney Company (Walt Disney or ‘the company’), together with its subsidiaries, is a diversified entertainment company. The company primarily operates in the US and Canada. It is headquartered in Burbank, California and employed approximately 166,000 people.
The company recorded revenues of $42,278 million during the financial year ended September 2012 (FY2012), an increase of 3.4% over FY2011.The operating profit of the company was $9,002 million in FY2012, an increase of 15.4% over FY2011. Its net profit was $5,682 million in FY2012, an increase of 18.2% over FY2011.
KEY FACTS
The Walt Disney CompanyHead Office 500 South Buena Vista Street Burbank California 91521-0931 USA
1 818 560 1000Phone
Fax
http://thewaltdisneycompany.comWeb Address
42,278.0Revenue / turnover (USD Mn)
SeptemberFinancial Year End
166,000Employees
DISNew York Stock Exchange Ticker
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The Walt Disney Company Company Overview
BUSINESS DESCRIPTION
The Walt Disney Company (Walt Disney or ‘the company’) is a media and entertainment company based in the US with operations spanning North America, Europe, Asia Pacific and Latin America.
The company operates through its five business segments: media networks, parks and resorts, studio entertainment, consumer products and interactive.
The media networks business segment of Walt Disney is comprised of international and domestic cable television networks, a domestic broadcast television network, television production operations, domestic and international television distribution, domestic television stations, domestic broadcast radio networks and stations, and publishing and digital operations.
The company’s cable networks group operates the ESPN, Disney Channels Worldwide, ABC Family and SOAPnet networks. It also operates the UTV/Bindass networks in India. The cable networks group produces its own programs or acquires rights from third parties to air on its networks. Walt Disney also has interests in joint ventures that operate cable and broadcast programming services. The segment primarily sells programming to cable, satellite and telecommunications service providers. Walt Disney also sells advertising time on certain networks such as ESPN and ABC Family. Programming developed by the company’s cable networks is also sold to third parties worldwide in pay and syndication markets, in digital versatile disc (DVD) format and also online to third party services.
Media networks segment’s broadcasting business consists of domestic broadcast television (TV) network; TV production operations; television distribution and domestic television stations. The company’s domestic broadcast TV network comprises of the ABC Television Network (ABC). This network has 239 affiliated stations operating under agreements and reaches 99% of the US TV households.The domestic broadcast TV network sells advertising space on ABC Television Network and also provides broadcast feed for some of Walt Disney’s affiliated stations.
The TV production operations are engaged in the production of programs under the ABC Studios label. In addition, Walt Disney distributes this produced content worldwide in pay and syndication markets, in DVD and Blu-ray formats and also online through its internet sites such as ABC.com and to third party services. Its distribution groups also distribute programming aired on its cable networks.
The operations of domestic TV stations include eight TV stations. All of the company’s TV stations are affiliated with the ABC and collectively reach 23% of TV households in the US. The stations broadcast three digital channels: local, ABC and syndicated programming; Live Well Network broadcast in standard definition; and Live Well Network broadcast in high definition. The television stations sell advertising time in television station programs.
The company also has an interest in a joint venture, Hulu that distributes content on the internet.
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The Walt Disney Company Business Description
Walt Disney’s parks and resorts business segment owns and operates Walt Disney World Resort in Florida, the Disneyland Resort in California, Aulani, a Disney Resort & Spa in Hawaii, the Disney Vacation Club, the Disney Cruise Line and Adventures by Disney. The company manages and has effective ownership interests of 51% in Disneyland Paris, 48% in Hong Kong Disneyland Resort and 43% in Shanghai Disney Resort. It also licenses the operations of the Tokyo Disney Resort in Japan. The company’s Walt Disney Imagineering unit designs and develops new theme park concepts and attractions as well as resort properties. Walt Disney sells admissions to the theme parks and also offers room nights at the hotels; merchandise, food and beverage; and rents vacation club properties; and also offers cruise vacations.
The studio entertainment business segment produces and acquires live-action and animated motion pictures, direct-to-video content, musical recordings and live stage plays. Walt Disney distributes produced and acquired films (including its film and TV library) in the theatrical, home entertainment and TV markets under the Walt Disney Pictures, Pixar, and Marvel banners. The company also distributes films under the Touchstone Pictures banner. The company produces and distributes Indian movies worldwide through its UTV banner.
The consumer products business segment is engaged in dealing with licensees, publishers and retailers throughout the world to design, develop, publish, promote and sell products based on Disney characters and other intellectual property through its merchandise licensing, publishing and retail businesses. The segment also develops new intellectual property with the potential of also being used in the company’s other businesses and operates an English language learning business (Disney English).
The interactive media business segment of the company creates and delivers branded entertainment and lifestyle content across interactive media platforms. The primary operating businesses of the Interactive Media Group are games which produce multi-platform games for global distribution, and online distribution. The company sells its content on wholesale basis, licenses, offers advertising time and sponsorships in addition to subscription services and in- game accessories.
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The Walt Disney Company Business Description
HISTORY
Walt Disney’s history can be traced back to 1923, when Walt Disney and Roy Disney set up Disney Brothers Studio in Hollywood, California. Plane Crazy, directed by Walt Disney, was the first cartoon produced by Disney studios in 1928.
In 1937, the studio produced its first animated feature film, Snow White and the Seven Dwarves. The company went public in 1940 and later went on to produce other classic animation films such as Pinocchio and Fantasia. In 1955, the Disney Land Theme Park was opened. Disney World opened in Florida in 1971.
The Bass family of Texas, in alliance with Roy Disney, acquired a controlling stake in the company in 1984. During the early 1980s, the company launched the Disney Channel and established theme park in Tokyo. In 1985, the company established Disney MGM studio. A year later, the business changed its name to the Walt Disney Company.
In the early 1990s, the company had a number of successes with animated films such as the Lion King. In 1992, Walt Disney continued its international expansion by opening Disneyland Paris. In 1996, the company bought Capital Cities/ABC for $19 billion which included 10 TV stations, 21 radio stations, seven daily newspapers and ownership positions in the cable networks A&E, Lifetime, History Channel and the sports network, ESPN. Later in 1998, it purchased web services from Starwave, a Seattle based software company. It also acquired 43% stake in internet search engine Infoseek for $70 million and launched the GO network, in 1999. Subsequently, the company bought the remaining 57% of Infoseek and formed GO.com, a web portal, which eventually became Walt Disney Internet Group.
In the early 2001, Walt Disney expanded its theme parks in Anaheim, the US and restructured its internet business. The company re-entered into a multi-year agreement with Eastman Kodak to make Kodak the exclusive imaging supplier of film and related products at Disney theme parks and resorts in the US and France as well as for the Disney Cruise Line in 2002. In the same year, Walt Disney, Bank One and Visa announced two multi-year, strategic alliances that created Disney-branded Visa card with Disney rewards, as well as provided Visa with joint marketing opportunities across Disney’s various business units.
Disney entered into a 10 year strategic alliance with Hewlett-Packard to develop new technologies and enhanced entertainment experiences, in 2003. In the following year, Walt Disney ended the partnership with Pixar after failing to reach an agreement on how to split future revenues. Comcast announced plans to acquire Walt Disney in a deal worth around $66 billion million in the same year. The offer was later turned down. At the end of 2004, the Children’s Place Retail Stores and Walt Disney entered into an agreement for the Children’s Place to acquire and operate the Disney Store retail chain in North America, which included 313 stores.
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The Walt Disney Company History
Mr. Henry Samueli and his wife, Orange County entrepreneurs and philanthropists, in 2005, purchased the Mighty Ducks of Anaheim, the National Hockey League Club based in Orange County, California from Walt Disney. During the mid 2005, the Monday Night Football moved to ESPN under an eight-year agreement with the National Football League. In the same year, Buena Vista Games (BVG), the interactive entertainment arm of Walt Disney, strengthened game development capabilities through the acquisition of Salt Lake City-based video game developer, Avalanche Software, and established a start-up development studio in Vancouver, Canada. Also in 2005, Walt Disney’s internet group acquired Minds Eye, one of the leading interactive TV games’ developers. The company and Verizon agreed for a long term programming contract for Disney and ESPN networks and services.
Walt Disney and Citadel Broadcasting Corporation combined ABC Radio, which included 22 radio stations and the ABC Radio Networks, with Citadel Broadcasting, in 2006. In the same year, the company acquired computer animation company, Pixar. The company launched Disney Mobile site, www.disneymobile.com in the US. Subsequently, Walt Disney acquired Hungama TV, an Indian children’s TV channel, and also acquired an equity interest in media company, UTV Software Communications. Wenner Media acquired the US Weekly from Walt Disney, in the same year.
Later in 2006, Comcast and Walt Disney entered into a long-term distribution agreement that extended their relationship into the next decade for the 10 ABC-owned broadcast TV stations and Disney’s leading networks and services including Disney Channel, ABC Family, Toon Disney, ESPN, ESPN2, ESPN Classic, ESPNEWS, ESPN HD and SOAPnet. In addition, Comcast launched ESPN Deportes, a stand-alone Spanish-language sports network, and the companies formalized their ESPN2 HD agreement. Comcast also acquired Walt Disney’s stake in E! Networks. At the end of 2006, ESPN acquired NASN, the European channel dedicated to North American sports, from Setanta Sport Holdings and Benchmark Capital Europe.
In the early 2007, the Disney-ABC Television Group renamed its in-house production company, Touchstone Television, as the ABC Television Studio. The company announced its plans to expand cruise business by adding two new ocean liners, scheduled to be launched in 2011 and 2012. In the same year, the company spun-off its wholly owned subsidiary, ABC Radio Holdings, and subsequently merged it with a wholly-owned subsidiary of Citadel. The company acquired Club Penguin, one of the fastest-growing online virtual worlds for kids. At the end of the year, the company’s international TV licensing arm, Disney-ABC International Television, entered a multi-year partnership with Russian state broadcaster, Channel One.
In 2008, the Walt Disney Studios announced the debut of Earth, the first feature-length nature documentary from its new production banner, Disneynature. Subsequently, the company launched Disney En Familia, a new Spanish-language magazine. During the same period, Walt Disney acquired an 18% interest in UTV Software Communications, a media company headquartered and publicly traded in India, for approximately $197 million. Further in the year, the company entered into agreements to acquire outstanding shares of Jetix Europe, a pan-European media company comprising TV channels, program distribution and consumer products businesses.
In 2009, Walt Disney studios entered into an exclusive long-term distribution agreement with DreamWorks Studios. Under the terms of the arrangement, Disney would handle distribution and
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The Walt Disney Company History
marketing for approximately six DreamWorks films each year. In the same year, Walt Disney, through a subsidiary of ABC Enterprises, agreed to join NBC Universal, News Corporation and Providence Equity Partners as a joint venture partner and equity owner of Hulu, a leading online aggregator of video content. Subsequently, Disney Interactive Studios entered into an agreement to acquire Wideload Games, a Chicago-based producer and developer of original interactive entertainment. During the same period, the company completed its acquisition of Marvel Entertainment.
Walt Disney entered into an agreement to acquire Playdom, a company engaged in online social gaming business, in the first half of 2010. During the same period, the company announced the sale of Miramax Films to Filmyard Holdings for over $660 million, subject to certain adjustments. The sale was completed in the second half of 2010.
In 2011, Walt Disney and its Chinese joint venture partner, Shanghai Shendi Group, started work on the Shanghai Disney Resort following approval from the Chinese central government in Beijing.
The company and UTH Russia entered into an agreement to launch an ad-supported free-to-air Disney Channel in Russia, in 2011. Under the terms of the agreement, Walt Disney, through one of its subsidiaries, would acquire a 49% stake in the Seven TV network from UTH Russia. The transaction would increase Disney Channel’s presence in Russia.
In January 2012, Walt Disney and Comcast announced a long-term distribution agreement that would deliver the company’s sports, news and entertainment content to Comcast’s Xfinity TV customers into the next decade on TV, online, on tablets and handheld devices.The new agreement enhances the multichannel business model and supports the companies’ mutual goal to deliver video content to customers across multiple platforms using the latest technology and cloud innovation. The companies also agreed to collaborate over the term of the deal to create new, innovative viewing experiences for Xfinity TV customers. In the same month, Walt Disney announced its plan to acquire a controlling interest in UTV Software Communications in India. This acquisition expands the company’s footprint significantly and allows it to build, monetize and brand multi-platform franchises, and deliver a rich library of content.
Walt Disney, the Ministry of Culture’s China Animation Group, and Tencent, China’s largest internet service provider, formed a partnership in April 2012 to create “The National Animation Creative Research and Development Cooperation,” to advance the country’s animation industry. In December 2012, the company acquired Lucasfilm, a fully-integrated entertainment company. Lucasfilm’s assets include its Star Wars franchise, operating businesses in live action film production, consumer products, animation, visual effects, and audio post production, as well as a substantial portfolio of entertainment technologies. This acquisition significantly enhances the company’s ability to serve consumers with a broad variety of content.
In March 2013, the company unveiled the first image of a model of Shanghai Disney Resort, featuring the resort’s theme park, Shanghai Disneyland.
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The Walt Disney Company History
KEY EMPLOYEES
CompensationBoardJob TitleName
40227848 USDExecutive BoardChairman and Chief Executive Officer
Robert A. Iger
283209 USDNon Executive BoardDirectorSusan Arnold
264451 USDNon Executive BoardDirectorJohn S. Chen
265448 USDNon Executive BoardDirectorJudith L. Estrin
284197 USDNon Executive BoardDirectorFred H. Langhammer
292005 USDNon Executive BoardDirectorAylwin B. Lewis
279342 USDNon Executive BoardDirectorMonica C. Lozano
294654 USDNon Executive BoardDirectorRobert W. Matschullat
274998 USDNon Executive BoardDirectorSheryl Sandberg
307365 USDNon Executive BoardIndependent Lead DirectorOrin C. Smith
Senior ManagementChairman, Walt Disney InternationalAndy Bird
8299758 USDSenior ManagementSenior Executive Vice President, General Counsel and Secretary
Alan Braverman
Senior ManagementSenior Vice President, Global Security
Ronald L. Iden
4207140 USDSenior ManagementExecutive Vice President, Corporate Strategy and Business Development
Kevin Mayer
Senior ManagementExecutive Vice President, Corporate Real Estate, Sourcing, Alliances, and Treasurer
Christine M. McCarthy
Senior ManagementExecutive Vice President, Chief Communications Officer
Zenia Mucha
3989117 USDSenior ManagementExecutive Vice President and Chief Human Resources Officer
Jayne Parker
12201116 USDSenior ManagementSenior Executive Vice President and Chief Financial Officer
Jay Rasulo
Senior ManagementSenior Vice President, Planning and Control
Brent Woodford
Senior ManagementExecutive Chairman, ESPNGeorge Bodenheimer
Senior ManagementPresident, Disney Consumer Products
Bob Chapek
Senior ManagementChairman, the Walt Disney StudiosAlan F. Horn
Senior ManagementCo-President, Disney InteractiveJames Pitaro
Senior ManagementCo-President, Disney InteractiveJohn Pleasants
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The Walt Disney Company Key Employees
CompensationBoardJob TitleName
Senior ManagementCo-Chairman, Disney Media Networks Group and President, ESPN
John Skipper
Senior ManagementChairman, Walt Disney Parks and Resorts
Thomas O. Staggs
Senior ManagementCo-Chairman, Disney Media Networks and President, Disney ABC Television Group
Anne Sweeney
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The Walt Disney Company Key Employees
KEY EMPLOYEE BIOGRAPHIES
Robert A. Iger
Board: Executive Board Job Title: Chairman and Chief Executive Officer Since: 2012 Age: 61
Mr. Iger has been the Chairman and Chief Executive Officer at Walt Disney since 2012. Prior to that, he served as the President and Chief Executive Officer from 2005 and the President and Chief Operating Officer from 2000 to 2005. Mr. Iger also served as the President at Walt Disney International and the Chairman at the ABC Group from 1999 to 2000. From 1974-98, he held a series of increasingly responsible positions at ABC and its predecessor Capital Cities/ABC culminating in service as the President at the ABC Network Television Group during 1993-94. Later, Mr. Iger served as the President and Chief Operating Officer at ABC from 1994 to 1999. Mr. Iger has been on the Board of Directors at Apple and Board Member at the US-China Business Council since 2011.