Monday, June 25, 2007

Killin' the Villain at The Motley Fool

While the shakeup at the DisneyToon studios has had the Disney online community abuzz these last few days, financial pundits are beginning to weigh in on the Lasseter-Catmull influenced restructuring that will lead to the eventual elimination of the company's lucrative direct-to-DVD sequels and spinoffs. The Motley Fool provides this interesting perspective on the subject. The conclusion of Rick Munarriz, the writer of the commentary?

"Remember that $7.4 billion purchase of Pixar? Do you think it would have been necessary if the non-Pixar animation being put out by Disney was still the handiwork of a respected market leader? Of course not. That's a dear price to pay for Disney's mistake of squandering its hilltop vista by playing it cheap, quick, and stupid.

Those Pixar chaps know what they're doing. So farewell, Cinderella III. The shoe never quite fit."

Considering that DisneyToon brought in billions, it's interesting to see such a point of view emerge from the business world.

2 comments:

  1. Unknown6/25/2007 5:05 PM

    But it does sound like Munarriz is a huge Disney fan, anyway.

    I think this is an example of Disney needing to not only pander to the stock holders, but for Disney Management to realize that they are the stewards of the Disney name and legacy. Even though Disney Toons was raking in the cash, they did dilute their brand.

    It does make me wonder if Lilo, Meet the Robinson's and Chicken Little would have garnered more success and attention without the direct to DVD cheap-quels.

    Thanks for sharing the article with us!

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  2. Anonymous6/26/2007 7:03 AM

    In business-speak, it's called "strengthening the brand" for long-term return on investment dollars. That's but one of the many benefits of the Pixar purchase and the sacking of the direct-to-DVD department. Here's hoping their next move will be to clear the shallow end of their gene pool by tossing the Power Rangers and the rest of the highly-questionable content under the Jetix name. It's all crap, no matter how much profit it may bring in the short-term.

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