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How Disney Represents Reality

Due to Disney's particular focus on family orientated animated films, Disney's products have developed their own unique representation of reality. Since Disney's first release, most of the company's animated films have retained this representation, and have acted as an example to a younger audience, attempting to eliminate messages that are unsuitable for a younger audience, while dividing current world affairs, such as ongoing wars, from the films. These elements of production are also clear in many of Pixar's films, which may have been one reason for Disney's particular interest in the company before taking it over.

Disney's films that are aimed towards an older audience are marketed seperatly, under a different distribution and production name, to ensure that there is no relationship between external world affairs and the internal world of Disney film.

Although the films contain elements of darkness and fictional evil, the films are overall very optimistic, with the equilibrium resulting in the 'hero' overcoming the 'nemesis', reassuring children and parents.

Disney and Pixar

http://www.pixar.com/companyinfo/history/1986.html
In 1986, Steve Jobs purchased the computer graphics division of Lucasfilm Ltd, consisting of 44 employees, for $10 million, renaming the division 'Pixar' and establishing it as an independant company.

Pixar began with creating 3D computer animations in short films and television advertisments for other companies (aswell as a new logo for the paramount company), until 1991, when it began working with Walt Disney Studios to develop, produce and distribute three feature length animated films. Four years later, 'Toy Story' was released to theatres, being recognised as the first fully computer generated feature length film aswell as becoming the highest grossing film of 1995, being distributed by Disney. With the huge profit made from the film, Pixar made the move to making the company public, allowing the company to expand, as well as making a new agreement with Disney to produce five more feature films. As the company's experience grew, with the production of further short films, the use of innovative technology became an important element in the company's progression, with enhancements of hair and cloth in 3D animation.

By 1998, Pixar had released 'A Bug's Life', becoming another worldwide success, with the release of 'Toy Story 2' a year later, the first film to be entirely created digitally, where it broke opening weekend box office records in the United Kingdom.

After the release of further successful animated films, Disney's agreement with Pixar was at its end and Disney's attention had turned to a takeover of the company. In 2006, the Walt Disney company purchased Pixar through an "all stock transaction of $7.4 billion". The merge brought together Disney's historic franchise of animated characters, such as Mickey, Minnie Mouse and Donald Duck, with Pixar's stable of computer animated experience, with recent hits including 'Finding Nemo' and 'Cars'.

How Disney Uses Synergy

Disney uses synergy across markets, many relating to the films they release, as the company's feature length films are its cornerstone products. They are marketed before launch through partners, agencies, competitors and subsideries, often promoting the films through advertisments on the television channels that Disney owns.

When the film is launched, the company continues to gain marketing synergies, often by franchising consumer products to other companies, further promoting the product and generating more profit. More popular films are often used in the Disney theme parks as attractions for visitors, where the names and features of the attractions relate to the films content. Disney also advertises all of its products on the internet, where information is available to a worldwide audience, aswell as fans and critics creating their own publications about Disney's products.

Walt Disney pioneered synergistic marketing techniques in the 1930s by granting dozens of firms the right to use his Mickey Mouse character in products and ads, and continued to market Disney media through licensing arrangements. These products can help advertise the film itself and thus help to increase the film's sales.

Disney Innovations

In 1927, Walt Disney and his brother Roy opened their small cartoon studio, animating short films, with a small team of devoted animators. Soon after releasing the first films, the company had made large profits, and the films were being distributed to audiences worldwide.

As the size of the studio increased, in order to cover the large scale production, innovation became important, to retain the company's originality of its products. Considered as one of the company's first major innovations, the design of the 'Mickey Mouse' character in 1928 became a world renowned symbol of the company itself and remains an icon of the company today.

The company's use of research into technology, and their experience with animation and sound to create cartoons allowed the company to create the very first full colour cartoon: 'Flowers and Trees' in 1932. It won the first Academy Award for Best Cartoon in the same year and continued to win the award throughout the 1930s, making the company increasingly popular, resulting in increased profits. The company also incorporated animation into a live action film for the first time in 'Alice in Wonderland'.

By 1937, the company expanded into feature length animation with 'Snow White and the Seven Dwarves'. At first there were doubts about the viability of feature length animated films, but the project was a huge success and it became the highest grossing film of all time at this point.

The company continued to produce successful animated films during the time period, such as 'Pinocchio' which brought about the invention of a new camera, allowing the studio to create a 3D effect, and also the use of brighter colours, allowing for the use of realistic weather effects in the film, giving the company advantage over competitors, increasing its profits, allowing for further technological innovations.

Although the company has adapted into a contemporary market in recent times, it continues to make innovations in both film making and other products that releases. It uses up to date computer graphics in films such as 'Pirates of the Carribean', again incorporating animation with live action film. The company has also entered into the online market, distributing products over the internet, also designing computer games for further family entertainment and has also made technological enhancements in the Disney resort hotels and Disney theme parks to make the company's services as entertaining as possible.

Disney's Competition

Disney's Business Figures for 2009 (including competition): http://www.wikinvest.com/stock/Walt_Disney_Company_(DIS)#Competitors

Due to Disney's large scope of operations, the company acquires a large amount of competition. Most forms of competition are other large media conglomerates such as Time Warner, who competes in films, television and internet media.

Disney's main competitors in the film industry are shown in this pie chart, showing each company's market share:

It is clear, that in this hugely competitive market, Disney is overwhelmed by the competition, but retains a large market share. This chart would have been very different when Disney first began creating films, and would have been a much large competitor on the market - unfortneatly, the film industry has been hugely updated over the years, and other types of films have become very popular amoung audiences, increasing the consumption of these films rather than Disney films.

Disney's Pixar also directly competes with smaller media groups that focus on niche areas of the film market, such as Dreamworks Animations, who create films such as 'Shrek'.

Scope of operations, Key areas of Business and Profits of Disney Studios

Profits:

Annual revenue of around US$37 million give large potential for expansion of the company. This shows how famous Disney productions are. The company itself takes various divisions in order to market more mature content that it associates with the flagship family entertainment that Disney markets. The company Net Income is annually around US$7 Billion.

A list of all of Disney's films: http://en.wikipedia.org/wiki/List_of_Disney_feature_films

The Disney brand originally focussed on only producing animated motion picture films but now focuses more widely on family entertainment, with a huge scope of operations, spanning around areas of animated films (including 3D animation), live action films, cruise lines, theme parks, consumer goods (toys, clothing etc.), television, print media (short story books, magazines, cartoon strips), soundtracks and music, internet operations (interactive websites), video gaming, and hotel resorts. As the company operates over such a wide scope across many forms of the media, the company has various divisions and has also acquired management of other companies over time:

Walt Disney Motion Pictures Group, Disney Music Group, Walt Disney Theatrical, Disney-ABC Television Group, Radio Disney, ESPN Inc., Disney Interactive Media Group, and Disney Consumer Products. Its resorts and diversified holdings include Walt Disney Parks and Resorts, Disneyland Resort, Walt Disney World Resort, Tokyo Disney Resort, Disneyland Resort Paris, Euro Disney S.C.A., Hong Kong Disneyland Resort, Disney Vacation Club, and Disney Cruise Line, Marvel Entertainment, including Marvel Animation, Marvel Characters, Inc., Marvel Comics, Marvel Studios, and Marvel Toys.

The Origins and History of Disney

TIMELINE OF DISNEY HISTORY: http://www.islandnet.com/~kpolsson/disnehis/mini.htm

In 1922, Walt Disney was fired from a job because his boss believed he could not draw. He began designing silent cartoons to make money, which were not of professional quality, as he lacked the drawing skills and was not very experienced in the area. His works were recognized across America, and the Disney Animation Studios were eventually created, an enterprise that employed over 700 people from around the country, even sending employees to art school to maximize the potential of the artists.

When the feature length animation, 'Snow White and the Seven Dwarves', was released in 1937, it generated nearly $8 million, which allowed the company to develop more pictures and expand. The next film that was developed was 'Pinocchio', where it could be more ambitious in production. It took three years and $2.6 million to produce, containing ground-breaking scenes and was a hit all over the world. With the huge profits, Disney Studios further expanded and worked with other studios to create more animated pictures. Only one year after 'Pinocchio', the company distributed 'Dumbo' to theatres, shortly followed by 'Bambi'.

By 1954, the ABC channel began to broadcast the 'Disneyland Television Show'. By June 1955, Walt Disney completed his vision of creating a theme park based around the Disney animations, featuring attractions based around the characters from Disney's pictures. Consumption of Disney products was spread worldwide and Disney had increasing profits.

In 1966, Walt Disney died of lung cancer, however the production line continued, releasing pictures such as the 'Aristocats', maintaining massive profits: in 1987, Disney releases 'Three Men and a Baby' through Touchstone Pictures, which had a profits of over US $100 million.

Since the 20th century, the company has continued to release award winning films, using its well established brand as an advantage over competitors and modern technology to create more impressive visual computer animations, often in 3D such as 'Cars', but has also developed live action films such as 'Pirates as the Carribean'.

What does the Disney Brand mean?

Disney is a major company in the film industry, contributing dozens of family films since 1923. As a company, Disney describes its aims as to "produce unparalleled entertainment experiences based on the rich legacy of quality creative content and exceptional storytelling. The Walt Disney Company, together with its subsidiaries and affiliates, is a leading diversified international family entertainment and media enterprise with four business segments: media networks, parks and resorts, studio entertainment and consumer products".

Disney releases its motion pictures under the name 'Walt Disney Pictures', where it has established its brand identity well on the market and has been hugely successful in many of its films, both animated and live action. The company has many divisions and affiliates which include Walt Disney Animation Studios, Pixar Animation Studios and DisneyToon Studios - Touchstone Pictures, Hollywood Pictures and Miramax Films. Not only does the company distribute films, but uses the same brand to extend its brand identity onto other mediums of the media. It has created world renowned amusement parks and resorts across the globe, other consumer products aimed mainly at children (such as T-shirts, books, video games toys etc.), has its own television network, the 'Disney Channel' and the brand has also expanded onto the internet, through the 'Walt Disney Internet Group'.

The company has created renowned characters in its films, such as 'Mickey Mouse' who became an icon for the company. The company itself stands, mainly, for children's entertainment, however it has also aimed some of its products towards an older audience, or the whole family, such as 'Pirates of the Carribean', which may not be suitable for a very young audience as it contains some adult themes such as violence.