Friday, 30 July 2010

Disney Sells Miramax - Focusing on Merchandising Opportunities

Walt Disney has announced the sale of its Miramax film division for about $660m to a group of private equity investors.

Disney has been negotiating for months to sell the division (which it’s owned since 1993), it has previously made films such as No Country For Old Men and Pulp Fiction.

Following the announcement Disney's chief executive Robert Iger said "Although we are very proud of Miramax's many accomplishments, our current strategy for Walt Disney Studios is to focus on the development of great motion pictures under the Disney, Pixar and Marvel brands."

Disney obviously wants to concentrate on these family-orientated divisions, which produce popular films that come with highly profitable merchandising opportunities. The 2006 Disney Pixar film Cars for example made $461mil at the domestic box office (no mean feat but not a Disney best), however it generated over $1billion in merchandise sells.

I think Disney are being very smart with its film strategy, one of the big issues with movies is very few films break even, so other revenue streams are essential in making a profit. By focusing on these key areas Disney has the fantastic opportunity to sell family films and all the merchandise that goes with it.

No comments:

Post a Comment