1. Walt Disney Co., the second-largest U.S. media company, sacrificed sales growth by releasing fewer films that made more profit. (Successful movies at Disney often drive sales of DVDs and consumer goods such as toys and books).
2. It has used tie-ins to the “Pirates” movies to revamp attractions at the company's theme parks.
3. At the broadcast unit’s ABC it increased advertising rates.
4. It added new shows such as “Brothers & Sisters” and “Ugly Betty” to enhance syndicated sales.
5. It demanded higher affiliate fees for ESPN when cable-TV contracts came up for renewal. Deferred revenue increased by $85 million.
6. Theme-park ticket prices were increased
The first Q of revenue: Quality. (It induces the second Q of revenue: Quantity.)
If the quality of your products is the source of your bargaining power you can merchandize your products widely, raise advertising and admission rates, raise affiliate fees, or whatever.
If it is possible to tell which fewer films will make more profit, why was it not done earlier?
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