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Disney Consumer Products, like Parks and Resorts, has had to weather
the rough economy, which affected the entire field of retail. There
are encouraging trends throughout this unit, thanks in large measure
to initiatives Consumer Products has taken. First, they have reduced
the number of licensees by one-third, which allows us to be more
active and focused in the creation and distribution of Disney products.
They have also fostered direct-to-retail relationships with more
than 20 of the leading retailers in the world. This, too, keeps
us creatively involved in the development and presentation of the
products that bear the Disney name. These products fall into two
broad categories of core franchises and new franchises.
The core franchises include Mickey, Pooh, and the Princess line
of merchandise, which has grown from $100 million in worldwide sales
in 2000 to $1.3 billion in 2003. The new franchises include best-selling
book series, such as W.i.t.c.h., Artemis Fowl and The
Cheetah Girls (which has also been turned into a successful
Disney Channel movie) and our Baby Einstein line of merchandise.
All of these initiatives are progressing well. One that has needed
to be modified is the Disney Stores. In part because of the shifting
retail environment, in 2002 we sold our Japanese stores to Oriental
Land Company, the owner and operator of the Tokyo Disney Resort,
and have recently decided to explore the sale of the North American
and European stores. We hope to conclude this process in 2004.
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