The Walt Disney Company: Financial Issues And Global Expansion

As a person growing up in a home that had a lot of Disney stuff in it, I would like to know how much this company has expanded and where is the future of Disney stocks predicted to be. Will the stock rise to all new heights, will it maintain a steady level or fall in the coming years? This short essay paper will guide me through some financials and give me some insight to the continuing expansion of this well-known company.

Abstract

The name “Disney” has been a household name since before my time dating back to when founder Walt Disney started his business in 1923. Since then Walt Disney has passed, but his visions of a magical place instilled by his innovation live on and have influenced and expanded into various areas of people’s lives. I can remember frequently going to Disney World in the 1970’s as my family lived in Orlando, Florida near the Magic Kingdom at Disney World. My parents helped this company grow with the money that was well spent at the parks and on merchandise on their three children a long time ago. Since then, I have spent a substantial amount of money within this company on my family. I will find out through research, how far has this company has expanded and to what areas has it venture into and where is it going business-wise?

Disney known worldwide as stock market is one of the eight best stocks to invest in according to U.S. News because it is a conservatively-run business model with steady earnings that help make it valuable to investors who want a stable income. It has modest dividends ranging for $1.67 to $1.82 in 2018 with a resulting slow pace of growth never the less. Disney has made its money over a vast amount of business subsidiaries and ventures such as the entertainment sector of the media, studio entertainment, theme parks/resorts, interactive media, consumer products and soon two Direct-to-Customers (DTC) streaming with the advanced technology of TV and movies in the up and coming 2019 investments. Disney is preparing a full lunch in 2018 of one of it DTC programs that will compete with companies like Netflix and Amazon etc. "When you consider what Disney owns – Lucasfilm, ABC, A&E, ESPN, Marvel, Disneyland and related properties, Lifetime, ABC Studios and a whole lot more – buying Disney right now is like buying a reliable blue chip," Dixon says. "They're getting bigger and bigger, and while they underperform the S&P 500, they're not losing money, either – they're building up even more of an empire

The FCC regulate and restrict the number of media networks stations Disney can own in a specific sector or market only up to 39% of the national audiences and is currently at 21%. The 4 major networks can’t be owned completely by one common entity. Those include ABC, CBS, FOX and NBC.

Financial reports showed a slight decrease of .4 from 2016 to 2017 net income of 55.63 billion dollars, over the last few years Disney has had a loss, but investors are optimistic for the company that has a bright future ahead. Currently, the company’s net worth is close to 900 billion dollars worldwide. Costs of services increased by 3% and expenses varied due to higher sports programming cost but were nearly offset by lower film amortization and theatrical distribution cost. Costs of products decreased by 7% that led to a total of $0.4 billion, to $5.0 billion, due to the discontinuation of Infinity, the absence of the Infinity Charge and lower retail and home entertainment volumes. These decreases were partially offset by a full year of operations at Shanghai Disney Resort and inflation at our domestic parks and resorts. Disney employs approx. 200,000 workers and has excellent benefits. My nephew lives in Orlando and is currently working for Universal Studios going on 4 years and likes it most of the time. They have peak seasons, and the weather can be crucial to attendances. Other than getting into the park waiting in traffic and getting to his station he said, “It’s wonderful” the people are all laid back including the bosses that he has encountered or dealt with. The pay is not bad when you add in the benefits packages.

I have always enjoyed Disney entertainment and theme parks for the most part. I also have a friend that his dad has stock in Disney last I heard. Walt Disney and his company has influenced how people view the world. I know it has for me since I can remember. I rode Space Mountain at 5 years old. I was stuck hanging approx. 15 minutes at 14 years old with the lights on in the room on the rollercoaster when it had technical problems and got to see just how small the ride is. It was straight up and rusty in a 30x30 foot section.

In conclusion, Disney is celebrating 95 years of the company’s business this year, and it all started with a mouse. Mickey Mouse was the first animated cartoon that Walt Disney created, and it captures the imagination of many children and adults the same. Jimmy the Cricket told and showed kids what not to do, because he said, “I’m no fool.” Walt Disney gave a new meaning to “it’s a small world after all” the ride at Disney World drives me crazy. But my favorite song as a child “When you wish upon a star” Song by Cliff Edwards and Disney Studio Chorus, “makes no difference who you are anything your heart desires will come true,” and I can’t remember the rest. I would invest later in the year or next year for sure if I had the money. New horizons are just ahead at Disney.