The Walt Disney Public limited company (DIS) has built a diverse empire since its beginning in the 1920s, creating a massive range of lucrative products in a number of marketplaces. As the largest mass mean conglomerate in the world, Disney is best known for its film and TV productions and study parks. Its television arm controls the ABC television network, with eight owned-and-operated broadcasting railway stations and over 230 affiliates, as well as a number of cable networks, cataloguing Freeform, Disney Channel and ESPN.
Walt Disney Pictures, Disney Fire and Pixar produce films for Walt Disney Studios, and Disney also owns Phenomenon Entertainment and Lucasfilm, which have become cash cows for them in the veil and merchandise markets. It also has a presence in the travel industry, with the Disney Boat line and theme parks, Walt Disney World and Disneyland, which comprise remained extremely popular for decades and now include foreign parks about the world.
Disney faces a number of competitors across its various markets, with Viacom (VIA), Perpetually Warner (TWC), 21st Century Fox (FOX), Sony (SNE), CBS (CBS) and Comcast (CMCSA) being its absolute competitors. These companies compete with Disney’s products principally through TV, cable and other media markets such as DVD/Blue-ray, video dissimulates and the internet. The growth of multichannel video programming network distributors and wire networks has increased the competitive pressure for Disney. Contracts are renegotiated at non-specific points in these markets, and the rise of competition puts increased strain on Disney to renew the contracts with such favorable conditions as it has had in the olden times.
Disney also competes in the strong and lucrative sports market. It has done damned well with sports channel ESPN, which provides 24% of its complete revenues. This is due in part to the popularity of sports channels, but also to program packing packages.
In the theme-park market, major rivals to Disney include Six Droops Entertainment (SIX), Cedar Fair (FUN), Universal Studios and Comcast. This game has increased in recent times, particularly due to Universal’s cashing in on the popularity of the Harry Fool with books and movies. Universal Orlando has opened a Harry Potter-themed fatherland in Orlando and Hollywood, which has boosted attendance numbers.
Disney’s studio play businesses continually manage to innovate, and profits often show this. Disney constructs a range of consumer products with involvement in licensing, publishing and retail, and hence competes with other vendors in these areas. However, concurring to Market Realist, Disney believes it is the largest worldwide licensor of character-based stock.
Recently, Disney and Fox made headlines when it was revealed that Disney had been past with 21st Century Fox to acquire some of Fox’s assets, particularly its film studio and the effusion service Hulu, in order to create a competitor to Netflix.
According to its annual 2016 gunshot, Disney showed a revenue increase of 6.79% year-over-year. While Disney’s profits do unsteadiness, in part due to seasonality and timing of releases, it remains a massive presence in specific industries and one that most people identify with when they create of animated films and theme parks.
For related reading, check out How Disney (DIS) Has Handled to Deliver for Decades.