Synergy in Disney

How Disney uses Synergy in its Marketing:

2018 highest grossing films - Domestic

1. Black Panther ($700 million)
2. Avengers infinity war ($679 million)
3. Incredibles 2 ($609 million)

The top three as well as numbers 9, 12, 14, and 18 are all owned by Disney

2018 Studio Market share:

1. Buena Vista (Disney) 26%
2. Warner Bros. 16.3%
3. Universal 14.9%
4. Sony/Columbia 10.9%
5. 20th Century Fox 9.1%

March 20, 2019, Disney paid $71 billion to acquire 21st Century Fox's assets

Acquisitions:

1993 Miramax

1995 Capital Cities

2001 Fox Family

2004 The Muppets

2006 Pixar

2009 Marvel

2012 Lucasfilm

2019 Fox

Disney will use their social media as a way to send out simple advertisements about their theme parks but also use it as a way to connect with guests and as a way to tell them information in a way that feels more personal. This information can be simple such as park hours of the parks every day and if certain parking lots are full or not. They also use this in a grander way to inform of new expansions coming to their parks. Disney will often post these announcements on their own Disney Parks Blog and then distribute it across their own social media platforms.

Disney has used synergy and one man who kicked the idea of synergy into high gear was Michael Eisner. He would create movies in order to promote attractions in the parks and vice versa. We saw this work to great success with such properties as The Pirates of the Caribbean and not so much with The Haunted Mansion, and with The Country Bears. These are easy ways to subtly remind the viewer of the other platforms that the story exists on, and make them want to experience the other variations once again, or for the first time.

Disney will broadcast television specials in order to promote new and upcoming attractions to their theme parks. We see the full blown out specials for one attraction happening less and less today, now Disney can slowly build the hype through the internet and the slow release on information they do now.

One thing that Disney has that many other studios do not is their many media holdings under one set identity. People now associate all of the studios (maybe besides Fox) under one umbrella. Most people do associate Marvel and Star Wars with Disney now. Whether this be due to the fact that the shows based off these properties are played on Disney networks or due to their presence within the theme parks. This lack of distinction has been made even clearer when Disney launched their streaming service, Disney +.

Having all of these properties under one umbrella allows them to promote all of the properties across one another. Disney can use ABC in order to promote a new movie or theme park attraction, there are ads on the busses at the theme parks for the various other Disney properties, the new Guardians of the Galaxy ride in Disney’s California adventure may make somebody go watch the movie. It provides a seamless transition in between the properties, which Disney embraces. This is something that other film studios cannot do. Most other studios and media companies are very disjointed and don’t associate one with the other very well. An example of this is Viacom, they own MTV, Nickelodeon and Comedy Central. These three assets have nothing to do with one another and Viacom keeps it that way. The properties don’t allow for or have the synergy that the Disney properties have.

Disney will rely heavily on nostalgia in its advertising, something most other studios don’t have the luxury to do. Disney characters are very noticeably Disney, there are very few other studios that have such recognizable icons that the can use to their advantage. We saw this recently with the teaser trailer for Toy Story 4 being released. It was simply all the iconic characters going past the screen with a sentimental song and finally one new character from the movie. This is a simple yet effective trailer.

The Star Wars franchise was acquired by Disney from Lucasfilm in 2012 for $4 billion. Since the first Star Wars film came out in 1977, box office revenues have totaled roughly $4.35 billion. Even more exciting, total franchise revenue (including merchandise and licensing) is estimated to be $28 billion. Since Disney acquired the franchise, it plans to bring out a new Star Wars movie every year for as long as people will buy tickets. In most minds, this means forever. By applying its synergy marketing strategy to this forever franchise, Disney gets about as close as you can to a money-making machine.

Disney synergy:

At the heart of Disney's ability to make money, is Disney's ownership of content that uses it's proprietary cast of characters. Starting with Mickey Mouse, Disney created (or acquired, for example, Marvel and Star Wars) a world of characters and animated actors that are unique to Disney. Disney has the ability to use these characters in TV shows, theme parks and movies. They can also license them to others and make money from license fees.

Disney-owned ABC Network provides a platform that Disney can promote everything Disney owned. While the network has not fared well in comparison to its competitors and major rivals, it gives Disney the potential to spread the synergy to small screen and radio.

Cross-branded product placement deals

Disney’s Marvel studios has struck a lot of cross-branding product placement deals with Dr. Pepper, Audi, Samsung, Kia, Acura and Southwest Airlines to name a few. Disney’s Star Wars has cross-promotions with the NFL, Target, Kraft, Amazon and many others. In addition to the brand building potential of these deals, the revenue possibilities for both parties is also exciting.

Social media

The first trailer for Star Wars aired in the half time of an Eagles vs Giants game. In just the first hour after the trailer appeared:

• 1.3 million people were engaged in 2.1 million interactions about it on Facebook,
• Fans on Twitter tweeted about the trailer an average of 17,000 tweets per minute,
• Movie ticket web sites crashed.

Since then, there have been at least 69 million views of the official version of the trailer on YouTube, and a variety of free star wars apps are available to fans that want constant updates on Star Wars news

The Importance of Cross Media Convergence and Synergy in Production, Distribution and Marketing

What is Synergy?

Where different companies of a conglomerate work together to market or advertise a brand/product, thus maximising exposure and profit.

The aim is to create a consistent and recognisable image of the brand.

Example: Using horizontal integration

Black Panther

• Disney owns Marvel
• Movie
• Comics
• Book
• Video games/Interactive games
• Other films (he first appeared in CA: Civil War
• TV channel: Disney XD
• Animated TV series

This is utilizing different companies within the conglomerate.

Example: Collaborating with other companies

e.g. Lego

Disney license the rights of Black Panther to Lego so when the film came out, the lego for Black Panther also came out.

Soundtrack

They worked with Kendrick Lamar who is signed to a record label that is owned by a different conglomerate, using him to promote the film and vice versa.

Toys (Hasbro)

Product placement

- Advert for Lexus car which was used in the film