Since the Disney Brothers Studio first opened its doors as an animation company 82 years ago, we've seen seismic shifts in the technology of entertainment – and we've been at the forefront of a few of these shifts ourselves. From silent movies to talking pictures to television to home video, Disney has grown as entertainment options have expanded. Now, innovations such as video-on-demand and high definition television – delivered to the home through broadcast, cable, and satellite – have created more demand for content. And, a new level of convenience is now revolutionizing consumer choices – thanks to the next generation of DVD, digital video recorders, online purchases on PCs, and iPods – that is creating equally revolutionary opportunities for our Company.
In order to thrive in this new era and to deliver long-term growth and increased shareholder value, we have established three strategic priorities: creative innovation, global expansion, and application of technology.
The Walt Disney Company had a great year creatively in 2005. The ABC television network has raised the bar for quality television, delivering five of the Top10 series so far this season among Adults 18-49 – the age group for which advertisers pay a premium – including Lost, Grey's Anatomy and the number one program in this demographic, Desperate Housewives.
Our theme park operations marked Disneyland's 50th anniversary by introducing several fantastic new attractions that thrilled our Guests and helped make The Happiest Celebration on Earth truly memorable at our theme parks in the U.S. and around the world. Our launch of Hong Kong Disneyland in September was a triumph of creativity – from the feng shui design of the park to the innovative new attractions unveiled there. Expedition Everest, an entirely new and thrilling entertainment experience, will open at Disney's Animal Kingdom in spring 2006.
