Add another hit Frozen
If you have a young daughter like I do you will know all about Frozen. It has grossed $1.3 billion worldwide at a production cost of $150 million. It is the fifth highest grossing movie and highest grossing animated film of all time. Frozen is now officially a key franchise for Disney and is so popular they are running out of merchandise, 9 out of the 10 highest selling items at Disney stores in the 2Q were Frozen products. To cap it all off Frozen is now headed to broadway.
Investors can party like Ewoks
DIS has successfully integrated its acquisitions of Pixar and Marvel and they appear to be doing the same with Lucasfilm. Like the Marvel acquisition Lucasfilm and Star Wars provides a literally rich universe that DIS can develop and monetise. DIS has announced that they will launch a new Star Wars film every year starting in 2015. Alternating between three new episode films with standalones based on characters rumoured to be Yoda, Boba Fett and Han Solo. Marvel's relatively unknown Guardians of the Galaxy movie has already grossed nearly $600 million, the upcoming Star Wars films should be able to do much more. With DIS's recent track record investors should be preparing to party like the Star Wars Ewoks (little furry creatures in the original series).
Theme park MyMagic+++
DIS also provides families with the ultimate theme park vacations which are always fun but hectic. MyMagic+ is an electronic wrist band introduced into the parks earlier this year to help manage and plan trips. The MyMagic+ band will let you better control your vacation allowing you to enter the park, your room, pay for food and allow characters to recognise who you are just with the device. It will also store all your information including reservations and help schedule the best times so you can spend more time with what you enjoy best. See the Incredibles explanation video below.
Technology is so important to DIS that they added Jack Dorsey the Chairman of Twitter and CEO of Square to the board alongside Sheryl Sandberg of Facebook.
2015 a big year
The main problem with DIS is that they are doing so well. Shanghai Disney (43% owned by DIS) will open at the end of 2015 it will be nearly 3x the size of Hong Kong Disneyland. DIS will also release two blockbuster movies the first of three new Star Wars films (episode VII) and a followup to Avengers. Its a good problem to have though releasing these two films and the opening of Shanghai Disney will make next year tough to beat.
In any other industry DIS will be deemed a monopoly they have a strangle hold on the best characters and entertainment. They are also accelerating growth and are just beginning to monetise the Lucasfilm (Star Wars) and Marvel acquisitions. DIS is great at keeping its customers both adults and kids constantly engaged. Their parks are the vacation drawcard while their Disney Channels beamed into 428 million home keeps the dream alive in-between. DIS is a company that its customers can't live without.
Jason
Disclosure: Decisive has long a position in Disney (DIS) stock
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