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 The Walt Disney Studios corporate headquarters in Burbank, California, 2016 | |
| Formerly |
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|---|---|
| Type | Public |
| ISIN | US2546871060 |
| Industry | |
| Predecessor | Laugh-O-Gram Studio |
| Founded | October 16, 1923 |
| Founders | |
| Headquarters | Team Disney Building, Walt Disney Studios, , U.S. |
Area served | Worldwide |
Key people |
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| Products | |
| Services | |
| Revenue |  US$67.418 billion (2021) |
 US$7.766 billion (2021) | |
| US$1.995 billion (2021) | |
| Total assets | US$203.609 billion (2021) |
| Total equity | US$93.011 billion (2021) |
| Owners |
|
Number of employees | 190,000 (2021) |
| Divisions |
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| Subsidiaries |
|
| Website | thewaltdisneycompany |
| Footnotes / references [2] | |
The Walt Disney Company, commonly known as Disney (/ˈdɪzni/),[3] is an American multinational mass media and entertainment conglomerate headquartered at the Walt Disney Studios complex in Burbank, California. Disney was originally founded on October 16, 1923, by brothers Walt and Roy O. Disney as the Disney Brothers Studio; it also operated under the names the Walt Disney Studio and Walt Disney Productions before changing its name to The Walt Disney Company in 1986. Early on, the company established itself as a leader in the American animation industry, with the creation of the widely popular character Mickey Mouse, who is the company's mascot, and the start of animated films.
After becoming successful by the early 1950s, the company started to diversify into live-action films, television, and theme parks. Following Walt's death in 1966, the company's profits began to decline, especially in the animation division. Once Disney's shareholders voted in Michael Eisner as the head of the company in 1984, the studio began to see an overwhelming amount of success during a period called the Disney Renaissance. In 2005, under new CEO Bob Iger, the company started to expand and acquire other corporations. Bob Chapek became head of Disney in 2020 after Iger's retirement.
Since the 1980s, Disney has created and acquired corporate divisions in order to market more mature content than is typically associated with its flagship family-oriented brands. The company is known for its film studio division, Walt Disney Studios, which includes Walt Disney Pictures, Walt Disney Animation Studios, Pixar, Marvel Studios, Lucasfilm, 20th Century Studios, 20th Century Animation, and Searchlight Pictures. Disney's other main business units include divisions in television, broadcasting, streaming media, theme park resorts, consumer products, publishing, and international operations. Through these various segments, Disney owns and operates the ABC broadcast network; cable television networks such as Disney Channel, ESPN, Freeform, FX, and National Geographic; publishing, merchandising, music, and theater divisions; direct-to-consumer streaming services such as Disney+, Star+, ESPN+, Hulu, and Hotstar; and Disney Parks, Experiences and Products, a group of 14 theme parks, resort hotels, and cruise lines around the world.[4][5]
The company, which trades on the New York Stock Exchange (NYSE) with ticker symbol DIS,[6] has been a component of the Dow Jones Industrial Average since 1991.[7] In August 2020, just under two-thirds of the stock was owned by large financial institutions.[8]
History[edit]
1923–1934: Founding, Mickey Mouse, and Silly Symphonies[edit]
At Laugh-O-Gram Studio, a film studio in Kansas City founded by Walt Disney and his friend and animator Ub Iwerks,[9] Disney made a short film entitled Alice's Wonderland, which featured child actress Virginia Davis interacting with animated characters. In 1923, soon after the short was made, Disney filed for bankruptcy, but the short later became a hit after New York film distributor Margaret J. Winkler purchased it, with Disney signing a contract for six Alice Comedies, with an option for two further series of six episodes each.[10][11] Before the signing, Disney decided to move to Hollywood to join his brother Roy O. Disney because Roy had tuberculosis.[12] This allowed them to co-found The Disney Brothers Studio on October 16, to produce the films, officially the start of the company.[13] He later convinced Iwerks and Davis' family to move to Hollywood as well.[11] In January 1926, with the completion of the Disney studio on Hyperion Street, The Disney Brothers Studio's name was changed to Walt Disney Studio.[14] After making several Alice films for the next four years, Winkler handed the role of distributing films to her husband Charles Mintz. In 1927, Mintz asked for a new series of films under Universal Pictures to be made, so Disney created his first series of fully animated films that would feature the character Oswald the Lucky Rabbit.[15] Walt Disney Studio went on to create 26 films with Oswald in them.[16]
In 1928, Disney wanted a larger fee for his films, but Mintz wanted to reduce the price. After Disney found out that Universal owned the intellectual property rights to Oswald, Mintz threatened to produce the films without him if Disney did not take the reductions in payment.[16][17] Disney declined, and Mintz signed four of Disney's primary animators, with the exception Iwerks who stayed with Disney, to start his own studio.[18] Because of the loss of Oswald, Disney and Iwerks replaced him with a mouse originally named Mortimer Mouse, until Disney’s wife urged him to change it so he called him Mickey Mouse, who is now the company's mascot.[19][20] In May, they made two silent films with the character, Plane Crazy and The Gallopin' Gaucho, as test screenings. Later, Disney’s first sound film and third short to the Mickey series Steamboat Willie was made with synchronized sound, creating the first post-produced sound cartoon.[21] Disney found Pat Powers’ distribution company to distribute the film, and Steamboat Willie became an immediate hit, leading the way for the companies dominance in the animation industry.[19][22][23] The sound was created using Powers’ Cinephone system, which used Lee de Forest's Phonofilm system.[24] Disney later successfully re-released the two earlier films with synchronized sound in 1929.[25][26]
After the release of Steamboat Willie at the Colony Theater in New York, Mickey Mouse became an immensely popular character.[26][19] Disney would go on to make several cartoons featuring Mickey and other characters.[27] In August, Disney began the Silly Symphony series with Columbia Pictures signing on as the series' distributor, because Walt and Roy felt that they were not getting their share of the profits with Power .[23] Powers would then sign off Iwerks, who would later start his own studio.[28] Carl Starling played a pivotal role in getting the series started and composed the music for the earlier films in the series, but would later leave the company after Iwerks did.[29][30] In September, theater manager Harry Woodin requested permission to start a Mickey Mouse Club at his theater the Fox Dome to boost attendance. Walt agreed, but David E. Dow started one at Elsinore Theatre before Woodin could start his. It is unknown why Woodin did not create the first one, but on December 21, the first ever meeting for the club at Elsinore had around 1,200 children in attendance. The Mickey Mouse Clubs ended up spanning over 800 theaters across the country, with one million kids as members.[31][32] On July 24, Joseph Conley, president of King Features Syndicate, mailed the Disney studio asking for them to make a Mickey Mouse comic strip. They started in November and sent samples of the strip to them, which were approved.[33] On December 16, the Walt Disney Studios partnership was reorganized as a corporation with the name of Walt Disney Productions, Limited, with a merchandising division – Walt Disney Enterprises, and two subsidiaries – Disney Film Recording Company, Limited; and Liled Realty and Investment Company, for real estate holdings. Walt and his wife held 60 percent (6,000 shares) and Roy owned 40 percent of the company.[34]
The comic strip Mickey Mouse debuted on January 13, 1930, in the New York Daily Mirror and by 1931, the strip was published in 60 newspapers in the US, as well as papers in twenty other countries.[35] After finding out that coming out with merchandise for the characters would generate more revenue for the company, at hotel a man in New York asked Walt for the license to put Mickey Mouse on some writing tablets he was manufacturing for $300. Walt agreed and Mickey became the first licensed character ever, beginning the start of Disney merchandising.[36][37] In 1933, Walt asked a man who owned a Kansas City advertising firm named Kay Kamen to run Disney's merchandising. He agreed and completely transformed Disney's merchandising. Within a year, Kamen had 40 licenses for Mickey and within two years, $35 million worth of sales were made. In 1934, Walt claimed that he made more money from the merchandising of Mickey than from the Mickey films.[38][39] Later, as a part of Disney's merchandising push, the Waterbury Clock Company created a Mickey Mouse watch. It became so popular that it saved Waterbury from bankruptcy during the Great Depression. During a promotional event at Macy’s, 11,000 Mickey Mouse watches sold in one day and within two years, 2.5 million watches were sold.[40][35][39] As Mickey started to become more of the heroic type instead of a mischievous mouse, Disney needed another character that could produce gags.[41] When Walt was listing to the radio, he heard the voice of Clarence Nash and invited him to the studio. After hearing his voice again, Walt wanted to use it for a talking duck named Donald Duck, who would be the studio's new gag character. Donald made his first appearance in 1934 in The Wise Little Hen. Though he did not become popular as fast as Mickey did, he got his own featured role in Donald and Pluto (1936) and eventually got his own series.[42]
After a fallout with Colombia Pictures for the Silly Symphonies, Walt signed a distribution contract with United Artist from 1932 to 1937.[43] In 1932, Disney signed an exclusive contract with Technicolor through the end of 1935 to produce cartoons in color, beginning with Flowers and Trees (1932), which was part of the Silly Symphonies.[44] The film was the first ever full-color cartoon and won the Academy Award for the Best Cartoon later that year.[21] In 1933, The Three Little Pigs became another popular Silly Symphonies and also won the Academy Award for Best Cartoon.[27][45] The song from the film "Who's Afraid of the Big Bad Wolf?", composed by Frank Churchill who also wrote other Silly Symphonies songs, became popular throughout the 1930s and remained one of the most well-known Disney songs.[29] Films from Silly Symphonies would go on to win the Best Cartoon award from 1931 to 1939, except for in 1938 when another Disney film Ferdinand the Bull won it.[27]
1934–1949: The Golden Age of Animation, strike, and World War II[edit]
In 1934, Walt decided to make Disney's first ever feature-length animated film and told his animators by acting out the story of Snow White and the Seven Dwarfs. Roy tried to stop Walt from making it saying it would bankrupt the studio, and Hollywood called it "Disney's Folly", but Walt continued production on the film.[46][47] Walt decided to go for a realistic approach to the film and created scenes from the film as if it were live action.[48] During the process of making the film, they created the multiplane camera, which was pieces of glass with drawings on them set at different distances, to create an illusion of depth for the backgrounds.[49] After United Artist attempted to attain future television rights to the Disney shorts, Walt signed distribution contract with RKO Radio Pictures on March 2, 1936.[50] They ended up exceeding their original budget for Snow White of $150,000 by ten times the amount at $1.5 million.[46]
It took them three years to make, debuting on December 12, 1937, becoming the highest-grossing film of all time to that point at $8 million equivalent to $150,796,296 in 2021; after several re-releases, the film would gross a total of $998,440,000 adjusted for inflation.[51][52] After the profits of Snow White and the Seven Dwarfs, Disney financed the construction of a new studio complex of 51 acres (20.6 ha) in Burbank, California, which was fully moved into in 1940.[53][54] On April 2, of the same year, Disney had its initial public offering, with the common stock remaining with Walt and his family, although Walt did not want to go public, but the company needed the money.[55] Shortly before Snow White and the Seven Dwarfs' release, work on their next films Pinocchio and Bambi began, with Bambi being postponed.[50] Though Pinocchio would win the Academy Awards for Best Song and Best Score, along with making groundbreaking achievements in animations,[56] it would end up doing poorly in the box office during its release on February 23, 1940, because its international releases were cut off because of World War II.[57][58]
Disney's next film Fantasia was also a box-office bomb, but made great achievements by creating Fantasound, an early development surround sound, to produce the films' soundtrack, making it the first commercial film shown in stereo.[59][60][61] In 1941, Disney would have a major setback when 300 of its 800 animators, led mainly by Art Babbit, one of the companies top animators, would go on strike for five weeks for unionization, because of the amount of payment some of them were getting. Walt thought that the people on strike were secretly Communist and would end up firing many of the studios' animators, including some of its top ones.[62][63] Roy would try to get the company's main distributors to invest in the film company, trying to secure more production funds for the studio which could no longer afford to offset production costs with employee layoffs, but was unsuccessful in getting anyone.[64] During the premiere of The Reluctant Dragon, Disney's fourth film where Robert Benchley would tour the Disney Studio, protesters from the strike showed up; the film would fall $100,000 dollars short of its production cost.[65]
While negotiations were being made for the strike, Walt accepted an offer from the Office of the Coordinator of Inter-American Affairs to make a goodwill trip, along with some of his animators, to South America, making sure Walt would be gone during the deal because he knew the results would not be in his favor.[66] During the twelve weeks there, they would start plotting for films and were inspired by the music there.[67] As a result of the strike, the studio recognized the Screen Cartoonist's Guild after being compelled to by Federal mediators and loss several animators, leaving the company with only 694 employees.[68][63] To recover from their financial losses, Disney would create their fifth animated film Dumbo in a rush with a lower budget. Dumbo performed successfully at the box office and would be a much needed financial gain for the company.[56][69] After the bombing of Pear Harbor, many of the companies animators would be drafted into the army.[70] Later, 500 soldiers from the United States Army began an occupation of the studio for eight months to protect a nearby Lockheed aircraft plant, where they would also fix equipment in large soundstages and convert storage sheds into ammunition depots.[71] On December 8, the Navy asked Walt to create propaganda films to gain support for the war. He agreed and signed a contract with them to create 20 war-related shorts for $90,000.[72] Most of the company's employees got to work on the project and created films such as Victory Through Air Power and included some of the company's characters in several of the films.[73][70]
In August, 1942, Bambi was finally released as Disney's sixth animated film and did not do well in the box office.[74] In 1943, Disney would go on to make Saludos Amigos and The Three Caballeros after their visit to South America, but they would do poorly upon their releases.[70][75] The two films were "package films", several short cartoons grouped together to make a feature film, which Disney would go on to make more such as Make Mine Music, Melody Time, Fun and Fancy Free, and The Adventures of Ichabod and Mr. Toad to try to recover from their financial losses.[70] As less expensive to make, the studio started production on live-action films, with a mixture of animation, starting with Song of the South, which would later become Disney's most controversial film.[76][77] Because the company was short on money, in 1944, they planned to re-release their feature films, which would create much needed revenue.[77][78] In 1948, Disney began the nature documentary series True-Life Adventures, which would run until 1960 and win eight Academy Awards.[79][80] In 1949, while production on the animated film Cinderella was happening, the Walt Disney Music Company was founded in order to help with profits from merchandising, which the music from Cinderella was hoped to be a hit.[81]
1950–1967: Live-action films, television, Disneyland, and Walt Disney's death[edit]
In 1950, Disney's first animated film in eight years Cinderella was released and was considered a return to form for Disney. It would be Disney's best box office success since Snow White, making a total of $8 million in its first year in the box office and costing $2.2 million to make. Walt had not been as involved as he was with the previous films because he was distracted with trains and made a trip to England to create Disney's first ever fully live-action film Treasure Island.[82] Because it was a success, he went back to England to produce The Story of Robin Hood and His Merry Men.[83] In 1950, the television industry began to grow, and Disney got in it on Christmas Day, when NBC aired the companies first television production One Hour in Wonderland, which was a promotional program for Disney's next animated film Alice in Wonderland and sponsored by Coca-Cola.[84] During his trip in England, Alice in Wonderland was released and came as disappointment to the company falling $1 million short of the production budget.[85] Upon his return, Walt started thinking about an Amusement park he wanted to build called Mickey Mouse Park, an eight-acre (3.2 ha) piece of land near the studio with attractions such as a steamboat ride, but business kept getting in the way and production for a third British film The Sword and the Rose began.[86] Walt would only supervise over it, but it would be financed by a new subsidiary of Disney called Walt Disney British Films Limited.[87]
Walt recalled that he first came up with the idea of an amusement park during one of his visits to Griffith Park with his daughters. He said that he watched them ride the carousel there and said that he thought there "should be... some kind of amusement enterprise built where the parents and the children could have fun together.”[88][89] As Walt continued to think about Mickey Mouse Park, he changed the name to Disneylandia before changing it to its final name Disneyland.[86] Because Roy was doubtful about the park, Walt would form a new privately owned company called Walt Disney Enterprise on December 16, 1952, to fund for the park. Shortly after, its name would change to Walt Disney Incorporated before changing its name to WED Enterprises[a] (now Walt Disney Imagineering) in November 1953.[90] He hired a group of designers to work on the plans and those who worked on it became dubbed as "Imagineers".[91] Since Walt came up with the idea of a park, he and his friends would visit parks in the U.S. and Europe to get ideas on how to build one.[92] His plan to have the park built in Burbank near the studio quickly changed when he realized that eight acres would not be enough land. He acquired 160 acres (65 ha) of orange groves in Anaheim, southeast of Los Angeles in neighboring Orange County, at $6,200 per acre to build the park.[93] As construction on the park began on July 12, 1954, Walt wanted it to be done by 1955, with storytelling attractions and areas, as well as being clean and perfect.[94]
They designed the park to have guest enter into Main Street U.S.A., themed to resemble American small towns during the early 20th Century based largely off of Walt's hometown in Marceline, Missouri,[95] and walk down the street into the central hub, from which different themed lands branched out.[96][97] At the end of the street in the central hub would be a 77 ft (23 m) tall Sleeping Beauty Castle inspired by Neuschwanstein Castle in Germany and based on the castle from the Disney film of the same name, which would be released four years later.[98][99] The four original different themed lands of the park that branched out from the hub would consist of Frontierland, themed to the American Frontier of the 19th century; Adventureland, resembling a wild tropical jungle; Fantasyland, based on Disney's animated fairy tale films; and Tomorrowland, depicting views of the future, especially that of the Space Age.[100][101] In total, by the time the park opened, it costed the company $17 million to construct.[102]
In February 1953, Disney's next animated film Peter Pan was released and had been a success, but Walt wanted to figure out how to improve animation without raising the cost.[103] When Disney wanted to create a feature with two short films, The Living Desert, for the True-Life documentary, RKO's lawyer believed it would break the 1948 antitrust Supreme Court ruling if it sold as a package. Roy thought the company would do fine without RKO and the company created its own distribution company Buena Vista Distribution, named after the street where the studio was located, to distribute their own films from then on.[104] In 1954, Disney's first American live action film 20,000 Leagues Under the Sea was released, which was one of the first films to use CinemaScope.[105][106] From the early to mid-1950s, Walt began to devote less attention to the animation department, entrusting most of its operations to his key animators, the Nine Old Men, although he was always present at story meetings. Instead, he started concentrating on other things such as television and Disneyland.[107]
To get money to create the park, the company decided to promote it through a television series. After trying to get NBC and CBS to sign on, in 1954, ABC made a deal with Disney for an hour-long weekly series starting in October called Disneyland, an anthology consisting of animated cartoons, live-action features, other materials from the studio's library, and go through segments of the four different areas of the amusement park.[108] The series was a success and garnered over 50% of viewers in their time slot, along with increasing audiences and praise from critics.[109] In August, Walt formed another company Disneyland, Inc., with Walt Disney Productions, himself, Western Publishing, which had been the publisher of Disney books for over twenty years, and ABC all holding stock in the company.[110]
In October, with the success of Disneyland, ABC allowed Disney to produce another series The Mickey Mouse Club, a variety show specifically for kids, showing things such as a daily Disney cartoon, a children's newsreel, and a talent show. It would consist of a host and talented kids and adults called "Mousketeers" and "Mooseketeers", respectively.[111] After the first season, over 10 million children and half as many adults watched it every day, 2 million Mickey Mouse ears, which the cast wore, had sold, and the shows theme song "Mickey Mouse March", written by Jimmie Dodd one of the show's main host, had become a classic.[112] On December 15, 1954, Disneyland aired an episode of the five-part miniseries Davy Crockett, which starred Fess Parker as Crockett. According to writer Neal Gabler, "[It] became an overnight national sensation", selling 10 million Crockett coonskin caps.[113] The shows theme song "The Ballad of Davy Crockett" had spread throughout American pop culture as much as the Three Little Pig's "Who's Afraid of the Big Bad Wold" did, selling 10 million records. The Los Angeles Times called it "the greatest merchandising fad the world had ever seen".[114][115] In June 1955, Disney's 15th animated film Lady and the Tramp was released and did better in the box office than any other Disney films since Snow White.[116]
On Sunday, July 17, 1955, Disneyland opened[b] with only Main Street completely done and the other lands offering some rides, coming to a total of 20 attractions. At the time, t cost $1 to get into the park and guest had to pay for each individual ride.[117] They were ready for 11,000 guest, but around 28,000 people showed up, because of a rush of counterfeit tickets. The opening was aired on ABC with actors Art Linkletter, Bob Cummings, and Ronald Reagan, who were all friends of Walt, hosting it. It garnered over 90 million viewers, becoming the largest live broadcast to that date.[118] The opening was so disastrous and rushed it became dubbed as "Black Sunday" by the employees. Restaurants ran out of food, the Mark Twain Riverboat began to sink a little, several ride malfunctions occurred, and the drinking fountains were not working in the 100 °F. (38 °C) heat.[119][102] Within its first week of being open, Disneyland had 161,657 guest show up, and by its first month of being open, the park had over 20,000 visitors each day. After its first year, 3.6 million people had visited the park and after its second year 4 million more guest came, making it more popular than places such as the Grand Canyon and Yellowstone Park. That year Disney had a gross total of $24.5 million compared to the $11 million the previous year.[120]
Though Walt was more busy with the park than the films, the company would stay busy and produce an average of five releases per year throughout the 1950s and 60s.[121] The animated films created were features such as Sleeping Beauty (1959), One Hundred and One Dalmatians (1961), and The Sword in the Stone (1963).[122] While Sleeping Beauty was a financial loss for the company, and Disney's highest production costs for a film up to that point at $6 million,[123] One Hundred and One Dalmatians introduced a new way of animating using the xerography process to electromagnetically transfer the drawings to animation cels.[124] In 1956, the Sherman brothers Robert and Richard were asked to create the theme song for the TV series Zorro.[125] Disney would later hire them as exclusive staff songwriters, which would be a ten-year association, and they would write many of songs for Disney's films, which several of them would be hits, and some for the theme park.[126][127] In the late 1950s, Disney would venture into the comedy genre with the live-action films The Shaggy Dog (1959), which became the highest grossing film in the U.S. and Canada for Disney at over $9 million,[128] and The Absent Minded Professor (1961), both starring Fred MacMurray.[122][129]
Disney also made several live-action films based on children's books including Pollyanna (1960) and Swiss Family Robinson (1960). Child actor Hayley Mills would star in Pollyanna, where she would win the Academy Juvenile Award, and five other Disney films, including her dual role as the twins in The Parent Trap (1961).[130][131] Another child actor Kevin Corcoran was a prominent figure in many of live-action Disney films, first appearing in a serial for The Mickey Mouse Club where he would play a boy named Moochie, a nickname that would stay with him. He worked alongside Mills in Pollyanna and starred in features such as Old Yeller (1957), Toby Tyler (1960), and Swiss Family Robinson.[132] 1964, the live action/animation musical Mary Poppins was released and became the highest grossing film of the year. It won five Academy Awards, including Best Actress for Julie Andrews as Poppins and Best Song for the Sherman Brothers', who also won Best Score for the film, "Chim Chim Cher-ee".[133][134]
Throughout the 1960s, Dean Jones, who was called "the figure who most represented Walt Disney Productions in the 1960s" by The Guardian, starred in ten Disney films, which included That Darn Cat! (1965), The Ugly Dachshund (1966), and The Love Bug (1968) and its second sequal Herbie Goes to Monte Carlo (1977).[135][136] Disney's last child actor of the 1960s would be Kurt Russell, who had signed a ten-year contract with the company.[137] He featured in films such as The Computer Wore Tennis Shoes (1969), The Horse in the Gray Flannel Suit (1968) alongside Dean Jones, The Barefoot Executive (1971), and The Strongest Man in the World (1975).[138]
In late 1959, Walt had an idea to build another park in Palm Beach, Florida, called the City of Tomorrow, a city full of technological improvements.[139] In 1964, the company chose land southwest of Orlando, FLorida, as the area to build the park and quickly acquired 27,000 acres (10,927 ha) of land for it. On November 15, 1965, Walt, along with Roy and Florida's current governor at the time Haydon Burns, announced the plans for another park called Disney World, which included the Magic Kingdom—a larger and more elaborate version of Disneyland with golf courses and resort hotels near it— and the City of Tomorrow, which would be at the heart of the park.[140] By 1967, the company had made several expansions to Disneyland including a whole new area called New Orleans Square, which would be filled with mostly shops and based on the look of New Orleans, Louisiana. Through 1966 to 1967 they added three more rides It's a Small World, the Disneyland Railroad, and Pirates of the Caribbean. In all, the expansion costed $20 million, which was $3 million more than it costed to make the park.[141] They also added several other rides before then such as Walt Disney's Enchanted Tiki Room, which was the first attraction to use audio-animatronics, Walt Disney's Carousel of Progress, which debuted at the 1964 New York World's Fair before moving to Disneyland in 1967, and Dumbo the Flying Elephant, which opened a month after the park opened.[97]
On November 20, 1964, Walt sold most of WED Enterprise to Walt Disney Productions for $3.75 million after being persuaded to by Roy, who thought that Walt having his own company would cause legal problems. Walt formed a new company called Retlaw to handle his personnel business, primarily the Disneyland Railroad and the Disneyland Monorail.[142] When the company started looking for someone to sponsor the project, Walt renamed the City of Tomorrow to EPCOT, which stood for Experimental Prototype Community of Tomorrow.[143] Because Walt had been a heavy smoker since World War I, his health started declining, and he visited the St. Joseph Hospital on November 2, 1965, for testing. The doctors discovered a walnut-sized spot on his left lung and removed it a few days later, finding out it was cancerous. After two weeks, he was released from the hospital, but overgrown lymph nodes showed that he did not have much longer to live. On December 15, 1966, at the age of 65 Walt died of circulatory collapse, caused by lung cancer.[144][145]
1967–1984: Roy O. Disney's leadership and death, Walt Disney World, animation industry decline, and Touchstone Pictures[edit]
In 1967, the last two films Walt had worked on were released, the animated film The Jungle Book, which would be Disney's best film for the next two decades, and the live-action musical The Happiest Millionaire.[146][147] After Walt's death, the company largely abandoned the animation industry, but would still make several live-action films.[148][149] Its staff in the field of animation began to decline from 500 workers to 125 employees, with the company only hiring 21 people from 1970 to 1977.[150] Disney's first post-Walt animated film The Aristocats was released in 1970, where Dave Kehr of Chicago Tribune said, "the absence of his [Walt's] hand is evident."[151] That following year the anti-fascist musical Bedknobs and Broomsticks was released and won the Oscar for Best Special Visual Effects.[152] By the time Walt had died, Roy was ready to retire, but wanted to keep Walt's legacy alive and became the first CEO and chairman of the board of the company.[153][154] In May 1967, he got a legislation passed by Florida's legislatures to grant Disney World's to have its own quasi-government agency in an area called the Reedy Creek Improvement District and later changed the name from Disney World to Walt Disney World to remind people it was Walt's dream.[155][156] Over time, EPCOT became less of the City of Tomorrow and developed more into another amusement park.[157] After 18 months of construction that cost around $400 million, Walt Disney World's first park the Magic Kingdom, along with Disney's Contemporary Resort and Disney's Polynesian Resort,[158] opened on October 1, 1971, with 10,400 visitors. A parade with over 1,000 band members, along with 4,000 Disney entertainers and choir from the U.S. Army, marched down Main Street led by composer Meredith Wilson. Unlike Disneyland, the icon of the park would be the Cinderella Castle instead of the Sleeping Beauty Castle. Three months later on Thanksgiving day, cars wanting to get into the Magic Kingdom were stretched miles along the interstate.[159][160]
On December 21, 1971, Roy died of cerebral hemorrhage at the St. Joseph Hospital.[154] After Roy's death, Donn Tatum, who was a senior executive for 25 years and former president of Disney, became the first non-Disney family member to become CEO and chairman of the board of the company, with Card Walker, who had been with the company since 1938, becoming president of the company.[161][162] By June 30, 1973, Disney had over 23,000 employees and had a gross total of $257,751,000 over a nine months period, which is a raise compared to the year before when they made $220,026,000.[163] In November, Disney released another animated film Robin Hood, which became Disney's biggest international grossing movie at $18 million.[164] Throughout the 1970s, Disney released several more live-action films such as The Computer Wore Tennis Shoes' sequal Now You See Him, Now You Don't,[165] The Love Bug's two sequels Herbie Rides Again (1974) and Herbie Goes to Monte Carlo (1977),[166][167] Escape to Witch Mountain (1975),[168] and Freaky Friday (1976).[169] In 1976, Card Walker took over as CEO of the company, with Tatum staying as the chairman until 1980 when Walker would replace him.[153][162] In 1977, Roy E. Disney, Roy O. Disney's son and the only Disney working for the company, would resign from his job as an executive of the company because of disagreements with decisions the company was making.[170]
In 1977, Disney's created the successful animated film The Rescuers, grossing $48 million at the box office.[171] The live-acton/animated musical Pete's Dragon was released in 1977, grossing $16 million in the U.S. and Canada, but was considered a disappointment to the company.[172][173] In 1979, Disney's first ever PG rated film and most expensive film at $26 million dollars The Black Hole was released, showing that Disney could also use special effects. Grossing $35 million, which was a disappointment to the company who thought it was going to be like Star Wars (1977), the film was in response to other sci-fi movies that were being released.[174][175] In September, 12 animators, over 15 percent of the department, resigned from the studio. Led by Don Bluth, they left because of a conflict with the training program and the atmosphere at the studio, starting their own company Don Bluth Productions (which later became Sullivan Bluth Studios).[176][177] In 1981, Disney released Dumbo to VHS and Alice in Wonderland the following year, eventually leading Disney to release all their films to home media.[178] On July 24, Walt Disney World on Ice, a two year tour of ice shows featuring Disney charters, made its premiere at the Brendan Byrne Meadowlands Arena, after Disney licensed its characters to Feld Entertainment.[179][180] The same month, Disney's animated film The Fox and the Hound was released and became the highest grossing animated film to that point at $39.9 million.[181] It was the first film that Walt had nothing to do with and was the last major work done by Disney's Nine Old Men, making way for the younger animators to do more.[150]
As profits for the company started to slow down, On October 1, 1982, Epcot, then known as EPCOT Center, opened as the second theme park in Walt Disney World, with around 10,000 people.[182][183] Costing the company over $900 million to construct, The park consisted of the Future World pavilion and the World Showcase which represented nine countries including Mexico, China, Germany, Italy, America, Japan, France, United Kingdom, and Canada (Morocco and Norway would be added later in 1984 and 1988, respectively).[182][184] The animation industry continued to decline and 69% of the company's profits were from its theme parks, with attendance of 12 million visitors to Walt Disney World which would decline by 5% next June.[182] On July 9, Disney released one of the first films to majorly use computer-generated imagery (CGI) Tron, which would a big influence on other CGI movies, although it only received mixed reviews.[185] In total in 1982, the company lost $27 million.[186] On April 15, 1983, Disney's first ever foreign park Tokyo Disneyland, similar to Disneyland and the Magic Kingdom, opened in Urayasu, Japan.[187] Costing around $1.4 billion, construction on the park started in 1979 when Disney and The Oriental Land Company agreed to build a park together. Within its first ten year, the park had been a hit with over 140 million visitors.[188] After an investment of $100 million, on April 18, Disney started a pay to watch cable television series called Disney Channel, a sixteen hour-long series showing things such as Disney films, twelve different programs, and two magazines shows for adults. Although it was expected to do well, the company loss $48.3 million after its first year, with 916,000 subscribers.[189][190]
In 1983, Walt's son-in-law Ron W. Miller, who had been president of the company since 1978, became CEO of Disney and Raymond Watson became chairmen.[153][191] Ron would push for more more mature films from the studio,[192] and as a result, Disney founded the film distribution label Touchstone Pictures to produce movies geared toward adults and teenagers in 1984.[186] Splash (1984), was the first film released under the label and would become a much needed success for the studio, grossing over $6.1 million in its first week of screening.[193] Later, Disney's first R-rated film Down and Out in Beverly Hills (1986) was released and was another hit for the company, grossing $62 million.[194] The following year, Disney's first PG-13 rated film Adventures in Babysitting was released.[195] In 1984, Saul Steinberg attempted to buyout the company, holding 11.1% of the stocks in the company. He offered to buy 49% of the company for $1.3 billion or the entire company for $2.75 billion. Disney, which had less than $10 million, rejected and offered to buy all of his stock for $325.5 million. Steinberg agreed, and Disney paid it all with part of a $1.3 billion loan they got from the bank, putting the company at $866 million in debt.[196][197]
1984–2005: Michael Eisner's leadership, the Disney Renaissance, merger, and acquisitions[edit]
In 1984, the company's shareholders, Roy E. Disney, Sid Bass, Lillian and Diana Disney, and Irwin L. Jacobs, who had a combined total of about 35.5% of the total shares of the company, forced Miller out as CEO and replaced him with Michael Eisner, who had previously been president of Paramount Pictures, as the new CEO, along with bringing in Frank Wells as president.[198] Eisner's first move at Disney was to make it a major film studio, which at the time it was not considered. He brought in Jeffrey Katzenberg as chairmen and Roy as head of the animation division to help with the animation industry. He wanted to produce an animated film every 18 months instead of every 4 years like the company had been doing. To help with the film division, they started making Saturday-morning cartoon to create new Disney characters for merchandising and producing several films through Touchstone. Eisner led Disney into the television industry more by creating Touchstone Television and producing The Golden Girls, which was a hit. The company also started to promote their theme parks for the first time at $15 million, raising the attendance rate by 10%.[199][200] In 1984, Disney created the most expensive animated movie at $40 million, and their first animated film to feature computer-generated imagery, as well as their first PG rated animated film because of its darker themes The Black Cauldron. It ended up being a box office bomb, leading the company to move the animation department out of studio in Burbank and into a warehouse in Glendale, California.[201] Organized in 1985, Silver Screen Partners II, LP financed films for Disney with $193 million. In January 1987, Silver Screen III began financing movies for Disney with $300 million raised, the largest amount raised for a film financing limited partnership by E.F. Hutton.[202] Silver Screen IV was also set up to finance Disney's studios.[203]
In 1986, the company changed its name from Walt Disney Productions to its current name The Walt Disney Company, saying that the old name only referred to the film entertainment industry.[204] With Disney's animation industry declining, the animation department needed a hit with their next movie The Great Mouse Detective. During its release, it grossed $25 million, becoming a much needed financial success for the company in the animation industry.[205] To generate more revenue from merchandising, the company opened their first retail store the Disney Store in Glendale in 1987. Because of its success, they opened two more stores in California, and by 1990 they had 215 stores throughout the country.[206][207] In 1989, the company saw financial success with $411 million in revenue and a profit of $187 million.[208] In 1987, the company signed an agreement with the French government to build a resort in Paris named Euro Disneyland, consisting of two theme parks named Disneyland Park and Walt Disney Studios Park, a golf course, and six hotels.[209][210]
In 1988, Disney's 27th animated film Oliver & Company was released the same day as former animator Don Bluth's The Land Before Time. Oliver & Company beat out The Land Before Time, becoming the first animated film to gross over $100 million in its initial release and the highest grossing animated film from its initial run.[211][212] At the time, Disney became the box office leader out of all the studios in Hollywood for the first time, with films such as Who Framed Rodger Rabbit (1988), Three Men and a Baby (1987), and Good Morning, Vietnam (1987). Gross revenue in 1983 was $165 million and went up to $876 million in 1987, and operating income went from a negative $33 million in 1983 to a positive 130 million in 1987. Their net income went up 66% along with a 26% growth in revenue. The Los Angeles Times called Disney's bounce back "a real rarity in the corporate world".[213] On May 1, 1989, Disney opened their third amusement park at Walt Disney World Hollywood Studios, which at the time went under the name Disney-MGM Studios. The park was mainly about how movies were made, until it changed by 2008 to make guests feel like they are in movies.[214] Following the opening of Hollywood Studios, Disney opened water park Typhoon Lagoon on June 1, 1989; in 2008, the water park had a total of 2.8 million people in attendance.[215] In 1989, Disney signed an agreement-in-principle to acquire Jim Henson Productions from its founder, Muppet creator Jim Henson. The deal included Henson's programming library and Muppet characters (excluding the Muppets created for Sesame Street), as well as Jim Henson's personal creative services. However, Henson died suddenly in May 1990 before the deal was completed, resulting in the two companies terminating merger negotiations the following December.[216][217][218]
On November 17, 1989, The Little Mermaid was released and is considered to be the start of the Disney Renaissance, a period in which the company released successful and critically acclaimed animated films. During its release, it became the animated film with the highest gross from its initial run and garnered $233 million at the box office; it also earned two Academy Awards, Best Original Score and Best Original Song for “Under the Sea”.[219][220] During the Disney Renaissance, several of Disney's songs were written by composer Alan Menken and lyricist Howard Ashman, until Howard died in 1991. Together they wrote six songs that were nominated for Academy Awards, with two winning, "Under The Sea" and "Beauty and the Beast".[221][222] In September 1990, Disney arranged for financing up to $200 million by a unit of Nomura Securities for Interscope films made for Disney. On October 23, Disney formed Touchwood Pacific Partners which would supplant the Silver Screen Partnership series as their movie studios' primary source of funding.[203] Disney's first animated sequal The Rescuers Down Under was released on November 16, 1990, and was created using Computer Animation Production System (CAPS), a digital software which was developed by Disney and the computer division of Lucasfilm Pixar, becoming the first feature film to be fully created digitally.[220][223] Although the film struggled in the box office, grossing $47.4 million, it received positive reviews from critics.[224][225] In 1991, Disney and Pixar agreed to a deal to make three films together, with the first one being Toy Story.[226]
To produce music geared for the mainstream music, including music for movie soundtracks, Disney founded the recording label Hollywood Records on January 1, 1990.[227][228] Disney's next animated film Beauty and the Beast was released on November 13, 1991, and grossed nearly $430 million.[229][230] It was the first animated film to win a Golden Globe for Best Picture, and it received six Academy Award nominations, becoming the first animated film to be nominated for Best Picture Oscar; It won Best Score, Best Sound, and Best Song for "Beauty and the Beast".[231] The film was critically acclaimed, with some considering it to be the best Disney film.[232][233] To coincide with their new release The Mighty Ducks, Disney founded the National Hockey League team The Mighty Ducks of Anaheim in 1992.[234] Disney's next animated feature Aladdin was released on November 11, 1992, and grossed $504 million, becoming the highest-grossing animated film up to that point, and the first animated film to reach the half-billion-dollar mark.[235][236] It won two Academy Awards for Best Song for "A Whole New World" and Best Score;[237] "A whole New World" was the first and only Disney song to win the Grammy for Song of the Year.[238][239] For $60 million, Disney broadened their more mature films by acquiring independent film distributor Miramax Films in 1993.[240] In a joint venture with The Nature Conservancy, Disney purchased 8,500 acres (3,439 ha) of Everglades headwaters in Florida in 1993 to protect native animals and plant species, establishing the Disney Wilderness Preserve.[241]
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On April 3, 1994, Frank Wells died in a helicopter crash, while on a vacation to go skiing. He, Eisner, and Katzenburg helped the company's market value go from $2 billion to $22 billion since taking office in 1984.[242] On June 15, The Lion King was released and was a massive success. It became the second highest-grossing film of all time behind Jurassic Park and the highest-grossing animated film of all time, with a gross total of $986 million.[243][244] It garnered two Academy Awards for Best Score and Best Song for "Can You Feel the Love Tonight" and was critically praised.[245][246] Soon after its release, Katzenburg left the company after Eisner would not promote him to president. After leaving, he co-founded film studio DreamWorks SKG.[247] Wells' spot was later replaced by one of Eisner's friends Michael Ovitz on August 13, 1995.[248][249] In 1994, Disney had been looking to buy one of the big three networks; ABC, NBC, or CBS, which would give them guaranteed distribution for its programming. Eisner sought out to buy NBC, but the deal was cancelled once he heard General Electric wanted to keep a majority stake.[250][251] In 1994, Disney reached $10.1 billion in revenue, with the film industry being 48% of the total, the theme parks being 34%, and 18% of it from merchandising. Disney's total net income was up 25% from last year at $1.1 billion.[252] Grossing over $346 million, Pocahontas was released on June 16, garnering the Academy Awards for Best Musical or Comedy Score and Best Song for "Colors of the Wind".[253][254] Pixar and Disney's first release together was the first-ever fully computer-generated film Toy Story. It was released on November 19, 1995, to critical acclaim and an end-run gross total of $361 million. The film won the Special Achievement Academy Award, as well as being the first animated film to be nominated for Best Original Screenplay.[255][256]
In 1995, Disney announced a $19 billion merger of equals with Capital Cities/ABC Inc., which at the time was the second largest corporate takeover. Through the deal, Disney would obtain broadcast network ABC, an 80% majority stake in sports network ESPN and ESPN 2, 50% in Lifetime Television, a majority stake of DIC Entertainment, and a 37.5% minority stake in A&E Television Networks.[252][257][258] Following the deal, the company started a radio program focused for youth on ABC Radio Network called Radio Disney on November 18, 1996.[259][260] The Walt Disney Company launched its official website disney.com on February 22, mainly to promote their theme parks and give information on its merchandise.[261] On June 19, the company's next animated film The Hunchback of Notre Dame was released, grossing $325 million at the box office.[262] Because Ovitz's management style was different from Eisner's, Ovitz was fired as president of the company in 1996.[263] Disney lost a $10.4 million lawsuit in September 1997 to Marsu B.V. over Disney's failure to produce as contracted 13 half-hour Marsupilami cartoon shows. Instead, Disney felt other internal "hot properties" deserved the company's attention.[264] With a 25% stake in the California Angels, Disney bought out the team in 1998 for $110 million, renaming the team the Anaheim Angels and renovating their stadium for $100 million.[265][266] Hercules was released on June 13 and underperformed at the box office compared to the previous films, grossing $252 million.[267] On February 24, Disney and Pixar signed a ten-year contract to make 5 films together, with Disney as the distributor. They would share the cost, profits, and logo credits, calling the films a Disney-Pixar production.[268] During the Disney Renaissance, film division Touchstone Pictures also saw success, with film such as Pretty Woman (1990), which has the highest number of ticket sales in the US for a romantic comedy and grossed $432 million;[269][270] Sister Act (1992), which was one of the more financially successful comedies of the early 1990s, grossing $231 million;[271] action film Con Air (1997), which grossed $224 million;[272] and the highest-grossing film of 1998 at $553 million Armageddon (1998).[273]
At Disney World, the company opened the largest theme park in the world covering 580 acres (230 ha) Disney's Animal Kingdom on Earth Day, April 22, 1998. It is made up of six lands based off zoological themes, with the Tree of Life as the park's centerpiece and over 2,000 animals.[274][275] Receiving positive reviews, Disney's next animated films, Mulan and Disney-Pixar film A Bug's Life, were released on June 5 and November 20, respectively.[276][277] Mulan became the sixth highest-grossing film of 1998 at $304 million, and A Bug's Life was the fifth highest at $363 million.[273] In a $770 million transaction, on June 18, Disney bought a 43% stake of Internet search engine Infoseek for $70 million, also giving Infoseek earlier acquired Starwave.[278][279] With negotiations between Carnival and Royal Caribbean not going well, in 1994, Disney announced they would start their own cruise line operations starting in 1998.[280][281] The first two ships part of the Disney Cruise Line would be named Disney Magic and Disney Wonder and would be built by Fincantieri in Italy. To accompany the cruises, Disney bought Gorda Cay as the line's private island and spent $25 million on remodeling it and renamed it Castaway Cay. On July 30, 1998, Disney Magic set sail as the line's first voyage.[282] Starting web portal Go.com in a joint venture with Infoseek on January 12, 1999, Disney later acquired the rest of Infoseek that year.[283][284]
Marking the end of the Disney Renaissance, Tarzan was released on June 12, garnering $448 million at the box office and critical acclaim; it also claimed the Academy Award for Best Original Song for Phil Collins' "You'll Be in My Heart".[285][286][287][288] Toy Story's sequal and Disney-Pixar film Toy Story 2 was released on November 13 as a successful film, garnering praise and $511 million at the box office.[289][290] Filling Ovitz spot, Eisner named ABC network chief Bob Iger president and COO of the company on January 25, 2000.[291][292] In November, Disney sold DIC Entertainment back to Andy Heward, although still doing business with them.[293] Disney had another huge success with Pixar when they released Monsters, Inc. in 2001. Later, Disney bought children's cable network Fox Family Worldwide for $3 billion and the assumption of $2.3 billion in debt. The deal also included 76% stake in Fox Kids Europe, Latin American Fox Kids, more than 6,500 episodes from Saban Entertainment's programming library, and the Fox Family Channel.[294] In 2001, Disney's operations declined with a net loss of $158 million in fiscal, as well as a decline in viewership on the ABC television network, because of decreased tourism due to the September 11 attacks; Disney earning in fiscal 2001 $120 million was heavily reduced from the year's before $920 million. To help with costs savings, Disney announced they would be laying off 4,000 employees and closing 300 to 400 Disney stores.[295][296] After winning the World Series in 2002, Disney sold the Angels to businessman Arturo Moreno for $180 million in 2003.[297][298] In 2003, Disney became the first studio to garner $3 billion in a year at the box office.[299] Roy Disney announced his retirement in 2003 because of the way the company was being ran, calling on Eisner to retire; the same week, board member Stanley Gold retired for the same reasons, forming the "Save Disney" campaign together.[300][301]
In 2004, at the company's annual meeting, the shareholders, in a 43% vote, voted Eisner out of his position as chairmen of the board.[302] On March 4, George J, Mitchell, who was a member of the board, was named as Eisner's replacement.[303] In April, Disney purchased The Muppets franchise from The Jim Henson Company for $75 million, founding The Muppets Holding Company, LLC in the process.[304][305] Following the massive success of Disney-Pixar films The Incredibles (2004) and Finding Nemo (2003), which became the second highest-grossing animated film of all time at $936 million,[306][307] Pixar looked for a new distributor once their deal with Disney ended in 2004.[308] After the Disney Stores were struggling, Disney sold the chain of 313 stores to Children's Place on October 20.[309] Disney also sold the Mighty Ducks NHL team to Henry Samueli and his wife Susan in 2005.[310] Roy decided to rejoin the company and was given the role of a consultant with the title of "Director Emeritus".[311]
2005–2020: Bob Iger's leadership and company expansion[edit]
On October 1, 2005, Bob Iger replaced Eisner as Disney's CEO. On November 4, Walt Disney Feature Animation released Chicken Little, the company's first film using 3D animation. On January 23, 2006, it was announced that Disney would purchase Pixar in an all-stock transaction valued at $7.4 billion. The deal was finalized on May 5; Steve Jobs, who was Pixar's CEO and held a 50.1% ownership stake in the company, transitioned to Disney's board of directors as its largest individual shareholder, with a 7 percent stake.[312][313] Ed Catmull took over as President of Pixar Animation Studios. Former executive vice-president of Pixar, John Lasseter, became chief creative officer of Walt Disney Animation Studios, its division Disneytoon Studios, and Pixar Animation Studios, as well as assuming the role of principal creative advisor at Walt Disney Imagineering.[313]
In February 2006, Disney acquired the rights to Oswald the Lucky Rabbit from NBC Universal (including the character's intellectual property and the 27 Oswald cartoons produced by Walt Disney) as part of an exchange of minor assets. In return, Disney released sportscaster Al Michaels from his contracts with ABC Sports and ESPN, so he could join NBC Sports and his long-time partner John Madden for NBC's new NFL Sunday Night Football.[314] In April 2007, the Muppets Holding Company was moved from Disney Consumer Products to the Walt Disney Studios division and renamed The Muppets Studio, as part of efforts to re-launch the division.[315][316] In February 2007, the company was accused of human rights violations regarding the working conditions in factories that produce their merchandise.[317][318]
On August 31, 2009, Disney announced a deal to acquire Marvel Entertainment for $4.24 billion, in a deal completed on December 31, 2009.[319][320]
Director Emeritus Roy E. Disney died of stomach cancer on December 16, 2009. At the time of his death, he owned roughly 1 percent of Disney stock, which amounted to 16 million shares. He was the last member of the Disney family to be actively involved in the company.[321] In October 2009, Disney Channel president Rich Ross, hired by Iger, replaced Dick Cook as chairman of the company and, in November, began restructuring the company to focus more on family friendly products. Later in January 2010, Disney decided to shut down Miramax after downsizing Touchstone, but one month later, they instead began selling the Miramax brand and its 700-title film library to Filmyard Holdings. In March, ImageMovers Digital, which Disney had established as a joint venture studio with Robert Zemeckis in 2007, was shut down. In April 2010, Lyric Street, Disney's country music label in Nashville, was shut down. The following month, Haim Saban reacquired the Power Rangers franchise, including its 700-episode library.[322] In September 2012, Saban reacquired the Digimon franchise, which, like Power Rangers, was part of the Fox Kids library that Disney acquired in 2001.[323] In January 2011, Disney Interactive Studios was downsized.[324]
In April 2011, Disney broke ground on Shanghai Disney Resort. Costing $4.4 billion, the resort opened on June 16, 2016.[325] Later, in August 2011, Bob Iger stated on a conference call that after the success of the Pixar and Marvel purchases, he and the Walt Disney Company are looking to "buy either new characters or businesses that are capable of creating great characters and great stories."[326] Later, in early February 2012, Disney completed its acquisition of UTV Software Communications, expanding their market further into India and Asia.[327] On October 30, 2012, Disney announced plans to acquire Lucasfilm in a deal valued at $4.05 billion. Disney announced an intent to leverage the Star Wars franchise across its divisions, and planned to produce a seventh installment in the main film franchise for release in 2015.[328][329] The sale was completed on December 21, 2012.[330] On March 24, 2014, Disney acquired Maker Studios, an active multi-channel network on YouTube, for $500 million.[331] The company was later turned into a new venture called Disney Digital Network in May 2017.[332]
On February 5, 2015, it was announced that Tom Staggs had been promoted to COO.[333] On April 4, 2016, Disney announced that Staggs and the company had mutually agreed to part ways, effective May 2016, ending his 26-year career with the company.[334] In August 2016, Disney acquired a 33 percent stake in BAMTech, a streaming media provider spun out from Major League Baseball's media division. The company announced plans to eventually use its infrastructure for an ESPN over-the-top service.[335][336]
In September 2016, Disney considered purchasing the American online news and social networking service Twitter,[337][338] but they dropped out partly due to concerns over abuse and harassment on the service.[339][340][341]
On March 23, 2017, Disney announced that Iger had agreed to a one-year extension of his term as CEO through July 2, 2019, and had agreed to remain with the company as a consultant for three years after stepping down.[342][343] In August 2017, Disney announced that it had exercised an option to increase its stake in BAMTech to 75 percent, and would launch a subscription video-on-demand service featuring its entertainment content in 2019, which will replace Netflix as the subscription VOD rights holder of all Disney theatrical film releases.[344][345] In November 2017, Lasseter announced that he was taking a six-month leave of absence from Pixar and Disney Animation after acknowledging "missteps" in his behavior with employees in a memo to staff. According to various news outlets, Lasseter had a history of alleged sexual misconduct towards employees.[346][347]
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In November 2017, it was reported by CNBC that Disney had been in negotiations to acquire 21st Century Fox. The negotiations had reportedly resumed around Disney acquiring several of Fox's key media assets. Rumors of a nearing deal continued on December 5, 2017, with additional reports suggesting that the FSN regional sports networks would be included in the resulting new company (assets that would likely be aligned with Disney's ESPN division).[348][349][350][351] On December 14, Disney agreed to acquire most assets from 21st Century Fox, including 20th Century Fox, for $52.4 billion.[352] The merger included many of Fox's entertainment assets—including filmed entertainment, cable entertainment, and direct broadcast satellite divisions in the UK, Europe, and Asia[353]—but excluded divisions such as the Fox Broadcasting Company, Fox Television Stations, the Fox News Channel, the Fox Business Network, Fox Sports 1 and 2, and the Big Ten Network, all of which were to be spun off into an independent company before the merger was complete (which eventually named Fox Corporation).[354] The following June, after a counter offer from Comcast worth $65 billion, Disney increased its offer to $71.3 billion.[355] The transaction officially closed on March 20, 2019.[356][357] Under the terms of acquisition, Disney will phase-out Fox brand usage by 2024.[358]
Beginning in March 2018, a strategic reorganization of the company saw the creation of two business segments, Disney Parks, Experiences and Products and Direct-to-Consumer & International. Parks & Consumer Products was primarily a merger of Parks & Resorts and Consumer Products & Interactive Media. While Direct-to-Consumer & International took over for Disney International and global sales, distribution and streaming units from Disney-ABC TV Group and Studios Entertainment plus Disney Digital Network.[359] Given that CEO Iger described it as "strategically positioning our businesses for the future", The New York Times considered the reorganization done in expectation of the 21st Century Fox purchase.[360]
2020–present: Bob Chapek's leadership and COVID-19 pandemic[edit]
On February 25, 2020, Disney named Bob Chapek as CEO to succeed Iger, effective immediately. Iger assumed the role of Executive Chairman, under which he would oversee the creative side of the company, while also continuing to serve as Chairman of the Board during the transition period through 2021.[361][362]
In April 2020, Iger resumed operational duties of the company as executive chairman to help the company during the COVID-19 pandemic and Chapek was appointed to the board of directors.[363][364] Also in the month, the company announced that it would suspend pay to more than 100,000 employees ("cast members") at Disney Parks, Experiences and Products in response to the COVID-19 recession—reportedly amounting to monthly savings of $500 million for the company—while continuing to provide full healthcare benefits. Reportedly, staff in the United States and France were affected and were encouraged to apply for government support.[365]
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Due to the closure of Disney parks during the COVID-19 pandemic, Disney experienced a 63 percent drop in earnings for the fiscal second quarter of 2020, resulting in a loss of $1.4 billion for the company. Additionally, the Parks, Experiences, and Products division experienced a loss of $1 billion in revenue.[366] In September 2020, the company announced that it will be laying off 28,000 employees in Florida and California. According to Disney's park chairman, Josh D'Amaro, "We initially hoped that this situation would be shortlived and that we would recover quickly and return to normal. Seven months later, we find that has not been the case." According to D'Amaro, two-thirds of the employees reported to be laid off were part-time workers.[367] Then in November, Disney planned to cut 4000 jobs more than announced until the end of March 2021.[368]
In December 2020, Disney named Alan Bergman as chairman of its Disney Studios Content division to oversee its film studios.[369] In March 2021, Disney announced a new division, 20th Television Animation, that would focus on adult animation.[370]
In July 2021, Disney announced that over an 18-month period it would move about 2,000 employees from its California headquarters to a new campus in Lake Nona, Orlando, Florida, to consolidate operations and take advantage of a more "business-friendly climate".[371]
On March 10, 2022, Disney announced that it will pause all business operations in Russia due the country's invasion of Ukraine and the humanitarian crisis it has caused.[372] Disney was the first major Hollywood studio to halt the release of a major motion picture due to Russia's invasion, and other movie studios such as Warner Bros. Pictures and Sony Pictures followed soon after.[373]
Through February and March 2022, Disney's response to a Florida bill prohibiting discussion in schools about gender and sexual identity (HB 1557, known as the "Don't Say Gay" bill) led to controversy over the company's lack of condemnation and previous restrictions on LGBT content, eventually leading to a rare walkout by employees.[374]
Company units[edit]
The Walt Disney Company operates six primary business segments (two primary divisions and four content groups):[375]
Divisions[edit]
- Disney Media and Entertainment Distribution (DMED)[376] is responsible for all global distribution, operations, sales, advertising, data, and technology functions for the company's four content production groups (listed below), as well as management of the company's direct-to-consumer businesses, including its multiple streaming services (Disney+, Hulu, and ESPN+), theatrical exhibition unit, home media distribution, Disney Music Group, and domestic television networks.[375][377] The division is led by Kareem Daniel.[375]
- Disney Parks, Experiences, and Products (DPEP) includes the company's theme parks, cruise line, travel-related assets, consumer products, and publishing divisions. Disney's resorts and diversified related holdings include: Walt Disney World, Disneyland Resort, Tokyo Disney Resort, Disneyland Paris, Hong Kong Disneyland Resort, Shanghai Disney Resort, Disney Vacation Club, Disney Cruise Line, and Adventures by Disney.[378] The division is led by Josh D'Amaro.[375]
Content groups[edit]
- The Walt Disney Studios consists of the company's filmed entertainment and theatrical entertainment businesses, including Walt Disney Pictures, Walt Disney Animation Studios, Pixar, Marvel Studios, Lucasfilm, 20th Century Studios, Searchlight Pictures, Disneynature, and Disney Theatrical Group. The division is led by Alan Bergman.[375]
- Disney General Entertainment Content (DGE)[376] consists of the company's entertainment-centric television channels and production companies in the United States, including Walt Disney Television (consisting of the ABC television network, Disney Television Studios – ABC Signature, 20th Television and 20th Television Animation – ABC Owned Television Stations and Freeform), Disney Branded Television, FX Networks, ABC News and 73% ownership of National Geographic Partners.[379] The division also owns 50% of A&E Networks with Hearst Communications. The division is led by Dana Walden.
- ESPN and Sports Content focuses on ESPN's live sports programming, as well as sports news and original and non-scripted sports-related content, for the cable channels, ESPN+, and ABC.[380] The division is led by James Pitaro.[375]
- International Content and Operations Group focuses on overseeing local and regional contents that pipelined with global market through managing ad sales, distribution, productions, and operations for its international linear channels and streaming services, split into four different hubs: Asia-Pacific, Europe, Middle East and Africa (EMEA), India, and Latin America. The division is led by Rebecca Campbell.[381]
In addition, Marvel Entertainment is a business reporting directly to the CEO; its financial results are primarily divided between the Studios and Consumer Products segments.[382]
Leadership[edit]
 | This section may contain an excessive amount of intricate detail that may interest only a particular audience. (April 2022) |
Current[edit]
- Board of Directors
- Susan Arnold (Chairman)
- Mary Barra
- Safra Catz
- Amy Chang
- Bob Chapek
- Francis deSouza
- Michael Froman
- Maria Elena Lagomasino
- Calvin McDonald
- Mark Parker
- Derica W. Rice
- Executives
- Bob Chapek, Chief Executive Officer
- Alan Bergman, Chairman, Disney Studios Content
- Rebecca Campbell, Chairman, International Content and Operations
- Jennifer Cohen, Executive Vice President, Corporate Social Responsibility
- Josh D'Amaro, Chairman, Disney Parks, Experiences and Products
- Kareem Daniel, Chairman, Disney Media and Entertainment Distribution
- Horacio Gutierrez, Senior Executive Vice President, General Counsel and Secretary
- Dorothy Attwood, Senior Vice President, Global Public Policy
- Susan Fox, Senior Vice President, Government Relations
- Jolene Negre, Associate General Counsel and Secretary
- Yvonne Pei, Senior Vice President, External Relations, Greater China
- Alicia Schwarz, Senior Vice President and Chief Compliance Officer
- Ronald L. Iden, Senior Vice President and Chief Security Officer
- Christine McCarthy, Senior Executive Vice President and Chief Financial Officer
- Carlos A. Gómez, Senior Vice President and Treasurer
- Diane Jurgens, Executive Vice President, Enterprise Technology and Chief Information Officer
- Alexia S. Quadrani, Senior Vice President, Investor Relations
- Brent Woodford, Executive Vice President, Controllership, Finance and Tax
- James Pitaro, Chairman, ESPN and Sports Content
- Paul Richardson, Senior Executive Vice President and Chief Human Resources Officer
- Latondra Newton, Senior Vice President, Chief Diversity Officer
- Kristina Schake, Senior Executive Vice President and Chief Communications Officer
- Dana Walden, Chairman, Disney General Entertainment Content
Past leadership[edit]
- Executive chairmen
- Bob Iger (2020–2021)
- Chairmen
Walt Disney stepped down as chairman in 1960 to focus more on the creative aspects of the company, becoming the "executive producer in charge of all production."[383]
After a four-year vacancy, Roy O. Disney became chairman.
- Walt Disney (1945–1960)
- Roy O. Disney (1964–1971)
- Donn Tatum (1971–1980)
- Card Walker (1980–1983)
- Raymond Watson (1983–1984)
- Michael Eisner (1984–2004)
- George J. Mitchell (2004–2006)
- John E. Pepper Jr. (2007–2012)
- Bob Iger (2012–2021)
- Susan Arnold (2022–present)
- Vice chairmen
- Roy E. Disney (1984–2003)
- Presidents
- Walt Disney (1923–1945)
- Roy O. Disney (1945–1968)
- Donn Tatum (1968–1971)
- Card Walker (1971–1980)
- Ron W. Miller (1980–1984)
- Frank Wells (1984–1994)
- Michael Ovitz (1995–1997)
- Michael Eisner (1997-2000)
- Bob Iger (2000–2012)
- Chief executive officers (CEO)
- Roy O. Disney (1929–1971)
- Donn Tatum (1971–1976)
- Card Walker (1976–1983)
- Ron W. Miller (1983–1984)
- Michael Eisner (1984–2005)
- Bob Iger (2005–2020)
- Bob Chapek (2020–present)
- Chief operating officers
- Card Walker (1968–1976)
- Ron W. Miller (1980–1984)
- Frank Wells (1984–1994)
- Sanford Litvack (1997–1999)[384]
- Bob Iger (2000–2005)
- Thomas O. Staggs (2015–2016)
Financial data[edit]
Revenues[edit]
| Year | Studio Entertainment[NI 1] | Disney Consumer Products[NI 2] | Disney Interactive Media[385][386] | Parks & Resorts[NI 3] | Disney Media Networks[NI 4] | Total | Source |
|---|---|---|---|---|---|---|---|
| 1991 | 2,593.0 | 724 | 2,794.0 | 6,111 | [387] | ||
| 1992 | 3,115 | 1,081 | 3,306 | 7,502 | [387] | ||
| 1993 | 3,673.4 | 1,415.1 | 3,440.7 | 8,529 | [387] | ||
| 1994 | 4,793 | 1,798.2 | 3,463.6 | 359 | 10,414 | [388][389][390] | |
| 1995 | 6,001.5 | 2,150 | 3,959.8 | 414 | 12,525 | [388][389][390] | |
| 1996 | 10,095[NI 2] | 4,502 | 4,142[Rev 1] | 18,739 | [389][391] | ||
| 1997 | 6,981 | 3,782 | 174 | 5,014 | 6,522 | 22,473 | [392] |
| 1998 | 6,849 | 3,193 | 260 | 5,532 | 7,142 | 22,976 | [392] |
| 1999 | 6,548 | 3,030 | 206 | 6,106 | 7,512 | 23,435 | [392] |
| 2000 | 5,994 | 2,602 | 368 | 6,803 | 9,615 | 25,402 | [393] |
| 2001 | 7,004 | 2,590 | 6,009 | 9,569 | 25,790 | [394] | |
| 2002 | 6,465 | 2,440 | 6,691 | 9,733 | 25,360 | [394] | |
| 2003 | 7,364 | 2,344 | 6,412 | 10,941 | 27,061 | [395] | |
| 2004 | 8,713 | 2,511 | 7,750 | 11,778 | 30,752 | [395] | |
| 2005 | 7,587 | 2,127 | 9,023 | 13,207 | 31,944 | [396] | |
| 2006 | 7,529 | 2,193 | 9,925 | 14,368 | 34,285 | [396] | |
| 2007 | 7,491 | 2,347 | 10,626 | 15,046 | 35,510 | [397] | |
| 2008 | 7,348 | 2,415 | 719 | 11,504 | 15,857 | 37,843 | [398] |
| 2009 | 6,136 | 2,425 | 712 | 10,667 | 16,209 | 36,149 | [399] |
| 2010 | 6,701[NI 5] | 2,678[NI 5] | 761 | 10,761 | 17,162 | 38,063 | [400] |
| 2011 | 6,351 | 3,049 | 982 | 11,797 | 18,714 | 40,893 | [401] |
| 2012 | 5,825 | 3,252 | 845 | 12,920 | 19,436 | 42,278 | [402] |
| 2013 | 5,979 | 3,555 | 1,064 | 14,087 | 20,356 | 45,041 | [403] |
| 2014 | 7,278 | 3,985 | 1,299 | 15,099 | 21,152 | 48,813 | [404] |
| 2015 | 7,366 | 4,499 | 1,174 | 16,162 | 23,264 | 52,465 | [405] |
| 2016 | 9,441 | 5,528 | 16,974 | 23,689 | 55,632 | [406] | |
| 2017 | 8,379 | 4,833 | 18,415 | 23,510 | 55,137 | [407] | |
| 2018 | 9,987 | 4,651 | 20,296 | 24,500 | 59,434 | [408] | |
| Year | Studio Entertainment | Direct-to-Consumer & International | Parks, Experiences and Products | Media Networks[NI 4] | Total | Source |
|---|---|---|---|---|---|---|
| 2018 | 10,065 | 3,414 | 24,701 | 21,922 | 59,434 | [409] |
| 2019 | 11,127 | 9,349 | 26,225 | 24,827 | 69,570 | [410] |
| 2020 | 9,636 | 16,967 | 16,502 | 28,393 | 65,388 | [411] |
| Year | Media and Entertainment Distribution | Parks, Experiences and Products | Total | Source |
|---|---|---|---|---|
| 2021 | 50,866 | 16,552 | 67,418 | [412] |
Disney ranked No. 55 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.[413]
- ^ Following the purchase of Capital Cities/ABC Inc.
Operating income[edit]
| Year | Studio Entertainment[NI 1] | Disney Consumer Products[NI 2] | Disney Interactive Media[385] | Parks and Resorts[NI 3] | Disney Media Networks[NI 4] | Total | Source |
|---|---|---|---|---|---|---|---|
| 1991 | 318 | 229 | 546 | 1,094 | [387] | ||
| 1992 | 508 | 283 | 644 | 1,435 | [387] | ||
| 1993 | 622 | 355 | 746 | 1,724 | [387] | ||
| 1994 | 779 | 425 | 684 | 77 | 1,965 | [388][389] | |
| 1995 | 998 | 510 | 860 | 76 | 2,445 | [388][389] | |
| 1996 | 1,596[NI 2] | −300[NI 6] | 990 | 747 | 3,033 | [389] | |
| 1997 | 1,079 | 893 | −56 | 1,136 | 1,699 | 4,312 | [392] |
| 1998 | 769 | 801 | −94 | 1,288 | 1,746 | 4,079 | [392] |
| 1999 | 116 | 607 | −93 | 1,446 | 1,611 | 3,231 | [392] |
| 2000 | 110 | 455 | −402 | 1,620 | 2,298 | 4,081 | [393] |
| 2001 | 260 | 401 | 1,586 | 1,758 | 4,214 | [394] | |
| 2002 | 273 | 394 | 1,169 | 986 | 2,826 | [394] | |
| 2003 | 620 | 384 | 957 | 1,213 | 3,174 | [395] | |
| 2004 | 662 | 534 | 1,123 | 2 169 | 4,488 | [395] | |
| 2005 | 207 | 543 | 1,178 | 3,209 | 5,137 | [396] | |
| 2006 | 729 | 618 | 1,534 | 3,610 | 6,491 | [396] | |
| 2007 | 1,201 | 631 | 1,710 | 4,285 | 7,827 | [397] | |
| 2008 | 1,086 | 778 | −258 | 1,897 | 4,942 | 8,445 | [398] |
| 2009 | 175 | 609 | −295 | 1,418 | 4,765 | 6,672 | [399] |
| 2010 | 693 | 677 | −234 | 1,318 | 5,132 | 7,586 | [400] |
| 2011 | 618 | 816 | −308 | 1,553 | 6,146 | 8,825 | [401] |
| 2012 | 722 | 937 | −216 | 1,902 | 6,619 | 9,964 | [402] |
| 2013 | 661 | 1,112 | −87 | 2,220 | 6,818 | 10,724 | [403] |
| 2014 | 1,549 | 1,356 | 116 | 2,663 | 7,321 | 13,005 | [404] |
| 2015 | 1,973 | 1,752 | 132 | 3,031 | 7,793 | 14,681 | [405] |
| 2016 | 2,703 | 1,965 | 3,298 | 7,755 | 15,721 | [406] | |
| 2017 | 2,355 | 1,744 | 3,774 | 6,902 | 14,775 | [407] | |
| 2018 | 2,980 | 1,632 | 4,469 | 6,625 | 15,706 | [408] | |
| Year | Studio Entertainment | Direct-to-Consumer & International | Parks, Experiences and Products | Disney Media Networks | Total | Source | |
|---|---|---|---|---|---|---|---|
| 2018 | 3,004 | −738 | 6,095 | 7,338 | 15,689 | [409] | |
| 2019 | 2,686 | −1,814 | 6,758 | 7,479 | 14,868 | [410] | |
| 2020 | 2,501 | −2,806 | −81 | 9,022 | 8,108 | [411] | |
| Year | Media and Entertainment Distribution | Parks, Experiences and Products | Total | Source |
|---|---|---|---|---|
| 2021 | 7,295 | 471 | 7,766 | [412] |
Film library[edit]
Highest-grossing films[edit]
|
|
Criticism[edit]
The Walt Disney Company has been criticized for the purportedly sexist, racist, or overly commercial artistic direction of certain pieces of its intellectual property. It has also received criticism for offering poor pay and working conditions, engaging in anticompetitive practices, and treating animals poorly.
See also[edit]
- Lists of films released by Disney
- List of Disney television series
- Disney University
- Disneyfication
- Buena Vista
- Mandeville-Anthony v. Walt Disney Co., a federal court case in which Mandeville claimed Disney infringed on his copyrighted ideas by creating Cars
- List of conglomerates
- List of acquisitions by Disney
References[edit]
Notes[edit]
- ^ a b Also named Films and Film Entertainment
- ^ a b c d Merged into Creative Content in 1996, merged into Consumer Products and Interactive Media in 2016, which merged with Parks & Resorts in 2018
- ^ a b Called Walt Disney Attractions (1989–2000) Walt Disney Parks and Resorts (2000–2005) Disney Destinations (2005–2008) Walt Disney Parks and Resorts Worldwide (2008–2018)
- ^ a b c Broadcasting from 1994 to 1996
- ^ a b first year with Marvel Entertainment as part of results
- ^ Not linked to WDIG, Disney reported a $300M loss due to financial modification regarding real estate
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Further reading[edit]
- Disney Stories: Getting to Digital, Newton Lee and Krystina Madej (New York: Springer Science+Business Media, 2012), ISBN 978-1-4614-2100-9.
- A View Inside Disney, Tayler Hughes, 2014 Slumped
- Building a Company: Roy O. Disney and the Creation of an Entertainment Empire, Bob Thomas, 1998
- Building a Dream; The Art of Disney Architecture, Beth Dunlop, 1996, ISBN 0-8109-3142-7
- Cult of the Mouse: Can We Stop Corporate Greed from Killing Innovation in America?, Henry M. Caroselli, 2004, Ten Speed Press
- Disney: The Mouse Betrayed, Peter Schweizer
- Disney A to Z (Fifth Edition) : The Official Encyclopedia, Dave Smith. 5th edition Disney Editions, 2016 ISBN 1-4847-3783-0.
- The Disney Touch: How a Daring Management Team Revived an Entertainment Empire, by Ron Grover (Richard D. Irwin, Inc., 1991), ISBN 1-55623-385-X
- The Disney Version: The Life, Times, Art and Commerce of Walt Disney, Richard Schickel, 1968, revised 1997
- Disneyana: Walt Disney Collectibles, Cecil Munsey, 1974
- Disneyization of Society: Alan Bryman, 2004
- DisneyWar, James B. Stewart, Simon & Schuster, 2005, ISBN 0-684-80993-1
- Donald Duck Joins Up; the Walt Disney Studio During World War II, Richard Shale, 1982
- How to Read Donald Duck: Imperialist Ideology in the Disney Comic ISBN 0-88477-023-0 (Marxist Critique) Ariel Dorfman, Armand Mattelart, David Kunzle (translator).
- Inside the Dream: The Personal Story of Walt Disney, Katherine Greene & Richard Greene, 2001
- The Keys to the Kingdom: How Michael Eisner Lost His Grip, Kim Masters (Morrow, 2000)
- The Man Behind the Magic; the Story of Walt Disney, Katherine & Richard Greene, 1991, revised 1998, ISBN 0-7868-5350-6
- Married to the Mouse, Richard E. Foglesorg, Yale University Press
- Mouse Tales: A Behind-the-Ears Look at Disneyland, David Koenig, 1994, revised 2005, ISBN 0-9640605-4-X
- Storming the Magic Kingdom: Wall Street, the raiders, and the battle for Disney, John Taylor, 1987 New York Times
- The Story of Walt Disney, Diane Disney Miller & Pete Martin, 1957
- Team Rodent, Carl Hiaasen.
- Walt Disney: An American Original, Bob Thomas, 1976, revised 1994, ISBN 0-671-22332-1
- Work in Progress by Michael Eisner with Tony Schwartz (Random House, 1998), ISBN 978-0-375-50071-8
Chronology of company[edit]
- Polsson, Ken. "Chronology of the Walt Disney Company". Retrieved December 15, 2013.
External links[edit]
- Official website
- The Walt Disney Company companies grouped at OpenCorporates
- Business data for Walt Disney:
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