News Does Disney have a Mickey and Minnie problem?

[Model3 McQueen]

Does Disney have a Mickey and Minnie problem?

Disney calls out weak sales of Mickey and Minnie merchandise.

www.yahoo.com

Life is vicious if you are Disney, as seen in its first fiscal quarter earnings release Tuesday night.

Disney+ is off to a red-hot start in the battle for cord-cutters. The latest “Star Wars” movie was the latest box office home-run. The parks business is humming along (excluding Shanghai and Hong Kong due to coronavirus and protests, respectively). The acquired Fox media assets have plumped up the financial statements.

• Revenue: $20.86 billion vs. $20.81 billion expected
• Adjusted earnings per share: $1.53 vs. $1.46 expected
• Disney+ 1Q subscribers: 26.5 million vs. 20.8 million expected

All in all, Disney’s (DIS) quarter goes a long way to justifying the stock’s 27% one-year gain.

But amid the Disney greatness, there was one blemish — and it has to be a gut punch to long-time followers of the storied brand and investors.

Disney noted in its earnings release lower sales of merchandise related to its iconic Mickey and Minnie characters at its theme parks and other experiences. While the company didn’t miss a beat financially because of strong merchandise sales tied to “Frozen,” “Star Wars” and “Toy Story,” it’s odd to see consumers leave Mickey and Minnie products on the shelves. Actually, it’s just disturbing and sad given the place in societies (in terms of Disney’s strategy for getting children into the brand) globally that each character holds.

Disney spokesman David Jefferson didn’t return a request for comment on the sales decline.

Indeed, it’s an element to the Disney story worth monitoring moving forward. Pros say it’s not a big deal as it would have been in the past due to Disney’s more diversified slate of content and characters.

“The intellectual property is almost without quantification as you look at the entirety of the business. Mickey and Minnie are a very small part of the entirety,” said portfolio manager Sara Henry of Logan Capital Management on Yahoo Finance’s “The First Trade.” “When you look at the box office and what they did with ‘Frozen 2’ and ‘Star Wars,’ there is ebb and flow in these different franchises.”

To Henry’s point, investors ignored the Mickey and Minnie sales weakness. Instead, the Street gushed over Disney+ reaching 28.6 million subscribers in only three months and what the streaming platform could mean to profits in the future.

“Even against already elevated expectations following initial success at launch, Disney reported strong paid subscribers for Disney Plus that highlight robust consumer demand for Disney's unique content,” wrote Morgan Stanley analyst Benjamin Swinburne in a note to clients.

But still, Mickey and Minnie are in Disney’s DNA. It could be that other Disney brands are luring in the next generation. Keep this on your radar screen nonetheless, Disney investors.

 

[Model3 McQueen]

I blame this on two factors - $hapek's IP-ification push, and the general consumer's pixie-dusting behavior. Is it a problem? Depends on who you ask, but there's no doubting that the parks are headed in a different direction when compared to what made it magical / famous in the first place.

 

[Sirwalterraleigh]

I think they don’t have a hook to draw people in to Mickey Mouse - currently...
But that tends to be cyclical...like recessions. Then we may have other stuff to worry about

 

[Phroobar]

Sales of Mickey/Minnie plush will go up as soon as the MMRR opens.

 

[Queen of the WDW Scene]

I personally am not buying much mouse merch because I HATE the rubber hose style.
If Mickey and Minnie didn't look so weird I'd buy more merch with them on it.

 

[the.dreamfinder]

We’re coming off their 90th birthday, which featured a major merch/marketing push. The following year was likely to see a decline because of this.

 

[Phroobar]

We’re coming off their 90th birthday, which featured a major merch/marketing push. The following year was likely to see a decline because of this.

Except they get a brand new ride this year and gift shop exit.

 

[Sirwalterraleigh]

Sales of Mickey/Minnie plush will go up as soon as the MMRR opens.

I don’t think they were talking about plushies in the parks with this call...

They’re talking about the tons of crap peddled in every nickel and dime place across the planet

 

[Model3 McQueen]

Sales of Mickey/Minnie plush will go up as soon as the MMRR opens.

I agree, there's been a shove by $happy and his goons to throw in and sell other IP. If Mickey / Minnie sales go up after MMRR, than we know the lack of MM sales is most likely because Disney themselves have been pushing away the originals.

 

[the.dreamfinder]

Except they get a brand new ride this year and gift shop exit.

That was supposed to open last summer.

 

[PiratesMansion]

Maybe the new style is to blame, but honestly there hasn't been a ton of quality Mickey content for some time, particularly quality content that most of the public is aware of.

I'd wager more people know of him as a corporate mascot than have ever seen a Mickey cartoon, let alone have seen a Mickey cartoon recently. At least through Iger there ARE new Mickey cartoons being made on a consistent basis.

I don't think we can put ALL of the blame on Chapek or Iger in this case. What was done with Mickey during the Eisner years to create any sort of brand recognition beyond, say, Fantasmic or Kingdom Hearts?

 

[VJ]

I don't think we can put ALL of the blame on Chapek or Iger in this case. What was done with Mickey during the Eisner years to create any sort of brand recognition beyond, say, Fantasmic or Kingdom Hearts?

You really want me to list them all? Okay, I'll try.

From 1984 to 2005:

• 1988: Mickey's 60th Birthday celebration launches, including TV special and parades/events at Disneyland and Walt Disney World
• 1988: Mickey Mouse is given a star on the Hollywood Walk of Fame, the first fictional character to do so
• 1990: The Prince and the Pauper starring Mickey Mouse is released
• 1995: Mickey Mania parades premiere at Tokyo Disneyland and Walt Disney World
• 1999: Mickey Mouse Works premieres on ABC featuring Mickey and his pals in brand-new cartoon shorts
• 2001: House of Mouse TV series featuring new content with Mickey and friends premieres on Disney Channel
• 2003: Mickey: 75 InspEARations event featuring 75 Mickey Mouse statues customized by celebrities and toured around the country to celebrate 75 years
• 2004: Mickey, Donald, Goofy: The Three Musketeers released
• 2005: Mickey Mouse is honored as the grand marshal of the 2005 Tournament of Roses Parade in celebration of Disneyland's 50th anniversary

And there's probably more that I missed.

 

[wowsmom]

I personally am not buying much mouse merch because I HATE the rubber hose style.
If Mickey and Minnie didn't look so weird I'd buy more merch with them on it.

I bought a t-shirt with the normal Mickey on it in November (and my sister did, as well), but I can't stand any of the newer style stuff, so I don't/won't buy it. I can't imagine we're the only ones!

 

[brb1006]

Maybe the new style is to blame, but honestly there hasn't been a ton of quality Mickey content for some time, particularly quality content that most of the public is aware of.

I'd wager more people know of him as a corporate mascot than have ever seen a Mickey cartoon, let alone have seen a Mickey cartoon recently. At least through Iger there ARE new Mickey cartoons being made on a consistent basis.

I don't think we can put ALL of the blame on Chapek or Iger in this case. What was done with Mickey during the Eisner years to create any sort of brand recognition beyond, say, Fantasmic or Kingdom Hearts?

Runaway Brain, House Of Mouse, Three Musketeers.

 

[Sirwalterraleigh]

Maybe the new style is to blame, but honestly there hasn't been a ton of quality Mickey content for some time, particularly quality content that most of the public is aware of.

I'd wager more people know of him as a corporate mascot than have ever seen a Mickey cartoon, let alone have seen a Mickey cartoon recently. At least through Iger there ARE new Mickey cartoons being made on a consistent basis.

I don't think we can put ALL of the blame on Chapek or Iger in this case. What was done with Mickey during the Eisner years to create any sort of brand recognition beyond, say, Fantasmic or Kingdom Hearts?

Eisner has been gone for 16 years...try to keep up

 

[PiratesMansion]

Eisner has been gone for 16 years...try to keep up

Well aware.

Maybe everyone else on here was gobbling up Mickey content over the past few decades, maybe I wasn't the right age, but if I asked ANY casual person I knew what Mickey Mouse content was made recently or within the past several decade(s), they'd come up with nothing beyond Kingdom Hearts. Past several decades, to me, implies that it's not just Iger and Chapek that haven't successfully capitalized on Mickey and Minnie to the level they should have.

I sense that I'm not in the minority on that. If anyone has any actual evidence that most people consumed Mickey anything in any context besides buying plush and Mickey ears within the past couple decades, please direct me to it.

We're at a point as a society where most people have no context for Mickey and Minnie beyond bland corporate mascots. People are going to buy merchandise to characters and stories they have more exposure to and feel more emotionally connected to, simple as that. It's the same reason Duffy and friends bombed hard in the US; no context, out of nowhere, no connection. If your main context for Mickey was typical everyman of the increasingly large and domineering Disney company, you probably wouldn't feel compelled to buy lots of Mickey merch either.

I suppose if you wanted to blame that all on Iger and Chapek (easy and fun, granted), it'd be easy to do so, but I'm not convinced anything done prior to Iger, including the list from earlier in the thread, did much to make an impact.

Whatever your take is on this, there's no need for condescension.

 

[Sirwalterraleigh]

Well aware.

Maybe everyone else on here was gobbling up Mickey content over the past few decades, maybe I wasn't the right age, but if I asked ANY casual person I knew what Mickey Mouse content was made recently or within the past several decade(s), they'd come up with nothing beyond Kingdom Hearts. Past several decades, to me, implies that it's not just Iger and Chapek that haven't successfully capitalized on Mickey and Minnie to the level they should have.

I sense that I'm not in the minority on that. If anyone has any actual evidence that most people consumed Mickey anything in any context besides buying plush and Mickey ears within the past couple decades, please direct me to it.

We're at a point as a society where most people have no context for Mickey and Minnie beyond bland corporate mascots. People are going to buy merchandise to characters and stories they have more exposure to and feel more emotionally connected to, simple as that. It's the same reason Duffy and friends bombed hard in the US; no context, out of nowhere, no connection. If your main context for Mickey was typical everyman of the increasingly large and domineering Disney company, you probably wouldn't feel compelled to buy lots of Mickey merch either.

I suppose if you wanted to blame that all on Iger and Chapek (easy and fun, granted), it'd be easy to do so, but I'm not convinced anything done prior to Iger, including the list from earlier in the thread, did much to make an impact.

Whatever your take is on this, there's no need for condescension.

“Blame Eisner” is too overused and a convenient excuse...they’re even stuffing it into the docuseries on Disney+

Eisners record was excellent at first and bad at the end...but he’s still the second biggest key to what TWDC is today. He built most of that stuff...even if there are many flaws.

Can’t say nothing when “Timothy the idea less accountant” is praised for everything and criticized for nothing.

Truth is always in the middle on both.

If Mickey and Minnie aren’t pushing product...it’s due to lack of proper reinvestment by IGER and/or changes in audience tastes at this time.

But we’ve seen this before

 

[George Lucas on a Bench]

Eisner was there for all the best stuff. Saving the company, taking risks on edgier live action movies with non-Disney properties (including comic movies in the wake of Batman's success), Lucasfilm and Pixar partnership, reviving the animation studios, new parks etc. The state of Disney today is simply a continuation of what he and Frank Wells started when they took charge of a stagnant company, with similar cutbacks, more Marvel/Star Wars/Pixar, more parks, less traditional animation and irrelevant Muppets.

 

[PiratesMansion]

“Blame Eisner” is too overused and a convenient excuse...they’re even stuffing it into the docuseries on Disney+

Eisners record was excellent at first and bad at the end...but he’s still the second biggest key to what TWDC is today. He built most of that stuff...even if there are many flaws.

Can’t say nothing when “Timothy the idea less accountant” is praised for everything and criticized for nothing.

Truth is always in the middle on both.

If Mickey and Minnie aren’t pushing product...it’s due to lack of proper reinvestment by IGER and/or changed in audience tastes at this time.

But we’ve seen this before

I'm not saying just blame Eisner. I'm saying it's not JUST Chapek/Iger as was said earlier in the thread. As you say, the truth is in the middle and all parties are at fault.

 

[TROR]

Probably has a fair bit to do with Disney simply not pushing Mickey Mouse as an icon of the company as much as they used to. When I was a kid, you see “Disney” on something and you think Mickey Mouse. That’s simply not the case anymore with such a focus on Marvel and Star Wars. Even the Disney Princess line doesn’t seem to be as associated with the name of Disney as it used to.