Disney+ had 164.2 million subscribers in 2022, compared to over 118 million in 2021 and 73.7 million in 2020.
Key Highlights
1. Diverse Revenue Streams: Disney’s business model is built on a diversified portfolio that includes theme parks, media networks, movie studios, merchandise, and streaming services. This diversification helps mitigate risks associated with fluctuations in individual segments.
2. Iconic Intellectual Property (IP): Disney’s extensive library of IP, including beloved characters like Mickey Mouse and franchises like Star Wars and Marvel, forms the foundation of its businessmodel. These assets drive content creation, theme park attractions, and merchandise sales.
3. Content Creation and Monetization: Disney produces a wide range of content, from movies and TV shows to original content for its streaming platform, Disney+. The success of Disney’s content is evident from its rapidly growing subscriber base, reaching 164.2 million in 2022, reflecting the shift towards streaming services.
4. Theme Parks and Experiences: Disney operates 11 theme parks worldwide, offering immersive experiences for visitors. These parks generate substantial revenue through ticket sales, merchandise, food, and accommodation.
5. Merchandise Licensing: Disney’s popular characters and franchises are licensed for a wide array of merchandise, from toys and apparel to consumer products. This extends the reach of its IP and generates additional income.
6. Streaming Service Expansion: Disney’s streaming platform, Disney+, has seen explosive growth in subscribers, reaching 164.2 million in 2022. This digital transformation represents a significant opportunity for Disney to expand its content distribution and monetization.
7. Synergy across Segments: Disney leverages synergy among its various segments. For example, content produced by studios can be used in theme park attractions, and merchandise can feature characters from the latest movies and TV series.
8. Global Reach and Universal Appeal: Disney’s content features universal themes and appeals to audiences worldwide. This global reach ensures a broad and diverse customer base.
9. Acquisition Strategy: Disney strategically acquires companies and assets to expand its portfolio. For instance, the acquisition of 21st Century Fox and Hulu contributed to its content and streaming offerings.
10. Customer Loyalty: Disney has a loyal fan base that spans generations. Its ability to create enduring emotional connections with consumers fosters repeat business and brand loyalty.
11. Future Growth Potential: Disney’s focus on streaming, international expansion, and leveraging its IP suggests strong growth potential. The rapid increase in Disney+ subscribers demonstrates the company’s ability to adapt to changing consumer preferences and technologies. However, Disney’s aggressive strategy to keep up and be competitive with other streaming players like Netflix it has also posed substantial financial and management pressure within the company.
Disney’s main shareholders include Robert A. Iger, chief executive officer (CEO) of The Walt Disney Company between 2005-2020 and he returned as CEO by 2022. Other significant individual shareholders, as of 2022, comprise Susan E. Arnold, Christine M. McCarthy, and Alan N. Braverman. Main institutional investors include Blackrock Inc. with 6.4% and The Vanguard Group with 8%, respectively.
It would be hard to argue for a more recognizable entertainment brand than Disney. Disney is, of course, synonymous with Walt Disney, but it was Walt and his brother Roy who started the company in 1923 in Burbank, California. Disney content is now broadcast on over 100 channels in 34 different languages across the globe.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
