Disney's CEO Michael Eisner delivered a four-part strategy for improving
the entertainment giant's slumping fiscal achievements. The Y2K plan
includes agressively attacking trouble spots, squeezing more profits out of
exsisting businesses, expanding those current businesses' affairs and
continuing development of new products. The seemingly Business 101 strategy
also includes annual savings of up to $300 million from changes in
purchasing. Eisner said cost-cutting efforts in live-action film production
trimmed investment by $400 million last year, and another $100 million in
savings is expected this year. Nonetheless, simplicity works, as
shareholders agreed with Eisner making shares rise 13/16 to 32-7/16 on the
New York Stock Exchange the day of the announcement. Some of the company's
upcoming opportunities may have perked investors ears also. Disney may get
a boost from the opening of new theme parks -- Disney's California
Adventure in 2001, DisneySea in Tokyo in 2001 and Disney Studios' theme
park at Disneyland Paris in 2002. In addition, Disney's plans to expand its
Internet presence, based in part on its film library and news and sports
assets. Eisner said Disney was especially relying on the growth of theme
parks, the Internet initiative and upcoming feature films like DINOSAUR,
KINGDOM OF THE SUN and ATLANTIS. The down year also resulted in Mickey not
giving Mikey Eisner and other top Mouse House execs their year end bonuses.
Mr. Eisner will have to get by on his US$750,000 salary this year, for he
will not get $5 million like last year or the $9.9 million he recieved the
year prior.
Rick DeMott
Animation World Network
Creator of Rick's Flicks Picks
