Consumer Products

GROWING IN NEW DIRECTIONS

DRIVING TECHNOLOGY FORWARD

Disney’s Mix Sticks audio/MP3 player was lauded as the “quintessential sell-out item” of the holiday season by The Washington Post and now ranks among the Top10 best-selling flash-based MP3 players in the marketplace. In 2006, DCP introduced the Disney Mix Max, a portable personal media player for kids that plays full-length movies, audio and jpegs on a 2.5-inch color display.

BVG is at the forefront of emerging technologies, developing titles compatible with new gaming platforms such as Nintendo’s Wii, Sony’s Playstation 3 and Microsoft’s Xbox 360. In 2006, DCP continued to invest in video games and saw revenue growth due to self-published titles such as Pirates of the Caribbean: Dead Man’s Chest.

DisneyShopping.com also brings merchandise to millions online, offering product personalization features and unique Disney collections.

EXPANDING OUR BUSINESS INTERNATIONALLY

DCP broadened its presence in key international markets, such as China and Latin America, and within emerging markets such as Russia, South Africa and Poland. In Europe and Japan, the Disney Stores posted solid results in 2006.

DCP introduced a comprehensive Disneybranded food program, available at retailers such as Kroger in the U.S., Carrefour in France and Metro in Germany. The program includes healthy foods such as fresh fruits in kid-size packages, as well as snacks, meals and popular staples that offer controlled levels of calories, fat and sugar and no added trans fats.

In the Asia-Pacific region, DCP forged a relationship with the Vietnamese government and continued its aggressive strategy of opening licensed specialty stores in key shopping malls throughout China — where there are currently over 4,200 of these Disney Corners. These factors contributed to DCP’s significant growth in retail sales, operating income and revenue in the region.

DESIGNER DISNEY FOR THE YOUNG AND YOUNG AT HEART

In 2006, DCP worked with fine furniture retailer Drexel Heritage to introduce the Walt Disney Signature home furnishings collection, inspired by Walt’s distinctive art moderne studio office and living spaces.

Disney was also recognized by leading trade publication Women’s Wear Daily as being among the Top 100 fashion brands in the world, ahead of venerable labels like Louis Vuitton. Reinforcing this reputation was the launch of a luxury handbag line from designer Judith Lieber and two fine jewelry lines with items ranging from $500 to $30,000. In Japan, DCP introduced an upscale line of kimonos adorned with Disney Princess characters retailing for up to $6,000. In the world of beauty products, plans are underway for a cosmetics launch internationally.