With a market capitalization of roughly $172 billion, The Walt Disney Company (NYSE: DIS) is one of the largest media companies in the world. Starting with its world-class amusement parks and iconic cartoon characters and leading up to the release of the most eagerly awaited Star Wars movie ever in 2015, everything with a Disney stamp on it creates an everlasting impression on people around the world. It also creates a huge amount of revenue, which came in at $55.14 billion in 2017. Walt Disney theme parks drew in a record attendance of more than 150 million visitors in 2017, more than twice the amount of the next theme park operator, and many of its animated features are among the highest-grossing films of all time. Disney also owns several other media outlets, including ABC television and the sports network ESPN. Although the growth of ESPN has slowed moderately due to a shrinking subscriber base, it is still the major player in sports broadcasting, shelling out billions of dollars each year to showcase all of the major sports leagues.
Disney draws on suppliers from around the world to feed its multimedia needs, relying most heavily on companies in the United States. With worldwide operations for most of its divisions, Disney’s list of major suppliers consists of 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 most notable.
Los Angeles-based Point.360 (OTCBB: PTSXQ) provides post-production services for motion picture and TV 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. Point.360, which has a market capitalization of $408,000, generated $6.7 million in revenue in 2017, of which more than one-quarter was derived from Disney.
Globant S.A. (NYSE: 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, with 4,500+ employees working in nine 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 (R&D) lab in designing and marketing software solutions. Nearly 80% of its customers are in North America, including Disney, which accounts for 8.7% of its revenues. Globant has a market capitalization of $1.87 billion as of October 2018.
Major League Baseball
Major League Baseball (MLB) is scheduled to receive more than $12 billion in revenues over the life of its present contracts with the major sports broadcasters, averaging $1.5 billion a year. The largest contract was signed in 2012 when MLB and ESPN agreed to a $700 million a year deal through the year 2021. That represents a 100% increase over its prior deal, and it set 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 starting with the 2016-2017 season. The deal gives ESPN additional rights through the 2024-2025 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. For the 2016-2017 season, the NBA generated a record $7.37 billion from all sources, so the new broadcasting deals with ESPN and TNT represent more than 50% 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 the prior contract. The annual contract value of $1.9 billion for an average of 17 Monday Night Football games represents the largest amount of money paid per game in broadcasting history. Despite political headwinds during the Trump administration's vocal stance against football player protests during the national anthem, the NFL recorded record revenues of more than $8.1 billion in the 2017 season, up nearly 5% from the prior year.