Is Disey Becoming To Big? Essay

2127 words - 9 pages

When watching ESPN how often is Disney thought of? Disney is worth over eighty-four billion dollars and they also own several media stations including ESPN, ABC, and Marvel Entertainment making Disney one of the worlds largest media conglomerates (All About Economics). Disneys biggest asset is Walt Disney Studios because that portion of Disney makes movies and all children know about Disney movies. Disney is constantly buying other companies and rights to just about anything entertainment and their biggest and most recent buy is Lucas Films. Lucas Films was and indie movie company who created Star Wars (CNNMoney.).
Disney is, as of now, an oligopolistic company and will not become a ...view middle of the document...

Some of the indie and big film companies Disney has bought out are Lucas Films, Pixar Entertainment, and Marvel Entertainment (The Walt Disney Company). The new release of Star Wars in the year twenty-fifteen will be under the Disney name.
When Disney will become a monopoly is unknown, but Disney will be one eventually. An Oligopoly is define as a market structure in which the number of sellers is small (All about Economics). Disney is, as of now, an oligopoly that with proper caution is buying small companies one by one. In the past five years Disney has bought several independent movie companies, the biggest of which is Lucas Films or Marvel Entertainment. Disney is also the most diverse company in the world and one of the biggest.
Disney is the worlds largest media conglomerate with its revenue top a little over eighty-four billion dollars a year. Disney as a whole has loads of assets ranging from movie entertainment to sports teams and resorts. Disney owns several channels on television and the biggest of those is probably ESPN(Disney Has a Near-Monopoly on Bowl Games This Year). ABC network is also owned by Disney as well as Marvel entertainment. Asides from the obvious things that Disney owns they also have a near monopoly on bowl games every year because they own so many networks (PBS. PBS).
About twenty-seven percent of Disneys gross revenue comes from theme parks and resorts (PBS. PBS). Walt Disney World in Florida isn’t Disneys only theme park they have parks all around the world including Europe and China (The Walt Disney Company). Disney also owns several resorts around the world making even more revenue for the already multi-billion dollar company. Walt Disney World in Florida resides as the most visited park in the world making roughly five hundred million dollars a year alone.
Stating that Disney creates so much revenue, they also have a lot of competition with other big companies, but Disney sky rocketed in the turn of twenty-twelve making them a long shot to number one. It’s obvious that Disney has their name on all kinds of products, but what makes the highest revenue is the theme parks and resorts (The Walt Disney Company). Disney also has a huge partnership with Hasbro, with Hasbro promising Disney eighty-four million is royalties. It is said that the reason why Disney did not purchase Hasbro was from the fear of being fined for becoming a monopoly.
There are certain rules in the government saying that one company may not pertain as many companies to be a monopoly. What that statement is saying is that one company cannot own a bunch of companies making that one company dominant. Disney is the leader in entertainment, but they are in no way dominant in the entertainment world. A big competitor with Disney would be Universal entertainment.
Disney is, to some, already a monopoly due to all the entertainment sources they own. Disneys biggest asset is ESPN because so many people watch ESPN so it creates the best revenue...

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