After a record $10 billion revenue surge in 2019, it’s clear that Disney is still the king of the entertainment industry. Disney has been one of the most powerful companies in one of the key sectors of the economy over the last few decades and will continue to be for many years to come despite the challenges it has faced in 2020. It’s not just magic that has kept Disney on top for so long; a strong innovation culture and a series of well-calculated decisions have ensured that Disney will remain relevant and continue to meet customer expectations for many generations to come.
Over the last decade, Disney has been making some pretty bold moves that laid the groundwork for the company to grow into the media giant it is today. It all started with the 2006 $7m4 billion acquisition of Pixar, the largest animation studio at the time. In 2009, Disney bought Marvel for $4 billion, a deal that has paid off many times over thanks to the Avengers franchise. Disney then bought Lucasfilm in 2012 for $4 billion and followed that up with the $2.5 billion acquisition of BAMTech in 2017, laying out the framework for their streaming platforms. The icing on the cake was the 2019 $71 billion acquisition of 21st Century Fox which has cemented Disney’s place as the largest media powerhouse in the world.
Entry into e-commerce
The e-commerce industry has exploded over the last decade, with Jeff Bezos, the founder of Amazon, already the richest man on earth and set to become the first trillionaire ever. People are doing more shopping online and Disney is taking full advantage of that. Disney already has a dedicated e-commerce website where it sells all kinds of branded products including toys, clothing, accessories, gifts, and more. On top of that, the company launched a subscription service to cater for the growing demand. Subscribers get a box full of Disney goodies such as toys, clothing, collectibles, and stickers delivered to their doorstep every month.
With Millenials and younger generations spending most of their time online, streaming services have been hailed as the next big thing in the entertainment industry. While Netflix is currently leading the pack, Disney is not far behind, and many experts predict that it won’t take long for Disney to rise to the top. Disney joined the streaming service industry back in 2007 when it joined hands with NBC Universal and News Corporation to establish Hulu, one of Netflix’s biggest competitors to date. Disney now owns 67 percent of Hulu after getting 30 percent in the 21st Century Fox acquisition and is set to gain full ownership as early as 2024 when Comcast sells the remaining 33 percent to them. In 2017, Disney purchased BAMTech and used its streaming technology to set up and launch Disney Plus in 2019. 10 million users subscribed to Disney Plus on the first day and the number has grown to more than 50 million in July 2020.
The entertainment industry can be extremely tough to make it in, let alone dominate. But, with constant innovation and adaptability to changing times, Disney has managed to get to the top and will continue to prosper well into the future.
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