DIS Shareholders and Stock Info ONLY

When looking just at India, Insider Intelligence estimates that Disney+ had 112.4 million viewers, or 8% of the population, in 2023, compared to Netflix’s 44.7 million viewers, or 3.2% of the population. By 2027, the firm sees Disney+’s share growing to 134.6 million, or 9% of the population, compared to 55 million viewers, or 3.8% for Netflix.
Pretty impressive numbers when compared to Netflix. Too bad they could not make turn that into real money per subscriber. I wonder if Netflix has the same per user revenue problems?

This does sound like a good combo for Disney, almost like bringing all Disney content together with Paramount's giant library. Should be a hit, eventually.
 
Pretty impressive numbers when compared to Netflix. Too bad they could not make turn that into real money per subscriber. I wonder if Netflix has the same per user revenue problems?

This does sound like a good combo for Disney, almost like bringing all Disney content together with Paramount's giant library. Should be a hit, eventually.
https://www.bbc.com/news/world-asia-india-60108294#SnippetTab
Article from Jan 2022.

Netflix: Why the world's biggest streaming service is frustrated with India​

26 January 2022

In February 2018, Netflix CEO Reed Hastings told a global business summit in Delhi that the streaming giant's next 100 million subscribers would be "coming from India" because of expanding and cheap internet.

Three years later, Mr Hastings doesn't sound so upbeat. On an investor call last week, he bemoaned the California-based firm's lack of success in India.

"The great news is in every single other major market, we've got the flywheel spinning. The thing that frustrates us is why we haven't been as successful in India. But we're definitely leaning in there," he said.

India's $2bn (£1.4bn) streaming market is fuelled by some 100 million subscriptions, according to Media Partners Asia, a media consultancy. Since launching six years ago, Netflix is sputtering here.

With an estimated 5.5 million paying subscribers, the world's biggest streamer is lagging way behind its main rivals, Disney+ Hotstar (46 million) and Amazon Prime Video (19 million), according to industry estimates.
 
Pretty impressive numbers when compared to Netflix. Too bad they could not make turn that into real money per subscriber. I wonder if Netflix has the same per user revenue problems?

This does sound like a good combo for Disney, almost like bringing all Disney content together with Paramount's giant library. Should be a hit, eventually.
https://dazeinfo.com/2024/01/11/net...rs-24-yoy-while-profit-surged-75-yoy-in-fy23/

Then 2 years later...

Netflix Decoding India’s Streaming Landscape: Revenue Grew 24% YoY, While Profit Surged 75% YoY in FY23​


Netflix India's revenue growth for FY23 is primarily attributed to its strategic decision to lower its subscription cost, prompting more Indians to sign up for the streaming platform.

Netflix is making significant strides in India’s OTT streaming market, evident from its recent filing. The streaming giant reported an impressive 24% YoY growth in its operating revenue, amounting to Rs 2,214 crore in FY23, ending March 31, 2023. What’s more appreciable is the net profit for Netflix India, which surged a whopping 75% YoY to Rs 35 crore during the same period.

Over the course of the past three years, a noticeable trend has emerged in the financial dynamics of Netflix India. During this period, the operational expenses of Netflix India have consistently exceeded its revenues, albeit with a marginal difference. This suggests that Netflix India has been strategically investing funds with a focus on acquiring new users for its platform.

-------

So, they are losing money but gaining customers in India?
 
https://www.yahoo.com/entertainment/paramount-global-races-streaming-profit-140000919.html

Paramount Global Races to Make Streaming a Profit Center – But the Clock Is Ticking | Analysis
by Alexei Barrionuevo
Thu, February 29, 2024 at 8:00 AM CST

While speculation about a sale continues to hover over Paramount Global, CEO Bob Bakish made clear on Wednesday that he is focused on solving the core problem plaguing all of Hollywood’s major studios: making streaming work before linear TV drags profits down too far.

As Paramount released its fourth-quarter results, Bakish and CFO Naveen Chopra told analysts that the struggling company — which S&P Global put on a negative credit watch last week — was a year ahead of schedule on realizing “peak losses” and could make domestic streaming profitable sooner than expected.

Revenue for three-year-old streaming service Paramount+ shot up 69% in the fourth quarter, year over year, “and we now expect to reach domestic Paramount+ profitability in 2025 — a significant milestone,” Bakish said in a statement on Wednesday.

Total revenue from its Direct-to-Consumer segment ballooned 34% to $1.87 billion in the quarter, buoyed by Paramount+ adding 4.1 million subscribers to reach 67.5 million. Overall, the platform expanded its average revenue per user (ARPU) by 31%, the company reported.
But streaming profits are another matter. In the fourth quarter of 2023, Paramount narrowed its streaming losses to $490 million, a 15% year-over-year improvement. But that’s still nearly a half-billion dollars in losses, a stunning number. For the full year, the company posted a DTC loss of $1.66 billion, compared to $1.82 billion in 2022.

Paramount is hardly alone in its streaming challenge, which has all entertainment companies racing to get ahead of the simultaneous decline of linear and the rise of streaming. Paramount+ has some of streaming’s most popular content, including the Western “Yellowstone” franchise with its hit “1883” spinoff; the video game-inspired “Halo;” and a vast library of popular archived shows, from “Freaks and Geeks“ to “Cheers” and “Beverly Hills 90210.”

Last week, Warner Bros. Discovery posted a loss of $55 million in its direct-to-consumer division for the quarter, down from a loss of $217 million. For the full year, it swung to a profit of $103 million, compared to a loss of $1.59 billion in 2022. The company said its DTC business would have modestly negative EBITDA in the first half of 2024 before turning profitable in the second half of the year. WBD is targeting $1 billion of direct-to-consumer EBITDA in 2025.

Disney narrowed its total streaming losses by 79% year over year to $216 million in its first quarter of 2024 and expects to reach streaming profitability by the end of the fiscal year.

One comparative bright spot: Paramount is finding more success in executing price hikes while continuing to scale its streaming business, while rival Warner Bros. Discovery has seen subscribers leave Max over the past year, said Jamie Lumley, an analyst at Third Bridge.

As entertainment companies scramble to realize elusive streaming profits, the scale of the linear losses in the fourth quarter — compounded by the Hollywood strikes’ production delays — has galled Wall Street.

Warner Bros. Discovery demonstrated this matter just last week. After reporting a 12% decline in TV advertising revenue to $1.9 billion — and a worse-than-expected overall quarterly loss — investors dumped the company’s shares 13%. That, despite WBD being the first traditional Hollywood studio to report a yearly streaming profit.

The complexity of combining linear assets that have not shown signs of rebounding likely contributed to WBD’s deciding not to pursue a merger with Paramount. “We’ve been hearing from our experts that the challenges in combining linear assets outweighed the benefits of the combined sports rights and streaming base,” Lumley said.

While the specter of further consolidation hangs over the entire entertainment industry, Paramount is running out of time for Bakish and his team. The company’s controlling shareholder, Shari Redstone, has indicated she is kicking the tires hard on a possible sale, and other big investors like Berkshire Hathaway, which sold off about one-third of their Paramount holdings last week, appear to be losing faith that the company’s share price has more upside.

When questioned by an analyst on Wednesday, Bakish provided little clarity on potential consolidation — but also didn’t shoot down the possibility. Bakish said the company is “always looking for ways to create shareholder value,” adding that “it’s obviously something we are focusing on.”

Sliding ad revenues, which fell 11% for Paramount in the quarter, are adding to the pressure. The strikes and a pullback on political ad spending “were clearly a headwind in Q4,” Bakish said.

All the entertainment companies have been trying to hack their way to streaming — and overall — profits by slashing costs. Disney is the furthest along on that path, saying it cut about $7.5 billion in costs in fiscal 2023. Paramount is dragging behind in aggressively looking to trim spending, with analysts recently questioning whether the company has been over-investing in Paramount+ to try to catch up to its rivals.

On Wednesday, some costs were one-offs. Paramount reported that its quarterly results included $215 million in restructuring costs, including $155 million for severance. In the first half of 2023, the company booked programming charges related to integrating Showtime into Paramount+ and to “rationalize and right-size” international operations to align with the streaming strategy.

The company anticipates booking another $1 billion or so in programming and restructuring charges in the first quarter of 2024, about $200 million related to the restructuring. Earlier this month, the company said it would lay off nearly 750 domestic positions, or about 5% of its domestic workforce.

The programming initiatives have resulted in Paramount pulling content from some of its platforms overseas, where viewers “spend nearly 90% of their time with our global Hollywood hits,” Chopra said.

Despite the challenges, Bakish sought Wednesday to celebrate some of Paramount’s recent wins — including the Super Bowl, the early box office success of “Bob Marley: One Love” and strong Golden Globes and Grammys viewer totals.

“Regardless of current market sentiment, we’re convinced that the value of our assets today, combined with the execution of our strategy as we move forward, represents a significant value creation opportunity,” Bakish said. “We are dedicated to unlocking that value.”

Still, “with revenue declines and profitability pressure, Paramount is going to be happy to have 2023 in the rearview mirror” Lumley said.

Lucas Manfredi contributed to this article.

The post Paramount Global Races to Make Streaming a Profit Center – But the Clock Is Ticking | Analysis appeared first on TheWrap.
 
Wow, good finds @clarker99 !

So in summery, no one knows how to make streaming money in India, not even the leading world wide streamer.

I'm liking this tie up with the largest company in the country more and more.
 
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Wow, good finds @clarker99 !

So in summery, no one knows how to make streaming money in India, not even the leading world wide streamer.

I'm liking this tie up with the largest company in the country more and more.
Yes, the merger is a long term play. It gets their channels, apps and content pushed first and foremost. A lot of potential but it will take time.
 
Yes, the merger is a long term play. It gets their channels, apps and content pushed first and foremost. A lot of potential but it will take time.
Agreed, I like that they are looking long term there especially when there is so much pressure for short term wins.
 
Disney Heirs Line Up Against Activist Investors

It’s a classic Disney movie plot: A family comes together to fight an enemy.

Only this time it is happening in real life, with the grandchildren of Walt and Roy Disney, who founded the company in 1923, joining forces to oppose Nelson Peltz, the activist investor who is waging a proxy battle for board seats. The heirs — nine in total, including Abigail E. Disney, who has at times been a harsh critic of Robert A. Iger, Disney’s chief executive — publicly lined up behind Mr. Iger and the current Disney board on Thursday.

“These activists must be defeated,” Roy P. Disney, 66, said by telephone. “They are not interested in preserving the Disney magic, but stripping it to the bone to make a quick profit for themselves.”

In a statement, a spokesperson for Trian Partners, the investment firm which Mr. Peltz runs, said: “We love Disney and recognize building on its rich history of delighting loyal fans is essential to its future success. Trian invests in great companies like Disney and helps them grow and thrive for the long term — and we have the track record to prove it at companies like P&G, Heinz and Mondelez.”

Mr. Disney, a grandson of Roy Disney, has three siblings: Abigail, Susan Disney Lord and Tim Disney. In a letter to Disney shareholders, which was viewed by The New York Times, they call Mr. Peltz and a handful of other activist investors encircling Disney “wolves in sheep’s clothing.”

“It is imperative that the strategy Bob Iger, his management team and the board of directors have implemented is not disrupted,” the letter says. Their cousins, grandchildren of Walt Disney, sent a letter of their own echoing those sentiments.

Abigail Disney, 64, whose 2022 documentary, “The American Dream and Other Fairy Tales,” attacked Disney for pay inequality, added by telephone, “I have my differences with Bob Iger, but I know for a fact that the worst thing that could happen to the company is Nelson Peltz.”



The proxy battles will come to a head on April 3, when Disney holds its annual shareholder meeting. (It will be conducted online.)

“I approach every day at Disney with a deep sense of respect for everything Walt and Roy created, and it is incredibly meaningful to have the support of their families,” Mr. Iger said in an email. “We are committed to protecting their legacy as we chart Disney’s path ahead.”

The Disney family has not been involved in managing the company since Roy E. Disney — the father of Abigail, Susan, Tim and Roy P. Disney — stepped down from the board in 2003. He subsequently led a shareholder revolt that resulted in Michael D. Eisner’s resignation as chief executive and Mr. Iger’s ascendance to the top of the company. Roy E. Disney died in 2009.

It is worth noting that the Disney family formerly ran an activist investment fund, Shamrock Holdings, which played a major role in the 2003 shake-up of what was also an underperforming Disney company.

Roy P. Disney said that he and his family members continue to hold shares; he declined to size the holdings, but analysts say that the Disney family has a relatively small position. He said that Disney did not solicit their help in its fight to fend off Mr. Peltz and his fellow activists. He said they decided to speak up because Mr. Peltz’s campaign reminded them of a bitter episode in 1984, when the corporate raider Saul Steinberg moved on the company. Mr. Steinberg was ultimately beaten back.

Mr. Disney and his siblings were joined on Thursday by five cousins (Walter Elias Disney Miller, Tamara Diane Miller, Jennifer Miller-Goff, Joanna Sharon Miller and Michelle Lund) who also expressed support for Mr. Iger, albeit with less emotion.

“As the family of Walt Disney, we support the Walt Disney Company management and its board of directors, and oppose the nominations put forth by Nelson Peltz,” they said in their letter. “There have been challenging times, but this current management has adjusted and grown through those challenges.”

Michelle Lund, whose mother, Sharon Disney Lund, was one of Walt Disney’s daughters, added in an email, “Disney started as a family company, and even though it has grown into such a big global business, Disney is still about family. My mother would be appalled by these activists’ attempts to force their way into the company.”
 
Disney Heirs Line Up Against Activist Investors

It’s a classic Disney movie plot: A family comes together to fight an enemy.

Only this time it is happening in real life, with the grandchildren of Walt and Roy Disney, who founded the company in 1923, joining forces to oppose Nelson Peltz, the activist investor who is waging a proxy battle for board seats. The heirs — nine in total, including Abigail E. Disney, who has at times been a harsh critic of Robert A. Iger, Disney’s chief executive — publicly lined up behind Mr. Iger and the current Disney board on Thursday.

“These activists must be defeated,” Roy P. Disney, 66, said by telephone. “They are not interested in preserving the Disney magic, but stripping it to the bone to make a quick profit for themselves.”

In a statement, a spokesperson for Trian Partners, the investment firm which Mr. Peltz runs, said: “We love Disney and recognize building on its rich history of delighting loyal fans is essential to its future success. Trian invests in great companies like Disney and helps them grow and thrive for the long term — and we have the track record to prove it at companies like P&G, Heinz and Mondelez.”

Mr. Disney, a grandson of Roy Disney, has three siblings: Abigail, Susan Disney Lord and Tim Disney. In a letter to Disney shareholders, which was viewed by The New York Times, they call Mr. Peltz and a handful of other activist investors encircling Disney “wolves in sheep’s clothing.”

“It is imperative that the strategy Bob Iger, his management team and the board of directors have implemented is not disrupted,” the letter says. Their cousins, grandchildren of Walt Disney, sent a letter of their own echoing those sentiments.

Abigail Disney, 64, whose 2022 documentary, “The American Dream and Other Fairy Tales,” attacked Disney for pay inequality, added by telephone, “I have my differences with Bob Iger, but I know for a fact that the worst thing that could happen to the company is Nelson Peltz.”



The proxy battles will come to a head on April 3, when Disney holds its annual shareholder meeting. (It will be conducted online.)

“I approach every day at Disney with a deep sense of respect for everything Walt and Roy created, and it is incredibly meaningful to have the support of their families,” Mr. Iger said in an email. “We are committed to protecting their legacy as we chart Disney’s path ahead.”

The Disney family has not been involved in managing the company since Roy E. Disney — the father of Abigail, Susan, Tim and Roy P. Disney — stepped down from the board in 2003. He subsequently led a shareholder revolt that resulted in Michael D. Eisner’s resignation as chief executive and Mr. Iger’s ascendance to the top of the company. Roy E. Disney died in 2009.

It is worth noting that the Disney family formerly ran an activist investment fund, Shamrock Holdings, which played a major role in the 2003 shake-up of what was also an underperforming Disney company.

Roy P. Disney said that he and his family members continue to hold shares; he declined to size the holdings, but analysts say that the Disney family has a relatively small position. He said that Disney did not solicit their help in its fight to fend off Mr. Peltz and his fellow activists. He said they decided to speak up because Mr. Peltz’s campaign reminded them of a bitter episode in 1984, when the corporate raider Saul Steinberg moved on the company. Mr. Steinberg was ultimately beaten back.

Mr. Disney and his siblings were joined on Thursday by five cousins (Walter Elias Disney Miller, Tamara Diane Miller, Jennifer Miller-Goff, Joanna Sharon Miller and Michelle Lund) who also expressed support for Mr. Iger, albeit with less emotion.

“As the family of Walt Disney, we support the Walt Disney Company management and its board of directors, and oppose the nominations put forth by Nelson Peltz,” they said in their letter. “There have been challenging times, but this current management has adjusted and grown through those challenges.”

Michelle Lund, whose mother, Sharon Disney Lund, was one of Walt Disney’s daughters, added in an email, “Disney started as a family company, and even though it has grown into such a big global business, Disney is still about family. My mother would be appalled by these activists’ attempts to force their way into the company.”
Awww, I was about to post that here. Oh well.

Anyway, I’m so glad nine of the Disney grandchildren are helping out with this, especially Abigail, who usually would rather slam Iger. Now if only they could help out with finding Iger’s true successor and fixing the company itself.
 
https://www.msn.com/en-us/money/com...s-bob-iger-in-shareholder-letters/ar-BB1j8ItA

Disney Family Rebukes Nelson Peltz, Praises Bob Iger in Shareholder Letters
Pair of letters from Walt Disney’s descendants could bolster Disney’s case to investors amid proxy fight

By Robbie Whelan
Updated Feb. 29, 2024 - 8:12 pm EST

Disney has won the backing of its founders’ heirs in the company’s fight against activist investor Nelson Peltz.

The descendants of Walt Disney and his late brother Roy O. Disney on Thursday released two letters addressed to Disney shareholders, backing the company and Chief Executive Bob Iger in their fight against Peltz and his Trian Fund Management. Trian is seeking two seats on the Disney board at April’s annual meeting.

“Disney is not a company that makes widgets—it makes magic,” read one of the letters, which was signed by Roy P. Disney, Susan Disney Lord, Abigail E. Disney and Tim Disney, all grandchildren of Walt’s brother, who served for decades as the financial brains behind the company. “Bob Iger, his management team, and the Board of Directors are faithful to this magic.”

They criticized Peltz and other activists in the company as “wolves in sheep’s clothing, just waiting to tear Disney apart if they can trick shareholders into opening the door for them.”

The letters could bolster Disney’s case to shareholders as investors cast their ballots for board members. As April’s annual meeting approaches, Disney and Trian have traded barbs in securities filings and videos posted online.

Disney says Peltz and Trian’s other nominee, former Disney chief financial officer Jay Rasulo, lack successful track records in the media industry necessary to offer constructive advice and are motivated by personal grudges against Iger. Trian, meanwhile, has argued that Disney needs to cut costs and that the company has lost its creative mojo.

A second letter, written with less combative language and signed by Walt Disney’s grandchildren, also opposed Peltz and praised Iger’s leadership. “Bob Iger has grown this company in a modern world, and he continues to maintain a balance of creativity and profit,” the letter said.

Since returning to Disney in late 2022, Iger has crafted a vision for the company’s future that includes a focus on streaming, theme parks, its studio and ESPN.

“We love Disney and recognize building on its rich history of delighting loyal fans is essential to its future success,” a Trian spokesman said in response to the letters. Trian has a track record of investing in great companies and helping them grow long term, he said.

Support for management from the Disney family has historically carried great symbolic importance to shareholders and fans. In 2004, after the board declined to renew his contract, Roy E. Disney, the son of Walt’s brother and a former animation studio executive, launched the “Save Disney” activist campaign along with the attorney Stanley Gold.

The campaign, which targeted smaller individual investors, eventually succeeded in toppling Michael Eisner, whom Roy E. Disney believed was mismanaging the company and tarnishing his uncle’s legacy.

Thursday’s letters are a dramatic twist in the oft-rocky relationship between the Disney family and Iger. Abigail E. Disney, Walt’s niece, co-directed a 2022 documentary called “The American Dream and Other Fairy Tales” that criticized low wages among Disney’s hourly parks workers.

In past years, she had publicly berated the company for the size of Iger’s compensation as CEO. A representative for Abigail E. Disney didn’t reply to an email seeking comment Thursday.

Thursday’s letters were written after Roy P. Disney, grandson of Walt’s brother, grew increasingly upset about Peltz’s activist campaign and rallied his cousins together to make a public statement, according to a person familiar with the matter. The grandson couldn’t be reached for comment.

Iger wrote in a statement that he approaches every day “with a deep sense of respect for everything Walt and Roy created” and said it was “incredibly meaningful” to have the support of their families.

“We are committed to protecting their legacy as we chart Disney’s path ahead,” Iger wrote.

Write to Robbie Whelan at robbie.whelan@wsj.com
 
https://finance.yahoo.com/news/medi...all-as-streaming-growth-stalls-165403151.html

Media's two-sided dilemma: TV networks in free fall as streaming growth stalls

by Alexandra Canal · Senior Reporter
Updated Fri, Mar 1, 2024, 10:54 AM CST

Legacy media is facing a two-pronged conundrum: TV networks are in decline as a dismal ad environment drags on revenue. In the meantime, streaming remains unprofitable for the majority of players as costs rise and subscriber growth stalls.

Most recently, Paramount (PARA) reported linear ad revenue slumped 15% year over year in Q4, steeper than the 12% drop expected by analysts and also worse than the 14% drag seen in the third quarter.

Warner Bros. Discovery (WBD), Disney (DIS), and Comcast (CMCSA) also saw ad revenue in their traditional broadcast and cable businesses slump this earnings season.

It's a tough spot for media companies, which have invested in expensive streaming endeavors amid the mass exodus of pay TV consumers.

Prior to the cord-cutting phenomenon, linear advertising and cable affiliate fees had consistently boosted revenues. But as ad buyers now flee traditional TV channels in favor of digital options like streaming, companies are beginning to realize that they may never see the same level of returns.

Paramount was recently put on "credit watch negative" by ratings agency S&P Global, which cited weak operating free cash flow trends amid the ongoing deterioration of linear TV and subsequent shift to streaming.

S&P argued margins and cash flows generated by streaming businesses, which are replacing the linear TV segment, will be lower in comparison due to "greater required content spending, higher technology investments, and higher marketing and subscriber acquisition costs."

Paramount's cash flow declines "have been worse than its industry peers because of its smaller scale, less business diversification, and slower direct to consumer ramp up," wrote S&P Global Ratings director Jawad Hussain.

But Hussain also highlighted that this is an industry-wide problem, writing, "Paramount is not the only media company that has experienced weakened free cash flows as it launches and grows its streaming service."

Adding on to financial pressures? The streaming boom may be over.

"The headlines have been unavoidable suggesting that the boom times are over and streaming video is in a new phase of sobriety," subscription analytics platform Antenna wrote in its quarterly "State of Subscriptions" report published on Tuesday.

Antenna revealed that subscribers to premium subscription services grew at their slowest pace since before the pandemic began, rising just 10.1% compared to the 21.6% seen in 2022.

On top of slowing growth, churn — or subscribers canceling their streaming plans — has nearly tripled since 2019 with 140.5 million cancellations in 2023, the largest drop in subscribers over the last five years.

As consumer sign-ups slow, there's increased pressure to turn profits.

Media giants have enacted mass layoffs and slashed billions of dollars' worth of costs. They rolled out ad-supported tiers, bundled their offerings, and raised the monthly prices of their respective subscription plans.

More recently, new "skinny bundles" have emerged as competitors team up to build more scale, suggesting greater turmoil ahead for the industry's status quo.

Despite all of those efforts, streaming profitability still has a long way to go. Virtually all media companies continue to lose money on that business, with the exception of Netflix and very recently Warner Bros. Discovery.

But even WBD's streaming turnaround wasn't enough to lift earnings in the fourth quarter, further highlighting the struggle of legacy media's balancing act. The company still reported a miss on both the top and bottom lines, dragged down by a drop in networks revenue and the ad market plummet.

Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
 
https://www.hollywoodreporter.com/movies/movie-news/dune-part-two-box-office-1235839660/

Box Office: ‘Dune 2’ Delivers on Promise With Big $81.5M Domestic Opening

Denis Villeneuve's sci-fi epic, starring Timothée Chalamet and Zendaya, also blew away audiences overseas to score a global start of $178.5 million.

by Pamela McClintock
March 3, 2024 - 8:22am PST

Warner Bros. and Legendary’s Dune: Part Two has delivered on its promise to reenergize the box office after a terrible early winter.

Denis Villeneuve’s sequel — sporting an A-list cast led by Timothée Chalamet and Zendaya — opened to an estimated $81.5 million in North America this weekend, double the first film and the biggest opening of the year to date. It’s a major win for Legendary in broadening the audience for its Dune franchise, and is the biggest opening to date for Villeneuve and Chalamet.

Dune 2 is likewise whipping up a sandstorm overseas, where it opened to $97 million from 71 markets for a global start of $178.5 million. (It doesn’t land in China until next weekend and Japan the week after that.) Sci-fi can be a tough sell in certain regions, including some Latin American markets, but Europe and other areas more than made up for any gaps. The U.K. led with $11.5 million, followed by France ($9.3 million) and Germany ($8.4 million).

The film also did huge business in Imax theaters, which delivered $32.2 million of the total global gross, or a notable 18 percent. In 10 markets, Imax enjoyed its biggest opening ever. Like his friend Christopher Nolan, Villeneuve shot part of the movie with Imax cameras.

Throughout the weekend, Warner Bros. tried to manage expectations and suggested Dune 2 would debut more in the $72 million to $75 million range. The sci-fi genre can be a tough sell, and Villeneuve’s films runs two hours and 46 minutes. Also, many wanted to see Dune in Imax and other premium formats.

Dune 2‘s secret sauce? A glowing A CinemaScore, compared to an A- for the first, stellar reviews and, again, glowing audience exit scores.

Heading into the weekend, tracking said Dune 2 would launch domestically to $74 million. Warner Bros., however, remained more conservative in sticking with $65 million domestically and $75 million overseas.

After enduring one of the worst early winters in years (outside of the pandemic), theaters are banking on the movie to usher in a steady stream of event fare that was delayed by last year’s labor strikes.

Theaters were unhappy when Legendary, led by CEO Josh Grode, decided to delay the movie’s release from last fall to now so that Chalamet and Zendaya would be available to publicize the film and help broaden the audience (both have sway with younger viewers). But it turned out to be the right move; one example being the attention Chalamet received for his performance in Warner Bros.’ holiday winner Wonka.

The high-profile cast also includes series newcomers Austin Butler, Florence Pugh and Christopher Walken, joining Rebecca Ferguson, Javier Bardem, Josh Brolin, Stellan Skarsgard, Dave Bautista and Charlotte Rampling.

The long game, versus opening weekend, will be the true test for Villeneuve. He’s keen on making one one more film, Dune: Messiah, while Warners has a spinoff series, Dune: Prophecy, due out on Max later this year.

Dune grossed more than $402 million at the worldwide box office in 2021 — a solid and promising number considering the pressures of the pandemic and the film’s day-and-date streaming release — but the filmmakers have far bigger expectations for the follow up.

Dune 2‘s Thursday preview number of $12 million was also more than double the $5.1 million grossed in previews by Dune in 2021, although that movie was hobbled both by the pandemic and the decision to debut it simultaneously on HBO Max (now known as simply Max). Overall, the film was the strongest preview showing since Barbie racked up $22.3 million in July 2023. That same weekend, Oppenheimer started off with $10.5 million in previews on its way to a domestic debut of $82.5 million (Barbie rocketed to $162 million). The preview gross includes $1 million tacked on from an earlier Imax fan event.

While Dune 2 took up most of the attention, there was business to be had.

Elsewhere, Paramount’s biopic Bob Marley: One Love dropped just 45 percent in its second weekend to $7.4 million for an early domestic total of $82.8 million. Overseas, it’s also still singing loudly, grossing $63.3 million to date for a global tally of $146.1 million.

Lionsgate’s faith-based pic Ordinary Angels followed in third place with $3.8 million for a 10-day domestic total of $12.6 million. Another faith-based offering, The Chosen, also continued to impress. Fathom is previewing season 5 in theaters before it airs in the home, and this weekend’s offering of episodes 7 an 8 brought in $3.15 million for a running total north of $23 million.

Sony’s doomed Madame Web barely beat The Chosen with $2 million. The superhero pic’s domestic gross is just north of $44 million.

At the specialty box office, Searchlight’s Oscar contender Poor Things celebrated crossing the $100 million mark at the global box office, which is no easy feat in the art house space. Through Sunday, the film’s worldwide total is an estimated $104.6 million, including $33.6 million domestically and $71 million overseas.
 
https://finance.yahoo.com/news/activist-blackwells-says-strategy-transparency-135901686.html

Activist Blackwells says strategy, transparency issues hampering Disney
Reuters
Updated Mon, Mar 4, 2024, 8:37 AM

(Reuters) - Walt Disney investor Blackwells Capital said the lack of a strong content and technology strategy as well as governance and transparency issues were hampering the entertainment giant's performance, as it attempts to get board seats at the company.

Blackwells, one of the two activist shareholders seeking Disney board seats, said last week the company needed to come up with an artificial intelligence (AI) strategy, and that such a move could offer a strong boost its stock.
"Disney's board lacks critical bandwidth and expertise in content, media, technology and governance best-practices," Jason Aintabi, investment head of Blackwells, said in a presentation published on Monday.

Disney, shares of which were roughly flat Monday, did not immediately respond to a request for comment.
Nelson Peltz's Trian Fund Management is also campaigning for two board seats at Disney.

Blackwells has largely backed Disney CEO Bob Iger's leadership, but it recently laid out potential changes, including a possible breakup and spinning off its park and hotel assets into a real estate investment trust.

Last week, the grandchildren of Roy and Walt Disney, founders of Walt Disney Co, backed CEO Iger and the board, while opposing activist investors targeting the company.

They warned Disney shareholders in an open letter about the threats posed by "self-anointed" activist investors, calling them "wolves in sheep's clothing" waiting to tear apart the company.

(Reporting by Akash Sriram in Bengaluru; Editing by Shinjini Ganguli)
 
https://finance.yahoo.com/news/trian-issues-white-paper-walt-200000700.html

Trian Issues White Paper on The Walt Disney Company
Mon, Mar 4, 2024, 2:00 PM CST


NEW YORK, March 04, 2024 (GLOBE NEWSWIRE) -- The Trian Group,1 which beneficially owns $3.5 billion of common stock in The Walt Disney Company (NYSE: DIS), today issued a comprehensive assessment of Disney that links years of failed oversight concerning governance, executive compensation, succession and strategy by Disney’s Board of Directors to the Company’s chronic underperformance. This White Paper also provides information about the qualifications and insights of Trian’s two nominees for the Board and outlines initiatives that Trian believes the Board should consider to improve the governance and performance of the Company. The Disney annual meeting will be held on April 3, 2024.

Trian’s White Paper is available at: https://restorethemagic.com/wp-content/uploads/2024/03/Disney-Trian-White-Paper-2024.pdf

Trian said:

“We love Disney and believe it is one of the most advantaged diversified media companies with brands, assets and loyalty that enable it to delight consumers and perform for shareholders. However, we believe Disney has lost its way in the past decade, making strategic and operational missteps that have resulted in deteriorating financial performance2 and poor absolute and relative stock returns3, costing shareholders billions.4 We believe the root cause of Disney’s chronic underperformance is a Board that lacks focus, and accountability and has consistently failed to fulfill its essential duties. At this critical point for Disney, we believe shareholders need independent directors who have the dedication, shareholder mindset and track record necessary to help unlock the Company’s immense creative and financial potential. In our view, change is desperately needed.

Following rigorous analysis, we have outlined a number of areas in which we can bring fresh thinking, including: (i) enhancing corporate governance and accountability; (ii) accelerating media profitability; (iii) reviewing the creative engine, and (iv) clarifying Disney’s strategic focus. We are confident that with Nelson Peltz and Jay Rasulo in the Disney boardroom, working collaboratively with CEO Bob Iger and Disney’s other directors, we can restore the magic and generate returns that shareholders expect and deserve.”
 
https://www.hollywoodreporter.com/b...-disney-morgan-stanley-conference-1235843133/

Bob Iger Pushes Back on Marvel Fatigue, But Says Disney Quietly Canceled Movies

The Disney CEO was interviewed at a Morgan Stanley conference in San Francisco on Tuesday, where he called the Nelson Peltz-led proxy fight a "distraction" for the company.

by Alex Weprin
March 5, 2024 - 11:13 am PST

Disney CEO Bob Iger is pursuing a major overhaul of the company’s film output.

In the midst of something of a strike-induced box office drought, and after a challenging year for Disney’s film slate, the executive said Tuesday that “we’re doing a lot” to turn around Disney’s feature film business it “hit on hard times that needed addressing.”

Iger, speaking at a conference hosted by Morgan Stanley in San Francisco Tuesday, was pressed about what he is doing to turn the film business around.

“You have to kill things you no longer believe in, and that’s not easy in this business, because either you’ve gotten started, you have some sunk costs, or it’s a relationship with either your employees or with the creative community,” Iger said. “It’s not an easy thing, but you got to make those tough calls. We’ve actually made those tough calls. We’ve not been that public about it, but we’ve killed a few projects already, that we just didn’t feel were strong enough.”

Iger added that he has been “spending a lot of time with the creators, watching these films, giving detailed notes in these films, engaging in a respectful process that results in improvement.”


And he pushed back on the idea of superhero or franchise fatigue, saying that it was “not an accident” that Marvel’s first 33 films generated just under $30 billion at the box office.

“A lot of people think it’s audience fatigue, it’s not audience fatigue. They want great films. And if you build it great, they will come and there are countless examples of that. Some are ours and some are others. Oppenheimer is a perfect example of that. Just a fantastic film,” Iger said. “Focus is really important. We reduced the output of Marvel, both number of films they make, and the number of TV shows, and that really becomes critical, but I feel good about the team. I feel good about the IP we’re making. I talked about a lot of the projects. We look years ahead, really. And it’s iterative.”

“Not only do you look at the films you’re making, you you look at every part of that process, who the directors are, who’s being cast, reading scripts, I personally watch films three to five times with the team and just create a culture of excellence and respect which is really important with the creative community,” he added. “And again, the track record speaks for itself.”

On a related note, Iger also touted Disney’s 2024 film slate, calling the upcoming Kingdom of the Planet of the Apes “one of the better films in the franchise,” the upcoming Inside Out and Moana sequels, and also the big Marvel release of the year, Deadpool & Wolverine, which Iger predicted “will be one of the more successful Marvel movies we’ve had in a long time.”

Iger’s comments come amid a pivotal moment for Disney, with a pair of activist shareholders — Nelson Peltz’s Trian and Blackwells Capital — each seeking board seats.

During Disney’s last earnings call, Iger announced a slew of projects and deals hoping to push back against the activists, including a partnership and $1.5 billion investment in Epic Games that will bring Disney franchise IP to the Fortnite universe; a surprise Moana sequel, which will hit theaters this year; a deal to bring Taylor Swift’s Era’s Tour movie to Disney+ next month; and a fall 2025 launch date for ESPN’s direct-to-consumer flagship service.

At the Morgan Stanley conference, Iger said that “this campaign is in a way designed to distract us, to take our eye off all those balls that we talked about.”

“It’s that simple. And I am working really hard to not let this distract me,” he added. “Because when I get distracted, everybody who works for me gets distracted. And that’s not a good thing.”
 
https://www.yahoo.com/entertainment/bob-iger-plans-leverage-epic-200438210.html

Bob Iger Plans to Leverage Epic Games Deal to Build Disney Universe That Lives ‘Side by Side to Fortnite’
Alexei Barrionuevo
Tue, March 5, 2024 at 2:04 PM CST

Disney CEO Bob Iger said that the entertainment giant will leverage its $1.5 billion deal with Epic Games to build a “Disney universe” akin to a metaverse where consumers can engage with Disney IP, including from Marvel, Pixar and “Star Wars.”

Speaking at the Morgan Stanley Technology, Media & Telecom conference in San Francisco on Tuesday, Iger said the company did the deal last month because it was underrepresented in video games and that he was stunned to learn that Gen Z and Gen Alpha kids were spending about 30% of their screen time playing games. Epic is the studio behind the massively popular free-to-play cross-platform game “Fortnite.”

“We had a decent licensing business, the Spider-Man game and Sony, one of the most successful games of 2023,” Iger said. “I thought we could do more. And as we studied it, we were really impressed with what Epic had been able to accomplish with ‘Fortnite.’”

Under the deal with Epic, Disney will have a commercial agreement to build a “Disney universe” where consumers can create their own games from the studio’s IP and play games Disney and Epic create. Players can also buy digital goods. Epic, Iger said, will build the ‘verse at its expense. In exchange, Disney agreed to take an equity position in Epic.

The new universe is expected to launch “in a few years,” Iger said.

“We’re calling this a universe, just so that we don’t use the word metaverse,” he said. “But this will be a deep, rich, fully immersive, engaging experience for consumers. Not only does it speak to how young consumers are spending their time, but it speaks to basically how much more we can leverage our IP in a completely different medium.”

Disney already has a presence in Fortnite, but with their Epic deal, “There will be an interoperability to it.” If consumers “buy digital goods in one, you can port it into the other and so on.”

The post Bob Iger Plans to Leverage Epic Games Deal to Build Disney Universe That Lives ‘Side by Side to Fortnite’ appeared first on TheWrap.
 
https://www.hollywoodreporter.com/b...-disney-shareholder-april-meeting-1235843640/

Bob Iger’s Next Big Battle

The company’s annual meeting April 3 will prove pivotal as the CEO and his activist opponents maneuver for shareholder votes.

by Alex Weprin
March 6, 2024 - 6:18am PST

Corporate board room proxy battles can be frustratingly unpredictable. Even a company confident in its leadership and strategy cannot afford complacency when someone is seeking to depose board directors. It’s something Disney CEO Bob Iger knows a thing or two about.

The last time Disney faced a full-fledged proxy fight was 20 years ago. More than 40 percent of shareholders voted against the Disney board and its then-CEO, Michael Eisner. The executive lost his chairman title within hours and told the board of his plans to step aside as CEO in mere months.

A turning point in that battle, as Bob Iger recalled in his 2019 memoir, The Ride of a Lifetime, was the decision by the influential Institutional Shareholder Services (ISS) to back the activists. “I remember thinking that it was like we’d entered a conventional war … and now another party had launched nuclear weapons,” Iger wrote of learning about the ISS recommendation, noting that the organization “typically influences more than a third of the voting shares in a proxy election.”

Disney is once again facing an activist proxy fight at a moment of weakness, with Nelson Peltz’s Trian Partners (backed by former Marvel chairman Ike Perlmutter’s $3 billion or so of Disney stock) aiming to put Peltz and former Disney CFO Jay Rasulo on the board, and another activist, Jason Aintabi’s Blackwells Capital, nominating three directors of its own. ISS is expected to issue its recommendation for this year’s Disney proxy filing about two weeks ahead of the annual meeting April 3, and observers will be paying close attention in the event (however unlikely) they decide to go nuclear again.

And there are other variables this year. A startup, Shareholder Vote Exchange, lets retail shareholders who are ambivalent about the proxy sell their votes to others. The firm says that a party has bid $100,000 for 500,000 Disney proxy votes. To buy 500,000 shares at market prices would cost more than $56 million, as of this writing, but the votes can be acquired for pennies on the dollar. There is precedent to suggest that such votes could make a difference. In Peltz’s 2017 activist campaign against Procter & Gamble, the preliminary results saw Peltz win by just 42,000 votes.

“It’s uncertain whether that many votes will be enough to swing the outcome one way or another, especially given the involvement of multiple other activists such as Blackwells, ValueAct and Ancora,” says Steven Xu, co-founder and COO of the Shareholder Vote Exchange. “But the dueling sides don’t have much of a choice at this point. Trian owns billions of dollars worth of Disney stock, and Bob Iger is looking to reassert his authority and define his legacy at Disney.”

Disney’s 2024 proxy fight shares some superficial similarities from the battle 20 years earlier, with a weakened Walt Disney Company facing technological change; Questions about succession planning (for Eisner in 2004, Iger in 2024); A high-profile activist investor (Roy E. Disney in 2004, Peltz and Perlmutter in 2024); A third-party looking to insert themselves into the fight (Brian Roberts and Comcast in 2004, Aintabi and Blackwells Capital in 2024).

But this year’s proxy fight is radically different from 2004. This time, the Disney family has unified around Iger, including Roy P. Disney, as well as Abigail Disney (who once compared Iger to Ebenezer Scrooge).

Now, the children of Roy E. Disney have signed a letter calling Trian and Blackwells “wolves in sheep’s clothing, just waiting to tear Disney apart if they can trick shareholders into opening the door for them.”

And while the wild card in 2004 was concern about a hostile Comcast takeover, this time around Blackwells seems to be spending as much time attacking Peltz and Trian (noting Peltz’s $600,000 security bill from his role on the Wendy’s board, and referring to fellow Trian nominee Rasulo as a “disgruntled former employee”) as it is challenging Iger and Disney. Blackwells has also criticized ValueAct, an activist firm that has aligned with Disney’s board in the proxy fight: “We do not believe that a company like Disney… should be sharing information with one shareholder and not all the other shareholders,” Aintabi said in a video about that deal.

And while Blackwells has released a number of presentations about Disney, combining some unlikely suggestions like spinning off real estate into a real estate investment trust, or REIT (a Wall Street innovation that’s taken off with Las Vegas casinos), or leaning into AI and spatial computing beyond its partnerships with Apple and Meta, Trian has chosen to mostly criticize Disney’s leadership and financial performance, saying that the board is the “root cause of underperformance” of Disney’s stock. On March 4 it did lay out some ideas to turn the company around, including the idea of “right-sizing” the finances at the Disney studio and linear TV networks, and scaling back ESPN’s DTC plans.

Blackwells also suggested using generative AI to create new Disney characters, with a source dryly noting that Blackwells slide decks appear to use AI-generated images with characters that bear some resemblance to Disney characters like Donald Duck, and misspelled words like “subscribber.”

While Disney’s stock price has rebounded after the Feb. 7 earnings call, in which Iger rattled off a slew of new projects, like a Moana animated sequel, a $1.5 billion investment in Epic Games and the acquisition of Taylor Swift’s Eras Tour movie for Disney+, Trian has remained dismissive. Peltz called the news a “throw spaghetti on the wall and see what sticks” strategy.

Beyond the earnings call, Disney has been aggressive in releasing its own letters to shareholders, and using Professor Ludwig Von Drake (he’s Donald Duck’s uncle) to help educate Disney’s retail shareholder base about the vote, seeking to ensure that it does not suffer a repeat of 2004.

A few months after that proxy fight, Roy E. Disney was the keynote speaker at an event hosted by The Council of Institutional Investors, and he took the opportunity to gloat, comparing Eisner to “a third world dictator of a once great country,” and touting the results of his activist campaign as being “unprecedented in the annals of American history.”

Peltz has run more than a few successful proxy fights, mostly in the consumer goods space, and while he does not have the support of the Disney family, he does have some high-profile friends (another Bob Iger nemesis, Tesla founder Elon Musk, was pictured Feb. 3 standing alongside Peltz at the Los Angeles premiere of Lola, directed by Peltz’s daughter Nicola Peltz Beckham).

But Disney’s share price is rebounding, and its corporate strategy is coming together (putting aside the succession issue). Morgan Stanley’s Ben Swinburne, in a March 3 note titled “realistic optimism,” wrote that the firm was raising its price target on Disney “to reflect a more rapid and confident path to streaming profits in the quarters and years ahead.”

And unlike in 2004, when a majority of Disney’s own employees voted to withhold their votes for Eisner (as recounted in the book DisneyWar), there’s little question whose loyalty they share this time around.

So while the ISS recommendation is still uncertain, and the ability for retail shareholders to sell voting rights is a new wrinkle, there’s reason to believe this proxy fight won’t be like the last one, though the sheer number of players on the field mean that the ending remains unwritten.

Speaking at a Morgan Stanley conference on March 5, Iger seemed exasperated by the proxy fights, noting that managing a company with as many different business lines as Disney “takes not only a significant amount of knowledge, but a tremendous amount of time and focus.”

“And this campaign is in a way designed to distract us, to take our eye off all those balls that we talked about … It’s that simple,” Iger said. “And I am working really hard to not let this distract me. Because when I get distracted, everybody who works for me gets distracted. And that’s not a good thing.”
 
https://www.yahoo.com/entertainment/sean-bailey-disney-legacy-reanimation-140000855.html

Sean Bailey’s Disney Legacy: Reanimation and Later, Exhaustion | Analysis
by Drew Taylor
Wed, March 6, 2024 at 8:00 AM CST

In October of 2010, at a lavish and intimate New York City press event dubbed the Walt Disney Studios Holiday Showcase, Disney treated studio personnel, press and tastemakers to a screening of new footage, including from “Tron: Legacy.”

Introducing the footage was Sean Bailey, the movie’s charismatic producer who had been appointed president of Walt Disney Studios Motion Picture Production 10 months earlier.

The event — showcasing the long-awaited sequel to a groundbreaking Disney classic made, like the original with cutting-edge technology — was a perfect introduction to Bailey, whose tenure at the company would be defined by mining beloved IP with high-tech upgrades.

He’s now set to exit the Walt Disney Company, bringing an end to a nearly decade and a half tenure that at once reinvigorated and exhausted the studio’s live-action output. He had proved keenly able to accomplish things that eluded previous regimes, plumbing Disney’s past as a way of preserving its future. But in the end, Bailey was a victim of his own oversized success, as the studio’s run of wildly successful live-action remakes started to go bust.

“Sean Bailey was a champion who was saddled with the thankless task of supervising the animation remakes that managed to damage the legacy titles and diminish the brand,” a filmmaker who worked with Disney during Bailey’s tenure told TheWrap.

It seemed like a good idea at the time.

Once upon a time…​

A few weeks into Bailey’s tenure, the studio released “Alice in Wonderland,” a live-action version of the studio’s 1951 animated classic festooned with elaborate visual effects and released in eye-popping 3D mere months after “Avatar” had become a phenomenon. A homecoming of sorts for director Tim Burton, who had started his career in the studio’s animation department, the movie was a huge hit and made $1 billion worldwide.

Disney had experimented in the 1990s with live-action remakes to their animated titles, most successfully with a John Hughes-penned “101 Dalmatians” starring Glenn Close. But it had been 10 years since the last attempt. The success of “Alice in Wonderland” opened new opportunities, as Bailey turned to the company’s vault for an entirely new cinematic universe. He didn’t greenlight “Alice in Wonderland,” but he turned it into a certifiable formula.

“We thought if Iron Man and Thor and Captain America are Marvel superheroes, then maybe Alice, Cinderella, Mowgli, and Belle are our superheroes, and Cruella and Maleficent are our supervillains,” Bailey told me in 2017 of his approach to the live-action remakes that became a staple of the studio throughout the 2010s. “Maybe if there’s a way to reconnect with that affinity for what those characters mean to people in a way that gets the best talent and uses the best technology, that could become something really exciting. It feels very Disney, playing to the competitive advantages of this label.”

After “Alice,” a plan came together — there would be a “Sleeping Beauty” live-action remake told from the point of view of the self-described Mistress of Evil, “Maleficent” (played by Angelina Jolie). Tim Burton was courted to direct; when he turned it down, Disney went for his production designer Robert Stromberg. It was a borderline-disastrous shoot, with an additional director brought in for reshoots and a storyline that so radically changed that journalists who attended a set visit were banned from reporting what they saw. The movie nevertheless made almost $800 million worldwide and inspired a sequel years later.

Bailey was going to follow this “fractured fairy tale” approach — telling a familiar story from a different angle — for a planned version of “Cinderella” where Cinderella was left for dead in a forest, forced to befriend a rogue knight and stop a wedding that was of political importance to the kingdom. But Disney scrapped that after much development and instead opted for a more faithful remake, hiring Kenneth Branagh to give it some weight. It made more than $500 million and proved that a live-action remake of a Disney animated classics wasn’t just a fluke — it was now a franchise.

There were some tenuous moments as Bailey tried to mount this new array of live-action features. Oftentimes, he and his team wouldn’t communicate which animated properties they were planning to adapt, which chafed at the folks at Walt Disney Animation Studios, several Disney insiders told TheWrap. These wounds would heal, with Bailey and his team not only alerting the animation studio but also relying on them heavily, after the animation teams’ feelings were known.

The “Alice in Wonderland” sequel, “Alice: Through the Looking Glass,” shows how closely they had aligned. Not only were filmmakers given access to the vast Disney animation archive but a single merchandise push celebrated both the new movie and the animated classic. Internally, it was known as the “Uber Alice” approach.

Other live-action adaptations followed — Jon Favreau’s technically inventive “The Jungle Book,” another “Alice,” and a nearly shot-for-shot remake of “Beauty and the Beast” that cost a fortune (at the time it was the most expensive musical Hollywood had ever produced, with a $255 million budget) and earned even more ($1.27 billion worldwide).

By 2019, Bailey and his team had released five live-action adaptations of Disney animated classics — two of them made over $1 billion (“Aladdin” and “The Lion King”), one disappointed (Tim Burton’s take on “Dumbo,” significantly rejiggered at the 11th hour and leaving Burton with a bad taste in his mouth) and one debuted alongside the company’s premiere direct-to-consumer streaming platform, Disney+ (“Lady and the Tramp”).

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The Resurrectionist​

While live-action remakes of animated Disney classics largely defined Bailey’s tenure, he was also able to return to the past for other properties.

In 2004, Disney purchased the rights to the Muppets characters but didn’t exploit them until Bailey arrived. Under Bailey’s leadership, Disney produced two theatrical movies, although neither hit big – 2011’s “The Muppets” (worldwide gross: $165 million) and 2014’s “Muppets Most Wanted,” which cost more than the first film ($50 million vs. $45 million) and made considerably less ($80.4 million).

He also managed to get a sequel to “Mary Poppins” into theaters, something that the company had been attempting, in earnest, since the late 1980s. “Mary Poppins Returns” finally came out in 2018, with Emily Blunt in the lead and Lin-Manuel Miranda in his first major role following his “Hamilton” success. It made almost $350 million worldwide.

Bailey ticked off more boxes from the list of things nobody else had achieved at the Mouse House. He fulfilled Walt Disney’s dream of adapting Frank L. Baum’s “The Wizard of Oz” books with the Sam Raimi-directed “Oz the Great and Powerful” in 2013, although its nearly $500 million gross wasn’t enough to follow through with a planned theme park expansion. He had Steven Spielberg direct a movie for Disney (“The BFG”), made a film that involved Walt Disney himself (“Saving Mr. Banks”) and finally got a starry version of “Into the Woods” to the big screen after more than 15 years of development at various studios.

He elongated the “Pirates of the Caribbean” franchise after the conclusion of the initial trilogy to the tune of another $1 billion (“On Stranger Tides”) and $750 million (“Dead Men Tell No Tales”), respectfully. And he continued to give the go-ahead to so-called “brand deposit” movies — projects that might not make a ton of money but contribute to the value of the company and the Disney name, like the inspiring baseball story “Million Dollar Arm” and the real-life chess underdog film “Queen of Katwe.”

There were bumps along the way for sure, including Gore Verbinski’s costly “The Lone Ranger” (which was given the go-ahead by a previous regime), the live-action debut “John Carter” (ditto) from “Finding Nemo” director Andrew Stanton and Brad Bird’s George Clooney-led “Tomorrowland.” The latter was a high-concept sci-fi adventure that was meant to open up a new universe of interconnected stories and enliven the futuristic section of the Disney parks. “Tomorrowland” grossed $200 million against a budget around $190 million. But it was proof that Bailey wasn’t always interested in the easy lay-up, and supported artists who he believed in on projects that colored outside the lines.

In Burbank, Bailey’s office is lined with framed photographs from the movies he’s produced. He asks the filmmakers to deliver him a single image that speaks to the entire film. Maybe it was from a particularly arduous sequence. Maybe it’s just one that makes them smile. But they all hang, beautifully arranged, in his office. The only person to buck convention was Bird, who instead gave Bailey three images from “Tomorrowland.”

Given that the film underperformed in a pretty big way, it’d be easy to imagine an executive hiding that one in a drawer. But Bailey didn’t retrench. He put them up on the wall, where the framed photos stayed to this day.

Trouble in the Magic Kingdom​

2019 was a notable year in Bailey’s tenure not only because Disney was increasing the output of the animation-to-live-action machine but because that was the year that Disney+ went live. Bailey was supervising a suite of new features for the service, most of which have now been removed (things like “Stargirl,” “Timmy Failure: Mistakes Were Made” and “Flora and Ulysses”).

The pandemic further complicated the ramp up, with several live-action Disney titles originally meant for theatrical exhibition (like “The One and Only Ivan” and “Artemis Fowl”) going straight to Disney+. Others, like “Jungle Cruise” (Bailey’s attempt at extending the based-on-a-theme-park ride concept that made “Pirates of the Caribbean” such a sensation) and live-action adaptation “Cruella,” premiered simultaneously in theaters and on Disney+ with a surcharge.

Disney’s live-action “Mulan,” which gained unwanted controversy for the decision to shoot in an area of China known for the persecution of the country’s Uighur minority, was another one of these hybrid releases. It made less than $70 million theatrically on a budget of more than $200 million. While much of “Mulan’s” underperformance can be attributed to outside forces (the controversy, the pandemic), it was also clear that something was amiss. Instead of hewing close to the goofy, charming, semi-musical historical fantasy of the animated feature, this was a straightforward kung fu epic.

Following a pair of direct-to-streaming efforts that barely registered (Robert Zemeckis’ “Pinocchio” and David Lowery’s wonderful “Peter Pan & Wendy”), Disney (and Bailey) thought it had an ace up its sleeve: “The Little Mermaid.” It was an iconic Disney title that helped kick off the animation studio’s creative renaissance. It should’ve been a slam dunk.

At the world premiere in Los Angeles last year, director Rob Marshall said he had been toiling away on the movie for more than five years. They had shot (and re-shot) during the pandemic and were finally here. The movie cost more than $200 million to produce. Internally, Disney thought it could crack $1 billion worldwide. It wound up with $569 million — a far cry from the halcyon days of “Beauty and the Beast” and “The Lion King.”

The ride, it appeared, was over.

Faced with diminishing returns and a Disney vault of IP to mine that was getting emptier, a fresh approach was needed.

What now?

A number of live-action adaptations will still see the light of day. A “Lion King” prequel/sequel called “Mufasa: The Lion King,” directed by Barry Jenkins, is out this Christmas. There’s a new “Snow White” out next spring that enlisted Greta Gerwig to work on the script. And a “Lilo & Stitch” remake from “Marcel the Shell with Shoes On” director Dean Fleischer Camp is currently in production. Plus, there’s the live-action “Moana,” with Dwayne Johnson (Bailey’s partner in Teremana Tequila) reprising his role as Maui, scheduled to shoot later this year.

Beyond that, things get hazier. Bailey had lined up a “Cruella” sequel (with Emma Stone set to return), a live-action “Hercules” from Guy Ritchie, and a version of “The Aristocats” directed by Questlove. Additionally, TheWrap has exclusively learned that Sarah Polley is no longer directing a new version of “Bambi.” It’s unclear if the project will move forward now that Bailey is gone.

Iger said on Tuesday at a Morgan Stanley investor conference that Disney had “killed a few projects already that we just didn’t feel were strong enough.” Could corporate mandates have offed Bambi’s mother this time?

David Greenbaum will replace Bailey under a mandate from Iger to make fewer, better movies. A former co-head of Searchlight Pictures, the indie division of 20th Century, Greenbaum oversaw major awards players like “The Shape of Water,” “12 Years a Slave” and “Slumdog Millionaire.” In his new role, he will be president of Disney live-action and 20th Century Studios.

This year Greenbaum is responsible for “Poor Things,” which racked up 11 Oscar nominations and was widely praised as one of the year’s very best movies. Internally, Disney was wowed by the film – it’s visually dazzling, emotionally resonant and actually says something about the world (through a prism of fantasy and sci-fi).

Before he left, Bailey was planning to do more theme park-based projects. In addition to a “Jungle Cruise” sequel, Bailey was looking to revive the “Pirates of the Caribbean” franchise (“Last of Us” creator Craig Mazin was working on a new take). Over the years, scripts based on the Matterhorn, Space Mountain and Tower of Terror (with Taika Waititi attached as director) had been commissioned, with little movement. Will they finally see the light of day? Or will Greenbaum take things in an entirely different direction?

Bailey was never a contender to take over for Bob Iger, who is still supposedly retiring in 2026. Instead, he had to look after his own Magic Kingdom, full of the flesh-and-blood embodiments of everybody’s favorite princesses. And, somewhat ironically, he will return as a hands-on producer on “Tron: Ares,” the long-awaited third film in the series, currently filming in Vancouver.

Bailey’s impact on the studio — for better and worse — cannot be overstated. He combed through the company’s back catalog and came out with an entirely new type of live-action Disney movie that sustained the company for nearly a decade. Even if the gambit had run its course by the time he stepped down, it still made an impact. Rival studios DreamWorks and Universal, for example, are currently at work on a live-action “How to Train Your Dragon” adaptation.

But hey, every fairy tale has to end at some point, right?

The post Sean Bailey’s Disney Legacy: Reanimation and Later, Exhaustion | Analysis appeared first on TheWrap.
 

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