Disney’s Monopoly on Entertainment
In 2019 alone, 38 percent of all U.S. box office sales went to Disney-owned movies, with Disney reporting a net income of $2.322 billion for the 3rd Quarter of 2018. In March, Disney acquired 21st Century Fox, adding to its roster of the MCU, Lucasfilm, ABC, 80% of ESPN, 50% of the History Channel, 60% of Hulu, and many more. The small company that created Mickey Mouse has become a dictatorial monopoly in the filmmaking industry. It now owns most of the Marvel Cinematic Universe with the purchase of 21st Century Fox, now that it owns the X-Men, and the Fantastic Four. Also, Disney owns the Simpsons, National Geographic, and more. Although I would love the MCU to be reunited, as Disney grows, what will happen to smaller companies, and any new companies that join this market?
Monopolies are the bane of a good economy. One monopoly can disrupt the whole economy in a commercial area, such as OPEC (Organization of Petroleum Exporting Countries), which controls 46% of all oil produced in the world and can increase the price of oil at its will. This immensely impacts the oil economy negatively as they can set prices of their choosing as they have a large influence in this market. While being able to control prices, they can also choose who to sell to, which can be used to strong-arm other countries or blackmail them.
A monopoly can set prices at will while continually producing inferior products. As monopolies have no competitors, consumers have no other option but to buy the commodity at an increased price. Companies that are also monopolies will eventually provide lower quality products, as they have a lower cost to create, and therefore more profit towards the company. Also as a result of a monopoly is that there is no need to create new products, and therefore there is no need for innovation, so new research and commodities are created. As they are the sole or main producer, the company drags down the quality of the whole economy. While we do not see much evidence of this in Disney so far with movies like Frozen 2 and Lion King that have come out, besides the fact that Disney has blackmailing theaters to sell mostly their movies.
Though Disney started in 1923 by two brothers in an office space with a $10 rent, it has become a giant in the filmmaking world. With such big stakes in the filmmaking business, is it time to end Disney for good?
by WILSON WU