Full Description

The Walt Disney Company, together with its subsidiaries, is a global entertainment company. The business segments of the Company are Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products. The Media Networks segment consists of domestic broadcast television network, television production and distribution operations, domestic television stations, cable networks, domestic broadcast radio networks and stations, and Internet and mobile operations. The Studio Entertainment segment produces and acquires live-action and animated motion pictures, direct-to-video programming, musical recordings and live stage plays. The Consumer Products segment engages with licensees, manufacturers, publishers and retailers globally to design, develop, publish, promote and sell a range of products based on Disney characters. During the fiscal year ended September 27, 2008 (fiscal 2008), the Company completed the acquisition of UTV Software Communications Limited.

Media Networks

The Company operates the ABC Television Network, which in fiscal 2008, had affiliation agreements with 233 local stations reaching 99% of the United States television households. The ABC Television Network produces its own programs or acquires broadcast rights from other third-parties, as well as entities that are owned by or affiliated with the Company. The Company produces and distributes live action and animated television programming under the ABC Studios, Buena Vista Productions, and ABC Family Productions labels. The Company distributes its productions both domestically and internationally through distribution companies, which are Disney-ABC Domestic Television and Disney-ABC ESPN Television International. The Company’s productions are also distributed in digital versatile disc (DVD) format and online.

The Company owns nine very high frequency (VHF) television stations, six of which are located in the top-ten markets in the United States, and one ultra-high frequency (UHF) television station. The cable networks are engaged in providing national programming networks, licensing television programming in domestic and international markets and investing in foreign television broadcasting, programming, production and distribution entities. In addition to cable network operations, the Company have ESPN and Disney Channel branded radio operations, which are managed together with the cable operations. The Internet and mobile operations develop, publish and distribute content for online and wireless services intended to appeal to consumer interest in sports, news, and family entertainment. Internet Web sites include ABC.com, ABCNews.com, Disney.com, ABCFamily.com, SOAPnet.com, ESPN.com, ESPN360.com and Disney’s Club Penguin. Disney Mobile Studios produces and publishes mobile content that is distributed through mobile carriers and content distributors globally and has entered into arrangements with mobile carriers to provide Disney branded phone services in Japan and Italy.

Parks and Resorts

The Company owns and operates the Walt Disney World Resort in Florida, the Disneyland Resort in California, the Disney Vacation Club, the Disney Cruise Line, Adventures by Disney, and ESPN Zone. The Company also licenses the operations of the Tokyo Disney Resort in Japan. The Company’s Walt Disney Imagineering unit designs and develops new theme park concepts and attractions, as well as resort properties.

The Walt Disney World Resort is located 22 miles southwest of Orlando, Florida, on approximately 25,000 acres of owned land. The resort includes theme parks (the Magic Kingdom, Epcot, Disney’s Hollywood Studios and Disney’s Animal Kingdom); hotels; vacation club properties; a retail, dining and entertainment complex; a sports complex; conference centers; campgrounds; golf courses; water parks and other recreational facilities designed to attract visitors for an extended stay. The Company owns 461 acres and has the rights under long-term lease for use of an additional 49 acres of land in Anaheim, California. The Disneyland Resort includes two theme parks (Disneyland and Disney’s California Adventure), three hotels and Downtown Disney, a retail, dining and entertainment district designed to attract visitors for an extended stay. The Company has a 51% ownership interest in Disneyland Resort Paris, which is a 4,800-acre development located in Marne-la-Vallee. The Company owns a 43% interest in Hong Kong Disneyland Resort through Hongkong International Theme Parks Limited, an entity in which the Government of the Hong Kong Special Administrative Region owns a 57% majority interest.

Tokyo Disney Resort is located on approximately 494 acres of land, six miles east of downtown Tokyo, Japan. The resort includes two theme parks (Tokyo Disneyland and Tokyo DisneySea); three Disney-branded hotels; six independently operated hotels; and a retail, dining and entertainment complex. The Disney Vacation Club (DVC) offers ownership interests in eight resort facilities located at the Walt Disney World Resort; Vero Beach, Florida; and Hilton Head Island, South Carolina. Disney Cruise Line, which is operated out of Port Canaveral, Florida, is a vacation cruise line that includes two 85,000-ton ships, the Disney Magic and the Disney Wonder. Adventures by Disney offers a series of guided vacation tour packages at non-Disney sites globally.

The ESPN Zone concept combines three interactive areas under one roof for a complete sports and entertainment experience: the Studio Grill, offering dining in an ESPN studio environment; the Screening Room, offering fans sports viewing environment; and the Sports Arena, challenging guests with a range of interactive and competitive attractions. Walt Disney Imagineering provides master planning, real estate development, attraction and show design, engineering support, production support, project management and other development services, including research and development for the Company’s operations.

Studio Entertainment

The Company distributes produced and acquired films (including its film and television library) in the theatrical, home entertainment and television markets. Walt Disney Pictures, a subsidiary of the Company, produces and acquires live-action motion pictures that are distributed primarily under the Walt Disney Pictures and Touchstone Pictures banners focusing on the production of Disney-branded films. Miramax Film Corp. (Miramax), another subsidiary of the Company, acquires and produces motion pictures under the Miramax banner. It distributes and markets the filmed products, through its own distribution and marketing companies in the United States. In the international markets, the Company distribute the filmed products both directly and through independent distribution companies or through joint ventures.

In the domestic market, the Company distributes home entertainment releases under each of our motion picture banners. In the international market, the Company distribute home entertainment releases under each of the motion picture banners both directly and through independent foreign distribution companies. In addition, the Company acquire and produce original programming for direct-to-video release. The Company also licenses its theatrical and television properties outside of the United States. The windowing sequence is consistent with the domestic cycle such that titles premiere on television in pay per view/ video on demand (PPV/VOD) then air in pay television before airing in free television.

The Disney Music Group includes Walt Disney Records, Hollywood Records (including the Mammoth Records and Buena Vista Records labels), Lyric Street Records, Buena Vista Concerts and Disney Music Publishing. The Disney Theatrical Group includes both Disney Theatrical Productions and Disney Live Family Entertainment. Disney Theatrical Productions develops, produces and licenses live entertainment events. Disney Live Family Entertainment delivers global touring productions under the Disney On Ice and Disney Live! brands under a license to Feld Entertainment.

Consumer Products

The Company’s global merchandise licensing operations include a range of product categories, which includes toys, apparel, accessories, footwear, home furnishings, home décor, health, beauty, food, stationery and consumer electronics. The Company also designs individual products and creates themed and seasonal promotional campaigns for retailers-based on characters, movies and television shows.

Disney Publishing Worldwide (DPW) publishes children’s books and magazines in multiple countries and languages. DPW’s businesses include Disney Global Book Group, Global Children’s Magazines, U.S. Consumer Magazines, and Disney English. In fiscal 2008, the Disney Global Books Group published titles globally in support franchises as High School Musical, Cars, Hannah Montana, Disney Princess, Disney Fairies, and Playhouse Disney. Disney Interactive Studios (DIS) creates, develops, markets and distributes multi-platform video games globally. The Company markets Disney-themed products through retail stores operated under the Disney Store name. DisneyShopping.com offers Disney-themed merchandise through an internet site, which includes internally developed Disney merchandise, as well as merchandise from Disney licensees.