The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. The company's Media Networks segment operates cable programming services, including the ESPN, Disney channels, and Freeform networks; broadcast businesses, which include the ABC TV Network and eight owned television stations; radio businesses consisting of the ESPN Radio Network; and the Radio Disney network. It also produces and sells original live-action and animated television programming to first-run syndication and other television markets, as well as subscription video on demand services and in home entertainment formats, such as DVD, Blu-Ray, and iTunes. Its Parks and Resorts segment owns and operates the Walt Disney World Resort in Florida and the Disneyland Resort in California. This segment also operates Disney Resort & Spa in Hawaii, Disney Vacation Club, Disney Cruise Line, and Adventures by Disney; and manages Disneyland Paris, Hong Kong Disneyland Resort, and Shanghai Disney Resort, as well as licenses its intellectual property to a third party for the operations of the Tokyo Disney Resort in Japan. The company's Studio Entertainment segment produces and acquires live-action and animated motion pictures for distribution in the theatrical, home entertainment, and television markets primarily under the Walt Disney Pictures, Pixar, Marvel, Lucasfilm, and Touchstone banners. This segment also produces stage plays and musical recordings; licenses and produces live entertainment events; and provides visual and audio effects, and other post-production services. Its Consumer Products & Interactive Media segment licenses its trade names, characters, and visual and literary properties; develops and publishes games for mobile platforms; and sells its products through The Disney Store, DisneyStore.com, and MarvelStore.com, as well as directly to retailers. The company was founded in 1923 and is based in Burbank, California.
Business Analysis of Walt Disney
The Media & Entertainment Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Walt Disney compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Walt Disney to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Walt Disney with an interactive chart.
- Revenue Growth: Walt Disney reported a revenue growth of 6.0% year-on-year during 2016. Broadcasting, Cable, and Filmed Entertainment Industry grew at 4.6% in the same period
- COGS share of Revenues: Walt Disney COGS share of Revenues details are not available because either company does not share the data or we do not have it
- R&D share of Revenues: Walt Disney R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, Walt Disney spent 69.6% of its total revenues on Sales, Marketing, and General Administration (SG&A). Broadcasting, Cable, and Filmed Entertainment industry average SG&A spending in the same period was 43.3%
- Inventory share of Revenues: As a percentage of revenue, Walt Disney spent 2.5% of its total revenues on Inventories. Broadcasting, Cable, and Filmed Entertainment industry average Inventory spending in the same period was 11.2%
- Accounts Payable share of Revenues: As a percentage of revenue, Walt Disney invested 16.4% of its total revenues on Accounts Payable (A/P) Broadcasting, Cable, and Filmed Entertainment industry average Accounts Payable investment in the same period was 10.1%
- Accounts Receivable share of Revenues: As a percentage of revenue, Walt Disney invested 16.3% of its total revenues on Accounts Receivable (A/R). Broadcasting, Cable, and Filmed Entertainment industry average Accounts Receivable investment in the same period was 17.3%
- PP&E share of Revenues: As a percentage of revenue, Walt Disney invested 49.2% of its total revenues on Property, Plants, and Equipments (PP&E). Broadcasting, Cable, and Filmed Entertainment industry average PPE investment in the same period was 29.4%
- Intangibles share of Revenues: As a percentage of revenue, Walt Disney invested 62.5% of its total revenues on Intangibles. Broadcasting, Cable, and Filmed Entertainment industry average Intangibles investment in the same period was 113.0%
- Net Margins: Walt Disney Net Margins in the year 2016 were 16.9%. Broadcasting, Cable, and Filmed Entertainment industry average Net Margins in the same period were 11.6%
Sector and Industry Association of Walt Disney
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.
Walt Disney is associated with Media & Entertainment Sector and Broadcasting, Cable, and Filmed Entertainment Industry.
Media & Entertainment sector is comprised of the following industries: Broadcasting, Cable, and Filmed Entertainment; Media Agency Services; Publishing. The definitions for each of the industries is as follows:
- Broadcasting, Cable, and Filmed Entertainment industry includes companies that provide radio and television programming. It also includes companies that provide music and filmed entertainment.
- Media Agency Services industry includes companies that provide advertising, public relations and marketing services. It also includes billboard providers and telemarketers.
- Publishing industry includes newspapers, magazine, and book publishers.
Industry Ranking of Walt Disney
With $55.6 billion revenues, Walt Disney ranked number 2 of all the companies in the US Broadcasting, Cable, and Filmed Entertainment industry. There were a total of 38 public companies in the US Broadcasting, Cable, and Filmed Entertainment industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Broadcasting, Cable, and Filmed Entertainment industry by revenues during 2016 were:
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.