Before I start getting flamed here, let me explain what I mean! With all due respect to Roy Disney, his energies in defending his uncle's legacy and his wonderful contributions to the Walt Disney Co., if he ever got his way and allowed people to run the company "his way", simply put, the company will begin going downhill. Why? Well, let's take his complaint about the way Eisner is handling negotiations with its partners, how Eisner's tactics are "straining" those relationships and may even put them in jeopardy (such as what happened with Pixar)...
If Roy got his way, sure Pixar would not have seperated from the Walt Disney Co. Why? Because Roy's people would have agreed to Pixar's terms without much negotiating. Would Pixar have gotten slightly favorable terms? No. Pixar would have gotten everything they wanted. It would have been a bum deal for the Walt Disney Co.! Why would Roy give in to unfavorable terms so easily? Or maybe you don't believe he would? Roy is so gung-ho about keeping its "creative" people sooo much that he would give away the farm in the process!
Don't believe me? Well, we'll get back to this in a moment. Let's move on to cable distribution, another area Roy has been complaining that Eisner is straining relationships with the cable companies that distribute Disney's cable channels. Comcast's relationship with Disney is so strained that they even tried to buy the company. Main reason? Because Comcast doesn't want to pay the fees Disney wants to charge. The same is true with other cable companies. In this week's news, Cable announced it finally struck a deal with Disney to renew its contract to carry Disney's cable networks after over a year and a half of intense negotiations, agreeing on the fee that Disney demanded.
If Roy's people were in charge, Cable wouldn't have negotiated for so long, neather would any cable company, including Comcast. Why? Because Roy Disney's people would not have had the "nerve" to ask for the fees which they asked for, and the contracts would have been signed quickly. But yet Disney is upgrading equipment at the cable networks, paying for increased production fees, and upgrading to HDTV. Do the cable companies honestly think they could get away without paying increased fees to help cover these costs?
You could say that the cable companies simple do not have to carry Disney's cable channels. True. But there's a problem. Disney owns some of the most popular cable networks, including ESPN, Lifetime, E!, History Channel, Disney Channel, Toon Disney, Disney Family Channel, and much more. Disney has great contracts with the two big satellite providers. If your cable company fails to agree to carry these channels, you could simply subscribe to satellite. And the cable operators know this. That's why in the end, Disney will always win these negotiations. So, Eisner's strong-arm tactics may strain relationships, but Disney will always end up with a better deal, as they should!
What kind of deal would Roy Disney's people make? Well, for one he is complaining about Eisner's deal with the Chinese Government for Hong Kong Disneyland. Under this deal, Disney is getting over 300 acres of free land. Disney is getting 43% ownership of the company, royalty fees, and management fees, Disney will manage the company, even though the Chinese Government owns most of it. But, the Chinese Government is footing most of the construction bill! Not a bad deal! What kind of deal would Roy's people have made?
Let's look back in history. It's the early 80's. Eisner is not yet working at Disney. Roy Disney is on Disney's Board of Directors and has much influence. The company is negotiating with the Japanese to build a Disneyland in Tokyo. Quickly, a deal was placed together. It's terms: Disney would have NO ownership of the new park and have NO management of it, but will get a very very small licensing and franchise fee. With Tokyo Disneyland having one of the highest attendence figures, it's a shame the Disney Company has absolutely no ownership!
So, Pixar couldn't agree to Disney's terms. Loss? Yeah. But Pixar is still obligated to make three more films for Disney. And by the time Pixar's contract runs out, Disney's own 3D animation unit should be producing full-length films. Will they be any good? Time will tell, but these are the same people who made Dinosaur and Mickey's Philharmagic, which aren't bad. Maybe they will get better as they make more films. Also, don't forget Pixar has yet to find a new distributor, so at this point anything could happen.
If Roy got his way, sure Pixar would not have seperated from the Walt Disney Co. Why? Because Roy's people would have agreed to Pixar's terms without much negotiating. Would Pixar have gotten slightly favorable terms? No. Pixar would have gotten everything they wanted. It would have been a bum deal for the Walt Disney Co.! Why would Roy give in to unfavorable terms so easily? Or maybe you don't believe he would? Roy is so gung-ho about keeping its "creative" people sooo much that he would give away the farm in the process!
Don't believe me? Well, we'll get back to this in a moment. Let's move on to cable distribution, another area Roy has been complaining that Eisner is straining relationships with the cable companies that distribute Disney's cable channels. Comcast's relationship with Disney is so strained that they even tried to buy the company. Main reason? Because Comcast doesn't want to pay the fees Disney wants to charge. The same is true with other cable companies. In this week's news, Cable announced it finally struck a deal with Disney to renew its contract to carry Disney's cable networks after over a year and a half of intense negotiations, agreeing on the fee that Disney demanded.
If Roy's people were in charge, Cable wouldn't have negotiated for so long, neather would any cable company, including Comcast. Why? Because Roy Disney's people would not have had the "nerve" to ask for the fees which they asked for, and the contracts would have been signed quickly. But yet Disney is upgrading equipment at the cable networks, paying for increased production fees, and upgrading to HDTV. Do the cable companies honestly think they could get away without paying increased fees to help cover these costs?
You could say that the cable companies simple do not have to carry Disney's cable channels. True. But there's a problem. Disney owns some of the most popular cable networks, including ESPN, Lifetime, E!, History Channel, Disney Channel, Toon Disney, Disney Family Channel, and much more. Disney has great contracts with the two big satellite providers. If your cable company fails to agree to carry these channels, you could simply subscribe to satellite. And the cable operators know this. That's why in the end, Disney will always win these negotiations. So, Eisner's strong-arm tactics may strain relationships, but Disney will always end up with a better deal, as they should!
What kind of deal would Roy Disney's people make? Well, for one he is complaining about Eisner's deal with the Chinese Government for Hong Kong Disneyland. Under this deal, Disney is getting over 300 acres of free land. Disney is getting 43% ownership of the company, royalty fees, and management fees, Disney will manage the company, even though the Chinese Government owns most of it. But, the Chinese Government is footing most of the construction bill! Not a bad deal! What kind of deal would Roy's people have made?
Let's look back in history. It's the early 80's. Eisner is not yet working at Disney. Roy Disney is on Disney's Board of Directors and has much influence. The company is negotiating with the Japanese to build a Disneyland in Tokyo. Quickly, a deal was placed together. It's terms: Disney would have NO ownership of the new park and have NO management of it, but will get a very very small licensing and franchise fee. With Tokyo Disneyland having one of the highest attendence figures, it's a shame the Disney Company has absolutely no ownership!
So, Pixar couldn't agree to Disney's terms. Loss? Yeah. But Pixar is still obligated to make three more films for Disney. And by the time Pixar's contract runs out, Disney's own 3D animation unit should be producing full-length films. Will they be any good? Time will tell, but these are the same people who made Dinosaur and Mickey's Philharmagic, which aren't bad. Maybe they will get better as they make more films. Also, don't forget Pixar has yet to find a new distributor, so at this point anything could happen.
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