Disney-ABC Content Trade

The speaker discusses how Walt Disney leveraged media content to fund and build Disneyland, creating a model for cross-media investment and expansion.

Key Points:

• Initial Funding Strategy:

  • Started with personal assets:
    • Took loan against life insurance policy
    • Sold Palm Springs house
  • Total project cost: $17 million (originally estimated at $5 million)

• ABC Partnership Model:

  • Traded TV content for investment
  • Disney offered weekly TV show programming
  • ABC invested:
    • $500,000 direct investment
    • $6.5 million in loans and bonds
    • Received 34% ownership of Disneyland

• Additional Funding:

  • Replicated ABC model with two other companies
  • Sold sponsorships to complete funding
  • Created separate company (Redlaw) to bypass shareholder concerns

• Modern Application:

  • Similar model could work with new forms of IP:
    • YouTube channels (Cocomelon, Blippi)
    • Digital content creators
    • Religious themes ($10M/year in ticket sales for Holy Land Experience)
  • Moonbug Entertainment successfully rolled up children's content
  • Blackstone/Kevin Mayer following similar consolidation strategy with $2B investment

The model demonstrates how content creation can be leveraged to fund physical entertainment venues, with modern digital content presenting new opportunities for similar deals.