How to Fix Disney

[cloudboy]

This thread comes from another thread that was started on Eisner's performance at Disney. Since this is a separate topic, and one that may get some discussion, I am starting as a new thread. Let's try and keep personal issues out of this - focus on the question and not the people posting. Thanks!

The questions are:

1) what in your opinion could be done to improve a vast array of aging parks while still keeping everyone(especially us) happy with the progress & direction.
2) Should WDC dump certain interests (ABC) & get back to it's root's (Theme Parks)
3) What effect would this dumping of offshoots have on the stock value.
4) how much more $$$$ should the company invest in itself.
5)The Phrase "Core Values" (Or Loss Of) Is thrown araound a lot, How do you think Walt's Nephew will bring this back in a corporate setting while still satisfying all of the stockholders who have invested billions of dollars.

And as it relates to the above, who do you think SHOULD replace Eisner, if you think he should be replaced?

 

[cloudboy]

I'll answer #1 last...

I would love to see Disney drop ABC. I don't think they are getting any value out of it, and they havn't had much success with it. Having said that, I seriously doubt they couild just sell off ABC without ESPN, and I think ESPN is worth holding onto. If they could find a way to drop it without loosing their shirt, I am positive stock would go up. But if it would cost them a fortune to get rid of it, I am not sure that would be such a good thing.

As far as the money invested in itself, personally I nearly always think that the more the better. But from where? They don't have high dividends, do they? Somehow what Eisner is getting could be much better spent, but then again how much is that in actuall cash, and how much of that is just in the value of his stock options?

I DON'T think that Roy Disney would bring back core values substantially, and I personally would rather he didn't come back either. I don't think he ever showed a large interest in the value of the company except in animation, and fromwhat I have read he wasn't particularly influential there. I think that core values are exactly what the stockholders, at least those who are in for a long term investment, want to see. Core values make the company strong and profitable long term. As much as everyone hates the term, that is what they are meaning by branding. It's not just plastering the name all over something - it means building the reputation of the Disney name, by offering good serice, memorable films and experiences, and quality merchandise. The overuse of the disney name, and in particular the rash of cheap sequels, lousy merchandise, and market saturation are perfect examples of bad branding and poor marketing.

Now as to what I would like to see, I think they have to fix both the films AND the parks. And the first thing to do that is get a management TEAM in. A creative person to direct, and a financial person who is enough of a risk taker to make it happen. That person has to, above all, be good at dealing with people and building relationships.

Yes, there should be spending of money on better maintenance and new rides, but they really need to focus first on quality. That means for the films better writing and production, even if it is more costly. And taking more time in production, with less flip-flopping by management. For the parks the very first thing I would do is to reinstate the traditions courses and send everyone to it. And really start building up the pride and enjoyment of workig for Disney again - it should be more than a job.

I don't know who to bring in. If they didn't have time to look I would suggest the Dreamworks team as a filler. But given the court case with Katzenburg I doubt that would happen. I don't really know who would be a good leader.

 

[Chefjason1974]

Cloudboy, Just A Qyestion, Are you a cast member? You seem to have real insight.

 

[drjny]

This is a little bit of an aside from this thread, but

Do you think the "Disney Decade" was a little bit of a mistake? Do you think that they expanded and grew too fast that now Disney is trying to catch up with everything and things are just falling apart.

I think they grew a little too fast that they now have nowhere to go.

 

[cloudboy]

Cast member, no. I have a couple of friends who are, but absolutely nothing high up, so they know as little as I do. I just happen to be jobless now and have lots of time to read about Disney. Perhaps a little too much time...

I don't think the Disney Decade was too much growth, although I personally think that the Disney team was given a littel too much credit. The fact is as I see it that Disney was so underdeveloped and underproductive that there was no where to go but up. I think much of the growth came from just getting people who were holding it back out of the way. But I agree that a lot of companies grow too fast and are only succcesful because they deine their success by growth. I don't think Disney does that, though.

I think they may have hit a point where they need to worry less about adding more and worry about reinvigorating what they have now in Florida. In California, Paris and Tokyo I thinkk they have a lot of room and potential, particulary Paris. But I think a lot of that potential is less obvious than Florida and needs more creative leadership to make it turn out right.

 

[luvJC4saken]

I'd like to say that personally, I don't think Disney's roots lie in theme parks. I think, and I think Roy believes this too, that Disney's roots lie in their films, particularly their animated ones. This eventually trickles into the theme park development and mainenence.

I also don't believe it's Roy's intention to head the company himself. He'll probably find someone he believes is more able than he.

 

[wdwmaniac]

1) I think that they should do an entire overhall of the parks on a 6 month cycle. Taking about 3 years in the US. This would entail painting, theme, etc. getting the parks back. Also they should plan one new amazing ride a year for the next few years. ie. Replace wonders of life, 20,000 leagues, World Showcase, Muppets, etc.

2) I feel that Disney should pick up more assets that fit the company better. i.e. like the Muppets. I feel they should buy HiT Entertainment, DiC Entertainment, Corus Entertainment, and Pixar. unlike the Fox family deal all this would take about 7 Billion in buyouts and would all be affective and helpful to the core Disney company. I would not mind seeing Fox Family and E! Entertainment go. As for ABC and ESPN no matter what they can't go. Unless you like the name COMCAST you can't spin them off. It would make Disney very easy to take over.

3) Stock value would go up for the time period if you sold ABC/ESPN but no worries we would all be owning COMCAST stock and watching the deal fall like the AOL/TW one.

4)As I don't have offical number of what they invest, I think that they should invest in the TP's and Studios. maybe a extra 1/2 Billion to TP and better budget at the studios. (Espically Miramax)

5)Roy will try to better the TP's and Studios but I feel not to much success they need fresh new blood in there that is creative.

as for replacement of mr E.
I would like John Lasseter CEO
Chairman- Katzburg
CFO- Jobs

 

[wdwmaniac]

As for the disney decade I feel it was the time that it happened during. The economy was on a bubble the dot.com one. And since our gov. sort of forgot about what happens to bubbles we got hit in 1999-2000. Disney jsut rode that bubble, people had money to spend now they go to Wal-Mart not the Mall, Theme Parks- everyone had to go to Disney, Movies- only animated was going good not live action. (maybe animation had it's decade). and the rest of the company just rode high on the market.

 

[cloudboy]

I think that the real period of Disney Growth was late 80s/early 90s, and that was definitely NOT a period of growth. The economy didn't start to pick up until the mid 90s, and that is when Disney started to slow down.

I don't think that a lot of growth is a good thing, although I would not be 100% against some strategic acquisitions - paticulalry the Muppets, which I think is full of potential. I am not that current on television and cable offerings, so I can't really comment on that. I think that they really need someone to be more creative oer there and not focus on standard ideas.

I would love to see a reinvestment in the parks. First and foremost right now, however, I am beginning to think is the animation. That is Disney's strongpoint - not just the animation itself but the storytelling. Not quantity, however. They need really good storylines, and that is hurting them.

I don't think the parks need to grow so much as differentiate themselves. First, each park needs to be unlike the other parks, so that instead of just choosing which one is closest, there is a reason to visit all 4/5. Secondly, places like Universal are catching up. They need to stay ahead.

I don't think you would be able to get either Jobs or Katzenburg as anything but head honcho. They wouldn't work under someone. You might get a partnership with Katzenburg, though.

AS an aside, and I know this is going to be terribly controversial, but thinking about the Comcast deal... I am start to get this hunch that what might happen, IF Comcast were to take over Disney, is that they would pretty much take most of the television holdings, particularly the cable stations, dump ABC, take a bulk of the live action stuff, and set themselves up with some good rights to show the Disney material. But I think they ould also split off Disney, with the Disney studios/animation, the parks and cruise business, and maybe touchstone. Just a hunch.

 

[wdwmaniac]

I still don't see Comcast taking Disney since many investor are still scared with the AOL/TW. Also Comcast doesn't have the cash, but on the the other hand I wouldn't be surprised if Microsoft put a bid up sometime. But for Comcast I think they are looking to leave.