Sunday, June 1, 2014

The Economy - Disney Corporation

Now that I have a son who works at Disneyland in Southern California, I am paying a bit more attention to how well the Disney Corporation is doing. Disney is on track to earn $48 billion this year. Disney parks and resorts are the largest chunk of the business and with ticket price increases, that part will probably grow in the future. Attendance at Disneyland is strong inspite of the rise in ticket prices, so I expect revenue (and profits) to grow. I was surprised to learn that ESPN is such a large portion of the revenue stream for Disney. It is the second largest portion of income after the parks and resorts. I did not realize that sports made so much money. The rest of Disney's income comes from it's movie studio, it's cable tv channel, it's products and interactive media division, and from ABC television. I was expecting Disney to make much more income from ABC and it's movie studio, but it does not. The parks and ESPN make much more. Go figure? So from my perspective, Disney looks healthy and it has a well rounded business that should do well into the future. That's good news for my son!

What do you think?

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