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Disney Measures

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Submitted By eddy8949
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1. I think Disney’s biggest growth opportunity is media network. Not only media network accounts for the biggest part of Disney’s revenue, but this segment has grown steadily for the past three years (while the growth rate of other segments fluctuates severely during this period). Besides, the market for programming is very competitive, particularly for sports programming. A decent part of profits in the media network segment comes from ESPN because sports channel is the most important channel for many people. The Company currently has sports rights agreements with the National Football League (NFL), college football (including college bowl games) and basketball conferences, National Basketball Association (NBA), National Association of Stock Car Auto Racing (NASCAR), Major League Baseball (MLB), World Cup and various soccer leagues, and Golf and Tennis Associations. I believe people’s craziness for those sports won’t easily fade in the future; especially the recent “Linsanity” in NBA even motivates more people around the world to pay attention to NBA news, which I believe can bring in a great chunk of commercial revenues to Disney. Though “Linsanity” could be very short-term, those sport leagues signed agreement with ESPN boast of the world’s top athletes in their field; therefore there are always many people are willing to stick to their TV for hours to cheer up for their teams. That’s why I think the media network will have the best potential to grow in the future.

2. (a) entertainment company: Universal Studio non-entertainment company: Fox cable networks

(b) Because theme parks and resorts is the second biggest revenue source for Disney, Universal Studio has its own theme park as well. In addition, Universal Studio has copyright of many classic movies, so they always put elements of those popular movies into their theme parks to attract more people; that is why Universal Studio is a prime completion for Disney. Fox Cable Networks reach more than 550 million subscribing television homes and represent one of the media industry’s largest and most diverse programming groups. Not only does FCN have 19 regional cable sports networks such as, SPEED, Fox Soccer Channel, Fox College Sports, Fox Sports en Español and the Big Ten Network etc. but they also span FX, National Geographic Channel, Fox Reality Channel. Those different networks owned by Fox Cable Networks will absolutely compete with media networks owned by Disney for commercial fees.

(c) Universal Studio: I think Disney could compare the profit ratio generated by the Disney theme park with those generated by Universal theme park. We can’t just see the profits because it is probably the efforts and capital each company puts in their theme park are different. So if we use the profit ratio we can see the “real benefits” each theme park bring to their company and compare with these two theme parks in the same standard. So Disney can see whether they have bigger profit ratio than Universal Studio and whether this ratio grows every year. Fox Cable Networks: I think Disney can use audience rating and commercial revenues to measure their success. If ESPN has higher audience rating and generates more commercial fees than those sport channels owned by FCN do, it means that ESPN is more popular and Disney beats FCN in this area.

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