Rumors that Disney is in negotiations to sell Star Wars back to George Lucas!

[BrianL]

Sorta like Bud Light and Target had freedom to make the statements they made right? Do you think the investors in those companies believe that these statements have served the shareholders well?

We are free to saying pretty much anything, we aren’t free from the consequences of what we say.

What consumers do is one thing - they are free to make those choices.

 

[Aluminum Falcon]

We don’t know if a majority of cast members were in favor of the “support” or not. It might have been a vocal minority.

that is irrelevant, the company decided to speak out on behalf of the cast members who felt a certain way regardless of if they were actually the majority or not

 

[Aluminum Falcon]

Sorta like Bud Light and Target had freedom to make the statements they made right? Do you think the investors in those companies believe that these statements have served the shareholders well?

We are free to saying pretty much anything, we aren’t free from the consequences of what we say.

that part i agree with you on, but i do not see a huge backlash by the public on Disney (outside of Little Mermaid). Disneys PR team probably ran through the possible ramifications and they ran with it. No one on this planet could have foreseen what happened next

 

[PolymerSkywalker]

What consumers do is one thing - they are free to make those choices.

Yep, just exactly like the consumers of Disney content since Disney made a political statement.

 

[Aluminum Falcon]

What consumers do is one thing - they are free to make those choices.

i do understand where PolymerSkywalker is coming from. i think their general stance is to just keep your mouth shut and you typically won't "step in it". Where Disney was getting bad PR for not saying anything in this case,(at such a critical time for hiring and retaining cast members) i think they may have felt like they had no other option though.

 

[nancipants]

Has there really been a huge backlash against Disney, though? I saw another survey today that showed favorable/unfavorable opinions about Disney remained unchanged.

 

[Aluminum Falcon]

Has there really been a huge backlash against Disney, though? I saw another survey today that showed favorable/unfavorable opinions about Disney remained unchanged.

i would agree with that, the Little Mermaid has been affected, but that is primarily over seas, the US market has actually come out strong for the movie. Outside of that, it's hard to get people to turn on something that brings them back to their childhood. For most i would say that Bud Lite, and Target don't have that kind of power over their consumers haha

 

[PolymerSkywalker]

So how has Disney done in the theater and on Disney+ since this statement? Isn’t that the consumer? Disney+ lost 4 million subs last quarter while Netflix grew. Disney may not have but 1 profitable movie (Guardians) all year long in 2023.

Is this all 100% related, not likely. However, it is certainly data that suggests the consumers are not thrilled with Disney’s recent management actions overall.

 

[Elijah Abrams]

If what they want to sell isn't a cash cow, who is going to buy it, especially with the cost of borrowing so high right now? Selling sounds easy, but in the current environment, interest rates make purchasing really expensive if you need to borrow. That drives valuations down. And the folks that have cash are getting a good guaranteed return now, so they aren't very motived to spend that cash on something that isn't going to produce quick returns.

But I agree that the financial woes are probably being overblown. But the closing of the Star Wars hotel was a little alarming, especially considering they are accelerating the depreciation. That sounds like they are scrapping for cash and felt like an act of desperation.

I think 20th Century Studios and its IP are certainly not Disney's cash cows, making them ripe for selling off. They only wanted 20th Century Fox for their streaming strategy, but that’s starting to hurt now.

 

[BrianL]

Has there really been a huge backlash against Disney, though? I saw another survey today that showed favorable/unfavorable opinions about Disney remained unchanged.

Yeah, and it's not like it's news. Disney has long been supportive of such causes, going back to the early '90's.

 

[RivShore]

But the closing of the Star Wars hotel was a little alarming, especially considering they are accelerating the depreciation. That sounds like they are scrapping for cash and felt like an act of desperation.

To put the writedown of the SW hotel into perspective, it is a tiny amount no matter how you look at it. $300M of writeoffs vs. over $284B of assets amounts to 0.15% of assets being written off. If you compare it against revenue, its just 0.35%. It's literately a rounding error.
I never expected it to survive as it was for long, it was just to costly with a very small number of people who would actually do it. But I am surprised they just shut it down rather than transition it to a more standard, yet highly themed, hotel. And then have a few special cruises each year, with the full experience.

 

[RivShore]

So how has Disney done in the theater and on Disney+ since this statement? Isn’t that the consumer? Disney+ lost 4 million subs last quarter while Netflix grew. Disney may not have but 1 profitable movie (Guardians) all year long in 2023.

Is this all 100% related, not likely. However, it is certainly data that suggests the consumers are not thrilled with Disney’s recent management actions overall.

@PolymerSkywalker What part of the world were 90%+ of those subs lost in and why did they lose them?

 

[Aluminum Falcon]

So how has Disney done in the theater and on Disney+ since this statement? Isn’t that the consumer? Disney+ lost 4 million subs last quarter while Netflix grew. Disney may not have but 1 profitable movie (Guardians) all year long in 2023.

Is this all 100% related, not likely. However, it is certainly data that suggests the consumers are not thrilled with Disney’s recent management actions overall.

I think a lot of Netflix had to do with enforcement of not sharing accounts. quantumania made money, Indiana Jones will make money, i would think Elemental will make money but we shall see. I have not seen outright boycotting of Disney which is typically what's seen in the type of scenario you're laying out

 

[nancipants]

Disney Plus offered a three-year deal before the service started in 2019. That deal ended in 2022. I would imagine that has a lot to do with a loss of subscribers.

ETA: Right now, there are no major shows airing on Disney Plus, so I imagine people have canceled until the next Marvel or Star Wars show drops.

 

[RivShore]

I think 20th Century Studios and its IP are certainly not Disney's cash cows, making them ripe for selling off. They only wanted 20th Century Fox for their streaming strategy, but that’s starting to hurt now.

This won't happen with the new strategy of tying Hulu in tightly with D+, but if it were to happen, my big concern is now all that IP ends up in a competitors hands. And there is plenty of cash sitting on the tech companies balance sheets that would make them even bigger streaming competitors. So I see it as a mistake to sell it off. If Disney doesn't want the content on their own streamers/networks, then they should retain ownership and license it out to the highest bidder, that at least creates a long term revenue stream.

 

[PolymerSkywalker]

I think a lot of Netflix had to do with enforcement of not sharing accounts. quantumania made money, Indiana Jones will make money, i would think Elemental will make money but we shall see. I have not seen outright boycotting of Disney which is typically what's seen in the type of scenario you're laying out

Quantum either broke even or lost a little.

Indy needs to make 800 Million plus to Break even with around 390+ Million all in budget.

Elemental needs around a 600 Million box office hall to break even.

You sure about your predictions?

Shall we revisit at years end to see who was right?

 

[BrianL]

Disney Plus offered a three-year deal before the service started in 2019. That deal ended in 2022. I would imagine that has a lot to do with a loss of subscribers.

ETA: Right now, there are no major shows airing on Disney Plus, so I imagine people have canceled until the next Marvel or Star Wars show drops.

Um, are you saying that Villains of Valley View is not a major show?

It's actually pretty good, in that cheesey Disney Channel sort of way. To me, shows like that are like spinner rides at Disney World. Nobody really gets excited about them, but they serve a purpose.

 

[Aluminum Falcon]

Quantum either broke even or lost a little.

Indy needs to make 800 Million plus to Break even with around 390+ Million all in budget.

Elemental needs around a 600 Million box office hall to break even.

You sure about your predictions?

Shall we revisit at years end to see who was right?

You’re on haha

 

[Douglas Dubh]

that is irrelevant, the company decided to speak out on behalf of the cast members who felt a certain way regardless of if they were actually the majority or not

It’s relevant if cast members are used as an excuse.

 

[Douglas Dubh]

Disneys PR team probably ran through the possible ramifications and they ran with it. No one on this planet could have foreseen what happened next

Sure they could have.