Blog Post #1
The Walt Disney Company
The Walt Disney Company is an American multinational mass media corporation, which is headquartered in Walt Disney Studios in Burbank, California. Walt and Roy Disney started this company, in 1923, first as an American animation industry, later diversifying into live-action film production, television, and travel. The company really became a conglomerate in 1986, taking on its current name of The Walt Disney Company. Today it is one of the most successful companies in the world having divisions in theater, radio, music, publishing, and online media, etc.
(The Walt Disney Company operates as five primary units and segments)
The Walt Disney Studios
(film, recording label, theatrical divisions)
-Disney Music Group
-Disney Theatrical Group
-Disney-ABC Television Group
-The Muppets Studio
-Pixar Animation Studios
-UTV software Communications
Parks and Reports
(theme parks, cruise line, and other travel-related assets)
-Walt Disney Parks and Resorts
-Walt Disney World Resort
-Tokyo Disney Resort
-Euro Disney S.C.A
-Hong Kong Disneyland Resort
-Disney Vacation Club
-Disney Cruise Line
Disney Consumer Products
(produces toys, clothing, and other merchandising based upon Disney owned properties)
-The Walt Disney Catalogue
-Disney Educational Productions
-Disney Direct Response Publishing
-The Baby Einstein Company
-Disney Magazine Publishing, Inc.
-Disney Book Publishing, Inc.
-ABC Television Network
-Disney Channel Worldwide
(includes Disney’s internet, mobile, social media, virtual worlds, and computer game operations)
-Disney Family Network websites
When Disney was a starting company in 1923, they were nowhere near being a conglomerate. As years past and they diversified into live-action film production, television, and travel the company really started to take off. In 1995, The Walt Disney Company decided to buy Capital Cities/ ABC Inc. for $19 billion dollars. The combined company brought together the most profitable television network and its ESPN cable service. This merger also developed Disney’s Hollywood film and television studios, the Disney Channel, its theme parks and its repository of well-known cartoon characters and the merchandise sales they generate.
When Disney bought Capital Cities / ABC Inc., it became the first media company with a major presence in four distribution systems: filmed entertainment, cable television, broadcasting and telephone wires. This merger if Disney and ABC is a great example of vertical integration because the members of the supply chain are producing different products and services that combine to satisfy the common need. In the recent years after the merger, rival television producers found that they had fewer outlets for their programs. There was concern about whether the concentration of ownership might dilute the public’s choices of programming.
The deal provided Disney with more opportunities to expand overseas. This created synergy between the two companies, having a positive effect on both companies as they worked together to increase profit. I think Disney’s history is an unbelievable story and it will continue to be for years to come. After the merger, the company’s success didn’t surprise me at all. The reason they are so successful is because of how merging with ABC brought them thousands of different connections and industries to work along side with. The more connections the company has, the more ways they can connect with the public to make a bigger profit.