Why Disney makes movies: merchandise

There’s no question Disney’s main business isn’t movies anymore. Theme parks, TV programs and… merchandise. Although at the core everything is based on their movies, ‘Cars’ worldwide box office gross of $461 million doesn’t make Disney hot anymore. It’s the $2.5 billion in ‘Cars’ merchandise that make the people at Disney smile.

In Disney’s 2008 fiscal year, which ends in September, they expect retail sales to have topped no less than $30 billion. Up from $27 billion last year and more than double the amount five years ago.

Not only ‘Cars’ is popular, girl brands like ‘Disney Princess’ and ‘High School Musical’ are both bringing in more than $2.5 billion too. The Walt Disney Company might be old, but it’s still very hot among the kids.