Disney Enters Social Networking with Club Penguin Purchase
August 2, 2007 by Susan Gunelius
Filed under Marketing
Lately, I published several posts about Disney’s (NYSE: DIS) strange attempts to extend its brand. Today, I read an LA Times article that describes their newest venture, and finally, it’s one that I see value in as a Disney fan and parent.
Yesterday, Disney purchased Club Penguin, an online social networking site targeted to children between the ages of 6 and 14. The site focuses on parental trust and security. Children can adopt, name, feed and dress their own virtual penguin. They can also chat and play games with other users.
Club Penguin launched in 2005 and has grown to over 700,000 paid subscribers and 12 million registered users primarily through word-of-mouth advertising. With Disney behind it, Club Penguin should skyrocket.
What do you think of Disney’s purchase of Club Penguin? Do you agree that this fits well with the Disney brand?
Read more about Disney on Brandcurve:
The Disney Brand and Wine: Not a Good Match
Disney Says 4-Year Old Boys Should Wear Perfume
Disney Extends Its Brand Presence Everywhere
Susan, you forgot to mention the sticking point of this article — the price: $350 Million. IMHO that’s far too much to pay for somewhere the users are scarcely literature, and arguably shouldn’t be using the internet in the first place. I know there is money in the children’s market, but cmon folks, not that much.
You have to realize where Disney is going with this. The will develop the site further. Once the site has become more popular among that age group, they will most likely work the theme them into one of there parks
It’s actually being speculated that the site will be worth $700 million in the near future. With Disney behind it, I’m sure the site will grow into so much more than it is now. I’d imagine it will be similar to how Radio Disney has expanded. Who would have thought kids need their own radio station?