Company Town

The business behind the show

Category: Disney

Disney offers its support for Fox in battle with Time Warner Cable

December 30, 2009 | 10:27 am

Walt Disney Co. is weighing in on News Corp.'s battle with Time Warner Cable over so-called retransmission consent fees for the Fox-owned television stations.

The parent of cable networks ESPN and Disney Channel as well as broadcast network ABC said in a statement to Company Town that "cable operators pay only about 25 dollars a month for all of the programming on the basic and expanded basic tiers, and they sell this to consumers for some $60 to $70 dollars." 

Disney went on to say that given "the fact that cable operators use these video offerings to sell even higher-margin broadband and phone services, blaming the programmers for monthly cable bill increases is just plain wrong."

Disney's ABC is watching closely how Fox's battle with Time Warner Cable plays out. Fox is trying to get as much as $1 per subscriber, per month, from Time Warner Cable to carry its local TV stations, including KTTV in Los Angeles and WNYW in New York. Time Warner Cable, people close to the talks say, has made a counter of about 30 cents per subscriber. The cable giant has also said it is willing to extend its current agreement with Fox, which expires when the clock strikes midnight and we enter 2010. Fox has said it might extend if it felt a deal was very close.

ABC's deal with Time Warner Cable for its TV station expires late next year. CBS already has a deal with Time Warner Cable, and if Fox strikes a better deal, CBS may have the right to go back and demand the same deal. It's what's known in the industry as a most-favored-nation clause.

-- Joe Flint

Related posts:

Carmen Electra caught up in cable feud

John Kerry weighs in on Fox-Time Warner Cable spat

Broadcasters' tough talk with cable is not without risks

News Corp.'s Chase Carey ready for battle with Time Warner Cable 

Time Warner Cable takes aim at programmers


What does 2010 hold for media? We take some guesses.

December 28, 2009 |  9:15 am

Like hangovers and resolutions that will never be kept, predictions are a tradition of the new year. 

MURDOCH With that in mind, we offer up our own prognostications. Some are obvious (come 2011, Jay Leno won't be on NBC's prime time; MGM will be sold) and some are out there (Disney will make a play for video game publisher Electronic Arts; Washington will throw some tough regulations at the cable industry in an effort to rein in programming costs).

Of course, saying MGM will be sold is a little bit of a "boy who cried wolf" prediction, so we'll go a step further and predict that Time Warner will beat out News Corp. for the foundering studio. News Corp. Chief Executive Rupert Murdoch has shown a little restraint lately, such as when he pulled out of bidding for the Travel Channel (after raising the price). Also, Murdoch is going to spend much of the next year focusing on his battle with Google and other aggregators.

Meanwhile, Time Warner CEO Jeff Bewkes is sitting on a pile of cash. If Time Warner grabs MGM, Warner Bros. gets total ownership of "The Hobbit," which could succeed Harry Potter as the studio's next big franchise.

BEWKES On the executive-shuffle front, look for a lot of jockeying to succeed Warner Bros. CEO Barry Meyer in 2011. Expect TV chief Bruce Rosenblum and Home Entertainment Group president Kevin Tsujihara to duke it out for Meyer's office, but don't be surprised if dark horse Phil Kent, who oversees Turner Broadcasting, emerges as a serious contender.

Assuming the Comcast-NBC deal closes next year (and, heck, even if it doesn't), expect a lot churn in the executive suites. A joke making the rounds in the industry asks whether, among NBC Universal's Jeff Zucker and Jeff Gaspin and Comcast's programming chief Jeff Shell, there aren't too many Jeffs in the kitchen.

For the rest of our guesses, please see our story here. And if we happen to luck out and be right on any of these, we promise not to say "toldja!"

Make some predictions of your own. Leave us a comment and we'll run the best ones. Try to keep it clean!

-- Joe Flint

Photos: Top: News Corp.'s Rupert Murdoch. Credit: Amy Sussaman / Getty Images. Bottom: Time Warner's Jeff Bewkes. Credit: Evan Agostini / Associated Press.


Disney chief Bob Iger's bonus falls from 2008, but overall pay is similar

December 23, 2009 |  4:19 pm

Walt Disney Co.'s chief executive Bob Iger received a total compensation package worth $29 million in 2009 -- a tad less than the $30.6 million of a year earlier.

In addition to his base salary of $2 million, Iger received stock valued at $6.3 million and options worth another $8.3 million. He collected a $9.3-million bonus -- a 33% drop from a year earlier, reflecting the company's weaker financial performance, according to Disney's proxy statement filed today with the Securities & Exchange Commission.

Net income at the Burbank media conglomerate fell 25% in fiscal 2009 from a year earlier, with significant declines at Disney's movie studio and weaker earnings at the company's theme parks because of aggressive discounting.

The value of Iger's pension plan rose by $2.3 million, a shift in the theoretical cost to the company (should Iger retire immediately) caused by a drop in the federal discount rate.

Among the perquisites Iger received was $589,102 to cover the cost of security equipment and services. His personal air travel cost $132,374. Other expenses, including reimbursement for a health club membership or equipment and a car, totaled $14,400.

In 2008, Disney disclosed Iger had received an 11% raise despite a drop in net income for the entertainment giant. The executive's total compensation was announced two weeks before ABC television announced it would eliminate 400 jobs through layoffs and leaving positions unfilled.

--Dawn C. Chmielewski


Facebook COO Sheryl Sandberg nominated to Disney Board

December 23, 2009 | 10:45 am

Looks like Walt Disney Co. wants to friend Facebook's chief operating officer, Sheryl Sandberg. It has nominated the prominent new media executive to its board of directors.

SANDBERG Sandberg, 40, has been COO of Facebook for almost two years. Prior to that she was a senior executive at Google. She would become the 13th member of Disney's board if her nomination is approved at the company's next annual meeting in March. Hers would be a new independent director board seat.

Disney Chief Executive Bob Iger said Sandberg's "unique insight, born of great practical experience, will be of considerable value to Disney’s shareholders.”  Disney Chairman John Pepper added that Sandberg "brings great expertise in the online world, considerable international experience and a deep understanding of consumer behavior.”

Sandberg, who has had stints at the World Bank and McKinsey & Co., also has ties to Washington. She is a former chief of staff of the United States Treasury Department. Sandberg is also on Starbucks' board of directors, which means the coffee may be better at Disney's next board meeting.

-- Joe Flint

Photo: Sheryl Sandberg. Credit: Google.

Disney's D.C. top gun, Preston Padden, to step down

December 14, 2009 | 10:55 am

Walt Disney Co.'s Preston Padden, who over the course of more than three decades has been one of the most influential lobbyists in the entertainment industry, is mapping out his exit strategy.

PADDEN Padden, who serves as Disney's executive vice president of government relations, said in an e-mail to co-workers that he has taken a post as a senior fellow and an adjunct professor at the University of Colorado Law School and will retire from Disney in 2011. News of Padden's plans were first reported by Broadcasting & Cable magazine.

No successor was named but all eyes will likely turn to Richard Bates, the number-two in Disney's D.C. office who has also been mentioned as a potential candidate to takeover as chief of the Motion Picture of Association of America when Dan Glickman steps down.

Padden, 62, a brash executive with sharp elbows, loved a good fight. While many D.C. insiders prefer to keep low profiles and work behind the scenes, Padden was an in-your-face lobbyist and executive. He rose to prominence at News Corp., where he oversaw its Washington operation when the Fox network was still in growth mode. He soon took over affiliate relations and earned himself the nickname of "Preston the Enforcer."

Although his methods alienated many, he was quite effective. Fox had a strong run of FCC wins on his watch. At Disney, Padden was reined in a little bit and had to adjust his style from the renegade ways of News Corp. chief Rupert Murdoch to the button-down approach of Disney's Michael Eisner and Bob Iger.

That went out the window when Time Warner merged with America Online in 2001 and Padden led a loud campaign against the merger (heck, maybe Time Warner and AOL should have listened) that led to intense scrutiny of the deal.

While Padden is an expert in the ways of Washington, his attempts to move outside the beltway were less successful. Murdoch tapped him to lead his short-lived satellite venture, America Sky Broadcasting (ASKYB), which never got off the ground. Disney named him president of the ABC network, but that stint also did not last long.

In his memo, Padden said government relations will report to Disney General Counsel Alan Braverman until his successor is named. (UPDATE: Government relations will now report to Braverman period.) In the meantime, Padden said he will work with Disney strategist Keven Mayer.

-- Joe Flint

Photo: Preston Padden. Credit: Walt Disney Co.


Digital media veteran Larry Tanz named president of Vuguru

December 14, 2009 | 12:00 am

LarryTanzPhoto Digital entertainment veteran Larry Tanz has been named president of Vuguru, a new media studio founded by former Walt Disney Co. Chief Executive Michael Eisner.

Tanz brings a long list of Internet and mainstream media credits to the studio, which is best known for its Web hits "Prom Queen" and "The All-For-Nots." As the former president and chief executive of LivePlanet Inc., the venture started by Matt Damon and Ben Affleck, he produced numerous film, television and new media projects -- including the Emmy-nominated "Project Greenlight."

"We were obviously looking for somebody who was an intelligent and charismatic leader -- all those things you'd want in a president." said Eisner. "We also wanted somebody who had experience in this space."

The appointment follows an an investment from Rogers Media, a division of the Canadian communications and media giant, as a result of which Vuguru became a separate company. Previously, it operated inside of Eisner's Tornante Co. 

Tanz said he has spent much of his career developing content that could move across multiple distribution platforms. With Project Greenlight, aspiring filmmakers submitted their scripts to an online contest for a shot at making his or her own film. The process was chronicled on HBO. In his most recent position as president of Agility Studios, he helped secure financing for new media projects such as "Legion of Extraordinary Dancers," a scripted series about dance.

The new president will try to figure out what business model makes sense for online video, which may entail some mix of licensing fees paid by distributors, sponsorships or advertising. Rogers Communications Inc., which operates cable television service, a mobile phone network and Internet access, will provide broad distribution for the content.

"This partner is going to roll out content across all their platforms, to an audience that’s one of the most voracious consumers of this type of content," Tanz said. "We’re going to learn a lot."

--Dawn C. Chmielewski

Photo of Larry Tanz, courtesy of Vuguru


Disney CEO Bob Iger indirectly addresses speculation about game industry acquistions

December 9, 2009 |  8:05 am

IGER Even as the Walt Disney Co. moves to complete its $4-billion acquisition of comic-book giant Marvel Entertainment, Wall Street is wondering whether Chief Executive Bob Iger is shopping for bargains in the video-game aisle.

Formerly high-flying game publishers -- such as Electronic Arts, creator of Madden football, and Take-Two Interactive, known for its Grand Theft Auto franchise -- have seen their shares plunge 70% from recent highs. THQ, maker of the Warhammer series, is off 90%. That has fueled speculation on Wall Street that these entertainment companies could be vulnerable to a takeover -- possibly by one of the Hollywood media conglomerates.

Iger was asked pointedly during today's UBS 37th annual Global Media and Communications Conference whether he was contemplating any "sizable acquisitions" in the games space to round out its interactive unit.

"I'm not going to suggest that we're making a business acquisition in that area," Iger said.

That doesn't mean Iger isn't watching the interactive-media space. He noted the rise in what the industry calls "casual gaming" -- that is, digital diversions that don't require a commitment of hours to become proficient -- at the expense of the high-profile and high-cost console business. As with other forms of entertainment, distribution is shifting online and away from packages sold in stores, he said.

Console games can still be lucrative, Iger said, if it's the right title and done well. He offered by way of example the forthcoming Toy Story 3 game, based on the popular Pixar Animation films and developed in house. 

But that doesn't mean every title needs to be developed in house, Iger said. Disney needs to make sure it has games for every platform -- the Nintendo Wii game console as well as smart phones.

"I'm suggesting this is a business that is varied in nature and has gotten broader, in terms of variety, than a number of people expected," Iger said. "We need to make sure we are structured ... to take advantage of all elements of the games business."

-- Dawn C. Chmielewski

Photo: Bob Iger at the Nov. 15, 2009, premiere of Disney's "The Princess and the Frog." Credit: Irfan Khan / Los Angeles Times


Marvel Studios' David Maisel to step down after Disney deal

December 7, 2009 |  4:19 pm

Maiselk8e6clnc David Maisel, chairman of Marvel Entertainment Inc.'s movie studio, is expected to leave the company once the Walt Disney Co. completes its $4-billion acquisition of the comic book giant.

A Marvel spokesperson confirmed that Maisel plans to leave, first reported by Bloomberg. However, he will remain executive producer of three upcoming Marvel films, “Iron Man 2,” “Captain America” and “Thor.”

Maisel was the first Marvel executive to meet with Walt Disney Co. Chief Executive Bob Iger and discuss a range of business opportunities, including a potential business combination, according to an account in documents filed with the Securities and Exchange Commission. Maisel arranged the first meeting of Iger and Marvel's chief executive, Isaac Perlmutter, in June. 

The Marvel studio chief acted as an intermediary, attending a series of meetings in June at Disney's Burbank headquarters with Iger, Chief Financial Officer Tom Staggs and the company's executive vice president for strategy, Kevin Mayer. Maisel told the Disney executives that Perlmutter was interested in exploring a possible merger and articulated the potential advantages of bringing together the two powerful brands, according to SEC documents. He also hinted at a potential acquisition price "starting with the number 5," according to SEC documents.

Maisel, who has overseen Marvel's movie operations in various positions since 2004, walks away from the deal with enough money to contemplate his next career move. He stands to collect as much as $20.3 million, representing the value of his unrestricted common stock, bonus and severance payments, according to a Dec. 2 SEC filing. 

The former financial consultant worked for onetime uber-agent Michael Ovitz and later joined the Endeavor talent agency. Maisel helped craft a new film production strategy for Marvel that set the stage for the box-office hits "Iron Man" and "The Incredible Hulk."

Photo credit: Stephen Osman / Los Angeles Times


Disney Channel names Carolina Lightcap as president

November 24, 2009 |  9:15 am
Carolina Lightcap Carolina Lightcap, the senior vice president and chief creative officer of Disney Channels Latin America, has been named president of Disney Channels Worldwide -- an announcement that underscores the global nature of the network.

The 20-year veteran of the entertainment industry, who began her career in Los Angeles, is known for building Disney Channel Latin America into a top cable channel in the region. The promotion takes effect immediately.

"Carolina has made enormous contributions to Disney over the past decade, especially in launching and building Disney Channel Latin America," Anne Sweeney, co-chair, Disney Media Networks, said in a  statement. "She's a highly respected member of our global team."

Disney Channel Entertainment President Gary Marsh, the executive responsible for successful programming including "High School Musical" and "Hannah Montana," was elevated to a newly created position of chief creative officer. 

He will report to Lightcap.

"Gary is the creative force behind Disney Channel's tremendous success and some of The Walt Disney Company’s most heralded and popular franchises," Sweeney said in announcing Marsh's new title.

The top job has been vacant since Rich Ross, the former president of Disney Channels Worldwide, was named in October as chairman of Walt Disney Studios. Ross helped transform the network from a sleepy cable backwater that ran old films and educational fare to a tween powerhouse and reliable profit center responsible for creating brands for Disney.

-- Dawn C. Chmielewski

Expect huge box office opening for 'The Princess and the Frog,' thanks to high ticket prices [updated]

November 23, 2009 |  1:05 pm

PrincessFrog "The Princess and the Frog," Disney's first hand-drawn animated feature in five years, isn't only a throwback in style.

When it opens Wednesday, it also will be the first Disney animated film since 2003's "Brother Bear" to start in limited release in New York and Los Angeles. Like that movie and many other of its traditional cartoons, including "The Lion King" and "Hercules," the studio is pairing the two initial runs of "Princess" with an "experience" that includes games, actresses dressed as Disney princesses, props, costumes and other activities that give kids fun time beyond the film. [Updated 3:05 p.m.: An earlier version of this post incorrectly said that "Brother Bear" was Disney's last hand-drawn animated film. It was 2004's "Home on the Range."]

All those extras mean ticket prices will be substantially higher than for a normal picture. Disney is charging $30 for general admission tickets, $50 for the best seats and $20 per person for groups at the Ziegfeld Theatre in New York City and on the studio lot in Burbank. (Disney's El Capitan Theater in Hollywood, its traditional spot for high-profile L.A. runs, is currently using its 3-D projection system to play "A Christmas Carol.")

The "ultimate Disney event," as the studio's website calls it, will play until Sunday, Dec. 13, the first weekend that "The Princess and the Frog" plays nationwide. Disney already has racked up more than $3.2 million in pre-sales. In Burbank, all but one show from Wednesday through Sunday is sold out, while the larger Ziegfeld in New York has fully booked half of its screenings over the holiday weekend.

In the meantime, high demand and inflated ticket prices -- more than six times the U.S. average at the top end -- means "Princess" should see huge grosses for a two-theater run. It's no accident that the top seven per-theater averages of all time on Box Office Mojo are all Disney animated runs, and it's very likely that "The Princess and the Frog" will join them this weekend, particularly with Friday being a holiday.

-- Ben Fritz

Photo: A scene from "The Princess and the Frog." Credit: Walt Disney Studios



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