When I first began researching Disney’s potential as a monopoly I had to laugh because of course the board game “Monopoly,” had a Disney edition that would flood my searches. This fact alone is yet another example of how impactful and far fetching the reach of Disney truly is. It is no doubt that if Disney has monopolized the industry, it has earned this position. Although monopoly comes with a negative connotation, Disney does not appear to have acquired its power in a malicious manner. In fact, many on Wall Street feel that Disney is notorious for overpaying for mergers like Pixar and Lucasfilm.
Disney offered the first full length color animated film, Snow White and the Seven Dwarfs in 1937. It alone has earned close to $200 million since its release. In addition, Disney has redefined the theme park industry adding a magical and narrative emphasis to its amusements. Opening in 1955, Disneyland is recognized as the first “theme park,” rather than amusement park. Disney is also the most expansive researching Marvel Comics and all ABC Networks.
Disney is currently beating Time Warner and Viacom as the largest media company in the world. Yet, is this a point to come with concern or celebration? If not Disney, wouldn’t another company take over? Isn’t the fact that there are three in close competition companies proof Disney does not have a monopoly on the entertainment and media world? Many feel that Disney, with terms I’ve already discussed like “Disneyization,” has sterilized and formatted animated films and entertainment. Some consider the company as manipulative of mass media, harming a free thinking society. However, Disney hold a wholesome image, if one company is to be in power, why not one of happily ever afters?
The debate of Disney as a monopoly is muddled with bias in my mind. Disney is so innocently embedded and weaved into my thoughts of childhood. I have fond memories of waiting in the snow for the premiere of Toy Story, of the joy I felt when I stepped on Disney ground for the first time and even have pictures dressed in a Princess Jasmine nightgown when I was three. Just last year I visited Disneyland Paris during my time abroad and felt that same rush of magic. Disney essentially sells dreams; they sell the warm, fuzzy sensation of requited love, peace and escape. It is for this reason I struggle with removing positive views of them in order to look at them critically. I found attempts by the anti Disney Mouse Liberation Front to be frivolous, and extreme. I do think Disney is powerful, perhaps together with Viacom and Time Warner share a monopoly, but with a lacking of poor practice in my research this comes to me as respect. Or, perhaps their influence is so strong on the media that there are no strong criticisms released?
Works Cited
“Walt Disney News.” The New York Times. Accessed November 14, 2013. http://topics.nytimes.com/top/reference/timestopics/people/d/walt_disney/
Disney has become a diverse and powerful company since its inception nearly half a decade ago. They now own and operate not only theme parks, but also various movie studios, cruise ships, product factories and the entire ABC Network. Contrary to popular belief behind major motion pictures, Disney’s cable networks are a strong factor in their earnings. In fact, according to Forbes, cable networks owned by Disney are responsible for nearly 57% of the company’s total operating income (Forbes 2012). ESPN perhaps provides the most powerful punch of profit, which when combined with the revenue of Disney Channel generates more profit than everything else Disney offers combined.
Disney purchased ABC (and Capital Cities) back in 1996 for close to $20 billion. That purchase was the second largest merger in United States history, according to Forbes. Former Disney CEO Michael Eisner spoke to the New York Times regarding the merger and acquisition of ESPN stating, “We know that when we lay Mickey Mouse of Goofy on top of products, we get pretty creative stuff. ESPN has the potential to be that kind of brand. ABC has never had our resources, and we haven’t had ESPN. Put the two together and who knows what we get.” He was right, the merger immensely expanded ESPN to the point that it became a powerhouse profit maker for Disney.
Currently ESPN has a second network ESPN2, one dedicated to college sports entitled ESPNU and even has a magazine ESPN The Magazine. Disneyland theme parks now feature restaurants that offer video games and activities such as rock climbing in a chain called ESPN Zone. However, there is still room for improvement. There has yet to be a real, strong successful integration of ESPN into Disney’s parks or products. ESPN Zone restaurants were really only successful when located on park grounds at their Anaheim location. Disney as a whole is worth close to $85 billion, with ESPN ranging in at $40 billion. The value of sports on television continues to increase, with ESPN on the forefront.
Works Cited
The above is the official trailer for one of Pixar’s most recently released films Monster’s University. It follows as a prequel to their film Monsters Inc., which was very successful and since 2006 has even become a ride in Disneyland’s California Adventure.
Disney bought Pixar in a $7.4 billion deal back in 2006. The Pixar Studio was at that time led by deceased Apple co founder Steven Jobs. Jobs discussed the merger saying, “Disney and Pixar can now collaborate without the barriers that come from two different companies with two different sets of shareholders” Jobs added, “Now, everyone can focus on what is most important, creating innovative stories, characters and films that delight millions of people around the world.” Under this deal, Jobs also became a board member of Disney. The creative director at Pixar had previously worked at Disney.
Disney CEO Robert Iger remarked on the merger as well stating, “The addition of Pixar significantly enhances Disney animation, which is a critical creative engine for driving growth across our businesses.” Pixar has never released a film flop as far as box office records are concerned. With Pixar, Disney now has the opportunity to expand its computer generated animated movies. Former Disney CEO Michael Eisner had a strained relationship with Jobs, thus this merger was not possible before Iger assumed the position.
Pixar, with distribution provided by Disney even before 2006, had explored a mastered an element of the entertainment world. Although Disney, with film such as Stuart Little, has produced its own computer generated films. However, its success has not been at the same level as those films of Pixar. By 2006, its films had grossed nearly $4 billion alone. With Disney’s acquisition of Pixar, yet again critics are weary of the possibility of a monopoly. Although other theme parks such as Six Flaggs, and other companies such as Dreamworks, try to contend with Disney, the fact is Disney has and may very well always be an entertainment supergiant.
Kathleen Kennedy, co-chairwoman of Lucasfilm, states, “I don’t think we could be at a better home.” George Lucas follows with this saying, “We are doing this so that the films have a longer life.” Although both seem to support the merger, which is quite the contrast to relations with Marvel, to many it seems to represent a corporate takeover by Disney. Many accuse Disney of trying to monopolize the animated and entertainment industry.
Disney purchased Lucasfilm, George Lucas’s company which is responsible for the Star Wars franchise and blockbuster sensations, for $4 billion dollars. Lucas receives 40 million Disney shares thanks to the deal, making him the second largest non institutional shareholder of Disney according to Bloomberg News. His share is second only to deceased Apple co founder Steve Jobs (USA Today). Lucas, who mentioned in the above videos he plans to still be somewhat involved in the creative process of future Star Wars films, claims he plans to retire. Disney CEO Robert Iger stated, “This is one of the great entertainment properties of all time, one to the best branded and one of the most valuable, and it’s just fantastic for us to have the opportunity to both buy it, run it and grow it.”
This deal is the fourth largest ever for Disney, following ABC/Capital Cities, Pixar and Fox Family. It is a larger deal than that with Marvel in fact. Kathleen Kennedy, co-chairman of Lucasfilm, will report to Walt Disney Studios Chairman Alan Horn. Kennedy, who produced Schindler’s List and War Horse, will become the new studio president and be executive producer on the new films (USA Today).
Works Cited
Alexander, Bryan, Marco Della Cava, Matt Krantz and Mike Snider. “Disney Buys Lucasfilm for $4 billion.” USA Today. Accessed November 2, 2013.
Happily Never After 