The Walt Disney Company ( DIS) built itself an expansive empire in the 1920s which resulted in a broad range of products that are lucrative in several markets. The largest multi-media conglomerate worldwide, Disney is best known for its TV and film productions as well as theme parks. The television arm of the company runs it’s ABC TV network which has eight broadcasting stations owned and operated by the company, as well as more than 240 affiliates, along with a variety of cable channels, including Freeform, Disney Channel, and ESPN.
Walt Disney Pictures, Disney Animation and Pixar make film that are produced for Walt Disney Studios, and Disney also owns Marvel Entertainment and Lucasfilm, which are massive money-making cows for the company, particularly in the movie and merchandise markets. It also operates within the travel industrythrough Disney Cruise Lines. Disney Cruise lines. The company also has expanded its involvement in themes parks to include more than those of the U.S.-based Walt Disney World and Disneyland to include other theme parks around the globe. 2
In this piece we analyze the business and focus on its structure, business units as well as the main disney competitors .
Disney’s Business Model
Walt Disney has historically been associated with classic animated films like Cinderella, Snow White, and Bambi and, perhaps most significantly people like Mickey as well as Minnie Mouse Donald Duck, and Goofy. However, its reach doesn’t stop there. As mentioned above, Disney is a well-diversified company that is involved in production of films and television, travel and tourism as well as theme parks.
The financial results on November 20, 2021. The company had a revenue of $$67.14 billion, which is up from $65.39 billion by 2020. This is a 3 percent rise, due to the growth in subscribers of its streaming offerings.
In the year 2018, the business underwent the process of strategic overhaul that resulted in the creation of four distinct businesses. 4 These companies were later reorganized in order into two main divisions as well as four groups of content. 5 More information about these is listed below.
Parks, Experiences and Products
This division is comprised of many theme parks around the world including water parks, theme parks, and resorts located in the United States, Europe, and Asia. Disney’s cruise line operations that were launched in 1998, are part of the unit. This division earns the majority of its revenue from theme and water park tickets and related amenities. Resort stays, merchandise and the licences for the business’s Intellectual Property (IP) can be important revenue sources.
The Parks, Experiences and Products segment earned total revenues of around $16.55 billion in the 2021 fiscal year. This was a 3 percent decrease from the year before which saw it earn around $17.04 billion. Disney explained the decrease to the constant challenges caused by COVID-19. COVID-19 pandemic.
Media and Entertainment Distribution
Disney has merged all of its entertainment and media brand names under its Media & Entertainment Distribution banner. It houses Disney’s international operations as well as a number of direct-to-consumer streaming platforms, which include Disney+ and Hulu in which Disney holds a majority share. This means that it blends media distribution, advertising as well as technology in one.
It was in the year 2020 that they declared the unit would be split into several content groups, which include:
- StudiosThis category of content is composed comprising Walt Disney Studios, Walt Disney Animation, Pixar, Marvel Studios, Lucasfilm, 20th Century Studios, and Searchlight Pictures. Together, they create what Disney calls “theatrical as well as episodic material” for Disney’s streaming platforms.
- General EntertainmentThis section of the content team is responsible for creating content in long-form to be used on the streaming platform of the firm. It includes properties such as 20th Television, ABC Signature along with Touchstone Television. It also includes ABC News, the family of Disney Channels, Freeform, FX, and National Geographic.
- SportsThis section contains sporting news and information, as well as live shows on ESPN, ESPN+, ABC and other cable channels.
In 2021 the Disney Media & Entertainment Distribution unit generated revenue of around $50.87 billion. This is an increase by 5% over the year 2020 when it raked in $48.35 billion in revenues. This increase was due to more advertising revenue generated by live sporting events,
Disney’s Competitors
As we mentioned, Disney is a fairly diverse company. Its reach goes beyond entertainment, and includes tourism and travel theme parks, travel and tourism, consumer products , among others. If you’re looking to take an overview of the top competitors you should probably have an excellent idea to examine them in relation to the business division. We’ve listed some of the biggest ones below.
Film and Television
As we’ve mentioned, Disney is a key actor in the television and film business, producing films as well as TV shows. Its owned and operated stations in a few of the largest U.S. metropolitan centers produce local news and programs in addition. These are some of the major rivals in this field:
Comcast (CMCSA): Comcast is another company with a diverse portfolio which has its hands in numerous pots. Its television studio and film unit includes major brands like Universal, DreamWorks, and Universal Television. It also owns NBCUniversal that includes a number that is operated and owned by the company. TV stations that operate under the NBC banner, as in CNBC, MSNBC, and Telemundo.
The studios division reported a earnings of approximately $9.5 billion in 2021. Meanwhile, the media division earned around $22.8 billion.
Sony Motion Picture: Sony’s motion picture group comprises several properties that include Sony Pictures, Columbia Pictures, Screen Gems, and TriStar Pictures. Sony Pictures Television is the company’s Sony Pictures Television is a important producer and distributor of television, with JVs (JVs) around the globe.
The company releases its full-year results in April or May every year. Net earnings in the 3rd quarter 2021 amounted around $1.3 billion due, partly due to Spiderman.
Streaming Services
Disney introduced the streaming platform in the year of 2019 it combines all the original Disney content that includes animated TV and film series along with other content that come from Marvel, Pixar, National Geographic, Star, and Star Wars. It continues to develop as well as distribute its own original material via the platform.
The service is available across more than 50 countries and plans are to roll out in additional markets.
Members can select either a monthly or an annual membership that is charged directly to a credit card.
Netflix (NFLX) is the streaming giant’s history dates back to 1997, when the company’s founders began a DVD-by-mail rental service. The company concluded its initial public offer (IPO) at the end of 2002 for $1.50 per share. After the decline in demand for DVDs Netflix changed its focus to streaming in 2007 and currently streaming movies and TV shows across the globe with over 200 million subscribers. Additionally, it produces original content that is accessible through its digital and online platforms.
Netflix announced a revenue of $30 billion in 2021.
Amazon Prime Video (AMZN) The e-commerce company began streaming films and TV to members of its Prime membership in 2006. As with Netflix as well as Disney, Amazon also produces original content, which is made available directly via Prime Video. Prime members can also purchase or rent content – the charges are directly to the card that is associated with the Prime membership.
Amazon has more than 200 million Prime customers across the globe. The revenue of Amazon for 2021 stood at $469.8 billion, including Prime.
Theme Parks
Disney owns and runs four theme parks of major importance that include the two well-known Magic Kingdom Park and Epcot and two sports and water-related parks within the United States. In addition, there are the other parks around the world that it manages, which include parks located in Europe as well as Asia. With twelve theme parks in the world, Disney is a leader in the business of theme parks. But that doesn’t mean that it does not have competition.
The theme parks of Disney are the main rivals
Six Flags Entertainment (SIX) The biggest theme park operator and the largest operator of water parks within North America owns and operates 27 theme parks as well as water parks throughout North America.
In November of 2019, Six Flags announced plans to launch a New park within the Middle East with Six Flags Qiddiya that will be situated within Riyadh, Saudi Arabia.
The 2021 fiscal year, firm made around $1.5 million in sales.
Cedar Fair (FUN): The Cedar Fair theme park has 17 locations across Canada as well as in the United States, Cedar Fair has earned $1.34 billion in 2021.
Cedar Fair also has two facilities for athletes as well as 11 resorts.
Universal Studios: Although it isn’t as full of attractions and parks as other ones listed, Universal still packs a massive punch due to the success associated with The Harry Potter books and movies. The themed parks have helped increase the number of visitors to Universal’s five locations across Asia, the U.S. and Asia.
As a subsidiary of Comcast the company, it made $5 billion in revenue by 2021.
Travel
The first Disney cruise ship began sailing in 1998. The cruise ship’s family-friendly nature helped “high margins and double-digit returns on capital invested.”
The company has expanded its fleet to consist of five cruise ships that travel to a range of destinations which include Europe, Alaska, Hawaii Caribbean, Alaska, Hawaii and Europe.
Here are a few of the firm’s toughest competitors in the industry of cruise lines.
Royal Caribbean (RCL): It was established in 1969. Royal Caribbean offers some of the most exciting experiences available on its fleet, such as rock climbing, ice skating and surfing.
This company travels to over 300 destinations aboard the 26 vessels.
The total revenue of RCL was $1.53 billion in the fiscal year 2021.
Carnival (CCL): Carnival Corporation is the owner and operator of several cruise line brands including Carnival, Princess Cruises, and Holland America Line. It has an 87-ship fleet that are docked in more than 700 international destinations. The company is planning to add 16 vessels to its fleet before 2025.
The company posted total revenues of $1.91 billion in 2021.
Norwegian (NCLH): Norwegian was established in the year 1966. The ship flies to over 45 destinations and offers what they call “the freedom-style travel experience.” Instead of binding passengers to a specific schedule, the company lets passengers to eat and enjoy things on their own schedule.
The 2021 fiscal year, firm made a profit in the amount of $0.6 billion.
Entertainment Dominance
Disney’s studio entertainment business is always innovating, and it is apparent in the earnings often proving this. Disney creates a variety of consumer goods that are involved in publishing, licensing, and retail. It is competing with other companies in these fields. But, as per Market Realist, Disney believes it is the world’s largest licensee of character-related merchandise.
Disney was in the news when it announced that it was in negotiations for an agreement to purchase certain assets of 21st Century Fox in March 2019, including its film studio as well as the streaming services Hulu. The intention was to take on Netflix. Its $71.3 billion agreement was signed on March 20, 2019 which makes Disney the largest media giant in the world. 38
The COVID-19 virus ravaged Disney as well as its competitors the theme resorts and parks which slowed attendance and, consequently, the revenue. However, the company has opened the gates of its theme parks throughout the 4th quarter of 2021, but this was not the situation for all Disney sites in the fourth quarter of 2020. As mentioned above, Disney reported revenues of $16.55 billion from their parks, Experiences, as well as its Product segment in 2021. disney competitors
How Does Disney Compete With Competitors?
Disney is a major player in the fields of entertainment, media travel, tourism, and media It is no surprise that its competitors try everything they can to to gain an edge over the competition. One of the primary ways the company is able to stay in the forefront of its competitors is through its brand image. Disney has established a solid and reliable foundation that is apparent in its parks and its TV and film products. For instance it has successfully transferred its name to the cruise industry, specifically targeting families with children advertisements for Disney cruises. Additionally acquisitions, including the streaming service of Hulu, assists in cutting down the market share of its competitors.
How Is Disney Different From Its Competitors?
Disney has taken care to establish a strong brand image, which is what differentiates it from its competitors. It’s true that when folks think about princesses, they are thinking of Disney. The company has also managed to create new and diverse products and utilize its brand’s image to formulate a formula to ensure the success. This has led to a loyal fan and customer base.disney competitors
Who Is Disney’s Biggest Competitor?
The names of Disney’s most formidable rivals depend on the business division. If you’re considering TV and film competitors, they include Universal (which owns Comcast), Sony, Time Warner, and ViacomCBS. Netflix along with Amazon are the main rivals of Disney in the space of streaming services. In the world of theme parks, Six Flags, Cedar Fair and Universal attempt to wrest their market shares from Disney. Tourism and travel companies like Royal Caribbean, Carnival, and Norwegian are among the major disney competitors.
Are Disney and Universal Rivals?
Disney as well as Universal are the two main rivals all-around. Both are large conglomerates that have worldwide presence. They also compete with each other in a variety of areas of business, including production of television and film, as well as themed parks, entertainment and.disney competitors
The Bottom Line
The majority of us immediately think of Mickey Mouse or some of the animated classics whenever we hear the word Disney. However, there’s much more to the company that only fairy tales and cartoons. In reality, Disney is a well-diversified firm that operates in a variety of business areas. It includes theme parks tourism, travel, merchandising and advertising, in addition to production and distribution. Certain of the rivals of the company are taking their cues from the company and are expanding their options, hoping their diverse business strategies will allow them to eat away from the market share of Disney.
