Business
Disney Reports Fourth-Quarter Slump.
Burbank, California-based The Walt Disney Co. reported a drop in
fourth-quarter profits. The entertainment company, which owns a
film studio, a TV network (ABC) and runs theme parks around the
world, said net income fell to $85 million, or 4 cents a share,
from $296 million, or 14 cents a share, in 1998. Disney's earnings
for its fourth quarter which ended September 30 included charges
for acquiring Internet search service Infoseek Corp. Excluding the
charges, profits fell 37 percent to $212 million, or 10 cents a
share, from the previous year. One day after Disney announced its
fourth-quarter results, Disney stock dropped 8% to $24.31. On Friday,
November 5, Michael Eisner, chairman and CEO of the Walt Disney
Co., held his first-ever conference call with Wall Street analysts
and investors to discuss the fourth-quarter report, and warned that
earnings would likely remain flat for the current fiscal year and
until sometime in 2001. Eisner outlined a strategy of trimming capital
spending, cutting costs and eliminating redundancies. These measures,
he said, should lead to about $500 million in annual savings starting
in 2001. Eisner is expected to unveil a new DVD-focused home video
strategy on Wednesday, November 10 at an analysts meeting in Burbank.
Disney support for DVD came belatedly, as they initially chose to
support the now defunct DIVX platform instead of DVD. However, Disney
has already begun releasing its classics on DVD, beginning with
Pinocchio on November 2. Disney has a huge library of animation,
including many titles, especially shorts, which have not been released
on home video for many years, or have never been released at all.
Perhaps DVD will prove to be the ideal home video platform for these
films.
To understand the financial importance of home entertainment to
The Disney Company read, "Dig
This! Millions of Disney Videos" by Zahra Dowlatabadi in
the November 1998 issue of Animation World Magazine.
Shockwave, Stan Lee Cast Web. Shockwave.com, owned and operated
by Macromedia Inc., and Stan Lee, Inc. have teamed up to bring Stan
Lee's first episodic Web animation series to life. Stan Lee, the
genius behind classic comic characters like Spider-Man, the X-Men,
and the Incredible Hulk, will create his new 5-minute "Web-isodes"
using Macromedia Flash technology. According to Lee this new venture
will allow the whole world to be part of his new creations without
limitations. This exclusive deal included Macromedia, Inc.'s $5
million purchase of Stan Lee Media Inc. Series A stock. In a continuing
commitment to bring the best games, cartoons, and music to the Web,
this deal adds one more powerful ally to shockwave.com's on-line
cartoon legion that includes Dilbert, South Park and
Dr. Katz.
Read an interview with the exuberant Stan
Lee by Michael Goldman in the July 1997 issue of Animation
World Magazine.
Iwerks Opens New London Office. Los Angeles, California-based
Iwerks Entertainment, which specializes in high-tech entertainment
systems, support services and film-based software for Giant Screen,
ride simulation and specialty venue attractions, recently opened
a sales and support office in London, England. The office, which
is located at 59 South Audley Street, will be led by John Schreiner,
Vice President, Managing Director for Europe. The company is in
the midst of a European growth period that has included the addition
of Iwerks Extreme Screen Theatres at Warner Village Cinemas, located
at Cheshire Oaks in the North of England, THI Virgin Cinemas and
Dunbartonshire Enterprises in Scotland; Iwerks Giant Screen theatres
in Portugal, Greece and Italy; and a ride simulation attraction
in Italy and two in Scotland. All of these venues are scheduled
for opening late in 1999 or in 2000. Before joining Iwerks, Schreiner
was with Bayshore Pacific Group, where he was responsible for the
development and implementation of all marketing, sales, corporate
communications and day-to-day operations for the company. He served
as the Iwerks' Hong Kong-based Vice President, helping to develop
the company's strong and growing Asian sales. For more information
about the company, visit www.Iwerks.com.
Atomfilms Morphs With Pixelwave For New Studio. Big news
came from the next-generation entertainment industry. AtomFilms
acquired PixelWave, a leader in online content development and entertainment
technologies. The acquisition has spurred AtomFilms to make plans
to form "Atom Studios," a next-generation entertainment
studio. The new company will focus on the creation of new original
Macromedia Flash and streaming media animated series and integrating
content in both online advertising and sponsorship opportunities.
"PixelWave delivers an important ingredient towards [AtomFilms]
vision of being a broader-based entertainment company. Our focus
has always been to partner with independent filmmakers and content
creators," said Mika Salmi, founder and CEO of AtomFilms. "The
formation of the Atom Studio directly benefits our independent animators
looking to increase the value of their content. There is overwhelming
demand to create online animated content for both consumers and
businesses. PixelWave is leveraging their expertise in technology
and artistic talent to deliver an exciting blend of entertainment."
In the deal, AtomFilms also obtained PixelWave's original content
for online and offline distribution.
Nick Nets New Channel. On November 10, 1999, Nickelodeon
Online announced the premiere of a new Nickelodeon channel on Apple's
QuickTime TV (QTV), a leader on the Internet for web-based video
and audio. Nickelodeon's QTV channel will bring to computers around
the world clips from Nickelodeon's new television shows, links to
nick.com and nickjr.com, and other interactive items for kids. Also,
the new NickTime TV will feature programming from Nickelodeon GAS,
the first streaming sports network for kids. "QTV is the perfect
network for Nickelodeon's kid-first style of entertainment,"
said Taran Swan, senior vice-president of Nickelodeon Online. "Through
outlets such as this, we will continue to create fun and innovative
experiences for kids, everywhere they want us to be, from radio
and print, to TV and the Internet." Even bigger kids, you know
Mom and Dad, will be able to surf some fun from Nickelodeon's classic
television network, TV Land, via QTV. Tidbits from TV Land will
include "60 Second Sitcoms," Retromercials, and TV clips.
Disney's Go.Com Logo Must Stop. On Monday, November 15, 1999,
Walt Disney Co. stopped using the green traffic light-type emblem
for its Go.com Web sites. U.S. District Court Judge Terry J. Hatter
Jr. had ruled that the logo used by Disney was too similar to the
one used by the GoTo.com search engine. In December 1997, GoTo.com
began using the logo of a green circle on a yellow background with
the letters "GoTo" in white. Almost two years later, Disney
began using a logo of a green traffic light in a yellow case with
"Go" written in white to link its various Web sites under
the Go Network heading. The timing of the ruling couldn't have been
any worse for Disney, who is still in the process of launching Go.com
as a separate Internet business.