The Walt Disney Company 2003 Annual Report
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LETTER TO SHAREHOLDERS
Part V
Executive Photo
Letter to Shareholders, Part I
Letter to Shareholders, Part 2
Letter to Shareholders, Part 3
Letter to Shareholders, Part 4
Letter to Shareholders, Part 5
Letter to Shareholders, Part 6
Letter to Shareholders, Part 7
Letter to Shareholders, Part 8


Another cable “star” is Disney Channel. This year, the channel celebrated its 20th anniversary, and it did so in a most appropriate way – by having its best year ever. Its ratings were up by 47 percent among kids 6-11, raising the channel to number one among all basic cable networks with kids 6-14. It’s close to impossible to calculate the true value of the Disney Channel. It is highly profitable in its own right, while it also represents something of a goodwill ambassador of the Disney brand, coming into the homes of millions of fans every day. And, with its creative and appealing line-up of original programming, it strengthens and reinforces Disney among the so-called “tweens” – kids from ages 9-14.

Disney Channel is yet another franchise factory for our company, thanks to popular shows like That’s So Raven, Kim Possible, Lizzie McGuire and Stanley. To further advance the creation of valuable franchises like these, this year we restructured our animation unit so that Walt Disney Television Animation reports directly to Disney Channel. This gets the creators and the distributors to work closely together to better serve their audience. In November, we launched an international Disney Channel in Japan, which is one of the most enthusiastic nations in the world for all things Disney, so we are quite confident that this newest Disney Channel will be yet another successful one. We expect to add still more Disney Channels in other large Asian and European markets in the years ahead.

Our other cable assets include Toon Disney, whose distribution grew by 19 percent in 2003, SOAPnet, which increased its primetime ratings among women 18-49 by 25 percent, and ABC Family, which was recently integrated into our cable organization so that all of our cable holdings can work more effectively together. In addition, we have equity holdings in some of cable’s other premiere services – A&E, The History Channel, Biography, Lifetime and E!

Two other important Media Networks assets are ABC’s owned stations and our radio group. ABC’s 10 owned stations are located in almost every major metropolitan area within the United States, with seven of them being number one in their markets. On radio, we have 72 owned and operated stations and an incredible 4,800 affiliated stations, including ESPN Radio, which is the largest sports radio network. But my favorite radio asset continues to be Radio Disney, which weekly reaches nearly three million children and one and a half million mothers in markets covering more than 60 percent of the country. Plus, as with Disney Channel, Radio Disney has gone worldwide, with stations in Japan, the United Kingdom, Argentina and Paraguay, and discussions underway to expand further, providing yet more evidence of the international growth potential of the Disney brand.

 

continue to part VI of Letter to Shareholders >>

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Hundreds of Disney employees gathered at the Disney Studio Lot in Burbank, California to cheer and serenade Mickey with a lively round of "The Mickey Mouse March" on November 18.
Hundreds of Disney employees gathered at the Disney Studio Lot in Burbank, California to cheer and serenade Mickey with a lively round of "The Mickey Mouse March" on November 18.
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