Disney reported better than expected third quarter results, with a renewed focus on profitability in 2024. But the company has been struggling to turn a profit in recent years. As Disney celebrates its 100th anniversary, the company is tasked with turning around its streaming business, navigating a decline in visitors at its parks, and ongoing uncertainty around a CEO succession plan.
In the video above, TheStreet delves into Disney's transformation, tracing its journey from its inception in 1923 to the modern day company.
Full Video Transcript Below:
JACQUI FRANK: Walt and his brother, Roy, moved out to California and founded what became Disney Brothers Cartoon Studio in October 1923. They started their business in the back of a small office in Los Angeles where they paid $10 a month. From 1923 to 1927, Disney Brothers produced a series of short, live-action animated films called "The Alice Comedies." They changed the company name to The Walt Disney Studio in 1926. In 1928, they released Steamboat Willie, widely recognized as problematic, but was also the first appearance of the iconic Mickey Mouse and was the first synchronized sound cartoon. The Walt Disney Studio changed its name to Walt Disney Productions Ltd. in 1929. Disney began creating its first feature-length film in 1934, Snow White and the Seven Dwarves. Its production was considered a reckless undertaking - too expensive, too complicated, and too long. Three years later, in 1937, it was a wildly successful release, and its characters are still recognized today. With the profits from "Snow White," Disney bought 51 acres in Burbank and began designing a studio for making animated feature films.
In 1940 the studio officially moved to the new location and became a publicly traded company. In 1944, Disney found itself short on funds and re-released Snow White, beginning a pattern of re-releasing their successful films. Disney then made a programming deal with American Broadcasting-Paramount Theatres to fund Disneyland in 1953 and the park opened two years later in 1955. Disney IPOs at a share price of US$13.88 on the New York Stock Exchange in 1957. Walt Disney died in 1966 and from that point until 1987, the company was considered to be in a dark period of decline. Attempted hostile takeovers and brushes with bankruptcy.
In 1967, construction began on Walt Disney World Resort in Orlando, Florida. The Experimental Prototype Community of Tomorrow, known as Epcot, opened in Walt Disney World Resort, in 1982. The following year, the Disney Channel began production and Tokyo Disneyland opened. 1986 finally the company name was changed to its modern iteration, The Walt Disney Company. This is where things seem to change around for the company and begin the current era of Disney acquisitions.
Disney entered a 10-year distribution partnership with Pixar Animation Studios in 1997, resulting in the purchase of Pixar in 2006 for $7 billion. Disney bought Marvel in 2009, for a total of $4 billion. In 2010, Disney sold off assets, including "Power Rangers" for $100 million and Miramax Films for $660 million. Disney acquired Lucasfilm from George Lucas, including "Star Wars" and "Indiana Jones", for $4.06 billion in 2012. In 2013, Disney released "Frozen," which became the highest-grossing animated feature of all time. Disney announced a $60 billion investment in its parks in 2023, double what it spent in the decade prior. As of 2023, Disney has expanded to own and operate ABC, ESPN, Pixar, Marvel Studios, and Lucasfilm.
