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.

Incoming Revenue Among Key Entertainment Companies

When looking into the movie and entertainment industry, perhaps no name is bigger than Walt Disney Co. With fields in media ranging from music to sports, they seem to hold a strong presence everywhere in the industry. From 2007 to 2010, Walt Disney Co. brought in the most revenue among its competitors. In 2007, their annual revenue was $35.510 billion, which increased to $37.843 billion, dropped to $36.149 billion, and then increased again to $38.063 billion in 2010. Throughout this four-year span ranging from the beginning of 2007 to the end of 2010, Walt Disney’s closest competitor was News Corp. News Corp’s respective revenues from 2007 to 2010 were $28.655 billion, $32.996 billion, $30.423 billion, and $32.778 billion.

While Time Warner dominated in terms of revenue from 2005-2008 (bringing in over $40 billion each year), they took a turn for the worse during the recession. From 2008-2009, Time Warner’s revenue nearly cut itself if half, dropping from $46.984 billion to $25.785 billion. Like other companies in the industry, Time Warner was able to bounce back in 2010, increasing its revenue by $1 billion.

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.

Let's Make Some Money

What are the basic economics of the industry? How do companies make money? What are their costs?

When it comes to media, revenue and costs come about in many different ways. In the constant quest for view counts, different media companies are constantly competing with each other to see who can attract the most viewers. Danny Brown, co-founder of Bonsai Marketing, explains it best in his article, "The Real Cost of Social Media." Companies in the media industry tend to make their revenue in several different ways. One method is through the application of user fees and subscriptions. Usually if you want access to the media, you will have to offer up some sort of payment. From newspapers, to magazines, to cable, to the Internet, viewers will have to pay an access fee. Another way companies involved in the media make money is through advertisements and sponsorships. Companies want people to know about their product/service and are willing to pay media outlets in order to achieve this. Now when it comes to costs, media companies are constantly going through high production costs. For companies involved in television, a major cost is paying for airtime. If they want to receive revenue, they need viewers, and it promotions can cost a hefty sum.