Corporate- Lucasfilms a Welcome addition

I have not written anything on here for some time simply because little had been going on...and then the  announcement happened...Disney bought Lucasfilm. What was your reaction? Mine was simple...shock. After I regained my bearings I thought about this acquisition in detail. I had never imagined this would happen because George Lucas never seemed like the type who would sell his creations; Lucasfilms would continue to operate independently even without Lucas. Yet, once the sale was announced it seemed like a forgone conclusion that Disney should take over the Star Wars empire. Disney and Lucas have after-all had a long relationship inside the parks with Star Tours, Indiana Jones attractions, merchandising and shows, and even Star Wars weekends. Who else could take charge of these franchises except Disney?

    This acquisition is a gold mine for Disney just as Marvel was. It is not a risk like many mergers and acquisitions are; in the words of Michael Eisner on an unrelated topic, "this is the closest there is to a sure thing in this business". In only a few years, Disney has positioned itself as one of the worldwide leaders in boys and girls entertainment. This acquisition has already brought about significant press about the upcoming films, but it also brings with it merchandising, television, print, video games, and more, which is likely where more success will occur. Though significant, but not often talked about, are the other components of Lucasfilms. There are lamentable travesties such as Howard the Duck and THX-1138, but Disney will also get the indelible Indiana Jones franchise. As of this writing, Paramount still retains the film rights to the franchise, but that should not deter Disney in any form since similar arrangements are currently ongoing with the film rights to many Marvel characters. Simply put, owning the property gives you a seat at the table, and that seat alone makes it all the more worthwhile.

  Disney's strategic planners and mergers and acquisitions team should be heavily praised for making this happen. The Iger reign has three dominant and seemingly inevitable acquisitions in Pixar, Marvel, and Lucasfilms. Where should they go next? I have several ideas, but several of my ideas that i've posted about have already been used...unethical behavior??? More importantly though, what do you think they should do next?

Disney Studios- Disneynature triumphs without Dollars

Disneynature, a wholly owned independent film label that produces nature documentaries, has been around since only 2008, but has produced some high quality films. It's 2009 debut documentary "Earth" took in over $108m alone! Not many documentaries can match that. It seemed like a perfect fit: the marketing and creative savvy of Disney with the untold and amazing stories of nature. After all, it worked in the 1950's and 1960's for Walt Disney's True Life Adventures (Which is what Adventureland is based off of), so Disney should have a partnership that focuses on this channel.
 The next several films though were not as successful as "Earth" and saw continued diminished returns. "Oceans" made $82m (still a very respectable number), "African Cats" only made $25m, "Crimson Wing" made even less, etc. Currently, the newest film "Chimpanzee" is out in theaters and does not seem to be faring much better. So I ask the question: why the drop off in viewership? Did viewers go to "Earth" simply because it was a novel idea, but soon grew tired of it? I do not believe so. I believe the answers lies in marketing...or lack thereof.

 "Earth" and "Oceans" received large amounts of publicity and marketing, but follow on films did not. This makes sense if you view in the sense that you're limiting damage from a potentially bad movie...i.e., strictly from an investment lens. This however cannot be the only approach taken because we must realize that A DOCUMENTARY CANNOT BE MEASURED AGAINST A FEATURE FILM IN TERMS OF GROSS. Documentaries are not going to be widely popular in theaters, but will find their niche in DVD/Blu ray players across the world. Disneynature provides a fresh view of the world, but it must continue to do so. Disney needs to get MORE involved in the story part of the films and then PROMOTE them heavily. It is sad that there has not been a 2013 announce Disneynature film. Does this mean the end is drawing near for this label? I sure hope not. Disney cannot just be a traditional entertainment company, they must lead the way into forays that other companies wouldn't go near. If Disney cannot make a successful Documentary film label then nobody can, but keep this in perspective, it's only been a few years and the marketing just hasn't been there. Potential stories are everywhere- Insects, Bees, Trees, Rocks, Glaciers, A Day inside a Zoo...etc. However, Disney must actively seek to make these films work. People will not simply go to see footage of nature, they must have a buy-in, and Disney must provide them that.

Corporate- The Tragedy of TRYING to work at Disney

I want to work at Disney. Those are words that I have said or typed so often over the course of the past year, but regrettably it doesn't get you very far. Realistically, I think we all know that the Walt Disney Company is a normal American company; it seeks to make a profit, it has competitors, it struggles with many of the same issues as other companies, etc. However, there is also something entirely unique about it; cast members often call it "magic", but there is something tangible to the company. Disney instills a feeling inside of you that isn't often found anymore. If you go to Walt Disney World, watch Peter Pan, or simply listen to a Disney story you are suddenly transported to a happier place.
  Now, over the course of the past year I have applied to numerous Disney professional (graduate) internships and have sought some full-time positions, and it has become quite the ordeal. I have found numerous problems in trying to get your foot at the door at Disney that don't necessarily need to be there.

1. Geography and School Status: It makes sense that Disney often recruits from its hometown graduate schools, such as UCLA for corporate jobs, but there are thousands of other schools in the country with students that really do want to work for Disney. The internships are posted online, so anybody can apply, but other schools resumes don't seem to make it very far. I'm aware that Disney is searching for the "best and brightest", but lets also be realistic and find the "committed and passionate". Disney's CEO's didn't go to the top tier schools either- Bob Iger went to Ithaca, Michael Eisner went to Denison, etc. I'm not saying these aren't great schools, but they're also not considered top tier. Our grandmothers all taught us not to judge a book by its cover, but it seems this lesson goes away when it comes to hiring...why is that?

2. Experience. As i'm pursuing my graduate degree (MBA) I have sent in my resume and applied to over 14 positions that are appropriate for an MBA. Thus far, I have been denied 6. It is unclear why I am "no longer in consideration (a fact you have to find out by logging in, they don't send you anything)", but it appears that it is due to a "lack of suitable experience". Perhaps I am confused, but isn't an internship supposed to be the first step towards getting the suitable experience??? If somebody is in school for a subject, such as business, then ANY BUSINESS INTERNSHIP should theoretically suffice. Internships should not require past experiences otherwise one won't be able to change careers easily. Now I know that reality states that there are thousands of applicants to a low number of positions, but prior experience in the field is really a silly barometer to gauge applicants.

3. Timeline. After applying to these internships, you play the waiting game...and this game goes on a LONG time. There's nothing on the website to tell you any expected dates, but if you're applying for a SUMMER INTERNSHIP then you'd reasonably expect to find out sometime before the start of SUMMER. Since graduate programs traditionally end in may and resume in August, the summer goes from mid-may to mid-august. Well, It is now late April, and I still have not heard anything about the positions that i'm still in contention for. Publishing a "We'll let you know by date" would be very helpful because simply waiting incessantly is the wrong approach. People have to make plans!

4. Networking Reality. Unfortunately, if you want to work at Disney, it's all about networking. The problem is if you don't know anyone who works there then you're in big trouble. I live in Texas, Disney has very little presence here, but I have still attempted to build a network of Disney employees. The problem here is that your submitted resume simply goes onto a pile that essentially becomes a black hole. Most likely, these resumes aren't actually being read, but are being automatically screened by contracted agencies to weed out applicants. An effective networker will have someone grab their resume and take it to the decision maker with a note saying "I want this one!". If you don't have that, then you're in trouble, and it becomes like pushing back the waves. Many businesses, especially in this fragile economy, rely on networking to fill positions, but this shouldn't be the only way. There has to be a way for people with no connection to the company to show their desires and qualifications.

Applying to full-time positions is not much better. Everything is a waiting game with very little certainty. I hope to one day work my way into this impenetrable fortress, but don't yet know how that will happen. For now, just crossing my fingers!

Corporate- A Smart Purchase- Electronic Arts

Disney should buy Electronic Arts. Why should they do this you're asking? Think about Disney's video game plight (in fact there's a previous post on it). So let's give the bottom line up front: Disney needs help in video games and EA is a MAJOR PLAYER with SOLID FRANCHISES and LOYAL CUSTOMERS. Think about Madden football, NBA Jam, NCAA, FIFA, NHL, Rockband, etc. These are enduring games, not one hit wonders.
  Now look at Disney's current games- Epic Mickey is the biggest one and there are noticeable problems. So lets combine the two. If Disney should spend a significant amount of money anywhere, video games are a worthy place to do so. So lets look at some numbers- EA is a publicly traded stock on NASDAQ and brings in annual revenue of $3.6 Billion.
  EA represents what Disney's video games could be, but the beauty of this is that EA is no longer making the exciting games they once were. EA needs new fresh ideas and blood, Disney needs a known game producer with solid titles, so it's a perfect match. Is the price tag expensive? Yes. Is it worth it? Definitely. Disney can become the originator of great new games and compete with the best studios in the industry.

Corporate- A Smart Purchase- Sunglass Hut

 Disney should buy Sunglass Hut. Sound strange? It should. Nearly all acquisitions made by Disney have been entertainment based and Sunglass Hut is not an entertainment company, so you may be asking, why on earth would they buy an fashion accessory company? Let's look shall we:   
The basis: Think about how the business continues to grow through acquisitions- Disney bought Pixar to keep their movies fresh and exciting, the company bought channels in Russia and India to expand their television programming internationally, etc. The point here is that to successfully expand as a company, EACH of the COMPANY PILLARS must expand independently. We've seen the studios and television acquire, the parks and resorts continue to build, but consumer products expansion has been relatively limited. So, if we look at it from that perspective, what is needed is some product category that Disney can capitalize on to expand their current operations.

1) Sunglass Hut is a company that specializes in selling different types of high-end sunglasses. These glasses typically sell for $150-$350 and are located in nearly every mall across the country. As a company, Sunglass Hut has never made much profits and after its rapid expansion was voluntarily acquired by the Luxottica Group, the world's largest eyewear company based in Italy.  Both Luxottica Group and Sunglass Hut have been hit hard by the economy with Sunglass Hut only averaging revenue of $680 million currently. So this means they are available and can be purchased relatively cheaply.

2) Since Sunglass Hut is located in every mall in the country, Disney can acquire the company, and have them continue operations as they are. Disney already runs their Disney stores in most malls throughout the country, so they have the ability and knowledge how to run locations such as this.

3) Though Disney has no experience selling sunglasses, they would still succeed in these endeavors based on their management. Disney SHOULD get into the sunglasses business...why? Well for one thing, it's a small business with minimal competitors. Second, think about where the parks are located...all in sunny and hot environments. Disney can capitalize on their own geography and sell them accordingly. Why not? They sell their own ponchos when it rains...this would put them in charge of the elements.

4) Imagine every Downtown Disney with a Sunglass Hut. If people are willing to spend $350 on glasses at the local mall then they would spend a whole lot more at a Disney resort.

5) Disney is as much a consumer products company as it entertainment and Sunglasses are an easy way for Disney to smoothly transition more into the fashion/clothing market. The beauty of this idea is that the locations are already set up nationally and the brand is already identifiable. There is very little to lose in this situation!

Parks and Resorts- Fantasyland Expansion Excitement

Who's excited for the new Fantasyland? I am, but it's not without reservations. I think most of us will miss Toontown...but because of any great attractions or restaurants, but simply because of what it was. It was an engineering triumph and a creative land that defied imagination. The new Fantasyland is expected to surpass all expectations. What's so great about it?

The Little Mermaid- I think just about everybody is relieved that Little Mermaid is finally getting its due at the parks. The success of that film along with a concept that is perfect for an attraction will ensure that Little Mermaid becomes an experience rather than just a show.

The Beauty and the Beast Castle- The drawings on this look great, including a restaurant, a gift shop, and a walk around exhibit will surely make for an exciting area. Should they have built a real attraction like they did for Little Mermaid? Possibly, but I expect this area to be wildly successful.

Snow White and the Mine Train- This is what i'm most excited about and i'm glad they added it instead of the Pixie Hollow area. Adding a little thrill to Fantasyland will help the park, much like Matterhorn Mountain does to Disneyland in California.

Dumbo x 2- When I heard that they were building a second Dumbo carousel I was a bit confused. Why two Dumbo attractions, what's the point? Couldn't they use the space for better purposes? Then I looked at the attendance figures. Dumbo is one of the longest queue attractions for guests, so adding a second one will not only look better, but will decrease wait time and flow throughout Fantasyland.

The one question I have to ask now is...what about CURRENT FILMS? Why does it take 20 years for a SUCCESSFUL film to get an attraction? Disney should look to PIXAR films for the next batch of attractions. A Wall-E attraction in Tomorrowland, a Cars attraction in Adventureland, an UP attraction in Fantasyland (Imagine the house built with the balloons similar to the Toontown Style). These ideas are all plausible, but they are also current, which helps them stay relevant.

The new Fantasyland should be very exciting, not only because of the new attractions, but because of the sizable investment. If this is successful, this will likely start a new trend among WDP&R for significant renovations at Disneyland and Tokyo Disney. This is the best alternative to combat the Wizarding World of Harry Potter...and to the winner go the spoils.