The world of entertainment has been steadily
transforming as audience behaviors evolve,
content consumption habits change, and the old
gives way to the new. If one brand, however, has
demonstrated an ability to remain resilient over
the years in the face of change, it is Disney.
The
company that launched on the shoulders of one
little mouse has expanded to include five key
groups: Media Networks, Parks and Resorts,
Studio Entertainment, Consumer Products, and
Interactive Media. While each division has seen
its own share of turmoil, with executive shifts
and box office disappointments in the past year,
Disney continues to march forward, albeit
without a strong vision for its brand. Disney has
reported solid earnings this year, driven by
growth across all divisions, but it’s worth noting
that while the Disney Channel is still a top-rated
cable network in the US, recently surpassing
Nickelodeon, it’s a small value contributor
overall. Disney’s performance in the film
business has improved since last year, but was
driven largely by the success of a single film:
The Avengers. Disney is working to leverage this
franchise, which includes plans for an Avengers
sequel, and is also planning to launch 3D versions
of popular hits like Finding Nemo as well as a slew
of films based on Marvel characters like Iron Man
and Thor.
Despite the slow economic recovery,
Disney’s parks and resorts, which comprise a
little over 10% of Disney’s value, saw a rise in
attendance and guest spending. Overall, Disney
looks healthy financially and shows signs of
future success in the movie business, but the
strength of the Disney brand itself seems to be
gradually eroding. Since the company’s animation
renaissance in the 1990s, the flow of original
content has ceased in favor of franchises and
areas of business that do not originate from
Disney’s own creative fount.
To thrive in the long
term, Disney must rediscover its core as a global
entertainment powerhouse — and reclaim its
standing as one of the world’s great innovators.
Few companies have a heritage so rich, meaningful
and worthwhile to millions of people of all
ages and backgrounds around the world. That is
not something to be squandered; it is something
to build upon.