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By Obsessing Over the Present, Big Media has Forgotten its Past and Endangered its Future (But it’s Not Too Late)

When it comes to digital-era investments, Disney has certainly been the most active of the major media companies (though IP represents more than 80% of total outlays). Over the past decade, the House of Mouse has bought the largest YouTube Multi-Channel Network (Maker Studios), a mobile gaming company (Playdom), several multi-media storytelling platforms (Marvel, LucasArts, Pixar), become Vice’s largest outside shareholder, doubled down on technology-driven theme park experiences (MagicBand, VR), established an annual fan expo (D23), formed an accelerator program with TechStars (Disney Accelerator) and launched an ever-expanding sandbox video game at the cost of more than $125M (Disney Infinity)

For the past 20 years, television networks have reaped more than $1T inflation adjusted revenues and $300B in net cash flow thanks to what was sown throughout the 1980s and early 1990s (most cable networks took years to hit cumulative net profits, with several market leaders accumulating hundreds of millions in losses doing so). But the harvest is coming to an end. Crop rotation is not a waste; it’s an essential investment in forward productivity.