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You know it as an entertainment powerhouse.
But you need to start looking at the "Mouse House" differently.
The Birth of a Wearables Powerhouse
Most investors think of Walt Disney Co. as anything but a tech-focused firm.
After all, this iconic American company is famous for its theme parks, its movies and TV shows, and as the birthplace of beloved animated characters like Mickey Mouse and Donald Duck.
Turns out, Disney is developing a line of wearable electronic toys that will connect to the web. Disney wants to turn its popular movies into an "ecosystem" that can draw in children as tech-focused customers.
Disney believes the new digital toys, which encourage kids to move around, will prove as popular with parents as they are with children. Kids can don Iron Man gloves or Hulk fists and then interact with action figures by downloading narrated stories from the web.
Known as Playmation, the new platform debuts in the fall. If Disney just converts a conservative 10% of its movie receipts into Playmation sales, it could easily generate $300 million in wearable tech revenue.
And I believe this release underscores a big change underway at Disney – behind the scenes, the company is embracing new technologies to grow sales and improve profit margins.
A study last year by Capgemini Consulting shows that Disney is making excellent use of digital formats. For instance, Disney recently unveiled Movies Anywhere, a service that lets consumers discover, buy, and watch films across different devices.
In 2013, the firm's video game unit released Infinity, which allows players to mix and match the company's popular characters. It went on to become one of the top 10 releases of the year, with initial sales of 3 million units. And here's how Disney has embraced data analytics to improve its operations across the board…
About the Author
Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.