The Walt Disney Company (DIS) is one of the largest media companies in the world, with a market capitalization of roughly $173 billion, as of March 2020. From its world-class amusement parks and iconic cartoon characters to its valuable Star Wars movie franchise, the company is remarkable for its ability to create content and experiences that touch people of all backgrounds and all ages. These various endeavors create a huge amount of revenue for the company.

On March 20, 2019, the company acquired Twenty-First Century Fox, Inc. (TFCF) and a controlling interest in Hulu. For the fiscal year 2019, the company reported revenues of $69.5 billion. (Results for the fiscal year 2019 reflect the consolidation of TFCF and Hulu.) The four busiest theme parks in the world are owned by Disney: Magic Kingdom at Walt Disney World in Florida, Disneyland in California, Tokyo Disneyland, and Tokyo Disneysea. Many of Disney's feature films are among the highest-grossing films of all time. In 2019, Disney's "Avengers: Endgame" became the highest-grossing film of all time at the international box office. Disney also owns several other media outlets, including the American Broadcasting Company (ABC) and ESPN, the industry leader in sports broadcasting.

Key Takeaways

  • The Walt Disney Company is one of the largest media companies in the world, with a market capitalization of roughly $173 billion, as of March 2020.
  • While the majority of its vendors are in the U.S., Disney has worldwide operations for most of its divisions, so its list of major vendors includes companies from the United Kingdom, France, Israel, Japan, Canada, Australia, and Switzerland.
  • Among the companies who receive a significant portion of their revenues from Disney, the major professional sports leagues are among the most notable, including the NBA and the NFL, whose yearly contracts with ESPN are valued at over $1 billion.

Disney relies on vendors from around the world for its multimedia needs. While the majority of its vendors are in the United States, Disney has worldwide operations for most of its divisions, so its list of major vendors includes companies from the United Kingdom, France, Israel, Japan, Canada, Australia, and Switzerland. Among the companies who receive a significant portion of their revenues from Disney, the major professional sports leagues are among most the notable.

Point.360

Los Angeles-based Point.360 provides post-production services for motion picture and television production companies. It specializes in archiving, closed captioning, subtitling, restoration, vaulting, and physical and digital distribution. Using Point.360's state-of-the-art technology, production companies convert their physical assets into digital assets, enabling them to monetize them across a myriad of distribution platforms on the Internet. In July 2019, Point.360 announced its voluntary delisting from the Nasdaq exchange. It now operates as a private company. However, in 2017, it had a market capitalization of $408,000 and generated $6.7 million in revenue, of which more than one-quarter was derived from Disney-related projects. Point.360 also collaborates with studios and production teams at Netflix, Amazon, and Apple.

Globant

Globant S.A. (GLOB) was founded in Buenos Aires in 2003 as a software producer for Latin American companies. Within the next decade, it became a multinational company. In 2018, the company had over 8,300 employees and operations in 14 countries. Globant is known for helping companies utilize emerging technologies to enhance the digital experiences for their customers. The innovative company serves as a digital marketing agency and a research and development lab in designing and marketing software solutions. In 2018, Walt Disney Parks and Resorts Online was Globant's top client, accounting for 11.3% of its revenues. Globant has a market capitalization of $3.78 billion, as of March 2020.

Major League Baseball

Over the life of its current contracts, Major League Baseball (MLB) is scheduled to receive more than $12 billion in revenues with the major sports broadcasters, averaging $1.5 billion a year. The largest contract was signed in 2012 between MLB and ESPN for $700 million a year through the year 2021. This deal represented a 100% increase over its previous deal, and it created an all-time record for an MLB broadcasting deal. The contract grants ESPN the right to broadcast up to 90 regular-season games across all of its networks.

National Basketball Association

In 2014, the National Basketball Association (NBA) renewed its broadcasting contracts with ESPN and Turner Network Television (TNT), valued at $2.66 billion per year and starting with the 2016-2017 season. This deal gave ESPN additional rights–through the 2024-2025 basketball season–to television, digital, and audio properties, and up to 44 postseason games, including the conference finals. The contract amount represents a 180% increase over the previous deal (which was for $930 million annually). In 2018, the NBA generated around $8 billion in revenue; these broadcasting deals with ESPN and TNT represents around one-third of the league's revenue.

National Football League

ESPN, which has hosted Monday Night Football since 2006, signed a new deal with the National Football League (NFL) in 2011 to extend its contract through the year 2021. The total value of the new contract is $15.2 billion, which is a 73% increase over their prior contract. The annual value of the contract–$1.9 billion for an average of 17 Monday Night Football games– represents the largest amount of money paid per game in broadcasting history. In the 2018 season, the NFL recorded revenues of more than $8.1 billion.