The Walt Disney Studios

Name: The Walt Disney Studios (English version)
SKU: 516105

Elberse, Anita

Product #:516105

Supplier:Harvard Business School

Discipline:Marketing

Setting:2016

Details:Case (PDF) • 30 pages • 2016-04-28 (Rev: 2019-06-05)

Subjects:

Branding Marketing Product development Risk management Innovation Creativity Project management Brand management Sales and marketing Product management Strategy Managing yourself Sales and marketing Marketing

Industries:

Information technology and telecom sector

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$11.64

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In December 2015, Alan Horn, chairman of The Walt Disney Studios, celebrates the world premiere of Star Wars: The Force Awakens - only the latest in a string of big bets that he has overseen. Disney pursues a 'tentpole strategy' that revolves around at least eight big-budget movies each year -- most from its acquired labels Pixar, Marvel Studios, and Lucasfilm. In fact, Disney produces nearly twice as many tentpole movies as any other major Hollywood film studio, but fewer movies overall than all but one of its rivals. Box-office failures can be extremely costly, since Disney (unlike its rivals) chooses not to enlist the help of financing partners. Is Disney Studios pursuing the right number of tentpoles as well as the right mix of new versus existing properties, under the right financing structure? And will the tentpole strategy pay off-in the short and long run?

Learning Objectives

To examine hit-making and risk-taking in the context of the Hollywood film industry, and specifically how leading content producers are increasingly shifting to a 'tentpole' or 'blockbuster' strategy that revolves around making huge bets. To analyze product-portfolio management strategies, and especially how to balance bigger versus smaller bets as well as how to find the right mix between investments in existing versus new properties. To understand the economics of 'blockbuster' strategies, and assess why avoiding big bets may in fact worsen a content producer's risk profile. To evaluate product-development and product-launch strategies for films and other creative goods, and assess how to best balance the likely risks and rewards involved. To explore the evolving role of superstar talent as well as understand the importance of creating a culture of creative collaboration and innovation in the entertainment business.