The Economics of the Walt Disney Company - Essay Example

The economic of WALT DISNEYCOMPANY from [name of the organization] [author’s name] [date of fulfillment] Table of content I. Introduction II. Summary – Key Findings III. Walt Disney i. Genre ii. Personal Computer Market IV. Overview i. Effect on economy ii. Indian Entertainment Market iii. Revenue collected iv. Contribution V. conclusion I. Introduction A “film studio” is a motion picture making and circulation business corporation that releases an ample quantity of movies per annum and constantly commands an important ratio of “box-office” revenues in the entertainment sector. In the Western and international market, the main film studios, usually described as the “majors”, are generally observed as the six varied media firms whose diversified movie creation and distribution subordinates command just about 92% of the U.S. and Canadian box office. In every manner a film studio is perfectly identical to a factory floor. The film studios are the most proficient way to produce a specific film or develop a particular television program. In Britain the majority of film studios are established in London as compared to a handful number of TV. & film studios based in Glasgow, Cardiff and Belfast regions. These small regional studios based outside the capital of Britain mostly emphasizes on development of “Welsh and Gaelic” based programs (Thomas, Tony, and Aubrey Solomon 1985). These regional studios mainly concentrate on featuring daily soaps, local & national news, afternoon weekly shows and weather reports for locally aired entertainment TV channels. “BBC Elstree, The London Studios, The Pinewood Studios Group {Pinewood Studios, Shepperton Studios, Teddington Studios}, Elstree Film and TV studio and Riverside studio” are some of the major studios situated in the city of London, these studios are used for the development of all kinds of programs such as music shows, game-shows, reality shows, kids shows, news shows etc for different entertainment and national channels1. However, these massive fully-prepared and tremendously pricey TV studios are still very much active and fighting fit, regardless of copious efforts over the time to proclaim their looming bereavement.  At definite periods of the year, the production houses find it very complex to locate availability of studio space for producing & shooting their programs to be aired on irrespective channels and cinemas.  II. Summary – Key Findings The major films studios like Walt Disney Company, contribute a lot to the entertaining world. They are also great contributor to the economy of the country (Bob Thomas, 1998). This paper is an exclusive study of the same. The contributions made by Walt Disney group in the economy of the state and to the society is tremendous and thus the idea of the paper. As I proceed with the topic I get the following key points regarding the economic side of this particular Company a) employment for over 92,000 people b) acquired approximately 220 Disney Stores alone in the United States c) earning over $43 billion collection for the National revenue in 2007 d) invested $350 million to develop video game development capabilities. III. Walt Disney company i) Genre Today, the Walt Disney Company is identified as one of the prime media and leisure companies operating globally. On Oct. 16, 1923 the Walt Disney Company formerly known as “Disney Brothers Cartoon Studio” was established by the two brothers, Walt and Roy Disney with a vision to become a pioneer in animation studios. In the year 1924, the Disney Brothers Cartoon Studio released their first animated comedy production series “Alice's Day at Sea”. In the mid 1926, the Disney brothers changed the title of their company to Walt Disney Studio and after a short span of two years i.e. on historical day of Nov. 18, 19282; the Walt Disney Studios released the first ever sounded animated cartoon series of Mickey Mouse “The Steam Boat Willie and Plane Crazy” at the Colony Theater in New York (Eames, John Douglas, 1985). “Walt Disney Pictures” was officially registered as a title in the year 1983, former to which the Disney films, since the death of founder Walt Disney, and then registered as “Walt Disney Productions.” An added banner, “Touchstone Pictures” was established in the preceding year 1984, to facilitate Walt Disney Productions to release pictures with a more mature approach than what the banner was allied with the Disney’s animated cartoonist’s image. “Walt Disney Pictures and Television”, an subordinate of “Walt Disney Studio Entertainment” and the core production corporation for live-action feature movies inside the “Buena Vista Motions Group”, located at the Walt Disney Studio’s, obtains and generates movies that are further unconfined under the duo banners of Walt Disney Pictures and the Touchstone Pictures. ii) Personal Computer Market The trade pattern of Disney studios have always germinated around its cartoon figure Mickey Mouse as the cartoon character integrates the optimistic characteristics of the company. Utilizing the character Mickey Mouse is a very economical approach for a very strong advertising and marketing as the Mickey Mouse is renowned worldwide and has continued to yield massive revenues (Thomas, Tony, and Aubrey Solomon 1985). As a part of their business expansion the Disney studios have identified couple of markets worldwide, the PC market worldwide is one of the markets that Disney has chosen for the expansion. Disney incorporated the ears of Mickey Mouse onto the LCD Monitor of the kid’s computer which is launched under the brand name of “Disney Dream Desk” to attract the medium range consumers worldwide. IV. Overview i) Effect on economy The film studios have a very positive effect on a country’s financial economy as the revenues earned by the film studios supports directly in the growth rate of economy as well as the studios also provides employment and helps in diminishing the unemployment rate of a country (Schatz, Thomas,1998 [1989]). For example, London is the third prime film production centre. The London’s Film production provides employment for over 92,000 people. The interpretation of London in movies hoists up the worldwide profile of capital and also acts as an attraction to several international visitors. In this context, Company Information, Walt Disney Company declares the contribution of the Walt Disney Company cannot be ignored and is acknowledged as of great help to the economic balance of the state. Figure 1 Corporate Overview3 The Walt Disney Company, has got four segments for its production proceedings. These are namely Media Networks, Parks and Resorts, Studio Entertainment and Consumer Products. The Company acquired many new things in the new era. The latest be a digital animation studio, called the Pixar. Then it acquired the Club Penguin Entertainment, Inc. and NASN Limited. The Walt Disney Internet Group has also given a very important step towards the iParenting Media. From subsidiaries, it has also got the Disney Store chain in North America, of The Children's Place Retail Stores, Inc. with further development the Company brought under its acquisition the Hoop Retail Stores, LLC in Delaware, and Hoop Canada, Inc. in Canada, the Company acquired approximately 220 Disney Stores in the United States and Disney Stores in Canada (Finler, Joel W., 1988). These are some of the major events towards the development of the Company. There are innumerable of them. These all together contributes to a huge amount in the collection of revenue both for the company and the country. The contribution of the Company also gets counted when it comes to the employment section. To handle such a huge Company there is many people engaged in it and that supports the state economically. ii) Indian Entertainment Market: The second loom to spawning novel trade commerce is integrating Disney into fresh global sectors and civilizations. With the establishment of its 115 acre, “Tokyo Disneyland” in Urayasu, Chiba, Japan, and also the Walt Disney has extended their trade into the vast entertainment sectors of the markets of India. As India contains the second largest population of the world, it is the major reason of Disney to emphasize on India in their attempts of globalization. India has numerous signs that spot out to the attempts of Disney’s globalization; a) Inferior labor expenditure that suits the budget for the establishment b) Second largest consumer support and thus is great contributor to the distribution branch c) Negligible Competition leads to the state of monopoly among the population and thus increases the profit margin. The Walt Disney Company's goal is to become globally primary producers and contributors of amusement, leisure and information, utilizing the assortment of vital range of brands to distinguish its material, services and end user products (Hirschhorn, Clive, 1999). The company's chief fiscal ambitions are to generate maximum income and a smooth cash flow, and to apportion capital prosperity towards the expansion programs that will drive enduring investor values. iii) Revenue collection Figure 2 Revenue collection4 The overall collection as initiated by Walt Disney Company in the field of advertising is really huge. This is an amount that gets driven by the economy. The equal contributions are also made by the presence of large-scale TV events like the Olympics. Disney's quality of programming and the amount of attraction that it has got in the market makes it one of the largest in the entertaining industry. Revenues are all get collected from various sources. The major contribution is made by cable and satellite companies as the affiliated fees. This is a major contribution and the Company relies on it a lot. Disney has been considered to have got the highest affiliate fees in the industry. The contribution also is made from the popularity of its ESPN programming. Film and DVD syndication and merchandising, Domestic theme parks, blockbuster movie are some of the major sources of the same5. iv) Contributions The contribution to the society is multifaceted and it is made by the group of companies that are attached to Walt Disney Studios. These are Walt Disney Pictures, Walt Disney Animation Studios, Pixar Animation Studios, DisneyToon Studios, Hollywood Pictures, Miramax Films, Walt Disney Studios Home Entertainment, Disney Theatrical Productions, Disney Live Family Entertainment, Disney on Ice, Target market (Bob Thomas, 1976, Walt Disney: An American Original). The major contribution is of course the earning over $43 billion in revenue in 2007 to the country. The major strategy is in creating and distributing attractive content for children. This is all done through the capitalization on the characters of new movies. It increases sales and adds a lot to the country’s economy. This is also gets contributed by the release of the movie on DVD in the presence in Disney's theme parks or its own television show. The strategy with video-on-demand online and television shows formatted for video iPod users is also making a big hit and is earning lots of money. There has been a major invested made by the Company of about $350 million to develop its own in-house video game development capabilities that will again roll in many international currencies to the state. Added to this there are all kinds of efforts and lots of money contributed by Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products of Walt Disney Company. V. conclusion As a matter of fact, here is an un-explicable mystification about the differentiation between a film studio and a theater stage.  In the motion picture industry the phrase “studio” is referred to a corporation that produces cinematic movies or it can also refer to a location consisting of huge sized rooms in bulk quantity, in which the films are shooted and produced.  However, every outsized room is not generally referred to as an entire film studio however, it is moreover defined as “stage” and if it is built with qualities of sound proof then it is more accurately described as a “sound stage”. Being a well equipped with all these factors the Disney Company had gone a step further in the way of just a film studio. The excellent sales and the continuous sales are the reasons behind its popularity and are massively elusive for the same reason. The contribution of the Company to the economy of the country make sit very strong in the field of media and entertainment. Consequently we can see that Walt Disney Company has got all the latest trends, proceedings and forces are making ways for volatility of advertising revenues (Walt Disney Company (DIS)). There is the consistency in affiliating the fees and growing technology investments. In the trend there is the exposure to movie attendance. The contributions are thus as huge as the income is. The economic condition though sometimes fluctuated yet it was comparatively static through out and equally proves to be beneficial for the United States of America and to the society as a whole. References Bob Thomas, Building a Company: Roy O. Disney and the Creation of an Entertainment Empire, 1998, ISBN Bob Thomas, 1976, Walt Disney: An American Original, revised 1994 Company Information, Walt Disney Company, DIS: NYSE; Cyclical Consumer Goods & Services/Media Diversified http://topics.nytimes.com/top/news/business/companies/disney_walt_company/index.html?query=COMPANY%20REPORTS&field=des&match=exact [retrieved on 31.07.08] Eames, John Douglas (1985). The Paramount Story (New York: Crown). ISBN 0-517-55348-1 Finler, Joel W. (1988). The Hollywood Story (New York: Crown). ISBN 0-517-56576-5 Hirschhorn, Clive (1999). The Columbia Story (London: Hamlyn). ISBN 0-600-59836-5 Schatz, Thomas (1998 [1989]). The Genius of the System: Hollywood Filmmaking in the Studio Era (London: Faber and Faber). ISBN 0-571-19596-2 The Story of Walt Disney, Diane Disney Miller & Pete Martin, 1957 Thomas, Tony, and Aubrey Solomon (1985). The Films of 20th Century-Fox (Secaucus, N.J.: Citadel). ISBN 0-8065-0958-9 Walt Disney Company (DIS), n.d., http://www.wikinvest.com/stock/Walt_Disney_Company_(DIS) [retrieved on 31.07.08] Read More