The Magic Kingdom of Cross-Marketing

Paper by Calyn Guiney. Viewed on DVD.

The “Disney Model” of the movie industry transcends film production. Although Disney made many excellent films, the history of the film industry indicates that artistic success alone may not be sufficient to sustain a movie studio in difficult times. Disney opened a path to success that involved a far-reaching business model that typically uses a family oriented, blockbuster film as the basis for a broad range of entertainment enterprises, such as theme parks, televisions shows, Broadway theater productions, DVD sales and the marketing of ancillary toys, figures, video games, posters and other products. While one may argue whether this business model undermines the focus on film as an art form, this model has been employed by Disney, and adopted by other studios such as Lucas Films, with its Star Wars production line, and Warner Brothers and its Harry Potter line, with great success.

This essay will investigate the importance of the “Disney Model” and how it eventually led the way to an important historical shift in the film industry’s film production and marketing. But first, to gain a better understanding on this matter, one must dig down deep to the root of the “Disney Model”. According to the Walt Disney Studio company website, the history of Disney traces all the way back to 1923 when the Walt Disney Company was established (“Disney.com”). Decades later, Disney became one of the most powerful and influential companies in the history of American film. The success of Disney has earned the company both popularity and publicity. With all of this fame, over the years, Disney has been discussed and written about extensively.

The book Contemporary American Cinema, edited by Linda Williams and Michael Hammond, contains a chapter titled “Disney and Family Entertainment” which is written by Peter Kramer. In his article, Kramer notes that the history of the Disney Company began in the 1920’s with short animated films and the creation of a comic animal cartoon character named Mickey Mouse (265). As an icon for the Walt Disney Company, Mickey Mouse has become the most familiar face of Disney and one of the most identifiable symbols in the world. Kramer also mentions the company’s merchandising mechanisms and the production of Disney’s first animated films nearly a decade later in the 1930’s (265). Over the decades, the Disney studio continued growing and broadening its horizons. The company branched out into documentaries and diversified into live action films, television programs and eventually, in the 1950’s, began the construction of a “magical park” known today as “Disneyland” (265).
Disney always has been associated with family entertainment: “For more than eight decades, the name Walt Disney has been preeminent in the field of family entertainment. From humble beginnings as a cartoon studio in the 1920s to today’s global corporation, The Walt Disney Company continues to proudly provide quality entertainment for every member of the family, across America and around the world.” (Benson).

However, in the turbulent 1960’s, amid anti-war activities, the civil rights movement and the growth of the counter-culture, the American society underwent significant changes. Authors, Michelle Pautz and Paul Monaco, discuss some of the culture and historical changes of the 1960’s including the decline in movie attendance. In his book titled, The Sixties, Paul Monaco discusses the demographic shifts in cinemagoers: “A high point for movie attendance in the United Sates was reached in 1946 when an average of 90 million admissions to movie theaters were recorded weekly, constituting a record 75 percent of the estimated “potential audience” nationwide. During the next ten years, however, average weekly attendance dropped rapidly: 1956 figures set weekly movie theater audience figures at 46 million; four years later, in 1960, that figure was 40 million; attendance plummeted to 20 million by 1970” (40).

According to some interpretations, multiple factors of the post-World War II era initiated this decline in movie audiences. In her article, “The Decline in Average Weekly Cinema Attendance: 1930-2000”, Michelle Pautz lists the “anti-trust action and the birth of television” as two major events that caused the cinema attendance to decrease so dramatically (2). Studios were forced to make major changes, such as cutting back on production costs, after they were no longer permitted to own large theater chains and control production and distribution aspects of the industry (Pautz 2). However, some would argue that the cause of the cinema audience decline was the television. Even though the television had been around since the early 1920’s, it was not readily available until the end of World War II (2). This new form of entertainment became a threat to the cinemas: “Television viewing in one’s own home was much more convenient than going out to a theater, and once the television was purchased the evenings enjoyment was free” (3). The most popular explanation for the audience decline is the known as the postwar “baby boom.” The baby boom refers to the “unexpected and unprecedented number of births in the United Sates” following World War II (Monaco 41). With the rapid rise in birth rates and marriage, the United States faced social and cultural changes. The “baby boom” caused many shifts in American lifestyles and helped lead to the decline in movie attendance. For example, much of America’s middle-class population left their city homes and moved to suburbia to live in a house more suitable for their family and their needs. The rapid increase in population and family size also changed how American’s spent their leisure time (Monaco 42). The federal antitrust decision made it difficult to create movie theaters in the suburbs. Because film companies were prohibited from owning movie theaters, money to construct theaters in the suburbs had to come from someplace else (42). This slowed the spread of theaters in the suburbs and contributed to the decline of movie attendance.

One of the few companies to succeed during this period of declining attendance was Disney because they had developed over the years the “Disney Model”. The Disney Model incorporated the common production of family films, which remained popular even during the period of decline in movie attendance. However, the Disney Model was much more than a production model based on family films. As noted in the Disney companies corporate website:

“The Walt Disney Company (NYSE: DIS), together with its subsidiaries and affiliates, is the world’s largest diversified international family entertainment and media enterprise with five business segments: media networks, parks and resorts, studio entertainment, consumer products and interactive media.”

It is instructive to examine the impact of a single Disney film, The Lion King. This animated film is filled with sing-along music and fun characters. Although obviously attractive to children, the music, songs and production qualities also appeal to adults. The Lion King is a throwback to some of the earlier Disney fairy tale movies. Like many fairy tales, and successful films such as Bambi and Dumbo, The Lion King incorporates a plot that involves real drama and danger to its young characters, including the loss of a parent and the growth of the young protagonist. This film follows, in essence, the basic Disney film formula. Like The Lion King, the most popular Disney films are the animated classics typically based off fantasies, fairytales, and happy endings. The article “Animating Hierarchy: Disney and the Globalization of Capitalism”, written by Lee Artz, suggests that Disney’s content of the “Magic Kingdom” is provided through the material and technical bases of animation. Artz states:

“The appropriation of cultural codes from traditional tales through visual metaphor, anthropomorphism, naturalized scenes and settings, and music are defining characteristics of Disney animation. Disney animation entertains and instructs because it offers a cinematic escape from reality by presenting recognizable narrative and imagistic fictions as if they were or could be reality. In part, the fantasies and their narratives are shielded from external critiques because they are based on widely-accepted cultural myths and morals”(Artz).

As a business venture, the movie was highly successful, bringing in gross receipts of $945,578,747 (Amazon.com). However, the Disney Model does not limit revenues to film showings. The key to the Disney Model is to create a variety of product lines, typically based off favorite movies. By extending the company’s merchandise and business franchise, Disney is able to transform children into lifetime consumers of their Disney products and ideas (Pollock & Giroux, 2011). For example, companies like the Burger King Corporation pay Disney for promotional and licensing tie-ins, which is discussed in the New York Times article, “In the Realm of Marketing, ‘The Lion King’ Rules”. The article highlights the increased success of the Burger King chain after decorating the restaurants with a Lion King theme and packing its “Kid Meals” with toys based on the films characters. The article also notes the success of other merchandising revenues:

“In addition to being a top movie, “The Lion King” has given Disney its first No. 1 soundtrack since “Mary Poppins” 30 years ago. That is not to mention the sales of books and other merchandise and the promise of profits from the home video and video game. Disney is also using the story to lure visitors to its theme parks and retail stores” (Hofmeister).

The “Disney Model” is so obviously successful that it has been copied, and even surpassed, by a number of competitors. One of the most successful business models derived from the “Disney Model” involved a film “franchise,” such as the Star Wars film series. The Star Wars film series consists of six different films, along with ancillary movies and television programs. Because the Star Wars films are set in the distant future, the producers could not utilize product placement to their advantage. However, one can assume that director, George Lucas, scripted such characters as the Ewoks in Return of the Jedi as an attractive merchandising tool, appealing especially to younger children. The Ewoks are teddy bear-like and are perfectly suitable for toys to be marketed to children. However, one can argue that George Lucas has sacrificed some of the film’s possible artistic merit for a marketing advantage. The scene in the movie where the teddy bear Ewoks act as an effective fighting force against the well-trained and equipped Imperial Storm Troopers lacks so much credibility so as to impair the integrity of the film, even as science fiction. Perhaps, the incentive to market the Ewok toys overrode a more realistic plot.

Andy Greenberg’s article, “Star War’s Galactic Dollars” applauds the success of the Star Wars film, with the first film “grossing $1.17 billion at box office”. The Star Wars franchise brought in big profits, earning over $22 billion, starting with the release of the first film “followed by another five blockbuster films and a mini-industry of tapes and DVDs, toys, videogames and books” (Greenberg). By issuing a never-ending cycle of releases and re-releases of the series and the selling Star Wars merchandise and products, Lucasfilm’s has been able to hold on to its success.

Another very popular film franchise that adopted the basic “Disney Model” and surpassed the Disney film dynasty in many respects is the recent Harry Potter movie series. The books on which the Harry Potter film series were based were already extremely popular, providing a huge built-in audience for the release of the first films. Produced by Warner Brothers, the Harry Potter films have broken most of the records held by its Disney predecessors. According to an article published in July, 2011 “The Harry Potter movie franchise has now raked in more $7 billion at the box office, which means that it has consolidated its position as the highest grossing movie series of all-time (Economist).” With such great success and popularity among the audiences, demands for Harry Potter products quickly grew. Harry Potter based products became “must-haves” for many fans. These wizard’s artifacts and associated entertainment offerings range from Halloween costumes, video games, toy wands, figurines, broomsticks and clothing to a major portion of a theme park. Upon release of the first film, Warner Brothers began merchandizing heavily. “Shelves groaned under figurines, snow globes, beach towels and furniture. That year Mattel, which held the master toy licence, sold about $160m-worth of Harry Potter products (Economist).” In addition, “The Wizarding World of Harry Potter” opened in the Universal Studios theme Park in Florida in 2010 to great fanfare. Such an attraction owes much of its success to the original Sleeping Beauty’s Castle in the Disneyland of the 1950’s.

Although it is common to associate Disney films with “family entertainment,” it would be more appropriate to view Disney films as part of a “family” of products. The “Disney model” is not the iconic Mickey Mouse or Donald Duck; it is, instead, an aggressive business development and marketing plan for a broad range of entertainment related products. This business plan has become the model for many of the most economically successful films of the modern era. Many very popular, but not necessarily critically acclaimed, films such as the Star Wars series and the Harry Potter franchise have used this formula with great success. Because it is not a model that is well suited for many artistic and critically acclaimed films, one may question whether the “Disney model” of marketing entices the filmmaker to trade artistic achievement for a marketing advantage. However, it is difficult to argue that this “Disney model” has successfully produced some of the most popular films of the era.

Work Cited

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Artz, Lee. “Animating Hierarchy: Disney and the Globalization of Capitalism.” Purdue

University Calumet. 1.1 (2002): n. page. Print.

Benson, G.. “Corporate Info..” Company history. The Walt Disney Company, 2011. Web.

20 Apr 2012. .

Greenberg, Andy. “Star Wars Galactic Dollars.” Forbes.com. Forbes Magazine, 5.24.

Web. 20 Apr 2012. .

Hofmeister, Sally. “In the Realm of Marketing, ‘The Lion King’ Rules.” New York Times

12 July 1994, n. pag. Print.

Kramer, Peter. Disney and Family Entertainment. Two Penn Plaza, New York, NY:

McGraw-Hill, 2006. 265-77. Print.

Monaco, Paul. The Sixties, 1960-1969. Berkeley: University of California Press, 2003.           Print.

Pautz, Michelle C. 2002. “The Decline in Average Weekly Cinema Attendance, 1930

2000.” Issues in Political Economy, 12 (Summer): 54-65.


Pollock, G., & Giroux, H. A. (2011, 08 21). truthout. Retrieved from http://truth-

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“The Harry Potter Economy.” Economist. 17 December 2009: n. page. Print.

“The Walt Disney Studios History.” Disney.com. Disney, n.d. Web. 20 Apr 2012.


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