Disney’s Business Overview
Disney operates a variety of businesses that address different aspects of entertainment and media. Its portfolio includes theme parks, resorts, cruise lines, television networks, and digital content streaming services. The company also produces live entertainment events and a wide range of films and television shows.
Financial Performance
In 2022, The Walt Disney Company generated nearly $29 billion in total revenue from its parks, experiences, and products division, an impressive increase of approximately $12 billion from the previous year. Notably, the media and entertainment sector continued to be the largest revenue contributor, bringing in $55 billion in 2022. From the $50.9 billion this segment generated in 2021, this represents an increase. In addition, The Walt Disney Company’s total assets will reach $203.6 billion in 2022.
Disney’s Business Segments
Disney now operates in two primary segments: Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences and Products (DPEP). The DMED segment has three components: Linear Networks, Direct-to-Consumer, and Content Sales/Licensing and Other. The DPEP segment focuses on theme parks, resorts and related products.
DMED: Linear Networks
Disney’s Linear Networks segment includes domestic and international cable networks such as Disney, ESPN and National Geographic. It also includes the ABC broadcast television network, eight domestic broadcast television stations, and a 50% ownership interest in A+E Television Networks. In the first quarter of fiscal 2022, the segment generated revenues of $7.7 billion, contributing approximately 35% of total revenues and 38% of total operating income.
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DMED: Direct-to-Consumer
Disney’s direct-to-consumer segment includes streaming services such as Disney+, Disney+ Hotstar, ESPN+, Hulu, and Star+. In the first quarter of fiscal 2022, the segment reported revenue of $4.7 billion, up 33.8% year over year. However, it also reported an operating loss of $593 million, up from an operating loss of $466 million in the year-ago quarter. The direct-to-consumer segment accounted for 21% of total revenues.
DMED: Content Sales/Licencing and Other
The Content Sales/Licencing and Other segment sells film and television content to third-party services, manages theatrical and home distribution, music, live events, and more. In the first quarter of fiscal 2022, it generated $2.4 billion in revenue (up 42.9% year-over-year), but posted an operating loss of $98 million, down from a profit of $188 million. This segment accounts for 11% of total revenue.
DPEP: Parks, Experiences, and Products
Disney’s Parks, Experiences, and Products segment includes global theme parks, resorts such as Disney World, Disneyland, and Disneyland Paris, a cruise line, and a vacation club. It generates revenue from admissions, food, merchandise, and more. In the first quarter of fiscal 2022, it generated $7.2 billion in revenue (a rebound from last year) and $2.5 billion in operating income (an improvement from a loss). This segment accounts for about 33% of Disney’s total revenue and 62% of its operating income.
