Disney has long been known for its box office movies and media networks, but the real driver of the company outperforming rivals is its theme parks. These parks create a waterfall effect, allowing Disney to generate revenue from the box office, home theater, toy sales, TV networks, and finally, theme parks. In fact, this is Disney's second-biggest business behind networks.

Time Warner and Comcast's NBC Universal just don't have the same exposure to these downstream profit generators as Disney. Long term, this is how Disney can buy franchises like Marvel, Pixar, and Lucasfilm, staying ahead in the race to build the next great characters. 

Erin Miller sat down with Fool contributor Travis Hoium to see how big a deal this theme park business is to Disney. 


The next step for Disney
Disney has also been a leader in streaming content, but streaming is a $2.2 trillion media war that pits cable companies like Cox, Comcast, and Time Warner against technology giants like Apple, Google, and Netflix. The Motley Fool's shocking video presentation reveals the secret Steve Jobs took to his grave, and explains why the only real winners are these three lesser-known power players that film your favorite shows. Click here to watch today!

The article The Key to Disney's Dominance originally appeared on Fool.com.

Erin Miller owns shares of Walt Disney. Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


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