CEO Makes It Go

An article in the WSJ states that the profits of Disney Channel rose 30% because of theme parks and TV. Also, investing in Russia, China and India would solidify the company’s position and further assist its growth.

Such progress cannot be achieved without the right leaders and the right strategies. In this case, Chief Executive Officer (CEO), Robert Iger played a huge and vital role in bringing the company to this position.

One of his strategies includes the implantation of theme parks in different countries around the world. Shanghai Disney Resort is one of the key factors in the company’s revenue/profit growth in China.

Another strategy CEO Iger chooses to pursue is launching the Disney Channel in different areas as well. Recently, the Channel was launched in Russia.

Finally, reducing production costs is also important in the company’s growth. The to-be-release movie “Muppets” cost only $50 million to produce.

A combination of all these elements helps create one of the fastest growing companies in media. Without human resources, skills and leadership, none of this would have been possible.

Tim Starts to Cook

An article in the WSJ states that the new Apple entrepreneur, Tim Cook’s, ability to follow in the footsteps of his late boss, Steve Jobs, is questionable.

Cook’s management strategy differs than Mr. Jobs in a promotional sense. He believes more in the promotion and the iDevices than Mr. Jobs did.

He seems to give more attention to stakeholders outside the firm itself such as consumers and investors. He is increasing the business-consumer relationship by “sending a variety of company-wide emails that address Apple employees as "Team,"”. As for the investors, he is intensifying his meetings with them.

Moreover, his plan is to increase the firm’s corporate social responsibility –philanthropy, to be specific –which will lower the company’s revenue $10,000 yearly while Mr. Jobs opposed charitable programs.

These entrepreneurial strategies may prove to be promising as well as disappointing. The author may think that Tim Cook might not be able to continue “the string of hits that have made Apple the world's largest technology company”, but others might disagree and say “satisfying as much stakeholders as possible is never a hindrance –if not an enhancement”

Revenue of GE, Profit of Disney.

Although the Walt Disney Co. tops the charts in terms of profit, General Electric Co. dominates in terms of revenue with 128,051 million dollars in year 2000, $180,929 million in 2008 and $149,060 million in 2010. This at least triples the revenue of Disney in any year. However, we cannot make judgments yet, we still need to know how much of a percentage the profit is of the revenue.

GE had a 12.8% return on revenue of profit in year 2000 while Disney received 9.8%. However, the earliest statistics show that GE got an 8.5% return on revenue of profit while Disney had a 10.4%.

Then why is Walt Disney still on top? Because General Electric has a broader range of supplies -goes even beyond entertaining- so when you balance between the ratios, it will be apparent that the revenue Disney is receiving is massive relative to the number of products and services the company offers in comparison with GE which produces a lot more than Disney while Disney remains a clear competitor.

Key Factors to Global Success of the Walt Disney Company

Of all the companies in the media industry, the one that seems to be of the most globally successful is The Walt Disney Company. It had expanded into almost all countries worldwide from the U.S. to Indochina. The company received revenue of 38.1 billion dollars this year. Key reasons for its tremendous success are summarized to six major ones.

The most creative of these reasons is that the company has an international expansion strategy in which includes fixed assets. There are Disneylands around Paris, Hong Kong, California and Florida, Disney Resorts in Shanghai, Tokyo and Hawaii, Disney Cruise Line, Disney Vacation Club and Disney Card Club. They try to create a two-way communication by developing these clubs and parks. All which allow international and global involvement.

It had not only expanded to almost every country in the world, but it also has expansion strategies in Japan, Europe, US, India, Latin America, Hong Kong, and Russia.

Brand image is very important to any media company and Walt Disney and his following CEOs made a great job in creating it. One major factor to start and boost this image is Mickey Mouse, the most recognized cartoon character in the world.

It is apparent that Disney flourishes in not only the TV industry, but in several other fields. It has diversified into travel, theatres, film production, live-action, publishing and radio. This has allowed it to further succeed and spread its brand name.

Another very smart tactic is the strategic alliances it created with companies worldwide “to help with producing branded consumer goods, as well as supplying its theme parks”. Its most current one is its alliance with Apple’s iTunes which sells Disney movies, programs and movies.

Last but not least, Disney offers internet options to its consumers in order to involve them as much as possible. Their website offers access to e-ticketing, products and information about them. These are available on their website, but they also have a blog (BlueSky) that provides more in-depth communication with consumers.

Apple's Steve Jobs Died

The biggest news in the history of modern technology has come out the past week: Apple’s Steve Jobs died at the age of 56. His death will not only affect Apple as a company but also the media industry as a whole.

There are short-term and long-term effects resulting from Steve Job’s death. Some of these effects will be discussed through this blog post.

The death of a legendary creator is most of the times an advantage to the sales of his creations. This can be applied in any field/industry. Let’s take the music industry for example. The death of the king of pop, Michael Jackson, resulted in a boom in his songs and album sales. The same thing is expected to happen to Steve Job’s iCreations and specially his latest iPhone 4S. People would want to grab the opportunity of owning a device that was created by a legend-to-be.

This affects other competitors in the media industry. Some might have an HP and plan to keep it for another year and then get a new one. But with the Macbooks running out and out of date (with time), they will rush into buying a Macbook Air instead. This influences the sales of HP PCs and other complements such as Windows XP.

Some are suspecting the company’s ongoing success in the long run. At some point, Steve’s modern designs will become old and so Apple is under the pressure of following in his footsteps of creating newer and more unique devices. “In 1985, the company began a steady decline that saw it drift to the margins of the computer industry” all because Steve Jobs was fired. It was only when he came back to the company that it started to rise again in 1997. That being said, some believe that the exact thing will happen to Apple’s sales today.

If this is proves to be true, it will be an advantage to other PC companies and their complements as their devices will rise in demand and therefore have their years of prosperity.

Scandal of the Year

The media industry has a long history of ethics scandals over the years. This article from the Economist talks about the highly covered hacking scandal in England by News International’s tabloid, News of the World. While tabloids have always been known for using questionable methods to gather information and come up with good headlines, News of the World took this way too far. In possibly the worst ethics scandal of the year, News of the World was revealed to have hacked the phones of possibly thousands of victims. While it had already confessed to hacking a number of celebrities and politicians, when it was revealed that they hacked into the phone of a teenage murder victim, it sparked public outcry. The scandal was not limited to the hacking of phones and also included the bribery of police officers for information and was accused of possible interference in the police investigation after they deleted messages from the dead girl’s phone. It also became known that they had also been hacking into the phones of soldiers deployed in Afghanistan and victims of terrorist attacks as well.

This scandal would lead to the end of News of the World, despite it being one of the top selling tabloids in the country. It would also harm the reputation of Rupurt Murdoch, one of the most powerful and wealthiest men in the world. He owns many news corporation worldwide, including Fox, the Wall Street Journal, and NewsCorp, which the FBI is investigating.

Ethical Issues in Media

The media industry with its various branching industries faces a good chunk of ethical issues. The advertising industry itself brings most of these issues. And then we have the social media companies such as Facebook which are also the most controversial. Other sub-industries of media raise some ethical issues but are not as influential. In my opinion, the publishing industries are the least controversial if not at all.

One of the most controversial ethical issues in the advertisement industry is the use of sexual imagery in some ads –a term referred to as “sex sells”. Many people consider this tactic unethical and misleading. For example, Apple –one of the most successful/popular company selling electronic products– uses a shadow of a naked woman and a playboy-bunny earpiece wire as a marketing strategy to attract more customers to buy their products. This may be considered offensive to parents who are concerned about their child seeing such images.

Another method advertisement companies often use carry discriminatory messages and may cause prejudice for some people. For example, many consider Fair & Lovely –a company selling skin clarity products – TV commercials racist. This is due to the fact that they assume that women are happier with lighter skin.

Operators of TV broadcasting sometimes display pornographic images or reality TV shows that portray a message that is supposed to be directed only for a certain audience of certain age. No parent would want their child watching 18+ rated movies for the sexual and psychological implications it causes. They would want to make sure that their child is having a healthy childhood. Reality shows mess with people’s minds the most. Since viewers think they’re “real”, their message is going to be the most influential. Therefore, reality show producers should be very careful when choosing their theme point –in which unfortunately they’re not. Shows like the Bachelor influence what people think of relationships and how men treat women and so on.

With social media comes a whole stack of issues related to ethics; from hacking to abusing to privacy concerns. Many facebook users deactivated their accounts due to other people stalking their profiles which gave them a sense of insecurity. You might think social media networks are harmless, but they cause levels of harm from simple such as losing your privacy to criminal such as child abuse, rape and murder. To illustrate, there’s a story that Oprah thought was of major importance where a 14-year-old child called Kristin was raped by a 27-yer-old man and then committed suicide all resulting from social networking dangers.

Most newspapers carry only ethical messages and are of highest ethical standards amongst other forms of

media. In fact, their only relation to ethical issues is discussing them and raising more awareness to prevent and/or reduce them.

Social Media Use In Small Businesses

Keeping up with current events, social media is making starting up a new business easier than ever. An article in the Miami Herald shows that while most leading companies have already become accessible through social media, small businesses are just now seeing the potential. The most prominent new frontier opened up to small businesses with social media is advertising. Businesses can keep people up to date with upcoming promotional events and sales. Advertising in newspapers and on TV is extremely expensive, especially for small businesses. As a business gathers friends and followers on media sites, it becomes very efficient for businesses to advertise to this group of people. While most ads in other places would be useless for a majority of the people exposed, advertising to your followers saves money and targets people who would be most likely to respond.

With the use of social media sites by ordinary consumers constantly increasing, new and small businesses are given instant access to more views than ever before than if they had not gone to sites such as Facebook or Twitter.

Lion King 3-D

Let's talk about some current developments: it's been a very busy and lucrative time in the media industry.

An article in the WSJ states that the 1994 movie, the Lion King was re-released in 3-D in movie theatres this week. Up until now, it had grossed 29.3 million dollars topping all other movies in the U.S. Box Office. This is a record in history as it added to the film’s lifetime gross on top of the $40.9 million it made on its opening weekend in 1994, the $765 million earning world-wide and the $19.4 million large-format reissue in 2002.

The idea of transforming a classical movie into 3-D was genius. The statistics in the article prove so as “92% of the weekend's gross came from 3-D ticket sales”. So we can see here, that the marketing media has a huge and evident effect on business.

The movie also had an effect on social media as it gave people something to talk about. According to twitcritics.com, 4140 tweeters mentioned the Lion King 3-D till 06:20 pm September 18, 2011.

It must have affected the publishing industry as well. The WSJ newspaper is writing about it and many other newspapers have it mentioned in their movie theatres page. Each newspaper company must have asked for some amount of money in exchange for a space in their paper. This further expands the flow of money.

Other than newspapers, operators of broadcasting and owners of television stations had to display the movie trailer. This means that they also got paid in exchange for the time period they spent showing the trailer as a form of advertising. The same applies to radio stations.

The movie’s tremendous success did not only affect Walt Disney Co. by earning a huge gross/profit, but it also affected the competing movie production companies by beating them on the box office and by affecting their revenue as well. If some had one opportunity to go to the movies for the weekend, they might choose to watch Lion King 3-D (a number one rated movie) instead of the Smurfs which ranked 15 on the box office.

Not to forget to mention that the movie itself “is largely a promotion for the debut of "The Lion King" in 3-D on Blu-ray disc next month” as mentioned in the article which means that the revenue will not stop here.