Movies Down

[Sarangel]

Walt Disney Co. is becoming more serious about controlling costs at its movie division as the company re-examines the unit's role, the New York Times reported.

The unit has produced fewer movies since Peter Schneider replaced Joe Roth as president of Walt Disney Studios, the paper said. It has lost a series of employees, including DreamWorks SKG co-founder Jeffrey Katzenberg, and faced morale problems.

Disney Studios will release 14 films this year, about two- thirds of what it has issued in recent years, the paper said. The animated film, "Atlantis: The Lost Empire,'' which debuts next month, cost $100 million, or about 35 percent less than other Disney animated films.

The studio, which accounts for about 15 percent of Disney's operating income, reflects the company's creativity and provides ideas for theme park rides and consumer products, the paper said, citing Scott Davis, an analyst at First Union Securities Inc.
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Source: AOL News

 

[jrgutknecht]

Very interesting.. .do you think any of this has to do with company insiders worried about the success of films about to open (Pearl Harbor, Atlantis) OR is the the delayed reaction to the possibility of an actors strike and/or the current economy.

I think it has more to do with cutting from above than strategic planning.

 

[JeffJewell]

I think it has more to do with cutting from above than strategic planning.

...I'm inclined to agree with you. Any sane strategic planning would be taking better care of that which "reflects the company's creativity and provides ideas for theme park rides and consumer products."

Jeff

 

[Another Voice]

It’s also become a rather vicious circle – Disney is not well regarded studio at the moment, so they can’t get the big projects. Since Disney isn’t making any big project movies, they’re not being well regarded as a studio. They’ve also cut back their internal development so much that they need the outside support to bring in films to them. But no one’s going to bring their project to Disney because of all of the cost cutting.