I'm always looking for a catalyst that is going to take Disney (NYSE: DIS) to the next level. The stock hasn't been a great performer over time. Just today, the Mouse issued a press release detailing its latest merchandising plans.

Merchandising falls under the consumer products division. Now, one would expect that this segment would always be rocking considering the brand equity inherent in all of Disney's intellectual properties. Well, let's remind ourselves of how the segment did during the last earnings report. In the second quarter, operating income for consumer products dipped 24%. For the six-month period, operating income was down by 13%. Double-digit declines: nobody likes them. Management commentary about the division specifically stated that lower royalty revenue from merchandise helped to drive the performance. As can be seen, Disney needs some good ideas and strategies to return this segment to growth.

Continue reading Can Disney license its way to a stock rebound?

Can Disney license its way to a stock rebound? originally appeared on BloggingStocks on Tue, 02 Jun 2009 16:30:00 EST. Please see our terms for use of feeds.

Anyone who follows Disney (NYSE: DIS) knows that the media conglomerate is serious about videogames -- it should be, considering that consoles from Nintendo (OTC: NTDOY), Sony (NYSE: SNE), and Microsoft (NASDAQ: MSFT) are currently cooking in the industry's new cycle. The company has been increasing its investments in this area, and it will continue to do so; making games for Nintendo's DS hand-held system, as well as other platforms, has become a priority. But Disney is also serious about the synthesis of virtual worlds -- you know, the kind of online gaming platforms that can suck a person's life away due to their addictive, immersive scope.

Well, the powers that be at the Mouse have decided that a dedicated team of professionals is needed to ensure a proper presence in the virtual-world space. According to a press release, Disney has created Disney Online Studios for the express purpose of programming new online entertainment platforms. It seems that the company wants to leverage the promise of social networking -- hope you're not too sick of that buzz phrase -- by creating worlds that allow gamers to interact with each other via community tools in addition to playing around in he worlds themselves. Right now, Disney operates Toontown, and it plans on developing immersive online environments for the company's Fairies and Cars franchises. Pirates of the Caribbean has also been given the online treatment; and let's not forget the acquisition of the popular Club Penguin destination.

Continue reading Disney's virtual pixie dust

Disney's virtual pixie dust originally appeared on BloggingStocks on Wed, 20 Feb 2008 14:39:00 EST. Please see our terms for use of feeds.