Disney Bites The Bullet
Disney CEO, Iger seems ready to reap the wrath of theater owners over release dates for feature films on DVD. In an interview with the Wall Street Journal yesterday, he pretty much threw down the gauntlet, saying, “In the end it’s going to be more through force than negotiation”. Although Disney will lose some of its theater platform, it obviously the feels the loss will be more than made up for through savings in promotion and reduction in piracy.
Big studios like Disney are seeing the need to focus. The days of unchecked expansion and diversification are long gone and these dinosaurs are searching hard for core strengths on which to build. The future, for Disney, is the DVD format, which has increasingly accounted for its entertainment revenue. Disney is still primarily a theme park company and apparently that emboldens them to take a risk with respect to box office.
Got to give the guy credit for biting that Hank Barry-like bullet, but, somebody has to do it. Iger likened his position to that of the soldier going first over the hill and taking the bulk of the bullets, and I commend him for doing it. At least Disney has lots of bucks on which to fall.
The theater owners need to stop asking for subsidies like cotton farmers and work on their business model. People still want to go out of the house to be entertained, but you’ll need an IMAX screen,. Those have seen some 800% return. They’ll also need some web-access or software available in the lobby instead of making all your money off selling rip-off candy.
Theater owners are a huge part of the problem. They only run the most teen-boy oriented films and leave many other sectors of potential movie goers unaddressed. When the theaters start becoming true entertainment destinations and offer hands-on, creative, movie-oriented activities, they will profit. They’ve been lazy and pampered by the ease of admitting teen, snack eating boys and doing little else. Instead of threatening studios, they should be addressing the needs of their consumers and offering activities and technology through which they, and their consumers, can profit.
Big studios like Disney are seeing the need to focus. The days of unchecked expansion and diversification are long gone and these dinosaurs are searching hard for core strengths on which to build. The future, for Disney, is the DVD format, which has increasingly accounted for its entertainment revenue. Disney is still primarily a theme park company and apparently that emboldens them to take a risk with respect to box office.
Got to give the guy credit for biting that Hank Barry-like bullet, but, somebody has to do it. Iger likened his position to that of the soldier going first over the hill and taking the bulk of the bullets, and I commend him for doing it. At least Disney has lots of bucks on which to fall.
The theater owners need to stop asking for subsidies like cotton farmers and work on their business model. People still want to go out of the house to be entertained, but you’ll need an IMAX screen,. Those have seen some 800% return. They’ll also need some web-access or software available in the lobby instead of making all your money off selling rip-off candy.
Theater owners are a huge part of the problem. They only run the most teen-boy oriented films and leave many other sectors of potential movie goers unaddressed. When the theaters start becoming true entertainment destinations and offer hands-on, creative, movie-oriented activities, they will profit. They’ve been lazy and pampered by the ease of admitting teen, snack eating boys and doing little else. Instead of threatening studios, they should be addressing the needs of their consumers and offering activities and technology through which they, and their consumers, can profit.
posted by Intervision at 7:37 AM
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