while streaming is still marginal.

This is how it makes money… is a series of weekly articles from Xataka published between 2018 and 2019 that breaks down the business model of large technology companies, revealing which divisions make money and which don’t and what drives these world-changing companies. Disney, with permission from the coronavirus, has been dominating conversations for weeks due to the launch of its video-on-demand service.

Disney is an entertainment powerhouse that has expanded beyond cartoons in movies and TV through acquisitions.

Understanding framework
True: Disney has many subsidiaries. These 34 are grouped into four large business units.

Disney owns Disney Channel, ABC, ESPAN, FX, National Geographic, and Freeform.

Parks, Experiences, and Products: the subsidiaries that run the company’s theme parks, merchandising, cruise line, and holiday resort.

Marvel, 20th Century Studios, Pixar, Lucasfilm, and Studio Entertainment produce original material.

DTC and international: On-demand video streaming. Disney+, ESPN+, Hulu, Hotstar (India).

Disney+ has been the topic of much discussion in recent months, although video on demand remains the least profitable of its four business segments. Barely 6% in 2019. As the primary protagonist has just come in a few nations and is just beginning to land, we will have to watch what statistics this sector handles in the coming years.

Disney’s major business is amusement parks, leisure activities, and merchandising, which account for over 4 out of 10 dollars.

Media Networks, the company’s six TV channels, follows (3.6 dollars every 10 dollars). Original content production accounts for 17% of turnover. Disney profits more from its products and experiences than from its films and shows. ‘Frozen’ is good, but the Christmas sales pitch Olaf dolls are better.

Disney avoided the 2008 crisis. Only in 2009 did its revenue and net profit decline somewhat, and since then it has grown every year with the exception of a minor dip in 2017, which was more than compensated in subsequent years. With the strongest year-on-year growth in 2019, Disney has more than doubled its turnover in the last decade.

It consolidated two of its four key units a year earlier and reorganized in 2019. Before then, the division was different but similar, and the end-of-year data showed minimal distinctions between these units other than the studios division’s lower growth (after years of loss).

Disney+ will be tested in the next quarters to determine if it boosts the revenue of a division that, despite its popularity, is almost symbolic. Especially for theme parks and character/saga merchandise.

while streaming is still marginal.

By triji

Related Post

The Dry Martini—shaken, not stirred

Unexpectedly, ‘Matrix 5’ will depart from its creators.

Where to watch all ‘Star Wars’ movies

Leave a Reply Cancel reply

You Missed

The Dry Martini—shaken, not stirred

Unexpectedly, ‘Matrix 5’ will depart from its creators.

Where to watch all ‘Star Wars’ movies

A argument that revealed two worldviews of America