The company is famous for its media empire, but that's only part of the story.
Disney (DIS 1.44%) is the largest entertainment company in the world with an unmatched content library, 12 destination theme parks, and a plethora of subsidiaries. All of its parts work together to create the signature Disney magic.
Depending on how you consume entertainment, you might think of Disney as a filmmaker, streamer, sports content provider, or parks operator. But do you know which of these bring in the most revenue for Disney?
The Disney magic machine
You may feel like singing or tearing up when engaging with Disney content, but Disney is a business bound to the top and bottom lines. It has an incredible model that uses and recycles its trademarked characters and franchises to populate its various products and services. So if you enjoy, say, a Star Wars movie, Disney is likely to create sequels (and sequels, and sequels...), series, action figures, and theme park rides based on the franchise, making tons of money in the process.
Disney's segment reporting has changed throughout the years. Most recently, when Bob Iger returned as CEO last year, he said he would reorganize the structure into three reporting segments, these being experiences, entertainment, and sports. Sports having its own segment since it doesn't fit into the rest of the model. Entertainment including film studios, streaming, and TV and Cable networks. Experiences including parks, resorts, and so on.
Data Source: Disney, Chart by The Motley Fool
Having your experience and watching it, too
Entertainment is the largest segment for Disney thanks to its robust streaming business. Following closely behind is Disney's experiences revenue, which is quickly growing with a 7% increase year over year in the first quarter of 2024. The complementary nature of these two segments give Disney more diversity in the event that one sees a decline in sales. Combine this stability with a recent bump in dividend payment and a Q1 earnings beat, Disney is a stock to keep a close eye on in 2024.
Jennifer Saibil has positions in Walt Disney. The Motley Fool has positions in and recommends Walt Disney. The Motley Fool has a disclosure policy.
