The Walt Disney
Company
It all started with a mouse…
Try to imagine a world
without Walt Disney…….
• A world without his magic, whimsy, and
optimism…Walt Disney transformed the
entertainment industry into what we
know today.
• He was a pioneer in the world of
animation, education and
broadcasting….he was in the business
of making dreams come true
Disney Mission
• Disney's overriding
objective is to create
shareholder value by
continuing to be the
world's premier
entertainment
company from a
creative, strategic,
and financial
standpoint.
"We are not trying to entertain
the critics. I'll take my chances
with the public." Walt Disney
Disney/Pixar Deal
• Disney secured
animation division
with the $7.4 B
acquisition of Pixar
• Each Pixar share yields
2.3 Disney shares
• Steven Jobs becomes
largest Disney
shareholder and new
board member
• Will pass to family
• Pro for Pixar – recent
b.o. slide, cash out
• Pro for Disney – price
could increase if
Ratatouille a big hit!
Pixar Track Record
Budget
• Toy Story
$30M
• A Bug’s Life $45M
• Toy Story 2
$90M
• Monsters, Inc. $115M
• Finding Nemo $93M
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The Incredibles
Cars
Ratatouille
Wall*E
Up
Toy Story 3
Cars 2
Brave
$92M
$120M
$150M
$180M
$175M
$200M
$200M
$185M
Box Office Revenue
(US)
(WW)
$192M
$163M
$246M
$256M
$340M
$358M
$358M
$486M
$529M
$865M
$261M
$244M
$206M
$224M
$293M
$414M
$191M
$237.3M
$624M
$455M
$616M
$553M
$727M
$1.06B
$549M
$531M
Timeline
• December 5, 1901
Walter Elias Disney is
born in Chicago,
Illinois
• As early as age seven
he is selling sketches
to neighbors for extra
money
• After returning home
from service with the
Red Cross during
WWI, he began a
career in commercial
art and started
experimenting with
animation.
Timeline
• Walt began producing
the Alice Comedies but
his company Laugh-OGrams soon went bellyup
• So before he hit 21 – he
headed to California
and Hollywood
• He and his brother, Roy
O. Disney started with
$750 and set up shop in
their uncle’s garage
Timeline
• 1928 – Mickey
Mouse makes his
debut in Steamboat
Willie
• First synchronized
sound cartoon
• 1932 – Walt wins his
first Academy Award
with Flowers and
Trees
• Redoes film after
completing 50% to be
in color
Timeline
• 1937 – Snow White
and the Seven
Dwarfs is the first
full-length animated
musical feature
• Produced for
$1,488,423 during the
height of the
Depression
• Considered a cinema
classic and treasure
Snow White and the Seven
Dwarfs – Why shift to full
length pictures?
• Afforded the
opportunity to tell a
story for longer than 7
minutes
• Economic Necessity
• Silly Symphonies and
Mickey Mouse were
main attractions but
earned fee $ instead of
b.o.
Premiere
• Classic. Music, animation and
story considered masterfully done.
Some concern over the strength of
some scenes for children (witch)
• Released by RKO Pictures
• December 21, 1937
• Critics universally raved about the
new cinema
Success?
• By the outbreak of WWII Snow White had grossed
$8M world wide
• In some parts of the US given an ‘A’ certificate as
unsuitable for small children
• Not lifted til the mid 1950s
• Profits driven into new facilities
• $10,000 down payment on 51 acres in Burbank for a new
studio (total sale price $100k); Studio cost $3.8M
• Special Academy Award given by Shirley Temple
• Second feature Pinocchio (1940) did not return $
as quickly – why??
Timeline
• Over the next five
years Pinocchio,
Dumbo, Bambi, and
Fantasia are released
• Personal tragedy
strikes Walt in 1938
when his mother is
accidentally killed in
the new home Walt
bought for his
parents. A faulty
furnace is to blame
and Walt never
forgives himself.
Timeline
• 1940 - Construction is
completed on the
Burbank studios and
Disney now employs
over 1,000 artists
• 1945 – The Three
Caballeros combines
live action with
animation – a technique
Walt reuses with Mary
Poppins and Song of
the South
Corporate Direction
• Studio moves
from shorts to
full length
animated
films …. What
is next?
• Scope of
Business Entertainment
Timeline Disneyland
• "We did it
(Disneyland), in
the knowledge
that most of the
people I talked to
thought it would
be a financial
disaster - closed
and forgotten
within the first
year."
Disneyland – The Deal
• Disney and ABC work together for the
construction and opening of Disneyland
• ABC advances Disney $500K and
guarantees all WED bank loans.
• ABC gets 35% ownership, 100% of
concessions profits for 10 years and an
8 year commitment from Disney for use
of its inventory of films to be shown in a
one hour TV show.
DisneyLand Facts
and direction
• Disneyland (the park) costs $17
million and includes 461 acres
• DisneyWorld opened in 1971 at a cost
of $331M; 30,080 acres; 17.M+vistors
2011
• As of 2011 almost 616+M have
visited Disneyland; 16.14M+ last
year
• Cars Land opened 2012 - $1.1B
expansion
Diversification of
DisneyLand
• Developed into a resort in the
1990’s
• California Adventure – February
8, 2001
• 6.34M visitors … theme issues
have required reworking by the
imagineers
• 13th ranked park in attendance
A Deal’s a Deal!
Disney Enters TV
• 1954 – began television
production and
programming
• One of the first to
present full-color
programming and held
the patent for
technicolor for two
years
• Favorites – Mickey
Mouse Club, Wonderful
World of Disney
Setting Disney Sites
Globally
• The vision of the Walt Disney
Company was to develop a set
of theme parks initially in the
U.S. and then abroad
• Initial growth began with the
focus on Central Florida
• Only 2% of Disneyland’s visitors
were coming from East of the
Mississippi
EPCOT – Experimental
Prototype Community of
Tomorrow
• 1965 – Walt began
planning for the
problems of urban
development
• Personally directed
the design of EPCOT
• Highlights creativity
in American living
Timeline
Disney World
• Walt directed the
purchase of 47
square miles of land
in central Florida.
• He envisioned that
this land would be
for Disney world
• Entertainment that
would include
amusement parks,
hotels, resorts and
EPCOT
Timeline –
DisneyWorld
• October 1, 1971
Disney World Opens
• Magic Kingdom
• Contemporary Hotel
• Polynesian Hotel
• October 1, 1982
EPCOT opens
• May 1, 1989
• Disney-MGM Studios
Theme Park opens
• April 22, 1998
Animal Kingdom is
opened
Timeline Today
• Disney World is
now composed of
the Orlando parks
and resorts
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Magic Kingdom
Animal Kingdom
Epcot, Disney-MGM
3 water parks
Downtown/
Westside Disney
• 33 hotels/vacation
resorts
• Disney’s Wide World
of Sports
Disney Visitors in 2011
• Magic Kingdom
– 17M+
• Epcot – 10.83M
• Disney
Hollywood
Studios – 9.7M
• Animal Kingdom
– 9.8M
Future Developments
• Golden Oaks 2011
• World Of Animation
Resort 2012
• Avatar Land 2017
Disney Parks WorldWide
• Tokyo Disney – Licensed by the
Oriental Land Company and not
owned by Disney
• Opened in 1983
• 2011 Attendance 14M
• 494 acres, six miles from Tokyo
• Tokyo DisneySea added in 2001
• Costs ran above $4 billion
• Similar in concept to Universal’s Islands
of Adventure
Disney Parks WorldWide
• Disneyland Paris (originally EuroDisney)
• Grossly over budget ($2 billion)
• Poor management
• Employee and attendance problems
• 1995 began turnaround
• Space Mountain added
• New Name
• July 1995 came into the black
• Ultimately added Walt Disney Studios park
(3/2002) and Disney Village
Disney Parks Expand
• Disney’s California Adventure added in
2001 in Anaheim
• Original idea was a “WestCot”
• Widely criticized for lack of kid rides, Disney
icons
• Hong Kong Disney
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Opened in 9/2005, 311 acres
Jointly owned with the Hong Kong government
Smallest of Disney parks
Attendance figures are lagging
• Shanghai park under construction set for
opening December 2015
Theme Park 2x2
Product
Themes
Rides
Hotel Options
# of Parks in Resort area
Special Offerings
Collectible and non
collectible Merchandise
Price
Admission
Availability of Passes
Meals
Water Parks
Place
Location
Days of Operation
Hours of Operation
Ease of Travel to
Park/Location
On site transportation
Promotion
Public Relations Activities
Advertisements using all
media forms
Special Events
Specialty Advertising
Social Media Promotion and
communication
Disney Facts
• Disney ranks 64th on
the Fortune 500 list
• Ranks above
Coca-Cola, Dow
Chemical,
American Express,
3M
• World’s largest
Media and
Entertainment
Conglomerate
Disney Products
Walt Disney Company
•
Chairman of the Board –
John E. Pepper, former CEO
of Proctor and Gamble
• CEO
• Robert Iger
• Former CEO, Michael
Eisner retires and
resigns from BOD 9/05
Revenues
1st Quarter profits up 54%
$10,716 (million) in revenue
$36.1 (billion) in 2009 (down
4% from 2008)
• EPS vs. .44 in 2009
• Acquired Marvel and moving
ahead with Shanghai Disney
Disney Holdings
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5 vacation resorts
39 hotels
11 theme parks
6 record labels
11 cable television networks
2 water parks
8 motion picture studios
Walt retained ownership of the trains and
monorails at Disneyland via the RETLAW
Company (Walter backwards) and was paid
$.64 per person on ride until absorbed by
Walt Disney Company in 1980s.
• 82% occupancy in 2011
Noteworthy Events Post
Eisner
• Roy Disney dies in December 2009
• Theme Park attendance rose 14%
• Stock immediately rose by 2% by March 2005,
after Eisner’s announcement
• Loss of attention to detail and quality,
appearance of focus on profits and margins
• New ride Soarin’ simply a rehash of Soarin
over California (California Adventure Rides)
and Tower of Terror (Disney MGM ride), Nemo
ride problematic
• Traditional animation to return in 2009 after
reacquiring John Lassiter via Pixar buy
Walt Disney Company
• The Walt Disney Company, together with its
subsidiaries, is a diversified worldwide
entertainment company with operations in four
business segments:
• Media Networks
• Studio Entertainment which produces live-action and
animated motion pictures, television animation
programs, musical recordings and live stage plays.;
• Consumer Products, which licenses the Company's
characters and other intellectual property for use in
connection with merchandise and publications and
publishes books and magazines;
• Theme Parks and Resorts
Media Networks
• ABC TV Network
• 233 primary
affiliates
• 99.9% market
coverage
• 10 broadcast TV
stations
• ABC Radio
• 8900 program
affiliates on 4500
stations
• 130 million
domestic listeners
• 27 radio station
• Radio Disney, ESPN
radio
Media Networks
• Cable and International Broadcast
• Principally involved in production of
programming
• Distributes to other cable broadcasters under
Buena Vista TV, Disney TV and Touchstone
TV
• Disney Cable Broadcasting
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Disney Channel
Jetix
Toon Disney
SoapNet
80% ESPN
42% A&E/Lifetime
39.6% of E! (looking to sell)
Studio Entertainment
• Produces and acquires live action motion
pictures
• Touchstone
• Miramax and subsidiary Dimension
• Walt Disney Pictures
• Walt Disney Feature Animation
• DisneyToons
• Hollywood Pictures
• Buena Vista Home video
• Walt Disney Studios tops $1B at b.o. for
9th time in 11 years and also tops $1B
internationally (2006)
• BVHE – Finding Nemo becomes highest
selling DVD ever!
• Released 7 of top 10 straight to DVDs
• BVI - $ tops 12.1B
Studio Entertainment
• Under the Walt Disney TV
• Produces, distributes animated TV and features
• Recorded Entertainment
• Walt Disney Records, Buena Vista Records, Hollywood
Records and Lyric Street
• Original recordings, Soundtracks and readalongs (edutainment)
• A Cinderella Story soundtrack strong
• Live Stage Production
• Broadway's Lion King and Beauty and the Beast
Film Divisions
• Walt Disney Pictures
• G rated family films generally
• Wall-e, Bolt
• Beverly Hills Chihuahua
• Touchstone Picture
• Dan in Real Life, Swing Vote
• Hollywood Pictures
• Miramax Pictures
• Operating Income only $98M, down
42%
Parks and Resorts
• Walt Disney Resort
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Animal Kingdom
Magic Kingdom
EPCOT
MGM Studios
Hotels and villas
Conference centers
Water parks
Golf and Tennis
Putt Putt
• Income fell 1% last year
Parks and
Resorts
• Walt Disney Imagineering
• Designs and updates all parks and
resorts
• Oversees construction at these venues
• Disney Regional Entertainment
• ESPN Zone - dining and entertainment
• Disney Cruise Lines
• Disney Vacation Club
Parks and Resorts
• Royalties earned
from
• Tokyo Disneyland
(owned by
Oriental Land Co.)
• Disney Sea
• Magic Kingdom in
Paris (51%)
• Disneyland Hong
Kong (47%)
• Disneyland and
California Adventure
• Operating Income
$1,123M
Consumer Products
• Products produced include:
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Electronics
Hardware
Publishing
Buena Vista Games
Baby Einstein
Muppets
License Disney Stores
Disney Direct Marketing
Values that Make the
Disney Brand Stand Out
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Innovation
Quality
Community
Storytelling
Optimism
Decency
Disney Techniques
• The competition
is anyone the
customer
compare you with
• LL Bean
• FedEx
• MTV
Disney
Techniques
• Pay fantastic detail
to detail
• Disney considers the
entire 45,000
employees to be apart
of the custodial crew
at DisneyWorld
• Cinderella’s castle
mural
• One sister has green
cheeks (green with
envy) and one with
red cheeks (red with
rage)
Disney Techniques
• Everyone Walks
We don’t have employees –
We have cast members
the Talk
• It is all about the
way you do your
job
• Disney is about
magic and fun
• Every customer
contact should be
an opportunity to
create value
Disney Techniques
• Everyone walks the talk!
• The importance of sights unseen
• Clinton wears his Ironman watch
• Handstitched clothing from the period
• Although the customer may not see
these details, the cast members do!
• Business cards
• Each cast member has original title and
“customer relations associate”
Disney Techniques
• Customers are
best heard
through many
ears
• Customer surveys
• Employees – Pixie
Dust
• Super Greeters
• Incorporate
characters in the
software
Disney Techniques
• Reward, Recognize and Celebrate
• Guest Service Fanatic Card
• Delivered by managers in daily activities
• Spirit of Disney Award
• Another cast member nominates you and you
could receive a silver name tag
• Letter Postings
• Focus on the Positive!!