Disney's Business Model: A Scalable Dream Factory

Added on by Nabila Amarsy.

Disney recently broke a record with ‘Frozen’, one of the highest grossing movies of all time. But Disney’s business goes beyond producing movies and experiences. It’s about building and sustaining brands. Watch as we uncover why this well-oiled dream machine is a great case of scalable business.

Disney has made generations of kids and adults dream of imaginary worlds. One of its recent movies, Frozen, has generated $1.27 billion at the global box office, and brought more than $1 billion in merchandise sales. We visualize Disney's business model below, and explain the central role of its brands. 

News post based on 'Frozen fever grips a cultural landscape' by the Financial Times (December 2014)

Tools and Techniques Used

Critical Elements

  1. Disney builds brands around its characters and stories. Cinemas and entertainment platforms pay distribution fees to broadcast Disney movies to their audience.
  2. Once a movie becomes a hit, Disney leverages its brands and offers licensing rights that allow manufacturers to use Disney characters on their products.
  3. You can relive the magic of Disney movies at themed parks. Everything from the shows that people can watch to the souvenirs they buy are based on the Disney brands.
  4. Disney's business model is scalable: Its brands fuel many value propositions and generate diverse revenue streams.
  5. Disney’s business is not just about making movies, but about creating and sustaining brands.

Tell us how you can apply the lessons drawn from Disney's business model in your own company.

Source: http://www.ft.com/intl/cms/s/0/ec6a29b6-8b...