1. Introduction

Since its founding in 1923, The Walt Disney Company has grown to become a global leader in the entertainment industry. Its success spans across movies, television, theme parks, and merchandise, establishing Disney as one of the most influential companies worldwide. The box office revenue generated by Disney's films has been a major driver of its financial success. By producing and acquiring a vast array of high-quality movies, such as "Star Wars," "The Avengers," and "Frozen," Disney has consistently generated billions of dollars in annual box office revenue globally. This not only enhances the company's profitability but also solidifies its position in the global entertainment market.

In addition to box office revenue, Disney's merchandise market is highly competitive. From toys and clothing to theme parks and resorts, Disney has successfully branded its films and characters through a diverse range of products. These derivative products have not only generated significant profits for the company but also increased brand recognition and influence worldwide.

Regarding audience demographics, Disney's market strategy is notably successful. The company attracts a broad spectrum of audiences through precise market positioning and a diverse range of products. Whether targeting children, teenagers, or adults, Disney consistently finds suitable products and content to meet their needs. The company performs exceptionally well not only in its home market in the United States but also achieves significant market shares in other regions around the world.

Disney's multifaceted approach through its films, merchandise, and broad audience appeal has cemented its status as a powerhouse in the entertainment industry.

Disney's box office performance is marked by high-grossing films. Zhao highlights that film budgets and online ratings significantly boost box office success. Sequels also enhance revenue, while director popularity and technical investments have less impact [1]. Toy World notes that Disney produced half of the 36 films that grossed over $1 billion globally, including various genres [2]. In 2022, Disney led the global box office with $4.9 billion in revenue, bolstered by key films like "Avatar: The Way of Water"[3]. Gomery attributes Disney's success to strategic leadership and innovative practices, with consistent gains from diverse entertainment avenues [4]. Disney's IP strategy significantly enhances its brand. Liu and Li discuss semantic design principles in Disney's animated derivatives, offering insights into the Chinese industry[5]. Tian highlights Disney's creative design and brand extension, crucial for commercial profits and brand value [6]. Gao emphasizes the impact of the internet on Disney's IP strategies, with successful examples like LinaBell in Asia [7]. Zhang suggests that China's IP industry can benefit from Disney's localization strategies [8]. The Panmore Institute outlines Disney's marketing mix, promoting products across divisions to boost revenue and brand loyalty [9]. Understanding Disney's audience is vital for effective content and marketing. Mason explores adult engagement with Disney films, identifying two distinct genres [10]. Geist highlights Disney's marketing tactics for children aged 2-10, emphasizing segmentation and media use [11]. Larson examines Disney Channel's success with the "tween" audience, noting its top primetime status [12]. Li analyzes the impact of Disney's acquisition of 21st Century Fox, which expanded its streaming service and audience reach, though raising market diversity concerns [13]. As mentioned above, this article will analyze Disney's box office revenue and its derivative profits.

2. Box Office Revenue

2.1. Financial Analysis

In the field of global movie box office in 2024, Disney highlighted its huge market appeal with its iconic animated film "Inside Out 2". Not only did the film gross more than $1 billion worldwide, it also set a new record for the fastest animated film to do so, completing the feat in just 19 days.

Figure 1: Disney's top 10 grossing movies

This performance is particularly notable against the backdrop of a 19% decline in the overall box office this year, highlighting Disney's market leadership in the face of adversity. Despite the poor performance of the overall film market, Disney's overall financial position remains strong. According to its latest financial report, Disney generated $89.2 billion in revenue in the past year, up 2.55% from the same period last year. This growth was driven by Disney's strong performance in diversified entertainment areas, including film production, theme park operations, and sales of related merchandise. In addition, Disney's blockbuster movies have also brought the company huge profits, as shown in Figure 1.

2.2. Challenge and Measures

Disney faces its share of challenges. Uncertainties in the global economy, especially currency exchange rate fluctuations and geopolitical instability, have had some impact on its global operations. The strong performance of the U.S. dollar in particular puts pressure on Disney's revenue conversion in overseas markets, because a strong dollar means the depreciation of other currencies, which reduces the absolute value of revenue when translated into U.S. dollars.

In addressing these challenges, Disney has adopted several strategies to maintain its market leadership. On the one hand, Disney continues to push content innovation, constantly launching new movies and TV shows to attract a global audience. The success of Inside Out 2 is a good example of its content innovation strategy. On the other hand, Disney is also actively adjusting its business model, especially in the area of digital streaming services, trying to seize the opportunity of digital transformation through platforms such as Disney, Disney is also expanding its theme parks and resorts around the world, which not only generates direct revenue growth for the company but also helps strengthen the global reach of its brand. As the global travel market gradually recovers, this area of Disney's business is expected to grow further.

Despite the challenges of global economic volatility and market uncertainty, Disney has demonstrated a deep understanding of market trends and excellent resilience. By constantly innovating and flexibly adjusting its market strategy, the company has not only consolidated its leadership position in the traditional media and entertainment industry but also demonstrated its extraordinary competitiveness in the highly competitive digital media field. These strategies are a direct result of Disney's long-term investments in content innovation and technological advancements that have enabled the company to quickly adapt to changing consumer needs and technology environments to stay ahead of the market globally.

As the global economy gradually recovers and consumer entertainment preferences continue to change, Disney's strategy in responding to market dynamics will face new tests. The company's continued success will depend on its ability to consistently create high-quality content that meets consumer expectations in a diverse global marketplace, and its ability to effectively leverage technological innovation to optimize its business operations and marketing strategies.

2.3. Future Development

Disney's future, while full of challenges, is also rich in opportunities. As a leader in the global entertainment industry, Disney is testing its innovation and market insight with every move. The company must constantly adapt to the changing needs of consumers and the rapid development of technology to ensure that it maintains its leading position in the global culture and entertainment market. Through these strategies, Disney will not only be able to consolidate its existing market share, but also open up new areas of growth and continue to drive its business forward. In an increasingly competitive entertainment market around the world, Disney's future performance will be a true test of its long-term strategy and market adaptability.

3. Derivative Products

3.1. Marketing Strategy

In addition to direct revenue from movies and theme parks, Disney's derivative products are also an important source of revenue. The products include clothing, toys, household items and more, all themed around Disney movies and characters. The success of the derivative product is largely dependent on the popularity of the original film and the marketing strategy of the brand. For example, the success of Inside Out 2 not only boosted box office growth but also greatly boosted sales of related toys and clothing. Through well-designed marketing campaigns, Disney has effectively turned film heat into sales momentum for derivative products.

The marketing strategy of the derivative products is cleverly combined with the major holidays and school holidays, which are the times when the consumption demand of children and families is at its peak. Disney takes full advantage of these opportunities to ensure that a wide range of products can reach consumers around the world through its global retail network and online stores. Disney also often partners with other well-known brands to launch co-branded products, a strategy that not only increases the uniqueness and appeal of the product but also effectively expands its market influence. Through such partnerships, Disney is able to combine its cultural symbols with the unique strengths of other brands to create new and innovative products that are in high demand and further strengthen its position in the global consumer market. Through this diversified marketing strategy, Disney has not only met the needs of various consumers but also successfully embedded its brand culture in the hearts of the people, enhancing the brand's global recognition and consumer loyalty. The success of this strategy lies in its ability to effectively capture market dynamics and respond quickly to the changing needs of consumers, ensuring that the Disney brand remains ahead of the fierce market competition.

3.2. Risk of Derivatives

However, the strategy of relying on derivatives, while bringing benefits, is not without risks. The volatility of the market can lead to a backlog of inventory, especially if the film fails to meet expectations at the box office, and derivative sales suffer. As a result, Disney needs to more accurately predict market trends and consumer preferences to adjust production plans and inventory strategies. Through in-depth data analysis and meticulous market research, companies can adjust product development and marketing strategies in a timely manner, effectively control risks, optimize resource allocation, and enhance the stability and predictability of returns. This strategy is not only about Disney's financial health but also about its market acumen.

Looking ahead, Disney is further improving the sales efficiency of its derivative products through digital transformation. The company is actively optimizing its online sales platform to improve users' shopping experience while expanding its digital marketing strategy to enhance product accessibility and adaptability in global markets. Disney is also constantly looking to expand into new markets and product lines to adapt to the rapid changes in the consumer market and enhance the diversity of the company's business. These measures not only help Disney seize the opportunities of digitalization but also support the company's leadership in the global entertainment industry. Through these strategies, Disney aims to improve the flexibility and competitiveness of its business, ensuring that it can respond quickly to changes in market demand and consumer preferences.

Disney's headwinds fly with "Inside Out 2" leading to a double victory in the film and derivatives marketsIn the global film market in 2024, Disney skillfully coped with a 19% decline in the overall market with the stunning performance of its animated film "Inside Out 2", showing its market leadership in the face of adversity. The film not only grossed more than $1 billion worldwide but also broke the record for an animated film to do so quickly. Disney's success is also reflected in its derivative product strategy, which is based on movies and characters, including clothing, toys and housewares, and its sales strategy is effective in converting movie heat into actual sales.

In the face of global economic uncertainty, Disney continues to strengthen its market position through content innovation and business model adjustments. The company has not only made adjustments in digital streaming services but also improved the sales efficiency of derivative products by expanding its global theme park and resort business and optimizing its online sales platform. These strategies not only respond to the immediate needs of the market, but also anticipate long-term development, and strengthen its competitiveness in the global entertainment industry through technological innovation and precise market positioning.

Disney's strategy for the future focuses on continued innovation and market adjustments in response to changing consumer preferences and the challenges of the global economy. The company's continued success will depend on its ability to create high-quality content and its strategy to effectively utilize technological innovations to optimize business operations. In a constantly changing market, Disney has shown remarkable adaptability and foresight, ensuring its leadership in culture and entertainment.

3.3. Future Development

Disney's strategy for the future is to address the challenges of the global economy and market, as well as the opportunities presented by changing consumer preferences. Through continued innovation and market adjustments, Disney will not only be able to maintain its leading position in traditional media and entertainment but will also be able to demonstrate strong competitiveness in the increasingly competitive digital media and derivative markets. The company's strategy and actions will further validate its position as a leading global entertainment company and serve as an ongoing test of its long-term vision and ability to execute.

4. Conclusion

This paper mainly studies how Disney maintains its leading position in the global entertainment industry through innovation and marketing strategies, especially in the market performance of its animated film Inside Out 2 and related derivative products. Through a detailed analysis of Disney's financial reporting and marketing strategies, this paper reveals how Disney has successfully leveraged its brand appeal and diversified entertainment business to grow even as the overall global film market has declined.

The key findings of this paper include: Disney's film Inside Out 2 not only set a new record for fast box office for an animated film, but the success of its spin-off products, such as toys and clothing, significantly enhanced the company's overall earnings. In addition, the paper highlights how Disney promotes its derivative products through holidays and special events, as well as co-branding with other big brands to further expand its market reach.

The paper recommends that Disney continue to invest in content innovation and technology upgrades to meet the challenges of global economic volatility and market uncertainty. At the same time, by optimizing its online sales platform and digital marketing strategy, Disney can better adapt to the rapid changes in consumer preferences and enhance the global accessibility and market competitiveness of its products.

In summary, Disney's vision for the future is to leverage its long-term market insights and innovation capabilities to not only maintain its leadership position in traditional media and entertainment but also demonstrate strong competitiveness in the digital media and derivative markets. This forward-thinking strategy will enable Disney to continue its success in an ever-changing global marketplace.