The Walt Disney Company is killing it thanks to a little space opera franchise that maybe you've heard of. In our very own galaxy, the company brought in a record $2.9 billion in earnings in its first quarter this year, which technically ended January 2. That record-breaking number is all thanks to Star Wars: The Force Awakens.
“Driven by the phenomenal success of Star Wars, we delivered the highest quarterly earnings in the history of our company," said Bob Iger, the chairman and chief executive officer of Disney. "We’re very pleased with our results, which continue to validate our strategic focus and investments in brands and franchises."
In non-corporate speak, way to go team—let's keep making money off of big-time franchises that everyone already knows and loves, the closest you can basically get to a sure thing in the entertainment industry.
Star Wars has already broken all kinds of records. The film was the first ever to cross $900 million in ticket sales domestically (in 50 days, to boot), beating out Avatar, the previous record-holder. The film has also done well internationally, bringing in more than $2 billion around the world.
For Disney, Star Wars' success helped not only its studio, but also had a significant impact on its consumer products group. That should come as little surprise, seeing as Disney has made a significant push with lots of Star Wars toys, games, and other merch. The company notes in its earnings report that the original Star Wars films helped drive streaming and DVD sales.
So to sum up, capitalizing on our collective nostalgia turns out to be a great business strategy. Here's to thinking it will probably work again.
