Sample Coursework 6
Exploring Global Media – GCS Global Conglomerate
The Walt Disney Company
Essay Question: Why is this a media conglomerate?
The Walt Disney Company is a media conglomerate based in California, USA. The company was founded in 1923 as “Disney Brothers Studios” by Walt and Roy Disney (Wikipedia, 2023). The name was officially changed to ‘The Walt Disney Company’ in 1986. The company is publicly traded, and its revenue comes from streaming, sales and distribution, theme parks, and live experiences.
Firstly, the company has horizontal and vertical integration through acquisitions and expansion plans. For example in terms of horizontal integration, Disney owns multiple production companies like Pixar animation and marvel, which both operate in the same industry of entertainment production. Disney also owns streaming services like Hulu and Disney Plus, while also offering theme parks like Disney world, both of which show the company’s vertical integration strategy. The high level of integration allows the company to expand its control over the market and diversify its portfolio, which leads it to become a media conglomerate.
Moreover, what makes it a conglomerate is its market share, diversified portfolio, and revenue streams. The Walt Disney Company holds a large share of the global media market. The main competitors of the company are Warner media, ViacomCBS, and Comcast. The three companies along with The Walt Disney Company, control over 50% of the global market share, making them major Oligopolies. They are also part of “The big ten” which account for over 80% of all revenues (Winseck, 2008). According to Statista, Disney’s main revenue, over 55% comes from media and entertainment, followed by linear networks (28%) and business-to-consumer sales (19%) (Statista, 2022). This shows its level of integration and control over different aspects of the media industry. Furthermore, owning multiple companies allows Disney to use media synergy to increase audience engagement and boost its revenues.
Therefore, The Walt Disney Company is considered a media conglomerate due to its ownership and management of several media platforms and channels as well as other investments.
Bibliography
Lakritz, Talia. “14 Companies You Didn’t Realize Disney Owns.” Insider, Insider, 31 Jan. 2020
“The Walt Disney Company.” Wikipedia, Wikimedia Foundation, 9 Mar. 2023
Winseck, D. (2008). The State of Media Ownership and Media Markets: Competition or Concentration and Why Should We Care? Sociology Compass, 2(1), 34–47.
Segal, Troy. “Who Are Walt Disney’s Main Competitors?” Investopedia, Investopedia, 27 July 2022.
Stoll, Julia. “The Walt Disney Company – Revenue by Operating Segment 2022.” Statista, 30 Nov. 2022.