Tag: Walt Disney Company

Disney+ Plans on Launching Ad-Supported Plan in Late 2022

In an announcement made today, Disney+ said that it will launch an ad-supported subscription plan in the United States later this year, with plans to expand internationally in 2023.

Disney didn’t mention a specific launch date or any pricing in the announcement.

According to Kareem Daniel, Chairman, Disney Media and Entertainment Distribution –

Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone – consumers, advertisers, and our storytellers.  More consumers will be able to access our amazing content. Advertisers will be able to reach a wider audience, and our storytellers will be able to share their incredible work with more fans and families.

It has become very popular to add cheaper options with ads among subscription services. Last year HBO Max introduced a $10 per month plan that shaved $5 off the ad-free price, though it must be noted that in addition to adding commercials, the cheaper plan also is limited to HD content (and not 4K). Peacock on the other hand takes a more varied approach, offering a smaller selection of content with ads is completely free, with a $4.99 per month tier that offers the full library with ads, along with a $9.99 per month level that allows customers to download titles to watch offline and gets rid of (most, but not all) of the commercials.

Rita Ferro, President, Advertising, Disney Media and Entertainment Distribution added –

Since its launch, advertisers have been clamoring for the opportunity to be part of Disney+ and not just because there’s a growing demand for more streaming inventory.  Disney+ with advertising will offer marketers the most premium environment in streaming with our most beloved brands, Disney, Pixar, Star Wars, Marvel and National Geographic. I can’t wait to share more with advertisers at the Upfront.

What are your thoughts on this new version of the popular Disney+ service? Personally, I think I’ll stay with the ad-free version…at least for now.

State Farm and Disney Parks and Resorts Agree to Multi-Year Partnership

Today State Farm and The Walt Disney Company announced a new multi-year relationship covering the Disney Parks and Resorts and Disney Advertising Sales businesses.

Starting this year, State Farm will sponsor the Disney Dreamers Academy at Walt Disney World Resort, Good Neighbor Month celebrations in September, and the 2023 Walt Disney World Marathon Weekend.

State Farm will also be sponsoring two venues located at Walt Disney World Resort, State Farm Waterview Park at Disney Springs and State Farm Field House at ESPN Wide World of Sports Complex.

In a statement from Rand Harbert, chief agency, sales & marketing officer at State Farm –

State Farm is honored to team up with Disney on exciting new experiences and opportunities that are only made possible with a good neighbor and a little magic. Both brands strive to help people realize their dreams. Together, we’ll work to do good and spread joy in communities across the country.

State Farm will also be the presenting sponsor of the popular “Five Fantastic Things to Watch This Weekend” segment of the weekly D23 Inside Disney podcast and the presenting sponsor of the upcoming Disney Parks planDisney Podcast and.

Disney Legend Ron Dominguez Passes Away at Age 85

Disney Legend  and former executive vice president of Walt Disney Attractions, Ron Dominguez,  passed away early today, January 1, 2021. He was 85.

Chairman of Disney Parks, Experiences and Products Josh D’Amaro released a statement –

We are saddened to have lost a very dear member of our family, Ron Dominguez.  Ron’s contributions to Disneyland are nearly incalculable. He was well-known among the cast and community throughout his tenure at the park and continued to show his support long after his retirement, guiding and mentoring leaders, including me, for decades. I am personally grateful for all that he has done for Disney, and want to express my deepest condolences to his family on behalf of every Disney Parks cast member around the world.

Known as a “native Disneylander,” Dominguez’s family originally owned and lived on 10 acres of the orange grove-covered property that was purchased by Walt Disney for his theme park in 1954.

Ron Dominguez retired in August 1994 after 39 years of service to The Walt Disney Company.

He was inducted as a Disney Legend in 2000 and has a window on Main Street, U.S.A at Disneyland park.

Disney Announces Leadership Restructuring – Josh D’Amaro New Parks, Experiences and Products Chairman

Earlier today, Bob Chapek, the Chief Executive Officer of the Walt Disney Company, announced today that Walt Disney World President Josh D’Amaro would be promoted to his former position as Chairman of Disney Parks, Experiences and Products.

The position of Chairman, Disney Parks, Experiences and Products has been vacant since Bob Chapek moved from the role into the position as Disney CEO when Bob Iger retired. Josh has been Walt Disney World President for less than a year, taking over from George Kalogridis in September 2019.

In his new role, D’Amaro will oversee Disney’s travel and leisure businesses, which include six theme park-resort destinations in the United States, Europe and Asia; a cruise line; a vacation ownership program; a guided family adventure business; and Disney’s global consumer products operations, which include the world’s leading licensing business across toys, apparel, home goods, digital games and apps; the world’s largest children’s print publisher; Disney store locations around the world; and the shopDisney e-commerce platform.

Succeeding D’Amaro as President, Walt Disney World Resort is Jeff Vahle, a 30-year cast member who most recently served as President, Disney Signature Experiences.

“I’m incredibly proud of the new leadership team at Parks, beginning with the segment’s Chairman, longtime Disney veteran Josh D’Amaro, and his newly announced team of Jeff Vahle, Ken Potrock, Kareem Daniel and Thomas Mazloum,” said Chapek. “These talented executives played pivotal roles while leading our exceptional cast members during the largest period of growth in the segment’s history, which included the expansion of our parks and resorts around the world, the addition of new attractions including two highly acclaimed Star Wars-themed lands, and a shift to more personalized experiences for guests. And I am confident that as they assume even greater responsibility and pursue new opportunities, these proven leaders will have an even bigger impact on the future of our company.”

In response to this promotion, D’Amaro stated –

“I want to thank Bob for giving me this opportunity, and I look forward to following his record of driving innovation, value and growth at Parks.  I am honored to be able to lead this newly announced team of exceptional senior leaders as we assume our new roles and continue to deliver unforgettable experiences for our guests. Even during this challenging time, the enthusiasm of our dedicated cast members for what we do is unwavering, and my goal is to bring them back to work as soon as possible so they can continue to create that magic.”

Disneyland Resort President Rebecca Campbell will now become the Chairman of Direct-to-Consumer and International. Both Campbell and D’Amaro will report directly to Chapek.

 

Disney to Launch Disney+ November 12th

Earlier today at Disney’s 2019 Investor Day, Disney announced that they will be launching Disney+ in the United States on November 12, 2019. The subscription VOD service will cost $6.99 per month or $69.99 per year.

The streaming service will represent Disney’s most aggressive move into the video-streaming market. By pricing it well below Netflix’s $12.99 per month Disney is apparently betting that it can drive up its customer base with its mix of content that appeals to multiple demographics which includes Marvel, Star Wars, Pixar and Disney brands.

In the announcement Disney CEO Bob Iger stated, “This is our first serious foray in this space, and we want to reach as many people as possible with it.”

I don’t know about you, but I’m excited about this and they basically have my money for Disney+. November cannot come soon enough.

Ron Miller, Former Disney President and CEO Dead at Age 85

Ron W. Miller, former President and CEO of The Walt Disney Company and producer of many Disney films, has passed away at the age of 85.

Miller came to the company via his wife, Diane Disney, Walt’s daughter. The two met at the University of Southern California.  They were married in 1954.

Miller told entertainment reporter Dale Pollock in 1984, “”My father-in-law saw me play in two football games when I was with the Los Angeles Rams. In one of them, I caught a pass and Dick ‘Night Train’ Lane let me have it from the rear. His forearm came across my nose and knocked me unconscious. I woke up in about the third quarter. At the end of the season, Walt came up to me and said, ‘You know, I don’t want to be the father to your children. You’re going to die out there. How about coming to work with me?’ I did and it was a wise decision on my part.”

Ron Miller, ran Walt Disney Productions in the early to mid 80’s. Among other things, he is the progenitor of the Disney Channel and Touchstone Pictures. He also greenlit and produced films like “Pete’s Dragon”, “Tron”, “The Black Caldron”, “The Great Mouse Detective” and “Never Cry Wolf”; seriously, check the latter out if you haven’t seen it, an excellent Carrol Ballard film. He also supported a young Tim Burton by producing the original live-action “Frankenweenie”.

After being forced out of the company by Roy E Disney and Saul Steinberg, he and Diane moved up to the Bay Area and opened Silverado Vineyards. He helped Diane, along with their children, establish the Walt Disney Family Museum at the Presidio in San Francisco. He has overseen the museum and associated foundation since Diane’s passing in 2013.

Walt Disney Company Plans to Eliminate Plastic Straws by Mid-2019

The Walt Disney Company announced today that they are planning on eliminating single-use straws in all of its owned and operated locations by mid-2019.  This will include all of Disney’s theme parks with the exception of Tokyo Disneyland and Disney Sea.

Disney claims that this elimination amounts to a reduction of more than 175 million straws and 13 million stirrers annually.

Disney appears to be joining the trend that was recently spearheaded by the announcement from Starbucks earlier this month that they would phase out single-use plastic straws from its more than 28,000 stores worldwide by 2020.

In addition to the Walt Disney Company and Starbucks, McDonald’s announced in June that it would scrap plastic straws from restaurant locations in the U.K. and Ireland and replace them with paper straws, starting in September. Vail Resorts, owner of Northstar, Heavenly and Kirkwood at Lake Tahoe and sister resorts in Colorado, Utah, British Columbia, Vermont and the Midwest, has also banned plastic straws.

“Eliminating plastic straws and other plastic items are meaningful steps in our long-standing commitment to environmental stewardship,” said Bob Chapek, Chairman, Disney Parks, Experiences, and Consumer Products. “These new global efforts help reduce our environmental footprint, and advance our long-term sustainability goals.”

For guests staying at Disney hotels or traveling on Disney cruise ships, there are additional changes coming.

Over the next several years there will be a transition to refillable in-room amenities, a move that is expected to reduce plastic by 80 percent, the company estimates.  This has been rumored to be going property-wide for a while now after Walt Disney World had previously begun implementing this at some of its resorts earlier.

Disney also said they plan on reducing the number of single-use plastic shopping bags in owned and operated parks and on cruise ships, offering guests the option to purchase reusable bags.

It will be interesting how guests respond to the new straw policy.  I personally don’t care whether I have a straw with my drinks.  I only use the plastic ones Disney provides at sit-down restaurants because they toss it at my glass.  I refuse to use the paper ones because I find that they don’t last a meal and that they disintegrate in my beverage.  While I do use the plastic straws at quick-service restaurants, I’ll adapt and just not use anything.  There are people that I know that cannot drink anything with ice in it without a straw or use a straw with any drink either out of preference or necessity.  How these guests respond is anyone’s guess.  Many people have already mentioned that they’ll bring their own straws, some reusable, some not.

I personally wouldn’t be surprised if at some time in the near future Disney starts selling Disney themed/branded re-usable straws in its parks.

Equally interesting will be the implementation of the “decreased number of single-use plastic shopping bags” in the parks.  I suspect that what’s probably going to happen is purchased items won’t automatically be placed in a bag and that guests will be asked if they want a bag.  At that point they will be offered the “opportunity” to purchase a re-usable bag.  I imagine Disney will still have to use bags for guests that want purchased items transported to the front of the parks to be picked up later or if guests want their items sent back to their resort.

Okay….now it is time for my cynical take on this.

I’m sure some part of the Disney Company is doing this for the sole concern of the environment.  I have no doubt that this is contributing to the decision.  I suspect that the biggest reason for this decision is financial and if there is a PR win that comes with it…so be it.

Look at it this way…

Disney spends a lot of money having someone make straws for all of their restaurants and beverage carts.  They know that with this change people will use fewer straws provided by Disney, even the paper straws.  People will just use less of them.  This means Disney spends less money.

The same in regards to the bags.  Some guests will decide not to use bags or will purchase the re-usable bags.  Again, less money spent on plastic bags.

If in fact Disney decides to offer Disney-themed or branded re-usable straws this is a new found revenue stream.  Also, Disney mentioned that instead of plastic bags they will “offer” re-usable bags.  We all know that this means “sell” don’t we?  Again…a new revenue stream.

So, Disney spends less money, finds new revenue streams and they come off as environmentally friendly.  It’s a win-win-win situation.

 

After Over a Decade McDonald’s & Disney Partner Up for Disney-Branded Happy Meals

After more than a decade Disney and McDonald’s are back together just in time for the release of ‘Incredibles 2′.  The new partnership will bring Disney-branded Happy Meals back to McDonald’s this summer.

The two companies parted ways when childhood obesity rates were rising and there was widespread concern over calorie-laden children’s meals at fast food restaurants.

Earlier this month McDonald’s announced that it was revamping its Happy Meal menu and would offer selections that were lower in calories, sodium, saturated fat and sugar. This meant ditching cheeseburgers and chocolate milk from the kids’ menu.  These items will still be available for purchase, but McDonald’s will not list them on the menu.  The thought being that these items will be less likely to be ordered.

McDonald’s plans to promote “Wreck-It Ralph 2: Ralph Breaks the Internet” in November.

Okay…..who besides us used their kids to get the toys….errr…..’collectibles’ for themselves?  Okay…I’m not proud of it, but yeah we did.

When my kids were younger the Disney-themed Happy Meals did their job.  Depending on the toy being offered we often went weekly and sometimes checked with McDonald’s in the area to see if they had a particular toy to complete our sets.

It’s great to see the return of Disney-themed Happy Meals at McDonald’s….not necessarily for the food but for another way to get unique ‘collectibles.’

Unfortunately my kids have now grown up and are too old for Happy Meals…or are they?

What Disney Bought: A Billion-Dollar Breakdown of Assets

Now that the megadeal is done and the smoke has cleared, there’s a price tag that can be put on each asset moving from Fox to Disney. Analyst estimates vary; the numbers below are derived from RBC Capital Markets.

Disney is getting two groups of channels from Fox: FX Networks and National Geographic Channels. FX is the home of critically acclaimed, edgy series from “American Horror Story” to “Fargo”–exactly the kind of content Disney lacks. Nat Geo has just begun to broach that business with scripted fare like “Genius,” but it’s a classic brand that fits perfectly with Disney’s portfolio, and one that is already translating nicely to digital platforms like Snapchat.

That they may represent the priciest assets in the whole deal is less a reflection of their future worth and more a testament to how valuable linear channels have been over the past decade, given the billions of dollars in advertising and affiliate fees they’ve brought to Fox. But Murdoch’s willingness to give them up is proof positive that the pay-TV business is in a state of secular decline, one that will provide plenty of short-term value but limited in the long term. Digital channels like FXX and NatGeo Wild are probably going to be retired eventually.

With ho-hum franchises like “Kingsmen” and “X-Men,” Fox certainly can’t hold a candle to what Disney has accomplished as a movie studio, though there’s still value to be mined with the upcoming “Avatar” sequels and the expected commingling of their assorted superhero characters. The valuation here is probably more based on the greater successes Fox has enjoyed in TV from animation (“The Simpsons”) to comedy (“Modern Family”), where syndication has proved a veritable goldmine. TV production capabilities will be absolutely key to powering Disney’s intent to go head to head with Netflix in the streaming game come 2019.

At first blush, it might seem counterintuitive for Disney to pay so much for what is essentially a satellite-based operation, a business with dim future prospects. But there is so much more to Star than that: It not only provides more international exposure for Disney in a business where it’s under-represented, but India may be the biggest growth market on the globe. Best of all, Star has an OTT platform, HotStar, that already has over 50 million subscribers and rights to must-have sports content in the region like cricket. As Disney mounts a global OTT effort, this could become a very valuable piece of the puzzle.

With ESPN becoming something of an albatross around Disney’s neck these days, doubling down on sports might seem a strange move. But having 22 RSNs across the country that boast deals with some of the greatest franchises — like the home run-happy New York Yankees with Aaron Judge and Giancarlo Stanton — could help shore up the faltering economics underpinning ESPN. Incredible affiliate fees will be a great buffer for Disney in the short term while it mounts a risky multi-year effort around OTT that may not provide desired returns for quite some time.

The value here is mostly tied up in Sky, where Fox had been engaged in a torturous, possibly doomed effort to snap up the 61% portion of the satcaster it doesn’t own. Handing that over to Disney could help ease the regulatory path to getting a deal done; the combination of Sky and STAR will give Disney an incredible international footprint across two continents.

The rest of these investments are tied up in Endemol, a production hub that could also help TV production efforts, and Hulu, where Disney will take a controlling interest. Hulu could become a valuable contributor to Disney’s overall OTT efforts given the head start the joint venture has in this space.

Total Enterprise Value of What Disney Is Buying From Fox: $66.1 billion

Fox Debt Disney Will Assume: $13.7 billion

Sale Price $52.4 Billion

From Variety

Disney Buying Most of 21st Century Fox for $52.4 Billion

Disney is buying a huge chunk of 21st Century Fox in a deal that promises to reshape the media industry and help the entertainment giant fend off digital rivals such as Netflix.

The $52.4 billion deal will combine two of the biggest players in Hollywood.

The sale represents a remarkable turn in the career of octogenarian mogul Rupert Murdoch, who is cashing out after building a major media empire. For its part, Disney is adding even more prime entertainment assets to an already swollen portfolio as it battles upstart streaming services that have undercut the traditional cable subscription model.

In addition to 21st Century Fox’s movie studio and regional sports networks, Disney is buying cable channels FX and National Geographic. Disney will also get Fox’s stakes in Hulu and European pay-TV provider Sky.

Prior to the deal closing, 21st Century Fox will separate the Fox broadcasting network, Fox News Channel, Fox Business Network, and some national sports networks into a new company that will be spun off to its shareholders. The remaining properties would ideally in the coming years merge with News Corp., from which they split in 2013, Murdoch said on Fox Business Thursday morning.

Disney, which counts ESPN among its crown jewels, has suffered as consumers switch off their TVs and spend more hours watching streaming services such as Netflix that are distributed directly to consumers.

The deal allows Disney to expand its content, especially for streaming services. In addition to a majority stake in Hulu that it will have once the deal closes, Disney is preparing to launch two separate streaming services, one for sports and another focusing on entertainment. And it is pulling its content from Netflix in preparation for the launch. Adding Fox’s television and movie studios and the content they own means adding to the stable of must-watch content it can offer directly to consumers — and that streaming competitors can not.

There are also important international assets involved. Fox is in the midst of a lengthy regulatory review in the United Kingdom to take over the rest of the satellite broadcaster Sky it does not already own. In the announcement, Disney and Fox said “21st Century Fox remains fully committed to completing the current Sky offer and anticipates that, subject to the necessary regulatory consents, the transaction will close by June 30, 2018.” Disney would then assume full ownership of Sky as long as Fox’s transaction is completed before Disney’s.

If the deal doesn’t close, then Disney will retain Fox’s current 39 percent stake of Sky “and we imagine they’ll make their own bid for the rest of it,” Murdoch said on Fox Business on Thursday.

The deal will needs to undergo regulatory review and will likely take at least a year to close. The Justice Department, which last month sued to block AT&T’s purchase of CNN parent company Time Warner, will consider to what extent the new company could dominate the market, using its increased leverage to force cable companies and distributors to pay higher rates to carry Disney and Fox content.

News of a possible deal first came to light in early November when CNBC reported that Disney had approached 21 Century Fox about a deal to acquire the movie and television assets. That led to other companies, like Comcast, to explore an acquisition as well. But on Monday Comcast said in statements to media outlets that it “never got the level of engagement needed to make a definitive offer” and was withdrawing from the discussions.

As the two companies work to complete the deal and Disney works to integrate its new assets, Bob Iger, who had been expected to retire, will remain as chairman and CEO of Disney through 2021.

Speaking on Fox Business Thursday morning, Murdoch said he made it a condition of the deal that Iger would stay on.

“The acquisition of this stellar collection of businesses from 21st Century Fox reflects the increasing consumer demand for a rich diversity of entertainment experiences that are more compelling, accessible and convenient than ever before,” Iger said in a statement. “We’re honored and grateful that Rupert Murdoch has entrusted us with the future of businesses he spent a lifetime building.”

There had been some reporting that Murdoch’s son James, currently CEO of 21st Century Fox, would move over to Disney in a high level role and as a possible successor to Iger. But in a conference call with investors on Thursday morning, Iger said there are no immediate plans for James Murdoch.

“James and I have had a lot of conversations about the future of these companies,” Iger said. “He will be integral to helping us integrate these companies over the next number of months and during that period of time we will continue to discuss whether there is a role for him here or not.”

In a statement of his own, Murdoch said, “I’m convinced that this combination, under Bob Iger’s leadership, will be one of the greatest companies in the world. I’m grateful and encouraged that Bob has agreed to stay on, and is committed to succeeding with a combined team that is second to none.”

From CNN Money

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