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The 2006 Annual Report from The Walt Disney Company summarizes the financial status of the company in comparison to the past two years. It is sent to every shareholder and available online as well. While reading through their statistics, I was looking to see if they made mention of “High School Musical” as having any amount of effect on their success and to see how much they specifically credited made-for-TV movies or feature animation as key to their survival.
Disney has their hands in a large variety of markets, from their parks and resorts to movies to cable TV channels, international markets, and consumer products, and their newest endeavor with the Walt Disney Internet Group. Each of these components contributes to their overall financial success. Featured on the title page of the the section on “Media Networks: Cable Networks” is a two-page spread picture of the cast of “High School Musical,” claiming that nearly 90 million viewers have seen the movie since its debut on the Disney Channel.
Overall, the company boasts revenues at $34,385 million for the year, a seven percent increase since 2005. For perspective, 2005’s revenues were a four percent increase from those of 2004. Their net income weighed in at $3,374 million, which is thirty three percent higher than last year’s income. The percent difference between 2005 and 2004 was only eight percent (p.57). Obviously they’re heading in the right direction, up. But when I was looking at the numbers for their Media Networks section, nothing seemed unusual or different from the previous year. The eleven percent increase to revenue of $14,638 million is close to the twelve percent increase last year (p.59). The increase specifically from cable networks (as opposed to broadcast television) was ten percent, whereas last year’s revenues increased by thirteen percent (p.60). At least when looking at the numbers, it doesn’t look like the cable networks experienced any sort of huge jump from previous years.
The note about Disney’s purchase of Pixar, however, shared some relevant insight into the company’s philosophy of the nature of feature animated films: “Disney believes that the creation of high quality feature animation is a key driver of success across many of its businesses and provides content useful across a variety of traditional and new platforms throughout the world.” (p.83) Not only do they consider feature animation important in its own right, but they see the multitude of possibilities that it creates in their other markets. Disney is already used to the idea of cross marketing, because they’ve existed across so many different forms of media for a long time already. I’m glad to see that they’re sticking to tradition in putting feature animation at the top of their priorities, because it has been proven to be their most successful endeavor as well as a valuable fuel for the rest of their departments.
Note: Page numbers are based on the print version of the Annual Report. To download a PDF copy, click on the tab labeled “Financials.”
Disney has their hands in a large variety of markets, from their parks and resorts to movies to cable TV channels, international markets, and consumer products, and their newest endeavor with the Walt Disney Internet Group. Each of these components contributes to their overall financial success. Featured on the title page of the the section on “Media Networks: Cable Networks” is a two-page spread picture of the cast of “High School Musical,” claiming that nearly 90 million viewers have seen the movie since its debut on the Disney Channel.
Overall, the company boasts revenues at $34,385 million for the year, a seven percent increase since 2005. For perspective, 2005’s revenues were a four percent increase from those of 2004. Their net income weighed in at $3,374 million, which is thirty three percent higher than last year’s income. The percent difference between 2005 and 2004 was only eight percent (p.57). Obviously they’re heading in the right direction, up. But when I was looking at the numbers for their Media Networks section, nothing seemed unusual or different from the previous year. The eleven percent increase to revenue of $14,638 million is close to the twelve percent increase last year (p.59). The increase specifically from cable networks (as opposed to broadcast television) was ten percent, whereas last year’s revenues increased by thirteen percent (p.60). At least when looking at the numbers, it doesn’t look like the cable networks experienced any sort of huge jump from previous years.
The note about Disney’s purchase of Pixar, however, shared some relevant insight into the company’s philosophy of the nature of feature animated films: “Disney believes that the creation of high quality feature animation is a key driver of success across many of its businesses and provides content useful across a variety of traditional and new platforms throughout the world.” (p.83) Not only do they consider feature animation important in its own right, but they see the multitude of possibilities that it creates in their other markets. Disney is already used to the idea of cross marketing, because they’ve existed across so many different forms of media for a long time already. I’m glad to see that they’re sticking to tradition in putting feature animation at the top of their priorities, because it has been proven to be their most successful endeavor as well as a valuable fuel for the rest of their departments.
Note: Page numbers are based on the print version of the Annual Report. To download a PDF copy, click on the tab labeled “Financials.”
tagged Disney_Channel animation cross-platform_marketing disney feature_animation high_school_musical movie_musicals television
by mjyasner
...on 13-MAR-07