Disney's China Move: A Big Growth Opportunity for Mickey [View article]
I'm not so sure they will make 'nothing' on their licensing rights. Qualcomm collects royalties on its intellectual property from China as do many other companies. This is a long term story suited for longer term investors. I own a few shares of DIS and found the article interesting.
On Nov 05 09:16 PM Alan Young wrote:
> Okay, it's good for Disney to get a foot in China. But I think you > are exaggerating the importance of it. > > Disney World 1971 vs. today? That's absurd. You can't compare anything > going on now, in China or anywhere else, to the past 38 years. I > don't know anyone interested in 38-year-long investment plans. And > anyway the value of the franchise is much more weighted to intellectual > property than to theme-park traffic. > > But you already alluded to the fact that the Chinese will produce > Disney-themed products without licenses. This is a certainty, because > it doesn't even require criminal intent. Mickey Mouse was created > in the 1930s, and there's no reason China should accede to the US > rule that the copyright should apply everywhere forever. So to compute > the value of the Chinese market to Disney, you'd have to separate > the licensing deals (on which they will make nothing) from the cash > spending at the theme park (which will make something). Show me the > money, and then we'll talk about the value of the deal.
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I'm not so sure they will make 'nothing' on their licensing rights. Qualcomm collects royalties on its intellectual property from China as do many other companies. This is a long term story suited for longer term investors. I own a few shares of DIS and found the article interesting.
Nov 06 08:30 am
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All Comments by jepittman »Disney's China Move: A Big Growth Opportunity for Mickey [View article]
On Nov 05 09:16 PM Alan Young wrote:
> Okay, it's good for Disney to get a foot in China. But I think you
> are exaggerating the importance of it.
>
> Disney World 1971 vs. today? That's absurd. You can't compare anything
> going on now, in China or anywhere else, to the past 38 years. I
> don't know anyone interested in 38-year-long investment plans. And
> anyway the value of the franchise is much more weighted to intellectual
> property than to theme-park traffic.
>
> But you already alluded to the fact that the Chinese will produce
> Disney-themed products without licenses. This is a certainty, because
> it doesn't even require criminal intent. Mickey Mouse was created
> in the 1930s, and there's no reason China should accede to the US
> rule that the copyright should apply everywhere forever. So to compute
> the value of the Chinese market to Disney, you'd have to separate
> the licensing deals (on which they will make nothing) from the cash
> spending at the theme park (which will make something). Show me the
> money, and then we'll talk about the value of the deal.