Disney To End Promotional Pact With McDonald's

[crazy4wdw]

Disney To End Promotional Pact With McDonald's
By Dwight Oestricher, Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- Walt Disney Co. (DIS) won't renew its cross-promotional agreement with McDonald's Corp. (MCD) as Disney seeks to distance itself from fast food and its links to the epidemic of childhood obesity, the Los Angeles Times said Monday, citing multiple high-ranking sources at Disney.

McDonald's had been paying Disney $100 million in royalties and held 11 promotions a year for Disney films, videos and TV shows under a deal said to be worth $1 billion to Disney, the Times said.

The 10-year pact will end after the release of Disney's "Cars" and "Pirates of the Caribbean: Dead Man's Chest," this summer. However, McDonald's food still will be available at Disney's theme parks, and Disney has left open the possibility of using McDonald's in promotions targeting adults, according to the article.

Calls to Disney weren't immediately returned Monday.

McDonald's has promoted only Disney-branded movies, television shows and theme parks since 1996 and the contract is slated to end this year.

In July, McDonald's entered a two-year promotional deal with DreamWorks Animation SKG (DWA), giving the company exclusivity to two films a year, starting with "Shrek 3" in 2007. McDonald's said at the time that it wasn't interested in signing any more exclusive partnership deals.

Some McDonald's franchisees had been unhappy with the disappointing performance of Disney movies, and charged that McDonald's was preventing itself from gaining access to hit movies produced by other Hollywood studios.

Also during the relationship, Disney's ability to picked release dates for its movies was limited by McDonald's schedule. Reportedly, some Disney-owned TV networks were locked into selling some advertising time to McDonald's at below- market rates.

Recently, shares of McDonald's were up 7 cents, or 0.2%, at $35.28 while Disney's was down 12 cents, or 0.4%, at $28.97.

By Dwight Oestricher, Dow Jones Newswires; 201-938-5266; dwight.oestricher@ dowjones.com

Copyright (C) 2006 Dow Jones & Company, Inc. All Rights Reserved

 

[DancingBear]

How interesting that Disney became so conscious of the fast-food obesity epidemic link just as the pact is expiring and McD's enters into the DWA pact. I'm sure that all that grousing about the low-performing Disney films had nothing to do with it. And I suppose those upcoming post-merger Pixar films will all be promoted with little toys in wheat germ packages.

Is Disney okay with all of those toys in those sugar-laden Kellogg's cereal boxes?

 

[Linzybrooke]

Well, its about time...Walt never wanted McDonalds involved in Disney anyway. Next step is to get it out of the parks.

 

[Chuck S]

Next step is to get it out of the parks.

I agree, I hate "commercial" food in the parks...including Landry's. They are terrible with people that have allergies. And now we hear Landry's will be building an in-park restaurant at AK.

Our Rainforest Cafe conversations have gone like this...

Q: Does this have the herb/seasoning savory in it. MoM is highly allegic to it.

A: I don't know, it comes prepackaged.

Q: What does the ingredients list say?

A: Herbs and spices, but they aren't identified specifically on the label.

Only once have we gotten that answer from a Disney restaurant, and that was about turkey dressing, the chef said they used a pre-packaged seasonong, but would gladly substitute a fresh vegetable or salad.

I wish Disney controlled all the in park food services.

 

[DannyDisneyFreak]

I agree, I hope they get McD's out of the parks. Walt didn't want McD in DL because people could get their food anywhere. He wanted dining in the park unique. Although I understand your dificulty at RC I think the Laundrys resturants are far more unique than McD. And from Disneys point of view I can understand why they opted for Laundrys in AK, why spend the $$$ and build and operate a resturant when you can have someone else do it for you.

 

[Another Voice]

why spend the $$$ and build and operate a resturant when you can have someone else do it for you.

Except that's exactly what Disney tried at California Adventure. The problem is people pay to get into the parks to see "Disney", not to eat at Wolfgang Pucks or to sip Mondavi wine. Both places failed within six months. People want something unique, people what something they can onty get a Disney. Chain restauarants don't work.

 

[manning]

I thought I read some months back that McDonald wanted out.

 

[Chuck S]

I Although I understand your dificulty at RC I think the Laundrys resturants are far more unique than McD. And from Disneys point of view I can understand why they opted for Laundrys in AK, why spend the $$$ and build and operate a resturant when you can have someone else do it for you.

Landry's are not at all "unique" they are everywhere around here, remember they are HQed near Houston. We've got a Rainforest, 6 Joe's Crab Shack's, 2 Saltgrass Steak Houses, and a Landry's Seafood in San Antonio. In fact, so many that the City Council is trying to pass a ruling that will stop Landry's (and other chains, but Landry's was the inititial concern) from opening more restaurants along our historic River Walk.

Mom has gotten a reaction at Crab Shack and Saltgrass after the standard "they come pre-packaged" speil. A chain (any chain) should KNOW what they put into their food.

 

[DannyDisneyFreak]

Oh, I totally agree that Laundrys is not the best choice (RC and the new asian place) but I any themed resturants are better than McD or just some ordinary place like Dennys or Applebees. I have only been in the RC in Niagara Falls, Ontario, never either one in WDW for the very reason that I would rather experience the more unique dining available. I would prefer a Disney imaginerred resturant over a chain too but I just understand what they are doing on the economical side. When the Asian place opens in AK I want to try it out, I hope it works.

 

[Goobergal99]

I agree that fast food is totally unhealthy. However, Parents need to take their fair share of responsibility as well. If they encouraged their kids to be active and participate in things that didn't require a game controller then there wouldn't be a childhood obesity epidemic. My DD has her occasional fill of Mcdonalds and she is nowhere near being overweight, infact she is incredibly petitie.

 

[dbm20th]

I always had to laugh at the McD's french fries cart that was on the Frontierland side of the Pirates plaza. I mean really, what says the old west like that distinctive smell of MickyDee's fries??