Home
1997 MARKET SHARE 14.3% 1998 MARKET SHARE (TO DATE) 7.6%
THE STORY SO FAR Sony may have wrested last year's market-share crown from Disney, but the Mouse House still has plenty of clout -- even with chairman Joe Roth cutting the movie slate from 40 to 20 productions per year. Though cartoons have lost steam since 1994's The Lion King, Hercules and The Hunchback of Notre Dame were not quite the $98 million weaklings they appeared to be, thanks to Disney's unmatched ability to spin its animated characters into T-shirts, stuffed ''plush'' animals, best-selling videos and theme-park bait, and the smash Mulan appears to be reinvigorating the genre. On another front, producer Jerry Bruckheimer (Armageddon) has brought event-movie heft to the once pitiful live-action division, while Roth has shrewdly strip-mined the vaults for some solid remake hits (101 Dalmatians, Flubber).
STRENGTHS Troops who join Team Disney get unmatched marketing support. Disney's also got the strongest brand name in movie history, which means even duds have a big goodwill cushion with audiences.
WEAKNESSES For a guy whose empire is built on pleasing kiddies, Eisner doesn't play well with others. His reputation for penny-pinching and creative micromanagement scares away many name filmmakers. Respected Touchstone president Donald DeLine bailed out recently, and Disney/ABC Cable Networks prez Geraldine Laybourne pulled the rip cord as well. Meantime, Disney's acquisition of ABC isn't exactly proving a strong building block: The web's ratings collapsed last season.
CORPORATE CULTURE On the 'toon side, things are tense: The permanent staff exploded from 500 or so to more than 2,000 during the past decade, but now grosses are contracting -- and so may payrolls. On the live-action front, Bruckheimer's brand of full-tilt-macho storytelling spills over into a workplace that's evidently very testosterone-y as well as just plain testy.
THE BIG PICTURE No other studio has such a diversified set of sister companies: There's the Goliath video division, the theme parks, a new cruise line, Disney stores worldwide, ABC, ESPN, and magazines. And the company's recent deal to purchase a 43 percent stake in the search-engine/entertainment service Infoseek will give Disney a hugely enhanced presence on the Web. Now, that's a big cheese.
INDUSTRY TAKE ''They may not have the best product, but they're aggressive and smart,'' says the director. ''Their strong suit is cash flow,'' says the producer. ''Their weak suit is taste. The question is, will real filmmakers be attracted to make films there?'' Our panel gives Disney high marks for stability at the top, but, warns the agent, ''Eisner needs to pick a successor.''
WHAT'S NEXT In good part, the same old formula: More 'toons (Tarzan, Fantasia 2000), a rare animation sequel (Toy Story 2), and more live-action recycling (The Parent Trap). But Disney will also aim for Oscar glory with such projects as Beloved, adapted from Toni Morrison's novel, and A Civil Action with John Travolta. If they score major nominations, that'd be quite a switch, since Disney has had only two Best Picture candidates in the '90s.
MARKET-SHARE SOURCE: VARIETY
