{"id":28373,"date":"2016-10-16T18:05:06","date_gmt":"2016-10-16T22:05:06","guid":{"rendered":"https:\/\/bejone03.expressions.syr.edu\/trf235\/?p=28373"},"modified":"2016-11-29T16:41:43","modified_gmt":"2016-11-29T21:41:43","slug":"disney-2","status":"publish","type":"post","link":"https:\/\/bejone03.expressions.syr.edu\/trf235\/2016\/10\/16\/disney-2\/","title":{"rendered":"Disney"},"content":{"rendered":"
by JACK ROSE, AUDREY LEW, and BRITTANY ORTIZ<\/pre>\n
\"The<\/a>
Disney Logo [1]<\/a><\/p><\/div>\n
Background<\/strong><\/p>\n
Disney<\/a> is a leading producer, owner, and distributor of media that owns, among many other things, broadcast network ABC;<\/a>\u00a0movie studios Pixar<\/a>, Walt Disney Animation<\/a>, Marvel<\/a>, and Lucasfilm<\/a>; Walt Disney Parks and Resorts<\/a>\u00a0that attracted nearly 150 million people in 2015 [2]<\/a>; and cable sports network ESPN<\/a>\u00a0[3]<\/a>. Between ABC, its affiliates, and ESPN, Disney operates more than\u00a0300 channels worldwide, while its movie studios own the rights to The Avengers family and Star Wars\u00a0[4]<\/a>. The last Star Wars release became the highest grossing domestic film earlier this year and with another releasing this December, the company’s film division remains strong [5]<\/a>. However, fluctuating results on the television side have led Disney to invest in new technologies and a desire to expand international reach birthed a new theme park in China, which opened earlier this year.<\/p>\n
Corporate Structure<\/strong><\/p>\n
\"Bob<\/a>
CEO Bob Iger [1]<\/a><\/p><\/div>\n
Disney’s Chief Executive since 2005, Bob Iger helmed the acquisitions of Pixar, Marvel, and Lucasfilm. Since Iger’s promotion from Chief Operating Officer, Disney’s stock price has risen more than $70 while it’s TV division has come to account for half of the company’s profit [6]<\/a>. Nearing the end of his career, Iger has repeatedly delayed his retirement and most recently set 2018 as the expiration date for his own tenure. His last task will be selecting his successor, after a recent candidate failed to last<\/a> as heir.<\/p>\n
\"Disney<\/a>
Disney’s Organizational Chart [7]<\/a><\/p><\/div>\n
Beyond Iger, various chairmen run each of Disney’s major compartments and the company’s board of directors is comprised of 11 members. However, it is this organizational chart, distributed by Walt Disney Studios in 1943, that largely explains Disney’s management philosophy [7]<\/a>. Rather than the typical hierarchy, the chart displays an interlocking web of managers, producers, and creators that are needed to produce a film. This organization is intended to encourage creativity and teamwork by emphasizing collaboration rather than chain of command. Each role supports, instead of merely instructing, another.<\/p>\n
Financials<\/b><\/p>\n
Annual revenue, profit, and net income have increased yearly since at least 2013, as has Disney’s valuation of its assets and balance sheet as whole. Disney’s revenue dwarfs that of most of its competitors in media, exceeded only by Sony<\/a>\u00a0and other conglomerates that produce and own as much content as Sony and Disney. Disney’s stock price is similarly higher than most competitors, currently hovering around $100 [8]<\/a>. The company’s price per share seems to be<\/a> inextricably linked<\/a> to the success of ESPN<\/a>, which is struggling with subscriber losses<\/a> and adapting to the future<\/a> (see “Investments in Technology” section below).<\/p>\n
\"Disney<\/a>
Disney’s Stock Price for last two years [8]<\/a><\/p><\/div>\n
Investments in Technology<\/strong><\/p>\n
\"mlbam_fb_logo\"<\/a>
MLB Advanced Media Logo [11]<\/a><\/p><\/div>\n
Disney’s future focus is in technology as it attempts to revitalize ESPN and stay on the cutting edge of content creation and media. Primarily, in August the company invested<\/a>\u00a0$1 billion for a 33% stake in Major League Baseball’s BAMTech<\/a>, a leading television streaming company. The deal included an option for Disney to take a majority stake in the company down the road. The first collaboration between the two will be BAMTech’s creation of a standalone streaming service for ESPN, which Disney hopes will help ease the network’s subscriber losses and struggling ratings<\/a>. BAMTech adds 7.5 million paid subscribers across a multitude of streaming platforms to Disney’s already massive user base [9]<\/a>. The investment in BAMTech isn’t completely black and white, however. Television’s trend toward skinny bundles<\/a>\u00a0complicates the relationship between every content producer and cable provider,\u00a0with Sling<\/a>, DirecTV<\/a>, Hulu<\/a>, and more getting into the live over-the-top business. Disney’s BAMTech investment suggests a possibility that Disney itself could run a direct-to-consumer cable distributor itself [10]<\/a>.<\/p>\n
Throughout this year, rumors\u00a0swirled<\/a> about the possibility<\/a> of Disney purchasing Snapchat<\/a>, Twitter<\/a>, and\/or Netflix<\/a>, though analysts<\/a> agree<\/a>: none of these are likely. Twitter’s struggle to remain profitable and stabilize its stock price creates nonstop purchase rumors, but it seems that Disney doesn’t stand to benefit much from a Twitter acquisition [11]<\/a>. Snapchat has proved to be a unique outlet<\/a> for Disney’s content<\/a>, but doesn’t seem to be\u00a0a likely purchase for the social media company [12]<\/a>. Though the investment in BAMTech signifies Disney’s interest in streaming<\/a>, Netflix doesn’t appear<\/a> to be a perfect partner, either. Netflix’s dominance in the streaming market has waned as challengers such as Amazon<\/a> and Apple<\/a> have stolen subscribers [13]<\/a>.<\/p>\n
Box Office<\/strong><\/p>\n
\"Moana\"<\/a>
Star Wars\u00a0 Moana banner [17]<\/a><\/p><\/div>\n
After the November 23 release of\u00a0Moana<\/em><\/a>, Disney is nearing $2.5B in total domestic box office gross for 2016 [14]<\/a>. With the top four grossing films of 2016 thus far (Finding Dory<\/em><\/a>,\u00a0Captain America: Civil War<\/a>,<\/em>\u00a0The Jungle Book<\/a>, <\/em>and\u00a0Zootopia<\/a><\/em>), the company topped $6B in worldwide box office gross for the first time in its history [15]<\/a>. This new record will only increase <\/a>as\u00a0Moana<\/em> and\u00a0Doctor Strange<\/em><\/a> continue to screen and Disney’s final 2016 film<\/a> releases: the newest\u00a0film,\u00a0Rogue One.<\/a>\u00a0<\/em>Beyond the box office, movies like\u00a0Star Wars,<\/em> Finding Dory,<\/em> and\u00a0Moana<\/em> provide massive profits in merchandising, both in America and abroad. In 2013<\/a>, Disney merchandise sales brought in over $40B.<\/p>\n
Theme Parks<\/strong><\/p>\n
On June 16, Disney’s fourth international theme park opened in Shanghai<\/a>, with the tagline “authentically Disney, distinctly Chinese” [16]<\/a>. The company avoided western branding and symbols by changing street names within the park and by filling the concessions with 70% Chinese food. Traditional Disney characters can be seen wearing traditionally\u00a0Chinese silk costumes and speaking the native language. The Shanghai Disney Resort seeks to take advantage of the massive potential<\/a> offered by China and the wider Asian market.<\/p>\n
\"Shanghai<\/a>
Shanghai Disney Resort [18]<\/a><\/p><\/div>\n
Conclusion<\/strong><\/p>\n
Despite Disney’s losses in television, its massive successes at the box office in 2016 have made up for it. The control of\u00a0Star Wars<\/em>,\u00a0Marvel,\u00a0<\/em>and Pixar promises success in the motion pictures department nearly every year. Further, Disney’s land\u00a0holdings of theme parks underscore the company’s finances with physical propoerty\u2013while most media conglomerates own intellectual property, Disney holds more tangible assets as well. The company’s investments in technology put it in a good place for the future\u2013its theme parks’ MagicBands<\/a> have already proven successful. But while the company must hope these investments pay off, it also faces the uncertain future of navigating an evolving marketplace with a new CEO. Iger’s selection of his successor is by far the most important storyline to follow within the massive world of Disney.<\/p>\n
Sources<\/strong><\/p>\n
    \n
  1. About The Walt Disney Company<\/em>. Retrieved November 25, 2016.\u00a0https:\/\/thewaltdisneycompany.com\/about\/<\/li>\n
  2. The Data Team. June 16, 2016. The Economist.\u00a0<\/em>A New Disney Theme Park Opens in China<\/em>. Retrieved November 25, 2016.\u00a0http:\/\/www.economist.com\/blogs\/graphicdetail\/2016\/06\/daily-chart-11<\/li>\n
  3. Johnson, Madeleine. June 16, 2016.\u00a0Zacks.\u00a0Your Complete Guide to All the Things Owned by Disney<\/em>.\u00a0Retrieved November 25, 2016. https:\/\/www.zacks.com\/stock\/news\/220682\/your-complete-guide-to-all-the-things-owned-by-disney<\/li>\n
  4. Carpenter, J. William. October\u00a029, 2015.\u00a0Investopedia.\u00a0Top 5 Companies Owned by Disney<\/em>.\u00a0Retrieved November 25, 2016.\u00a0http:\/\/www.investopedia.com\/articles\/markets\/102915\/top-5-companies-owned-disney.asp<\/li>\n
  5. Brevet, Brad. January\u00a07, 2016.\u00a0Box Office Mojo<\/em>.\u00a0‘Star Wars: The Force Awakens’ Becomes Highest Grossing Domestic Release of All-Time<\/em>.\u00a0Retrieved November 25, 2016.\u00a0http:\/\/www.boxofficemojo.com\/news\/?id=4142&p=.htm<\/li>\n
  6. Belloni, Matthew. June 22, 2016.\u00a0The Hollywood Reporter<\/em>.\u00a0In-Depth With Disney CEO Bob Iger on China Growth, ‘Star Wars’ Reshoots and Political Plans: “A Lot of People Have Urged Me to [Run]”<\/em>.\u00a0Retrieved November 25, 2016. http:\/\/www.hollywoodreporter.com\/features\/bob-iger-interview-star-wars-905320<\/li>\n
  7. Hirasuna, Delphine. August\u00a07, 2009.\u00a0At Issue Journal<\/em>.\u00a0Walt Disney’s Creative Organization Chart<\/em>.\u00a0Retrieved November 25, 2016. http:\/\/www.atissuejournal.com\/2009\/08\/07\/walt-disney%E2%80%99s-creative-organization-chart\/<\/li>\n
  8. Yahoo! Finance.\u00a0The Walt Disney Company (DIS)<\/em>.\u00a0Retrieved November 25, 2016. https:\/\/finance.yahoo.com\/quote\/DIS\/financials?p=DIS<\/li>\n
  9. Brown,\u00a0Maury.\u00a0August 9, 2016.\u00a0Forbes.\u00a0Disney Buys $1B Stake In MLB’s BAMTech, To Launch ESPN Streaming Service<\/em>.\u00a0Retrieved November 25, 2016. http:\/\/www.forbes.com\/sites\/maurybrown\/2016\/08\/09\/disney-co-makes-1-billion-investment-becomes-minority-stakeholder-in-mlbams-bamtech\/#1f44b1915972<\/li>\n
  10. Markman, Jon.\u00a0August 23, 2016.\u00a0Forbes.\u00a0Disney Streaming Into A Perilous Future<\/em>.\u00a0Retrieved November 25, 2016. http:\/\/www.forbes.com\/sites\/jonmarkman\/2016\/08\/23\/disney-streaming-into-a-perilous-future\/#4f34784210f7<\/li>\n
  11. Kafka, Peter. September\u00a026, 2016.\u00a0Recode<\/em>.\u00a0Why Disney won’t buy Twitter<\/em>.\u00a0Retrieved November 25, 2016. http:\/\/www.recode.net\/2016\/9\/26\/13062276\/disney-won-t-buy-twitter<\/li>\n
  12. Munarriz, Rick. April 9, 2016.\u00a0The Motley Fool.\u00a0Disney Isn’t Buying Netflix or Snapchat<\/em>.\u00a0Retrieved November 25, 2016. http:\/\/www.fool.com\/investing\/general\/2016\/04\/09\/disney-isnt-buying-netflix-or-snapchat.aspx<\/li>\n
  13. Cohan, Peter. October\u00a05, 2016.\u00a0Forbes<\/em>.\u00a0Why Walt Disney Should Not Buy Netflix<\/em>.\u00a0Retrieved November 25, 2016. http:\/\/www.forbes.com\/sites\/petercohan\/2016\/10\/05\/why-walt-disney-should-not-buy-netflix\/#710bdc20395d<\/li>\n
  14. Box Office Mojo<\/em>.\u00a0Studio Market Share<\/em>.\u00a0Retrieved November 28, 2016. http:\/\/www.boxofficemojo.com\/studio\/?view2=yearly&view=parent&p=.htm<\/li>\n
  15. Tartaglione, Nancy. November 6, 2016.\u00a0Deadline Hollywood<\/em>.\u00a0Disney Crosses $6B At Global Box Office; First Time In Studio’s History<\/em>.\u00a0Retrieved November 28, 2016. http:\/\/deadline.com\/2016\/11\/disney-crosses-six-billion-dollars-global-box-office-studio-record-doctor-strange-finding-dory-zootopia-captain-america-1201849749\/<\/li>\n
  16. Gardner, Hannah. June\u00a016, 2016.\u00a0USA Today<\/em>.\u00a0Disney’s new Shanghai park is\u00a0<\/em>supersized<\/i>.\u00a0Retrieved November 28, 2016.\u00a0http:\/\/www.usatoday.com\/story\/news\/world\/2016\/06\/15\/disneys-new-shanghai-park-supersized\/85920926\/<\/li>\n
  17. Disney<\/em>.\u00a0Moana<\/em>.\u00a0Retrieved November 28, 2016. http:\/\/movies.disney.com\/moana<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"
    by JACK ROSE, AUDREY LEW, and BRITTANY ORTIZ Background Disney is a leading producer, owner, and distributor of media that owns, among many other things, broadcast network ABC;\u00a0movie studios Pixar, Walt Disney Animation, Marvel, and Lucasfilm; Walt Disney Parks and … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":577,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5104,3063],"tags":[5114,274,2248,5122,1463,2764,963,5111,1249,518,2652,5199,3462,5214,5218,282,5120,55,4298,5124,5201,5217,1602,1247,5215,1027,5121,43,1080,5117,1242,1081,5116,5183,5216,534,1244,5113,249,5213,5118,5119,5112,403,47,5115,3393,5204,650,1845,1555,648,5123,5200],"_links":{"self":[{"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/posts\/28373"}],"collection":[{"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/users\/577"}],"replies":[{"embeddable":true,"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/comments?post=28373"}],"version-history":[{"count":17,"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/posts\/28373\/revisions"}],"predecessor-version":[{"id":29089,"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/posts\/28373\/revisions\/29089"}],"wp:attachment":[{"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/media?parent=28373"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/categories?post=28373"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/tags?post=28373"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}