Part of my studies for my 'Master of Creative Enterprise' in the subject 'Applied Communication Arts' (Mass Media)

1. The current value and scope of
Disney media interests
EDED20476 Applied Communication Arts
Assignment 1 Term Three 2013
Robert Puffett S0228769

2. The Walt Disney Company (NYSE: DIS)
Current Stock Quote (08/12/13): $71.184 USD
Shares Outstanding (Total Shares): 1.76 billion
Market Capitalisation (Company value): $125.58 billion
http://quotes.wsj.com/DIS
A diversified worldwide entertainment company, the
Walt Disney Company (Disney), along with its
subsidiaries, operate in 5 business segments.
1.Media Networks
2.Parks and Resorts
3.Studio Entertainment
4.Consumer Products
5.Interactive
(The Walt Disney Company 2013)
Walt & older brother Roy O. Disney

3. Disney Media Interests
Oxford Dictionary ‘Media’ definition - the main means of mass communication
(television, radio, and newspapers) regarded collectively.
The definition for this assignment – The Oxford dictionary definition plus publishing
(music, print and online) and Studio Entertainment (including theatrical productions
and music recording), as well as Interactive games and online platforms.
Disney media interests are mainly concentrated in the Media Networks and Studio
Entertainment segments, though many forms of media cross most of the segments.
The only segment not directly included in the revised definition of media is Parks and
Resorts, yet these venues may have live shows as part of their daily operations that
could qualify as media under the revised definition.
Please note in regards to publishing, this was part of Studio Entertainment, as Disney
Music Publishing part of the Disney Music Group. Publishing was also part of the
Consumer Products segment as Disney Publishing Worldwide.

4. The Disney Empire
“The Walt Disney Company's objective is to be one of the world's leading producers
and providers of entertainment and information, using its portfolio of brands to
differentiate its content, services and consumer products. The company's primary
financial goals are to maximize earnings and cash flow, and to allocate capital toward
growth initiatives that will drive long-term shareholder value.” (The Walt Disney
Company 2013)
“I have always believed that the creative process must be contained in what we call
‘the financial box’ – financial parameters that creative people can work in – but the
box is tight, controlled and responsible. Finance has the key to the box.” Michael
Eisner (cited in Wasko 2001)
“Disney is a business. As a business we are accountable to our stockholders to
produce a profit. But in order to make money, we have to get the public to consume
our product. And once we do that, we have to invest our money wisely to maintain
our business.” The Disney University Handbook (cited in Wasko 2001)

5. The Disney Universe
“the Disney company has created a self-contained universe which presents consistently
recognisable values through recurring characters and familiar repetitive themes…Disney is
most often accepted with unqualified approval, and even reverence, by the American
public. Many feel that the Disney company is somehow unique and different from other
corporations, and it’s products seen as innocent and pleasurable.” (Wasko 2001)
Brand
film
Television
Publishing
Theme
parksMusic
The internet
Merchandising
Brand can be exploited and
strengthened through
synergy or cross-
promotional activities. If
we think of the brand e.g.
The Lion King, The
Avengers etc. at the centre
of a wheel and then each
of the spokes (film,
broadcast and cable
television, publishing,
theme parks, music, the
internet and
merchandising) as a stream
of revenue.

6. Media Networks
The Media Networks segment
includes
1. International and domestic
cable television networks
2. A domestic broadcast
television network
3. Television production
operations
4. Domestic and international
television distribution
5. Domestic television stations
6. Domestic broadcast radio
networks and stations
7. Publishing and digital
operations
(The Walt Disney Company 2013)
John D. Skipper
Co-Chairman
Disney Media
Networks
President
ESPN Inc.
George W.
Bodenheimer
Executive Chairman
ESPN Inc.
Anne M. Sweeney
Co-Chairman
Disney Media
Networks
President
Disney/ABC Television
Group

7. International and domestic cable television networks
The Cable networks group is involved in program production, as well as the acquisition
of rights from third-parties, to air programs on Disney networks.
Other cable and broadcast programming services include interests in joint ventures.
Cable Television Networks include:
• ESPN
• Disney
• ABC Family
• SOAPnet
• UTV/Bindass (India)
• AETN
The majority of revenues come from fees for the delivery rights to the customers of
cable, satellite and telecommunications service providers.
For networks owned by Disney, revenue is generated primarily by the sale of time to
advertisers, for commercial announcements during network programs.
(The Walt Disney Company 2013)

8. ESPN
Operating eight 24-hour U.S. domestic television sports networks, as well as five HD television simulcast
services and programming the sports schedule on the ABC television network, it also owns 27
international sports networks reaching 190 countries and territories in 11 languages. ESPN also has equity
interests in Canadian and Asian television networks.
ESPN holds the programming rights for the U.S. National Football League (NFL), the National Basketball
Association (NBA), Major League Baseball (MLB), NASCAR, Wimbledon, U.S. Open Tennis and the Masters
golf tournament
ESPN also owns and operates various websites, a radio network, magazines and licensing operations
Disney Channels Worldwide
Operating in 167 countries and territories and in 35 languages, it is a portfolio of over 100 entertainment
channels and/or channel feeds. These channels include Radio Disney and the Disney Channel.
Programming is available online, as well as through subscription and video-on-demand services
ABC Family
Targeting viewers in the 14-34 demographic, it is a U.S. television programming service that produces
original live-action programmes.
SOAPnet
SOAPnet offers same-day episodes of daytime dramas and classic episodes of daytime dramas and
primetime series.
UTV/Bindass
Disney owns 99% of UTV which operates 5 cable television channels in India as well as theatrical and
television production, distribution and interactive game development businesses.
AETN
Owning 50%, the A&E Television Networks operates various cable programming services. These include
original movies, dramatic series, justice shows, reality series, non-fiction series, biographies, world culture
and history programs and women’s lifestyle programming.
(The Walt Disney Company 2013)

9. Cable Network Estimated U.S. subscribers millions (1) Ownership %
ESPN (2)
ESPN
ESPN2
ESPNEWS
ESPN Classic
ESPNU
98
98
74
31
73
80
80
80
80
80
Disney Channels Worldwide
Disney Channel – Domestic
Disney Channels – International (3)
Disney Junior – Domestic (3)
Disney Junior – International (3)
Disney XD – Domestic
Disney XD – International (3)
98
155
52
73
80
95
100
100
100
100
100
100
ABC Family 97 100
SOAPnet 66 100
A&E Television Networks (AETN) (2)
A&E
Lifetime
HISTORY
LMN
BIO
H2
Lifetime Real Women (3)
98
98
98
84
69
68
16
50
50
50
50
50
50
50
(1) Estimated United States (U.S.) subscriber counts according to Nielsen Media Research as of September 2012, except
as noted below
(2) ESPN and AETN programming is distributed internationally through other networks
(3) Subscriber counts are not rated by Nielsen Media Research and are based on internal management reports

10. A domestic broadcast television network
Operator of the television network ABC, and reaching 99% of U.S. television
households, Disney has affiliation agreements with 239 local television stations.
Unlike the cable networks group, the majority of revenue generated by ABC is derived
from the sale of advertising time for commercial announcements in network
programs. (The Walt Disney Company 2013)
• Grey’s Anatomy
the top-rated
broadcast
television
drama.
• Modern Family
the no. 1
comedy on U.S.
television

11. Television production operations
Produced under the ABC studios label, programs are developed and focus is on half hour
comedies and one hour dramas, mainly for primetime broadcast.
Other formats include daytime and night-time talk shows, primetime specials, live-action,
and news programming. (The Walt Disney Company 2013)
Television
distribution
Productions are
distributed globally
in both DVD and
Blu-ray formats, for
pay and syndication
markets, as well as
online. The
distribution groups
also distribute
programming from
the cable networks.

12. Domestic television stations
Six of the eight television stations owned by Disney are situated in the top-ten markets
of the U.S. and like its ABC television network, revenue is primarily derived from
advertising.
All are, of course, affiliated with the ABC network, together reaching 23% of households
with televisions.
Three digital channels
Each owned station broadcasts three digital
channels.
1. Local, ABC, and syndicated programming
2. The Live Well network in standard
definition
3. The Live Well network in high definition
The Live Well network, through owned
stations and affiliates, is available to 64% of
households in the U.S.
(The Walt Disney Company 2013)

13. Domestic broadcast radio networks
and stations
Disney operates the Radio Disney Network and the ESPN Radio Network, and along with the
ABC network, have affiliated radio stations covering households across the U.S.
(The Walt Disney Company 2013)
Radio Disney
Available 24/7 on 31 domestic radio
stations, it is aimed at kids, tweens and
families.
Radio Disney is also available via satellite
radio, as well as online at
RadioDisney.com, and through iTunes,
Facebook and mobile phones.
Disney also operates 12 Radio Disney
stations in South America.
ESPN Radio Network
Including 4 ESPN owned radio stations
in Los Angeles, New York, Chicago and
Dallas, the ESPN network is carried on
more than 350 stations.
This makes it one of the largest sports
radio networks in the U.S.

14. Publishing and digital operations
Disney Music Publishing
Responsible for the management, protection
and licensing of the Disney song catalogue
across the globe. Disney Music Publishing has
copyright control of thousands of musical
compositions found throughout the company’s
motion picture, television, record and theme
park operations. It also includes compositions
written under exclusive contract.
Disney Publishing Worldwide (DPW)
Based on the Disney, Pixar and Marvel branded
franchises, DPW is responsible for the creation,
publication, licensing and distribution of children’s
books, magazines and digital products in
languages and countries worldwide. Digital
products include e-books and apps for mobile
devices. DPW also operates Disney English,
through Disney stories in 43 centres across 10
cities in China, it is focussed on curriculum
development to aid Chinese children learning
English. (The Walt Disney Company 2013)

15. Marvel Publishing Marvel Publishing
When Disney purchased Marvel
Entertainment Inc. for $4.2b in late 2009 it
added many profitable titles to its library
including Spiderman, Iron Man, The
Avengers, X-Men, The Incredible Hulk,
Captain America and Thor.
Marvel publishing was part of that
acquisition, it is the arm that creates and
publishes comic books and graphic novels,
both in print and digital format, mainly in
North America. It is also responsible for the
licensing rights to publish translated
versions of its products primarily in Europe
and Latin America. (The Walt Disney
Company 2013)

16. Studio Entertainment
Disney both produces and acquires live-action and animated motion pictures, along with live
stage plays, musical recordings and direct-to-video content. These productions are
distributed in the theatrical, home entertainment and television markets under the Walt
Disney, Pixar and Marvel banners. Production and distribution worldwide of Indian movies is
through the UTV banner.
Disney also has an agreement to distribute live-action motion pictures produced by
DreamWorks Studios under its Touchstone Pictures banner. (The Walt Disney Company
2013)

17. Disney Music Group
The Disney Music Group includes Walt Disney Records, Hollywood Records, Lyric Street
Records, Buena Vista Concerts and Disney Music Publishing.
Walt Disney Records produces and distributes compact discs and music DVDs in the U.S. and
licenses music properties throughout the world.
Music categories include infant, children’s read-along, teens, all-family and soundtracks from
film and television series distributed by Walt Disney Pictures and Disney Channel.
Hollywood Records develops, produces and markets recordings from talent across a
spectrum of popular music. (The Walt Disney Company 2013)
Disney Theatrical Productions
Producing and licensing Broadway musicals around the world, which include Beauty and
the Beast and The Lion King, Disney Theatrical Productions develops, produces and
licenses live entertainment events.
Disney Theatrical Productions also delivers live shows globally through its license to Feld
Entertainment, which produces Disney On Ice and Disney Live.
Additionally, the Company licenses musicals for local, school and community theatre
productions globally through Music Theatre International. (The Walt Disney Company
2013)

18. Interactive
The Interactive segment creates and
delivers branded entertainment and
lifestyle content across interactive
media platforms.
The primary operating businesses of
Interactive are Interactive Games,
which produces multi-platform games
for global distribution, and Interactive
Media, which develops branded online
services. Interactive derives revenues
from a combination of wholesale sales,
licensing, advertising, sponsorships,
subscription services and in-game
accessories (micro transactions).
Interactive also manages the
Company’s Disney-branded mobile
phone business in Japan which
provides mobile phone service and
content to consumers. (The Walt
Disney Company 2013)

19. Business Segment Results (in millions)
Revenues:
Media Networks
Parks and Resorts
Studio Entertainment
Consumer Products
Interactive
Total Revenues
Segment operating income
(loss):
Media Networks
Parks and Resorts
Studio Entertainment
Consumer Products
Interactive
Total Operating Income (loss)
2012
$ 19,436
12,920
5,825
3,252
845
$ 42,278
2012
$ 6,619
1,902
722
937
(216 )
$ 9,964
% Change
Better/
(Worse)
2012 vs. 2011
4%
10%
(8)%
7%
(14)%
3%
8%
22%
17%
15%
30%
13%
As can be seen from the
table, totals revenues for
2012 were approximately
$42.3b USD, an increase of
3% on the previous year.
Operating income (Gross
income less operating
expenses and depreciation)
improved 13% compared
with 2011.
A noticeable loss was in the
Interactive segment of
$216m USD, though this
was a 30% improvement on
the previous year.
(The Walt Disney Company
2013)

20. The Evil Empire?
Disney’s corporate reach – “Like many other megacorporations, its focus is on popular
culture, and it continually expands its reach…It actively appeals to both parental concerns
and children’s fantasies as it works hard to transform every child into a lifetime consumer of
Disney products and ideas. A contradiction emerges between Disney’s cutthroat
commercial ethos and the Disney culture, which presents itself as a paragon of virtue and
childlike innocence.” (Giroux 1999)
Michael Eisner, the previous CEO, has suggested that the profound effect of American
entertainment as an educational and political force, played a role in the fall of communism
in Eastern Europe at the end of the 20th Century, “The Berlin Wall was destroyed not by the
force of western arms but by the force of western ideas. And what was the delivery system
for those ideas? It has to admitted that to an important degree it was by American
entertainment.” (cited in Giroux 1999)
Though Eisner contradicts himself by refusing to acknowledge the role that Disney plays in
shaping children’s lives and society as a consequence. That Disney creates a certain moral
order to enhance it’s commercial interests, that is in stark contrast to the realities of life.
(Giroux 1999)

21. The world as a toy store
Giroux argues that, “Disney promotes cultural homogeneity and political conformity,
waging a battle against individuals and groups who believe that central to democratic public
life is the necessity of democratizing cultural institutions.”
The influence of Disney on the world cultural landscape is where, “choice is about
consumption, justice is rarely the outcome of social struggles, and history is framed
nostalgically”. It is a world where the preferred government of monarchy relaces
democracy, people of colour are cast in lesser roles and gender is clearly divided and
stereotyped. These pedagogical assaults unfortunately take place on the most defenceless –
children. (Giroux 1999)
Many, including this author, believe that media giants such as Disney, must be challenged
on their role, “in producing ideologically loaded fantasies aimed at teaching children
selective roles, values, and cultural ideals.” (Giroux 1999)
Challenging the ideological construction of the Disney universe is the first step in
understanding the effect of corporate power on the relationship between entertainment
and education, as well as institutional power and cultural politics, so we can put society
before profits where we educate for critical knowledge, and where democracy is for the
benefit of all.

22. Bibliography
Flower, J 1991, Prince of the Magic Kingdom: Michael Eisner and the Re-Making of Disney,
John Wiley & Sons, Inc., New York U.S.A.
Giroux, H 1999, The Mouse That Roared: Disney and the End of Innocence, Rowman &
Littlefield Publishers, Inc., Lanham U.S.A.
Stewart, J 2005, Disney War, Simon & Schuster, New York U.S.A.
The Walt Disney Company 2012, Fact Book 2012, The Walt Disney Company, U.S.A.
The Walt Disney Company 2013, Fiscal Year 2012 Annual Financial Report And Shareholder
Letter, The Walt Disney Company, U.S.A.
Wasko, J 2001, Understanding Disney: The Manufacture of Fantasy, Polity Press, Cambridge
U.K.