The Entertainment Glut

As entertainment companies spend more on content, the audience is fragmenting. What will it take to win?

This is how it's supposed to work: The Walt Disney Co. made The Lion King for $55 million in 1994. The animated movie took in $313 million in U.S. theaters and $454 million abroad, sold $520 million worth of videos, and was a main attraction on cable's Disney Channel. Fans spent $3 billion on Lion King merchandise. The Disney-produced soundtrack sold 11 million copies, and Disney used the film again in September, 1996, to boost the ratings of its struggling ABC network.

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