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The Walt Disney Company, together with its subsidiaries, is a diversified worldwide entertainment company. The Company operates in five segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive Media. The Company has a 51% effective ownership interest in Disneyland Paris, a 5,510-acre development located in Marne-la-Vallee, approximately 20 miles east of Paris, France. The Company manages and has a 40% equity interest in Euro Disney S.C.A. The Company holds an 15% equity interest in The Active Network, Inc., a domestic online community and marketing platform for individuals and event organizers to participate in and promote sports and recreational activities. The Company owns a 47% interest in Hong Kong Disneyland Resort through Hong Kong International Theme Parks Limited. It also has 43% ownership interest in the operations of Shanghai Disney Resort.
As of October 1, 2011, it had approximately 1,700 active produced and acquired titles, including 1,300 live-action titles and 400 animated titles, in the domestic home entertainment marketplace and approximately 2,900 active produced and acquired titles, including 2,400 live-action titles and 500 animated titles, in the international marketplace. In October 2011, the Company took full ownership of the mobile gaming unit of UTV Software Communications Ltd. In June 2012, The News Corporation has taken full control of its Asian joint venture ESPN STAR Sports (ESS), buying out The Walt Disney Company's 50% holding. On November 18, 2011, the Company acquired a 49% ownership interest in the Seven TV network.
The Media Networks segment is comprised of international and domestic cable networks and its broadcasting business, which consists of a domestic broadcast television network, television production operations, domestic and international television distribution, domestic television stations, domestic and international broadcast radio networks, domestic radio stations, and publishing and digital operations. The Company operates through consolidated subsidiaries the ESPN, Disney Channels Worldwide, ABC Family and SOAPnet cable television networks. The Company also operates the ABC Television Network and eight owned television stations, as well as the ESPN Radio Network and Radio Disney Network (the Radio Networks) and 35 owned and operated radio stations.
Both the ABC Television Network and Radio Networks have affiliated stations providing coverage to households throughout the United States. The Company also produces original television programming for network, first-run syndication, pay, and international television markets, along with original animated television programming for network, pay, and international syndication markets. The Company has interests in joint ventures that operate programming services and are accounted for under the equity method including AETN/Lifetime. Additionally, the Company operates ABC-, ESPN, ABC Family- and SOAPnet-branded internet businesses.
Parks and Resorts
The Company owns and operates the Walt Disney World Resort in Florida, the Disneyland Resort in California, Aulani, a Disney Resort & Spa in Hawaii, the Disney Vacation Club, the Disney Cruise Line, and Adventures by Disney. The Company manages and has effective ownership interests of 51% in Disneyland Paris, 47% in Hong Kong Disneyland Resort, and 43% in Shanghai Disney Resort. The Company also licenses the operations of the Tokyo Disney Resort in Japan. The Company’s Walt Disney Imagineering unit designs and develops new theme park concepts and attractions as well as resort properties. The Company also licenses the operations of the Tokyo Disney Resort in Japan. The Company’s Walt Disney Imagineering unit designs and develops new theme park concepts and attractions, as well as resort properties.
Epcot consists of two themed areas: Future World and World Showcase. Disney’s Hollywood Studios consists of four themed areas: Hollywood Boulevard, Sunset Boulevard, Animation Courtyard, and Backlot. Disney’s Animal Kingdom consists of a 145-foot Tree of Life centerpiece surrounded by six themed areas: Dinoland U.S.A., Africa, Rafiki’s Planet Watch, Asia, Discovery Island and Camp Minnie-Mickey. As of October 2, 2011, the Company owned and operated 17 resort hotels at the Walt Disney World Resort, with a total of approximately 22,000 rooms and 468,000 square feet of conference meeting space. ESPN’s Wide World of Sports is a 220-acre sports complex providing professional caliber training and competition, festival and tournament events and interactive sports activities.
The Company owns 461 acres and has the rights under long-term lease for use of an additional 49 acres of land in Anaheim, California. The Disneyland Resort includes two theme parks (Disneyland and Disney California Adventure), three hotels and Downtown Disney, a retail, dining and entertainment complex. Hong Kong Disneyland consists of themed lands, which include Adventureland, Fantasyland, Main Street USA and Tomorrowland. Hong Kong Disneyland Resort includes two themed hotels with a total of 1,000 rooms. Tokyo Disney Resort is located on approximately 494 acres of land, six miles east of downtown Tokyo, Japan. The Disney Vacation Club (DVC) offers ownership interests in 11 resort facilities.
The Studio Entertainment segment produces and acquires live-action and animated motion pictures, direct-to-video content, musical recordings and live stage plays. The Company distributes produced and acquired films (including its film and television library) in the theatrical, home entertainment and television markets with a focus on Disney-branded films under the Walt Disney Pictures and Pixar banners and Marvel-branded films. The primary banners for its films are Walt Disney Pictures, Touchstone Pictures, Pixar, Marvel, and Disneynature banners.
The Company’s primary focus is Disney-branded films under the Walt Disney Pictures, Pixar banners and Marvel-branded films. It distributes and markets its filmed products principally through its own distribution and marketing companies in the United States theatrical market. In the international theatrical markets, it distributes its filmed products both directly and through independent distribution companies or joint ventures. In the domestic market, it distributes home entertainment releases directly under each of its motion picture banners. As of October 1, 2011, the Company had approximately 1,700 active produced and acquired titles, including 1,300 live-action titles and 400 animated titles, in the domestic home entertainment marketplace and approximately 2,900 active produced and acquired titles, including 2,400 live-action titles and 500 animated titles, in the international marketplace.
The Consumer Products segment engages with licensees, manufacturers, publishers and retailers throughout the world to design, develop, publish, promote and sell a wide variety of products based on existing and new characters and other Company intellectual property through its merchandise licensing, publishing and retail businesses. In addition to leveraging the Company’s film and television properties, Consumer Products also develops new intellectual property with also being used in the Company’s other businesses.
The Company’s worldwide merchandise licensing operations include a range of product categories, such as toys, apparel, home decor and furnishings, stationery, accessories, health and beauty, food, footwear and consumer electronics. The Company licenses characters from its film, television and other properties and earns royalties, which are based on a fixed percentage of the wholesale or retail selling price of the products. Some of the properties licensed by the Company include Mickey Mouse, Disney Princess, Toy Story, Winnie the Pooh, Cars, Disney Fairies, Hannah Montana and the Marvel properties including Spider-Man, Captain America, and Iron Man. The Company also designs individual products and creates exclusive themed and seasonal promotional campaigns for retailers based on characters, movies and TV shows.
Disney Publishing Worldwide (DPW) publishes children’s books and magazines in multiple countries and languages. DPW’s businesses include Disney Global Books, Disney Global Magazines and Disney English. Disney Global Books (DGB) published titles around the world in support of such franchises as Mickey Mouse, Disney Princess, Winnie the Pooh, Cars, Disney Fairies and Toy Story. Disney English operates 28 English language learning centers across China. Marvel Publishing creates and publishes comic books, and graphic collections of comic books, principally in North America. Marvel Publishing also licenses the right to publish translated versions of its comic books, principally in Europe and Latin America.
The Interactive Media Group creates and delivers branded entertainment and lifestyle content across interactive media platforms. The primary operating businesses of the Interactive Media Group are Games which produces multi-platform games for global distribution, and Online, which produces Internet websites in the United States and internationally. The Interactive Media Group derives revenues from a combination of wholesale sales, licensing, advertising, sponsorships, subscription services and online game accessories (micro transactions). The Interactive Media Group also manages the Company’s Disney-branded mobile phone business in Japan which provides mobile phone service and content to consumers.
The Games business creates, develops, markets and distributes console and handheld, games worldwide based on properties created elsewhere in the Company, including 2011 titles such as LEGO Pirates of the Caribbean, and Cars 2, as well as new game properties such as Epic Mickey. The Games business also produces online games, such as Disney’s Club Penguin and Disney Fairies Pixie Hollow, interactive games for social networking websites such as Gardens of Time, and games for smartphone platforms. Certain properties are also licensed to third-party video game publishers.
Online develops, publishes and distributes content for branded online services intended for family entertainment. Disney Online produces kids and family-targeted entertainment through a portfolio of Websites including Disney.com and the Disney Family Network. Disney.com integrates many of the Company’s Disney-branded Internet sites including sites for the Disney Channel, Disney Parks and Resorts, Walt Disney Pictures and Disney Consumer Products.