It is sometimes said that Walt Disney was repeatedly rejected by a number of mainstream animation companies because his stories lacked imagination. Some even say that these companies may have been on to something, because although Disney has a large and celebrated body of original characters to his credit, some of his most successful works were based on stories written by the Brothers Grimm and Hans Christian Andersen.
Regardless of whatever prism through which one views Disney’s legacy, he was an innovator who knew how to take risks and how to tell a great story. Powered by his remarkable vision, his eponymous company went from strength to strength. In the 1930s, the Walt Disney Company launched a powerful animation business backed by a revolutionary merchandising model and on the back of that success opened the world’s first theme park in 1955.
Since then the Walt Disney Company has gone on to become a global media and entertainment powerhouse that has kept the creation of high quality content as the pulsating heart of its business. Today, the company has a phenomenal market valuation of $187 billion – something no other company in the same product space has come close to, generates revenues over $50 billion from its many business streams and has an operating profit of nearly $15 billion. It has become a sterling example of success in its industry space, with its stock price growing five-fold in the last decade and profitability doubling in half that period.
The Walt Disney Company has a phenomenal market valuation of $187 billion – something no other company in the same product space has come close to, generates revenues over $50 billion from its many business streams and has an operating profit of nearly $15 billion.
Many credit this remarkable success story to the endurance of Disney’s vision to keep great storytelling and content at the centre of his company’s existence. Even today, the Walt Disney Company defines creating engaging stories through film as the core business unit in its structure – despite the fact that filmmaking accounts for only 14% of the overall operating profits. The company has built on the traction these films gain to increase revenue through theme parks, TV networks, merchandising sales, licensing, publishing and music. An industry analyst once famously commented that Disney’s secret has been to combine a great tale with cutting edge technology and creating the kind of toys that have led it to monopolise the childhood (and nostalgia for childhood) of global audiences. Even if the comment may have been made in jest, it comes close to the business model that the company has pursued aggressively since 2005, when Bob Iger became the CEO.
Today the company is known for its skill in having acquired successful franchises with a large following. The company bought out Jim Henson’s Muppets in 2004 for $75 million and then went on to acquire even bigger properties, such as Marvel (owners of the massive Marvel superhero multi-verse including Spiderman, Avengers, X-men, etc) for four billion dollars and Lucasf ilm (owners of Star Wars and Indiana Jones franchises) for 4.1 billion dollars.
According to industry analysts, these massive acquisitions have given Disney an endless supply of tropes and a dedicated fan base to whom it could sell an endless supply of stories, thereby ensuring limitless profitability.
However, while the success of these acquisitions seems like pure genius, Iger did not stop there. He looked at the company’s weaknesses and then made acquisitions aimed at strengthening Disney’s content generation technology and distribution capacities. In many ways that is where the true genius of Iger’s vision stands out.