Disney’s Parks & Attractions segment generates nearly 100% more revenue and 60% more profit than Disney’s studio division (which already generates nearly three times the revenue AND three times the gross margins as its primary competitors).
There is no simple way to quantify how important this business unit is to Disney. Many of those they don’t own, such as Harry Potter, have their rights fragmented.īut what is the strongest, most profitable, most defensible part of Disney’s business in the digital era? Its capex-heavy, physical theme parks. And Disney has many of the franchises that best lend themselves to this model. This is a powerful, self-sustaining financial and cultural flywheel. Netflix), and engage in never-ending and constantly updated online multiplayer games (e.g. fanfic and watch-along podcasts), play this content back on demand (e.g. You can constantly track production (cast Instagrams, behind-the-scenes featurettes, and leaks on social media), engage in fan communities (message boards and YouTube theory/Easter egg videos), consume endless amounts of fan content (e.g. And the Internet has enabled this to an unprecedented degree. However, one of the biggest storytelling “lessons” in the 20th and early 21th century was that audiences have an unending desire for “more” of the stories they already love. After all, it was long expected that the Internet would disrupt dominant media companies and IP via rights infringement and the emergence of myriad user-generated “franchises”. The deeper we get into the digital era, the more dominant Disney seems to become.
In a matter of weeks, Disney’s brand new direct-to-consumer platform acquired 30MM subscribers. And as strong as this platform was at the start of 2019, it exited the year even stronger. It has a brand that actually matters to consumers, owns franchises that consumers essentially treat like subscription content services, and operates the biggest star-making platforms in the world. In plain terms, there has never been a more dominant entertainment company, globally or in the US.
Disney is the envy of every media company, regardless of whether it focuses on film, TV, gaming, music or publishing.
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