Distribution channels help to get your products most effectively to your customers. The better the distribution channels, the quicker those customers can receive, and buy, your products. Any inefficiencies the the channels can result in lost sales.

Disney has the most extensive distribution channel in the entertainment industry. Additionally, their dominance over children entertainment provides partial economies of scale versus their rivals. Disney also has a diverse network of channels to distribute their entertainment. They own ABS, ESPN and E!. They also have movie studios and retail stores. … This statements will have a short-term positive impact on this entity, which adds to its value. This qualitative factor will lead to a decrease in costs. "Distribution Channels For Disney" is an easily defendable qualitative factor, so competing institutions will have a difficult time overcoming it.