In Practice The Value of Synergy Disneys Animated Movies

Disney has a well-deserved reputation for finding synergy in its movie operations, especially its animated movies. Consider, for instance, some of the spin offs from its recent movies:

1. Plastic action figures and stuffed toys are produced and sold at the time the movies are released, producing profits for Disney both from its own stores and from royalties from sales of the merchandise at other stores.

2. Joint promotions of the movies with fast-food chains such as McDonalds and Burger King, where the chains give away movie merchandise with their kid's meals, and reduce Disney's own advertising costs for the movie by promoting it.

3. With its acquisition of Capital Cities, Disney now has a broadcasting outlet for cartoons based upon successful movies (Aladdin, Little Mermaid, 101 Dalmatians), which produce production and advertising revenues for Disney.

4. Disney has also made a successful Broadway musical of its hit movie "Beauty and the Beast", and plans to use the theater that it now owns on Broadway to produce more such shows.

5. Disney's theme parks all over the world benefit indirectly since the characters from the latest animated movies and shows based upon these movies attract more people to the parks.

6. Disney produces computer software and video games based upon it's animated movie characters.

7. Finally, Disney has been extremely successful in promoting the video releases of its movies as must-have items for video collections.

In fact, on its best-known classics, such as Snow White, Disney released the movie in theaters dozens of times between the original release in 1937 and the eventual video release in 1985, making substantial profits each time.

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