Sure, Films and Parks Are Nice, but Disney Has a $5 Billion Side Hustle

The Walt Disney Company could sure use some good news right now. Disney films have been tanking at the box office over the past few years, and Disney Studios has lost more than $1 billion on movies each of the last two years. Reports said Walt Disney World in Central Florida was virtually empty this summer, and as a result, Disney stock hit its lowest mark in the last 14 years. The return of Disney CEO Bob Iger has not been the fairytale success story that everyone had hoped for.

Related: After Languishing All Summer, Disney Hopes Fall Brings Back the Guests

But despite all that, there is some room for optimism for Disney. Walt Disney Animation Studios has Wish (2023) coming out in November, and all the buzz surrounding the movie has been positive. Attendance at Disney World and Disneyland has picked up thanks in part to special ticketed events at both theme parks. Mickey’s Not-So-Scary-Halloween Party at Disney’s Magic Kingdom was sold out in September and October, while Disneyland’s Oogie Boogie Bash sold out in 12 hours. 

But despite the mixed results for Wall Street, one aspect of the Walt Disney Company is continually a money maker: merchandise. It is one of the aspects of Disney’s business that is frequently overlooked. Still, with Disney owning so many intellectual properties that lend themselves to toys, games, and clothing, it is Disney’s constant side hustle.

Looking around your house, you probably have a piece of Disney merchandise. But most people assume that merchandise means just a Mickey Mouse stuffed animal you got at one of Disney’s theme parks, but there’s way more to it. Besides just the Disney characters, Disney owns the rights to all Star Wars, Marvel, and Pixar merchandise. And really, who doesn’t own a Star Wars toy?

According to Statista, the Walt Disney Company made $5.3 billion in revenue from merchandise in 2023. That amounted to $2.8 billion in revenue. That accounts for 23 percent of Disney’s operating income from last year. And unlike films and parks, merchandise did not dip during the Covid pandemic. It has constantly made between $4.5 and $5.3 billion over the last five years.

Fortune Magazine reports that Duffy Bear is one of Disney’s best-selling pieces of merchandise, netting the company more than $500 million in annual sales. Duffy isn’t relatively well known in the United States, but in Disney’s Asian theme parks, the bear routinely sells out.

Related: Disney is Sitting on a $500 Million Property That Few in America Know Exists

American audiences will become aware of Duffy soon enough. He will get a show on Disney’s streaming service, Disney Plus. It is a connection that Disney can make that few other companies can. Disney can create movies and shows on Disney Channel and Disney Junior and then use those shows to create new Disney consumer products with a built-in audience to buy them.

Disney has also created a lucrative relationship with Lego, which allows them to put out products from all of Disney’s vast network of intellectual properties. Lego has also produced many toys for Disney’s 100th Anniversary.

So, whether it be in the Disney theme parks, online, or in one of the many stores selling Disney products, Disney’s merchandise is a constant money maker that the company needs.

We will continue to update this story at Disney Fanatic.