Culture

Disney Breaks All-Time Global Box Office Record, Having Earned Every Penny

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Scrooge McDuck used to swim in a giant vault of gold. After this weekend, executives at Disney could easily join him. From Entertainment Weekly:

Just a few days after Rogue One: A Star Wars Story hit theaters, Walt Disney Studios has announced that as of Monday, it is officially the first studio to cross $7 billion in global box office receipts. Thanks to popular 2016 releases from Walt Disney Animation Studios, Pixar, Marvel, and Lucasfilm, the studio now holds the industry record for the biggest global box office haul in a single year, boasting $2.7 billion domestically and $4.29 billion internationally.

This kind of success, when seen in other industries, tends to make people nervous. Has Disney grown too big? How can other movie producers compete? Should the various studios be broken up to combat a monopoly?

Disney succeeds because they produce a product which people want to consume. As noted by Disney chairman Alan Horn:

“… all of our film studios are bringing their absolute best to the table, telling great stories of all kinds that resonate with audiences across borders, gender, and generations.”

The moment Disney stops doing that, they’ll stop making money. Meanwhile, nothing stops competitors from producing quality products of their own. Indeed, studios like Sony Animation and Dreamworks Animation have turned out massive hits inspired by the success pioneered at Pixar.

Disney has earned every penny of their impressive bounty. Their entertainment has added more value to their customers’ lives. When you consider that every transaction represents an exchange where the customer felt enriched, the value which Disney created far exceeds the over $7 billion they’ve taken in this year.