On the other hand, DC Entertainment is currently owned by Warner Brothers, which is a subsidiary to Time Warner. Time Warner is broken up into 3 main segments, which includes Turner, Home Box Office and Warner Bros. As of the 2015 - 2016 television season, Warner Brothers was ranked as the number 1 producer of primetime television series in the United States. The Warner Brothers segment consists primarily of the production, distribution, licensing of television series and feature films. In addition, the distribution of videogames and consumer products is also important to their business. Furthermore, Time Warner had a very successful year in 2015 as revenues increased by 3% to $28.1 billion. In specific, Warner Brothers generated $12.9 billion
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In addition, this partnership will include a long-term contract of 30 years in which both parties will have the rights to licensing deals and intellectual property. In addition, DC Entertainment will require an upfront payment of $100 million for its intellectual property within the park. If the Walt Disney Company does not want to split the revenue evenly, DC Entertainment will require a 10% royalty payment on any ticket sales to Magic Kingdom, select merchandise, films, special events, and food in Comicland. In the event that Disney pursues this alternative, cost of developing the land will be the sole responsibility of the Walt Disney …show more content…
DC Entertainment’s major strength is its strong recognizable franchise. This franchise is well established and was founded in 1934. Since this time, the franchise has continued to develop its characters and is currently part of Warner Brothers. This franchise has accumulated a large fan base over the years, which will attract a new demographic to the Walt Disney World Resort. Therefore, Walt Disney will be able to attract a larger population of all ages. This allows Disney to diversify its loyal consumer base while also opening new streams of revenue. DC Entertainment has had various successes launching movies such as The Dark Knight, Batman v Superman: Dawn of Justice, Suicide Squad and Man of Steel. Together these movies alone account for $1.64 billion in sales ("DC Comics" Boxofficemojo.com). As can be seen, DC Entertainment has acquired a large fan base. Lastly, DC Entertainment has already created a storyline that Disney can adopt. This includes well-known heroes and villains such as Batman, Superman, Wonder Woman and the Joker.
A weakness faced is brand confusion between Marvel superheroes and DC superheroes. This is a major challenge that DC Entertainment must overcome in its advertising strategy as well as in brand differentiation. Another weakness is the highly cyclical nature of the business. This includes the time it takes
In addition, this partnership will include a long-term contract of 30 years in which both parties will have the rights to licensing deals and intellectual property. In addition, DC Entertainment will require an upfront payment of $100 million for its intellectual property within the park. If the Walt Disney Company does not want to split the revenue evenly, DC Entertainment will require a 10% royalty payment on any ticket sales to Magic Kingdom, select merchandise, films, special events, and food in Comicland. In the event that Disney pursues this alternative, cost of developing the land will be the sole responsibility of the Walt Disney …show more content…
DC Entertainment’s major strength is its strong recognizable franchise. This franchise is well established and was founded in 1934. Since this time, the franchise has continued to develop its characters and is currently part of Warner Brothers. This franchise has accumulated a large fan base over the years, which will attract a new demographic to the Walt Disney World Resort. Therefore, Walt Disney will be able to attract a larger population of all ages. This allows Disney to diversify its loyal consumer base while also opening new streams of revenue. DC Entertainment has had various successes launching movies such as The Dark Knight, Batman v Superman: Dawn of Justice, Suicide Squad and Man of Steel. Together these movies alone account for $1.64 billion in sales ("DC Comics" Boxofficemojo.com). As can be seen, DC Entertainment has acquired a large fan base. Lastly, DC Entertainment has already created a storyline that Disney can adopt. This includes well-known heroes and villains such as Batman, Superman, Wonder Woman and the Joker.
A weakness faced is brand confusion between Marvel superheroes and DC superheroes. This is a major challenge that DC Entertainment must overcome in its advertising strategy as well as in brand differentiation. Another weakness is the highly cyclical nature of the business. This includes the time it takes