Launch of Star Wars toys
In August this year, Bloomberg reported that The Walt Disney Company (DIS) is going to launch its toy collection related to Rogue One: A Star Wars Story, which is set to be released in December this year. According to the Bloomberg report, Disney is going to launch this collection through fan-made videos featuring the new toys. These videos will be uploaded onto Disney’s Star Wars YouTube channel.
According to the Bloomberg report, citing research from the NPD Group, Star Wars toys were major contributors to the US toy industry’s increase in sales of 7% in 1H16. It’s possible that with this innovative approach to launching the Star Wars toys collection, Disney wants to boost the toys sales for its Consumer Products and Interactive Media segment.
Disney’s consumer products business has also benefited from the acquisitions of Marvel, Lucasfilm, and Pixar. Disney has always maintained that a core part of its business strategy is effectively monetizing its intellectual property. Disney’s acquisitions have further added to its intellectual property portfolio.
At the MoffettNathanson Media & Communications Summit this year, the company stated that monetizing the intellectual property created through the Marvel and Lucasfilm acquisitions contributed to the growth of its Consumer Products business.
Segment in fiscal 3Q16
Disney’s Consumer Products and Interactive Media segment had revenue of $1.1 billion in fiscal 3Q16, a rise of 1% year-over-year (or YoY). The segment had an operating income of $324 million in fiscal 3Q16, a fall of 7% from fiscal 3Q15. This fall was the result of decline in its merchandise licensing and retail businesses.
The factors that resulted in a fall in revenue for the company’s merchandise licensing business reflected a negative impact of currency fluctuations and a difficult comparison to higher merchandise licensing revenue for Frozen in fiscal 3Q15.