It was the timing of things that really confused folks in Tinseltown. Or so I hear.
I mean, here was Walt Disney Studios with the biggest hit of the summer, “Pirates of the Caribbean: Dead Man’s Chest.” It seemed like — every day that passed — this Gore Verbinksi film would blow yet another box office record out of the water.
This news — coupled with reports that “Cars” merchandise was flying off store shelves nationwide (Which took a lot of the sting out of Disney’s initial disappointment with Pixar‘s newest animated feature. Which studio execs had originally hoped would become another “Finding Nemo” -sized smash, but — instead — just became your garden-variety summer blockbuster) — should have been the cause of a great celebration.
But Mickey didn’t break out the party hats and streamers last Tuesday. Instead, the studio PR department issued a rather somber press release which first announced the departure of Nina Jacobson, the highly regarded head of the Buena Vista Motion Picture Group, then revealed that Disney would soon begin cutting staff levels at the studio.
Though the Mouse was reluctant to reveal exactly how many Disney employees worldwide would soon be let go, press releases provided by the company repeatedly mentioned a 20 – 25% staff reduction occurring over the next six months. Which could eventually translate into as many as 650 studio staffers losing their jobs.
Why — in the face of such overwhelming cinematic success, with money now literally pouring into the company’s coffers — would Walt Disney Studios chose this exact moment to swing the axe?
To be honest, one of the main reasons that Mickey made these cuts now is that the studio’s competitors — to be specific, Warner Bros., Paramount & Metro-Goldwyn-Mayer, Inc. — have all made similar overhead cuts over the past few months. And given that the Mouse is nothing if not competitive, if the competition was now taking a leaner & meaner approach toward the running of their studios … Well, Disney felt that it had no choice but to then follow suit.
That said, I guess I should also mention here that — for the past year — Bob Iger has been reviewing all aspects of operations at the Walt Disney Company. As he looked to change the multi-national corporation that Michael Eisner built into something that Iger would be much more comfortable with running.
“And who exactly has Bob been consulting with during this incredibly crucial period?,” you ask. “Who regularly has been whispering in Iger’s ear about what Disney can do to transform itself from an old media-based company into a new media-savvy operation?” … Would you believe Apple chairman Steve Jobs?
According to company insiders, even though Jobs has repeatedly said that he is not interested in a managerial role at the Walt Disney Company, and even though Steve has gone so far as to insist that he not be paid for serving on Disney’s board of directors … Make no mistake, folks. Steve is not some disinterested third party. Thanks to the Pixar acquistion, Jobs is now the largest individual shareholder of Walt Disney Company stock. And Steve has some very definite ideas about what Disney should be doing in order to send the corporation’s stock price soaring.
Which is why — via daily e-mails & phone calls — Jobs has been making Iger aware of all of his notions. And Bob … Well, the way I hear it, Iger has not only been listening to what Jobs has to say, Disney’s new chairman has also been talking with Apple’s chairman about changes that Bob is possibly considering making at the Walt Disney Company. Which is why Jobs knew that Iger was considering replacing Nina Jacobson …
Nina Jacobson, former president of
Buena Vista Motion Picture Group
Photo courtesy Google Images
… with Oren Aviv, the head of Disney’s marketing department …
Oren Aviv, the new president of
the Buena Vista Motion Picture Group
Photo courtesy Google Images
… long before any other member of Disney’s board of directors knew that this change was possibly in the works.
Jobs is said to have particularly approved of Oren (Who is said to be one of Dick Cook‘s proteges) …
Walt Disney Studio Chairman Dick Cook
Photo courtesy Google Images
… in charge of day-to-day operations at Disney Studios. Supposedly saying to the effect that ” … Now that we have a guy in charge who can actually pick pictures that he know how to market, the studio’s sure to do a lot better at the box office.”
Of course, given that Walt Disney Studios will now be cutting back its annual output from 15-21 films to just 8-10 new releases per year, one hopes that the company will now put a lot more care & thought into the making & the marketing of its motion pictures. Which will also (hopefully) eventually have a positive impact on the corporation’s bottom line.
Now where this all gets interesting is that … This cutting-back-on-the-number-of-films-that-Walt-Disney-Studios-will-be-releasing-each-year idea? That also supposedly came from Jobs.
You see, back in 1998, right after Apple CEO Gil Amelio had been ousted and Steve had been named as interim head of that corporation, Jobs killed a number of Apple products (I.E. The Newton, Cyberdog & OpenDoc). All because — in order for Apple Computer to return to greatness — Steve felt that it was important for the corporation to concentrate on doing just a few things well. So that — over time — consumers would once again have faith in (more importantly, develop enthusiasm for) Apple’s product lines once more.
This is what Jobs has supposedly been stressing to Iger lately. That Bob has to do something in order for the Disney name to mean something again. That Iger has to get people to start associating the “Walt Disney” name with quality once more. And the easiest way to do this is by first cutting back the number of films that the studio produces each year and then by making sure that all of these new motion pictures are entertaining & of the highest possible quality.
And Bob … So far, he seems to be taking Steve’s suggestions to heart. Walt Disney Studio’s output over the next 18 months will be pared back to half of what it used to be. And word has gone out to agents all over Hollywood that Disney is now on the look-out for some top quality family-friendly scripts.
Will all of these management changes, staff cuts plus this renewed emphasis on quality really have a significant impact on Disney’s box office share? Or — at the very least — result in a few new watchable motion pictures? To be honest, it’ll be a year or more before we actually know if Apple’s influence has a positive impact on the Walt Disney Company. If Iger & Jobs’ daily discussions actually bear any fruit.
But what do you folks think? Are you comfortable with the idea that Bob & Steve are now supposedly so buddy-buddy? That — even though he has repeatedly said that he has no interest in becoming the chairman of the Walt Disney Company — that Apple’s chairman is rapidly emerging as the real power behind-the-throne at the Magic Kingdom?
Your thoughts?