I finished reading Disneywar over the weekend and found it to be very interesting. I enjoyed the background history of the company that was provided and has me looking for some of the older books that talk about Disney such as Storming the Magic Kingdom.
Thoughts on the book:
Eisner (and Wells) deserves credit for kick starting the creativity within the company in the 80’s and for bringing in someone like Katzenberg who while flawed was creative, hard working and grasped the potential of animation. It is obvious that the company had gotten stale. However some of the changes they instituted any strong, competent executive would probably have done to raise profits. The raising of ticket and parking prices along with building additional hotels on the park grounds were obvious moves that in some cases had been thought of when the parks were first opened or were already being considered.
What is portrayed, as a more controversial move was the sale of Disney classics (Snow White, Cinderella, etc…) on VHS. Roy Disney was against this but they convinced him to give it a try and it worked very well. Later in this book this is described as a potential problem since once the films are owned people won’t pay to see them in theaters and that the financial gain was a one shot (per film) gain. I don’t think this estimate is accurate. As we have seen with DVD, many of these films are being repurchased in the DVD format and in the future people will probably pay to gain these films in whatever technology replaces DVDs. In addition these films help promote other Disney products (clothing, toys, resorts). I think Eisner and company had the right idea.
However, Eisner obviously has a problem with delegating authority and fears anyone having success unless that success shines only upon him. The author makes Shakespearean references but the real comparable figure is Louis XIV “The Sun King” of France. As the company grows in size Eisner wants to micromanage the company and won’t allow independence from the people below him. While he clearly has creative ideas, it is not possible for him to stay on top of everything that occurs this helps lead to many mistakes. This becomes a big problem as he refuses to use the expertise of the people around him to sound out his ideas (the purchase of Fox Family) or to allow other people to run different branches of the company. It is interesting to read about the high regard that most of the ABC people had for Robert Iger, and how he seemed to change as he had to work closer to Eisner and attempt to survive himself.
Example’s of Eisner’s leadership problems is the way loyal company executives who are creative and successful (Angela Shapiro and Steve Bornstein) and are not allowed to actually run their divisions of the company. This leads the last half of the book to be a rundown of the talented people who leave the Disney Company to work elsewhere. Eisner also will not accept criticism and expects absolute obedience from the board of directors at Disney and this leads to him coming into conflict with any member who doesn’t rubberstamp his decisions.
Eisner refuses to accept bad news when it involves decisions driven by him. In both the Fox Family purchase and the Internet venture (Go.com) he did not want to accept that he had rushed into poor decisions. In the case of the Fox Family purchase he refused to accept a reevaluation of the purchase that could have saved the company millions of dollars in taxes because it would have revealed how poor the original purchase price had been.
Former Senator George Mitchell comes off very poorly in the book as he appears to be more interested in having his law firm continue to receive business from Disney then look out for the interests of the shareholders. In a couple of instances he appears to lie to avoid Eisner’s anger or to not stick up for fellow board members even when it appears he knows they are being mistreated.
The book is very interesting, however if you are primarily interested in the theme parks you will not find a lot of information concerning them. The largest amount of information is about the discussion of Euro Disney (Spain was an option) and how its costs made it an economic drain on the company when it opened.