"Laughter is America's most important export." - Walt Disney

Monday, January 28, 2008

Virtual Worlds for Kids are Disney's new Frontier and a New York Times on the Effect of the Economy and Strike on Studio Profits

Disney's Club Penguin is drawing big crowds for kids and they are planning on spending $5-10 million to develop as many as 10 "virtual theme parks". Marketers are projecting that audiences for these "worlds" are going to almost triple in the next four years. Disney stands to profit from this site and others in development by having coveted "brand recognition" and may charge subscription fees to the sites. Disney's Toontown and other sites are targeting kids as young as 3. As the parent of an almost two year old I'm not sure how I feel about this...thoughts?

A news article in today's New York Times, discusses concerns that all studios have regarding the loss of revenue in reference to Writer's Guild of America strike and particularly highlights Disney's vulnerability given the country's economic downturn and recession. Theme park revenues declined in 1991 and 2001 (both having to do with economic downturn) however, the parks are attracting a large contingent of foreign visitors due to the weak dollar. A lot of speculation here about the future of production, we'll have to wait and see what happens...

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