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  • OLC License Fee

    Does anyone know how much money OLC pays Disney every year to use the Disney brand for Tokyo Disney Resort? I would guess close to $900 million, given that the properties generate billions of dollars in revenue every year.

  • #2
    A planning document for Hong Kong Disneyland (http://www.legco.gov.hk/yr08-09/engl...0809fs30-e.pdf) states that, for comparison, at TDR: "The final contract which was signed in 1979 gave Walt Disney 5% of the gross revenue on all food and merchandise, 10% of the gross revenue on admissions, and 10% of any corporate sponsorship agreement." According to the most recent OLC financials (http://www.olc.co.jp/en/ir/highlight.html), its annual net sales were 466 billion Yen. Based on that data, some back-of-the-envelope math, and some assumptions about exchange rates, etc. your estimate perhaps may be too large by a factor of 2?

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    • #3
      Dunno what % it is now, but I imagine they have a much better bargaining position because they're so successful and I couldn't imagine it being beneficial for Disney that they lose the license, switch characters, and Disney has to build their own park from scratch to keep their foothold in Japanese culture. Not happening. But on the flip side, I wonder what Disney's required or even just obligated to contribute for R&D and show elements.

      I also wonder how much credit Tokyo gets for producing things like every show soundtrack that gets reused as a major show element for Paris and Florida... Like maybe instead of paying Tokyo per usage they just subtract it from the license fee at the end of the year heh.

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      • #4
        Originally posted by almandot View Post
        …But on the flip side, I wonder what Disney's required or even just obligated to contribute for R&D and show elements.

        I also wonder how much credit Tokyo gets for producing things like every show soundtrack that gets reused as a major show element for Paris and Florida... Like maybe instead of paying Tokyo per usage they just subtract it from the license fee at the end of the year heh.
        I agree that the companies are deeply codependent; I can't imagine this partnership ending soon or ever. Their talking up of each other seems to even be increasing as more people become aware of their special relationship.

        As to R&D, music, and show development, the way I've heard it is that OLC is required to hire Disney for all of these tasks. It's not that Disney must provide it; it's that OLC must pay for it, and can't get it anywhere else. Pretty great deal for Disney, especially since OLC (save for a few recent choices) seems fairly consistently interested in paying to realize Imagineering vision without cutting corners. I'm not an insider; this is just what I've heard and read.

        My impression is that Tokyo gets credit for nothing, neither authorial nor financial. The authorial is based on the fact that OLC goes unnamed and largely unmentioned in regards to Duffy, a character who very obviously would not exist without OLC and TDR – and whose story, character redesign and original artwork were, I'm told, developed by OLC with "collaborative support" from Walt Disney Enterprises.

        As for financials, I've heard from knowledgeable friends that attractions, shows and music developed originally for TDR generally have a "freeze period" for a few years, after which WDE may use them freely, as they always retain the copyrights anyway. It also seems that many show elements and seasonal theming decorations are paid for by OLC – paid to WDE, as stipulated in their development agreement – but then often repurchased at a discount because OLC likes to keep things fresh and always needs new theming. This also sounds like a fantastic deal for Disney: they get paid for the development costs, and then later get to buy back the finished product at a significant discount and use it year after year, since US park guests are apparently less discriminating about year-on-year seasonal event changes. I've never been to a Disney Park outside Japan, though, so I don't really know how true that is. It's just what I've heard.

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        • #5
          The seasonal figures of the Fab Five that are used in the hub at Tokyo Disneyland now adorn the tram route at Disneyland in Anaheim. One step up from the trash bin.
          Born in a shoebox and making the most of it.

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          • #6
            We still have the Hub figurines from TDL Halloween 2005 adorning the tram route in the fall.. That happens to be one of my favorite halloween years so I'm okay with it

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            • #7
              I have pics of those figurines when I went to TDR in October 2005 and was ecstatic to see them in our resort the following year

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