Walt Disney Studios Case Study

774 Words4 Pages
Walt Disney Studios is a division of the Walt Disney Company and a major player in the movie and video production industry. Walt Disney Studios accounts for 14.9% of the market share in the film industry (Appendix C). The movie and production industry is valued at 32.9 billion dollars. In 2013 it had an estimated 2.5 billion dollar profit and 4.2 billion dollars in exports. From 2008 to 2013 it had an annual growth of -3.3% (Appendix A). PESTLE There are a few political factors that the movie and video production industry has to consider. Movies are exported all across the globe, and in fact 70% of annual box office revenue comes from international markets. Movie studios now accommodate other cultures by adding or deleting scenes or changing their formats. Distribution rights and trade agreements internationally play a strong role in the industry. The changing economic environment has lead the industry to make certain changes. The Per capita disposable income has significantly decreased because of the recent recession,…show more content…
The bigger studios have a significant advantage for they have access to the best resources in terms of both talent and financing. Vertical integration has increased power of the top studios. The movie studios have an obligation towards the bargaining power of the customers and the suppliers. What the studios need is to sell box office tickets, and if they are priced to high, the customers will not attend. This matters of course domestically and the studios are being held more and more accountable to the consumers internationally. In terms of suppliers, the movie industry has a proven track record of success based on the talent involved. There are a limited number of A-list actors as well as writers, directors, producers and others who work on movies. The studios are consistently involved in a power struggle between these
Open Document