Company Resources - Tibet Physical: Parks, Stores, and other buildings (e.g. Concert Hall, El Capitan, production space) as well as related attractions and machinery are valued at approximately $27 billion post-depreciation. (Fiscal Year 2021 Annual Financial Report, 2021) Note: Some parks are not (entirely) owned by Disney: Hong Kong Disneyland Resort (48% ownership) Shanghai Disney Resort (43% ownership) Tokyo Disney Resort (under license to 3rd party) $1.1 billion in land (Fiscal Year 2021 Annual Financial Report, 2021) Disney Cruise Line owns four cruise ships with three more in construction. (Fiscal Year 2021 Annual Financial Report, 2021) Intellectual: Huge IP reservoir (“The Vault”) containing trademarks and copyrighted work spanning back to the founding of the company, as well as IP from high profile acquisitions like that of 20th Century Fox, ABC, Pixar, and Marvel. Key technology patents in animation, streaming, projection, and many other fields. (“What’s Inside Disney Patent Portfolio?,” n.d.) Tech partnerships with companies like Christie Digital (“Christie Digital Teams up with Disney on Tech,” 2013) and Siemens (Sylt, 2016). Massive customer databases built from sources like their online services and park visitors, allowing them to do things like target ads and products towards specific bases, like when they launched a magazine targeted specifically at their Hispanic customers. (Disney: Leveraging a Strong Customer Database by Launching a Hispanic Magazine, 2008) Human: As of October 2, 2021, Disney employed approximately 190,000 people, with 80% of them as full-time employees and 15% as part-time employees. (Fiscal Year 2021 Annual Financial Report, 2021)
Operation and Biz Model - Savana Delivering products and services: In terms of the supply chain, Disney directly sells through their online stores, in-person stores, and at the parks. Disney happens to be the biggest consumer products licensor in the world, so for that reason they have amassed over 40,000 facilities in “close to 100 countries across the globe”. (Supply Chain, n.d.) They have extremely high standards for who they source and do business with, so for that reason they use a bidding system where their suppliers can compete to work for the company. (Strategic Sourcing, n.d.) Disney strives to have a diverse supplier ecosystem in order to achieve having the most innovative and cost effective products / business solutions. (Supply Chain, n.d.) Environmental goals Disney is attempting to reduce and address the environmental impact their product supply chain is contributing to. There's no direct solution to the problem at the moment but they are open to stating that the company is “working towards” and “tracking” the impact of their supply chain. To quote that they are “working to reduce the environmental impacts of these materials while also increasing the sustainability of our manufacturing network as a whole” and that Disney is committed to “track their (suppliers) environmental impact, with the aim of minimizing our environmental footprint everywhere that Disney-branded products are made.” (Supply Chain, n.d.) How they make money: Disney has multiple “direct to consumer” content that includes all their streaming services like Disney+, Hulu, ESPN+ and more. It is reported that the DTC had a $4.7 billion revenue in the first quarter of 2022, “up 33.8% from the same three month period a year ago”. (Matthew Johnston, 2022) Linear networks which include their domestic and international networks have a posted revenue of $7.7 billion in the first quarter of 2022. (Matthew Johnston, 2022) Content sales + licensing segment is responsible for musical distribution, theatrical distribution, and home entertainment distribution. Also responsible for licensing live entertainment on Broadway, post production through Skywalker Sound and Industrial Light and Magic, and an ownership of 30% of Tata Sky Ltd. (Fiscal Year 2021 Annual Financial Report, 2021) Reported revenue of $2.4 billion in the first quarter of 2022. (Q4 2021 10-Q Report, n.d.) Parks, experiences and products This includes theme parks in California, Florida, Shanghai, Hong Kong, and Paris. Vacation clubs, cruise lines and resorts all contribute as well. Main revenue comes from food and drink, merchandise, park admission, vacation stays, and intellectual property licensing royalties. (Fiscal Year 2021 Annual Financial Report, 2021) $7.2 billion in revenue for the first quarter of 2022. (Q4 2021 10-Q Report, n.d.)
Weaknesses - Tibet Disney+ is growing significantly slower than expected, with subscriber numbers boosted by the rebranding of India’s Hotstar subscription service, which was previously owned by 20th Century Fox, into Disney+Hotstar, with those numbers rolled into the headline figure making up 36% of D+ subscribers. D+Hotstar's ARPU (Annual Revenue Per User) is $0.76, in comparison to the $4.08 average seen in Disney+ generally. Compare this to Netflix's ARPU of $8.83 in APAC (Asia Pacific) and $15.95 in US/Canada. (Bridge, 2022a; Fiscal Year 2021 Annual Financial Report, 2021) In addition, Disney has been outbid for the rights to stream IPL games in India, which was a core reason people subscribed to Hotstar. (Littleton, 2022) In order to further inflate these numbers, Disney counts the purchase of their Disney bundle, which includes Disney+, Hulu, and ESPN+ as three separate subscriptions. (Spangler, 2022) Disney launched an accelerator program with a focus on NFTs (2022 Disney Accelerator Participants Announced, 2022) despite rapidly declining confidence in every aspect of them within the general public, with only 32% of non-NFT holders considering NFTs to be a “revolutionary idea that will transform art and entertainment”, down from 46% 6 months earlier. (Bridge, 2022b) Disney has also failed to capitalize on niche markets. For instance, they do not have much of a foothold in the anime industry, which currently has a market size of 2.4 trillion yen, ($17 billion as of writing) (Hiromichi Masuda et al., 2022) and produced the highest grossing film of 2020. (Mendelson, n.d.) Not only was it the highest grossing film, but the Demon Slayer franchise generated $8.75 billion dollars of revenue in 2020, mainly through merchandising. (Harding, 2021)
Bibliography - Tibet 2022 Disney Accelerator Participants Announced. (2022, July 13). The Walt Disney Company. https://thewaltdisneycompany.com/2022-disney-accelerator-participants-announced/ Bridge, G. (2022a, June 6). The Ticking Time Bomb That Could Undercut Disney Stock. Variety. https://variety.com/vip/the-ticking-time-bomb-that-could-undercut-disney-stock-1235284680/ Bridge, G. (2022b, August 4). Survey: Consumers Think NFTs Are Getting Riskier. Variety. https://variety.com/vip/survey-consumers-think-nfts-are-getting-riskier-1235330836/ Christie Digital teams up with Disney on tech. (2013, October 10). Orange County Register. https://www.ocregister.com/2013/10/10/christie-digital-teams-up-with-disney-on-tech/ Disney: Leveraging a strong Customer Database by Launching a Hispanic Magazine. (2008, May 2). Portada. https://www.portada-online.com/hispanic-media/hispanic-newspapers/disney-leveraging-a-strong-customer-database-by-launching-a-hispanic-magazine/ Fiscal Year 2021 Annual Financial Report. (2021). [Investor Report]. The Walt Disney Company. https://thewaltdisneycompany.com/app/uploads/2022/01/2021-Annual-Report.pdf Harding, D. (2021, October 15). Toyo Keizai: Demon Slayer: Kimetsu no Yaiba’s 2020 Economic Impact Was 1 Trillion Yen. Crunchyroll News. https://www.crunchyroll.com/anime-news/2021/10/15-1/toyo-keizai-demon-slayer-kimetsu-no-yaibas-2020-economic-impact-was-1-trillion-yen Hiromichi Masuda, Tadashi Sudo, Toshiyuki Koudate, Atsushi Matsumoto, Kazuo Rikukawa, Tomotaka Ishida, Yasuo Kameyama, Yuji Mori, Hiroko Uehara, Megumi Onouchi, & Masahiro Hasegawa. (2022). Anime Industry Report 2021 Summary (Hiromichi Masuda, Masahiro Hasegawa, & Misako Ashikawa, Eds.). The Association of Japanese Animations. https://aja.gr.jp/english/japan-anime-data Littleton, C. (2022, August 10). Disney Lowers Disney+ Hotstar Subscriber Target Amid Uncertainty in India. Variety. https://variety.com/2022/tv/news/disney-hotstar-lower-india-target-1235338155/ Matthew Johnston. (2022, February 17). How Disney Makes Money: Linear Networks generates most revenue. Investopedia. https://www.investopedia.com/how-disney-makes-money-4799164 Mendelson, S. (n.d.). ‘Demon Slayer,’ Now Tops On VOD, Was 2020’s Most Unlikely Box Office Champion. Forbes. Retrieved September 4, 2022, from https://www.forbes.com/sites/scottmendelson/2021/06/28/now-tops-on-vod-demon-slayer-was-2020s-most-unlikely-box-office-champion/ Q4 2021 10-Q Report. (n.d.). The Walt Disney Company. Retrieved September 4, 2022, from https://otp.tools.investis.com/clients/us/the_walt_disney_company/SEC/sec-show.aspx?FilingId=15546209&Cik=0001744489&Type=PDF&hasPdf=1 Spangler, T. (2022, August 11). Disney Now Has More Total Streaming Subscriptions Than Netflix—But Disney Generates Much Lower Per-Sub Revenue. Variety. https://variety.com/2022/digital/news/disney-streaming-subscribers-netflix-1235338752/ Strategic Sourcing. (n.d.). The Walt Disney Company. Retrieved September 4, 2022, from https://impact.disney.com/app/uploads/2022/01/Strategic-Sourcing.pdf Supply Chain. (n.d.). The Walt Disney Company. Retrieved September 4, 2022, from https://impact.disney.com/operating-responsibly/supply-chain/ Sylt, C. (2016, October 20). Inside Disney’s Tech Partnerships. Forbes. https://www.forbes.com/sites/csylt/2016/10/20/inside-disneys-tech-partnerships/ What’s Inside Disney Patent Portfolio? (n.d.). Insights by GreyB. Retrieved September 2, 2022, from https://insights.greyb.com/disney-patent-portfolio/
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https://reimaginetomorrow.disney.com/vision (3)
https://jobs.disneycareers.com/
https://d23.com/disney-history/
Disney - Leadership, History, Corporate Social Responsibility (thewaltdisneycompany.com) (2)
https://businessmodelanalyst.com/disney-business-model/
How Disney Makes Money: Media, Entertainment, Parks, and Experiences (investopedia.com) (4) 0001744489-21-000220 (investis.com) (5)
0001744489-22-000059 (investis.com) (6)
Supply Chain - Disney Social Responsibility (7)
Strategic-Sourcing.pdf (disney.com) (8)