Before We Hang Eisner

[KaliSplash]

Hi,

I've been lurking for some time. But I did want to say a few things before the big meeting.

I am just as disappointed as many of you about some of the changes in our favorite world!

Heck, I didn't like it when they did away with the Plaza Swan Boats!

But let's remember what Eisner has done for Disney. It appeared the company struggled to get EPCOT open (a vastly different version of Walt's dream.) And there was NO Disney-MGM Studios, NO Typhoon Lagoon, No Blizzard Beach, NO Animal Kingdom and only three hotels on site.

Not to mention what he did with the studio. Think Little Mermaid and move forward.

It's been said that Eisner is MORE Disney than Walt was.

Whether that is still true is open to discussion on numerous threads here and elsewhere. But if he is replaced, it will be because he is not making enough money. And whoever replaces him will be ordered to make MORE money. And the quickest way to do that is to CUT COSTS. Look at virtually any company in America today.

I fully realize that one way to make more money on the parks is to spend more money on the parks. But if Eisner is replaced, we may get a bean counter who doesn't care that rides are closed, that fewer shows are running fewer times per day, that there are fewer workers doing more work for virtually no more money.

I realize Eisner could be replaced with someone better who might put more effort into the parks. But I fear that it's much more likely he'll be replaced by someone looking to cut more costs and squeeze more dollars out of us for fewer attractions, shorter hours and more expensive tickets.

Of course, if you could tell me the replacement would bring back the Main Street Electrical Parade EVERY NIGHT FOREVER, well, let the hanging begin.

Thanks for listening to this long rant. I'll try to be shorter next time.

 

[The_CEO]

He was a good fruit, then he turned rotten. We need some fresh stuff in there.

 

[JBSLJames]

Originally posted by KaliSplash
... if he is replaced, it will be because he is not making enough money. And whoever replaces him will be ordered to make MORE money. And the quickest way to do that is to CUT COSTS. Look at virtually any company in America today.

Bingo. Hit the nail right on the head. Try and convince corporate America that the only way to make money is to sepnd money and you will be wasting your breath. Be careful what you wish for. You may get someone new whose only purpose is profit. Profit by not spending but by cutting. There are those Disney fans that will go to Disney regardless. They know this.

 

[jcrb]

Eisner helped save the company but it is time for him to leave - NEW BLOOD!

 

[SpongeScott]

This is a very crude analogy, but with all the talk of "The Passion" lately, the cry 2000 years ago was, "Jesus or Barabbas?" Now it's "Michael or Roy?" Didn't matter what Jesus has done, doesn't matter what Michael has done.

Be careful what you wish for because you just may get it.

Like I said, very crude analogy and I AM NO WAY INFERRING THAT MICHAEL IS A SAVIOR!

 

[Thumper's Mom]

There is no doubt or denying all the things that Michael had done for Disney in the 90's....problem is, the idea train isn't leaving the station anymore with NEW cargo.:hammer: Think, for a moment, movies that have been done in recent years. More often than not, they are sequels or remakes, like Cinderella II, Jungle Book II, 101 Dalmantions II, George of the Jungle II, Lion King II (and 1 1/2!!), remake of Freaky Friday, Little Mermaid II.....see what I mean?? Wonder how long before their is a Finding Nemo II??

Now, onto the parks....instead of thinking of new attractions for each park, they seem content on just remaking them....Tower of Terror, Soarin'......I know there are more in the Disney parks overseas but I have brain freeze at the moment!

Disney needs new ideas if it hopes to do well in the future.

 

[Pat X]

The more I read, the more it all just seems personal rather than "business" to Roy and Stan. Its gotten to the point that its just silly as to why they and the anti-Eisner camp don't like him. I just read another article that Roy and Stan blame everything that has gone wrong with Disney squarely on Eisner. Sure, the man isn't a saint by any means, but come on.

What about 9/11? The recession? These events had a dramtic impact on the company and was beyond anyone's control.

Finally, I would like to hear from Roy how he or the person who will replace Eisner will "fix" things. DETAILED plans, not talking points like "increasing shareholder value" or "bringing back the magic." And don't say bring back Pixar, especially with the last proposal from Pixar. It was a horrible plan and I am glad it was turned down.

 

[Pat X]

Originally posted by Thumper's Mom

Now, onto the parks....instead of thinking of new attractions for each park, they seem content on just remaking them....Tower of Terror, Soarin'......I know there are more in the Disney parks overseas but I have brain freeze at the moment!

Disney needs new ideas if it hopes to do well in the future.

I agree with you on the sequals, although I have liked some of them like Return to Neverland and Lion King 1 1/2. But mostly, I don't buy 'em.

With the parks, Disney has been building "clones" for a LONG time. The entire Magic Kingdom in WDW is a clone of Disneyland. This has been happening LONG before Eisner took control.

Although, let's not forget about the NEW attractions that were built or are under construction such as Mission: Space, Mickey's Philharmaginc, and Expedition Everest.

 

[cherrynegra]

I just wanted to post a brief part of an interview with Cynthia Richardson, head of one of the Ohio Pension Funds, posted on the CBS Marketwatch site.

Eisner encountered some tough talk in Ohio. "My questions were very pointed," Richson said, adding that she eventually became impatient with what she regarded at times as Eisner's practiced answers to her questions.

"When I got the canned, rehearsed speech, I kept asking more questions," she said. "It got a little tense in the room. I asked him how shareholders were supposed to feel about [former Disney President Michael] Ovitz walking away with $140 million. He said it wasn't really $140 million because the stock had dropped."

Richson added: "He said, it was better for shareholders than I got rid of him at a price of $140 million than having a president I couldn't control."


http://cbs.marketwatch.com/news/story.asp?guid={F598E419-1844-4D58-81C8-955DB7C07CA1}&siteid=mktw

That particular answer hit home for Richson. "It became pretty apparent to me that he runs the show in all respects," she said. "I really became convinced they need a strong chairman and CEO."

 

[KaliSplash]

Thanks for the comments.

There's no question, based on what you read, that he's a hands-on control freak. There's no question we've lost a lot of talent in last 10 years, starting with Wells' tragic death.

I'm just afraid of what we might get in an exchange.

Better the devil you know.

 

[cherrynegra]

Re: Re: Before We Hang Eisner

Originally posted by Corrus
1st, I really don't like the name you gave this thread!...
We don't HANG anyone here...
2nd, the tone is much to hostile and full of hate...
This is the not the right way to vent your frustrations about Eisner...
You can share opinions, but leave the hatred out...

Corrus, I think if you read over Kalisplash's original post again, you'll find that this thread is actually in SUPPORT of Eisner. He was merely cautioning others against a hang 'em high mentality without looking at his past record.

 

[PhotoDave219]

Well, Eisner isn't well liked in Hollywood. He's made a lot of enemies. And each and every one of them (and most of us forum people) are taking a bit of schadenfreud in his demise.

Eisners time has come and gone. He was good for a bit and then started reading his own clippings. Kinda like John Gotti, in a way. Moreover Eisner kept looking short term rather than long term. He's lost a lot of talented people and alienated god knows how many.

So excuse me while i sit back and enjoy watching Mikey squirm.....

 

[Tim G]

Re: Re: Re: Before We Hang Eisner

Originally posted by cherrynegra
Corrus, I think if you read over Kalisplash's original post again, you'll find that this thread is actually in SUPPORT of Eisner. He was merely cautioning others against a hang 'em high mentality without looking at his past record.

Ok... Sorry

Again I wasn't reading right... Sorry...

Deleted my too quickly written post...

But I still don't like the Name of this thread.

 

[JLW11Hi]

It is a possibility that the only reason some institutional shareholders and Wall Street financial experts think Eisner should be replaced just because he is not getting enough profit out of the company. It has been supposed that these influencial people think that the person who makes even more cut-backs to earn short-term profit will be the better man for the job. This makes no sence to me, because it is obvious that teh Eisner reign has done a fine job of exploring how much they can cut back to make more profit. The only reason the whole "outst-Eisner" campaign started was because of the fears that he WAS making too many cut-backs in teh first place, only looking for short term, rather than long-term gains. If those in the industry who oppose him want to replace him with someone who makes even MORE cut-backs, it seems that they are being quite hypocritical.

 

[cloudboy]

The problem with Eisner isn't the specific rides he builds in Disney. He approves ideas, and with Eisner at least he even has input on them, too. But there is a whole team of other people at Disney. And that is one of his biggest problems. He has a hard time keeping talented people that Disney needs.

He also has done a terrible job, especially lately,with the Disney Brand. Many people say the magic has gone. The stores are doing terrible, the parks have had a downturn since long before 9/11, and this board is full of posts about how the quality of the parks and merchandise are hurting. The films are'nt doing great, and those that have done well lately have often been in conjunction with others. The brand has been so over-pushed and cross sold that it has become watered down. The general public's attitude towards Disney is that they are a giant marketting machine designed to part you and your money.

To top it off, not only does he send away team members with outrageous severance packages, he himself is highly compensated. All this is big bucks.

True, you gould get someone else just as bad. YHou could also get someone else who is better. If it is that big a deal (and I for think it is), then we have to let the Disney Board, Disney Management, and even the major Disney Managers what is most important to the guests.

Let's face it - Disney is in the business of making money. And they
make money by selling stuff and vacations to us, the customers. So they NEED to pleae the customers, otherwise they don't make money. So the solution is simple. As customers, we have to make sure that we let them know what we want. And be clear about what we don't want, too. It's not a confrontational thing - it's about making Disney a better company.

 

[Raidermatt]

You may get someone new whose only purpose is profit. Profit by not spending but by cutting.

I hate to break the news, but that's already what we have.

If it don't contribute to his ego, he don't spend it.

If it does, he will no matter what.... like with Fox Family.

Better the devil you know.

Well, if we are going with that analogy, I'll just say a devil is a devil. If you've got one, the one thing you cannot do is do nothing.

You have to at least try to improve the situation.

 

[lebernadin]

Originally posted by JLW11Hi
It is a possibility that the only reason some institutional shareholders and Wall Street financial experts think Eisner should be replaced just because he is not getting enough profit out of the company. It has been supposed that these influencial people think that the person who makes even more cut-backs to earn short-term profit will be the better man for the job. This makes no sence to me, because it is obvious that teh Eisner reign has done a fine job of exploring how much they can cut back to make more profit. The only reason the whole "outst-Eisner" campaign started was because of the fears that he WAS making too many cut-backs in teh first place, only looking for short term, rather than long-term gains. If those in the industry who oppose him want to replace him with someone who makes even MORE cut-backs, it seems that they are being quite hypocritical.

Great post/points. :sohappy:

Roy's camp is filled with people who have been convinced by the "magic" argument, while investors are only concerned with stock growth. A stock doesn't grow by restoring this presumptious "magic" that is lacking in the parks these days. It grows by trimming off the fat and expecting guests to pay the same or higher prices to maximize profits and in turn increase long term stock growth.

If Eisner and possibly others from the board are forced out, it won't be Roy's camp that will benefit. It will be the investors, of which Roy and Stanley personally are large parts of. So the average family who was swindled by Roy's "where's the magic?" arguments will find far more reasons to complain in the coming years while Roy and Stanley as well as the other larger investors will be reaping the benefits financially. If this happens, it will be interesting to see how Roy and Stanley answer all the emails and letters from people who are supporting them now, when the problem grows worse under new management which will make drastic cuts to affect the bottom line and reap as much stock growth as possible.

What will Roy and Stanley say then? They'll be making even more off of their stock than under Eisner. Do you think they'll care about the "magic" then? They don't have to answer to anyone, and remember that.

 

[HauntedPirate]

Does anyone honestly believe that Eisner would be replaced with someone who wants to cut more?

As for rides in the parks, clones rule their world. Why create when you can clone endlessly? Granted, Mission: Space is great, and I've heard good things about PhilharMagic. But aren't those the only two new rides to open in the past, what, 8 years? I'm not counting the Dumbo-clones, BTW, and I realize that TriceraTops Spin opened as well, but that's a ride-type that's been done to death at dozens of theme parks across America.

One last thing. I am eternally grateful to Mr. Eisner for what he did for Disney between 1984 and 1995. Without he and Frank Wells, I don't believe that Disney would exist as we know it now. However, the lack of creativity, cost-cutting, and poor management (Pixar should never have had a reason to sever ties with Disney) have made it clear that a new head is needed. Someone with ideas, someone who can keep their hands out of the creative process and let the employees to it. Someone who isn't afraid to spend money, stock analysts be damned. Someone who realizes that Disney is best at creating, not cloning and duplicating.

 

[polyman 65]

Roy needs to go back to his sail boat like he used to do when he was supposed to be at work.The more I learn about Roy the more I understand why Walt found him lazy and good for nothing.And as for Eisner this day is a big wake up call to get his act together the people have spoken and wont let the Disney dream die.Special note for Eisner(sell ABC,make up with Pixar even though Pixar is ripping off the company,and buy Comcast)There you go Mike now get to work:lol:

 

[cloudboy]

A stock doesn't grow by restoring this presumptious "magic" that is lacking in the parks these days. It grows by trimming off the fat and expecting guests to pay the same or higher prices to maximize profits and in turn increase long term stock growth.

Close but not quite. Stock is simply the value that investors put on a company. Value is usally determined (for good or bad) by profit. Profit comes from either decreasing costs or increasing revenue (or oth, obviously). There is only so much you can do to cut costs. That Magic, however, is the key to increasing revenue.

As much as everyone "hates" the term, brand image is just the industry term for magic. What is it that makes people want to go to Disney, to watch Disney films, or to buy disney merchandise? It's their brand imager, or Disney Magic.

Take out the magic, and the profits go away. Explains the decreases lately, doesn't it?