McDonald's Corp. and Walt Disney Co. have been promoting each other's offerings for nearly 20 years. And that makes breaking up hard to do.
But the end of their exclusive 10-year relationship has arrived. And while launching the last official joint promotion next week, they remain locked in talks over new promotions for 2007 and 2008. They also continue to discuss the future of McDonald's restaurants at Disneyland and Disney's California Adventure Park, both located in Anaheim, and Walt Disney World in Orlando, which were covered by the agreement.
In other words, they are going to see other companies but would like to remain friends.
"This is the longest running breakup I've ever witnessed," said Kathleen Joyce, editorial director of Promo magazine.
Despite ending the exclusive deal in which McDonald's wasn't allowed to work with other film production companies and Disney wasn't allowed to work with other fast-food restaurants, neither side wants to dump the other.
"Some of our best Happy Meal promotions have been done with Disney," said Bill Lamar, senior vice president and chief marketing officer for McDonald's USA.
But at the same time, he acknowledged, the arrangement has caused friction with some of the burger giant's franchisees.
"We have had a good 10 years, but both sides have left significant meat on the table because we have been exclusive with each other," he said.
Both sides deny the end of the agreement is linked to rising concerns about obesity.
"We needed and wanted flexibility in our work with other partners in the theatrical area, and Disney wanted the same thing," said Lamar.
Brett Dicker, executive vice president of Walt Disney Pictures, agreed.
"Ultimately, the benefits far outweighed the negatives. We got great exposure from McDonald's," he said.
And he didn't mince words when discussing Disney's plans for promoting each other's products in the future.
"We will continue working together," he said.
But the ending of the agreement partially explains the blitz McDonald's will use this year to promote Disney's "Pirates of the Caribbean: Dead Man's Chest," which opens July 7.
The movie is aimed at the 18-to-34-year-old audience held dear by McDonald's.
"McDonald's is really going after the youth market (with this promotion)," said Joyce. "`Cars' and `Finding Nemo' don't have the edge of entertainment of something like `Shrek' or `Pirates' and attracts a different audience."
"Cars" and "Finding Nemo" are both Disney animated movies.
The Oak Brook-based restaurant chain, in an effort to promote its Big Mac, will give away a Volvo XC90 SUV or Volvo C70 convertible coupe each day for 28 days beginning when the promotion launches July 4.
In addition, the chain is giving away GPS navigation systems, portable DVD players, 30 gigabyte iPods and collector edition Arch cards, the burger giant's version of a debit card. "This is a full McDonald's promotion," said Dicker.
During the past 10 years, McDonald's ran more than 70 promotions connected with Disney products, including movies, its theme parks, ESPN and ABC-TV. The restaurant chain ran promotions linked to an average of two movies per year, spokesman Bill Whitman said.
Both companies declined to disclose how much each other spent to promote the other's products, nor the amount of increased revenue recorded as a result of the promotion.
But promoting movies by linking with a fast-food chain is becoming increasingly passe in an industry always searching for the next best way to connect with its viewers.
"We are really focusing on new media promotions," said Dicker.
"When you look at the film business today, it is a global business," he said. "We're looking at global promotions."
In contrast, McDonald's promotions are limited to the United States.
McDonald's already has announced a two-year deal with DreamWorks Animation SKG to promote "Shrek the Third," which is due out in 2007.
"One of the reasons we did not renew is DreamWorks has a great track record of properties that are for all families," said Lamar. "They are real simpatico with our culture.
"The key was the non-exclusive agreement. Ten years is a long time. Things change. New players come up with new ideas and great properties," he said.
But Lamar said it is too early to determine the fate of the restaurants in theme parks.
"They have as much a chance of staying as going away," he said.
http://www.orlandosentinel.com/business/chi-0606280221jun28,0,1139149.story?page=2
But the end of their exclusive 10-year relationship has arrived. And while launching the last official joint promotion next week, they remain locked in talks over new promotions for 2007 and 2008. They also continue to discuss the future of McDonald's restaurants at Disneyland and Disney's California Adventure Park, both located in Anaheim, and Walt Disney World in Orlando, which were covered by the agreement.
In other words, they are going to see other companies but would like to remain friends.
"This is the longest running breakup I've ever witnessed," said Kathleen Joyce, editorial director of Promo magazine.
Despite ending the exclusive deal in which McDonald's wasn't allowed to work with other film production companies and Disney wasn't allowed to work with other fast-food restaurants, neither side wants to dump the other.
"Some of our best Happy Meal promotions have been done with Disney," said Bill Lamar, senior vice president and chief marketing officer for McDonald's USA.
But at the same time, he acknowledged, the arrangement has caused friction with some of the burger giant's franchisees.
"We have had a good 10 years, but both sides have left significant meat on the table because we have been exclusive with each other," he said.
Both sides deny the end of the agreement is linked to rising concerns about obesity.
"We needed and wanted flexibility in our work with other partners in the theatrical area, and Disney wanted the same thing," said Lamar.
Brett Dicker, executive vice president of Walt Disney Pictures, agreed.
"Ultimately, the benefits far outweighed the negatives. We got great exposure from McDonald's," he said.
And he didn't mince words when discussing Disney's plans for promoting each other's products in the future.
"We will continue working together," he said.
But the ending of the agreement partially explains the blitz McDonald's will use this year to promote Disney's "Pirates of the Caribbean: Dead Man's Chest," which opens July 7.
The movie is aimed at the 18-to-34-year-old audience held dear by McDonald's.
"McDonald's is really going after the youth market (with this promotion)," said Joyce. "`Cars' and `Finding Nemo' don't have the edge of entertainment of something like `Shrek' or `Pirates' and attracts a different audience."
"Cars" and "Finding Nemo" are both Disney animated movies.
The Oak Brook-based restaurant chain, in an effort to promote its Big Mac, will give away a Volvo XC90 SUV or Volvo C70 convertible coupe each day for 28 days beginning when the promotion launches July 4.
In addition, the chain is giving away GPS navigation systems, portable DVD players, 30 gigabyte iPods and collector edition Arch cards, the burger giant's version of a debit card. "This is a full McDonald's promotion," said Dicker.
During the past 10 years, McDonald's ran more than 70 promotions connected with Disney products, including movies, its theme parks, ESPN and ABC-TV. The restaurant chain ran promotions linked to an average of two movies per year, spokesman Bill Whitman said.
Both companies declined to disclose how much each other spent to promote the other's products, nor the amount of increased revenue recorded as a result of the promotion.
But promoting movies by linking with a fast-food chain is becoming increasingly passe in an industry always searching for the next best way to connect with its viewers.
"We are really focusing on new media promotions," said Dicker.
"When you look at the film business today, it is a global business," he said. "We're looking at global promotions."
In contrast, McDonald's promotions are limited to the United States.
McDonald's already has announced a two-year deal with DreamWorks Animation SKG to promote "Shrek the Third," which is due out in 2007.
"One of the reasons we did not renew is DreamWorks has a great track record of properties that are for all families," said Lamar. "They are real simpatico with our culture.
"The key was the non-exclusive agreement. Ten years is a long time. Things change. New players come up with new ideas and great properties," he said.
But Lamar said it is too early to determine the fate of the restaurants in theme parks.
"They have as much a chance of staying as going away," he said.
http://www.orlandosentinel.com/business/chi-0606280221jun28,0,1139149.story?page=2
