Kenversations™ - Jul 29, 2002

Kenversations™
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Disney is Can be Poised for a Massive Comeback
Like other stocks, Disney shares are way down right now. The Walt Disney Company has certain advantages, though. It still has a wealth of resources to draw from. It is an integrated company with diversified outlets for its products. Unlike Time Warner, Disney was not swallowed up by an Internet-based company that has since shrunken in value. Unlike Universal, Disney did not become part of a larger foreign business that has been known for business ventures outside of entertainment.

Disney needs to get back to being centered around innovative creativity and building up existing products. For instance, Disney needs to add substantial attractions to existing parks - attractions that are significantly better and different than experiences found everywhere else. While it is tempting to announce new parks in locations around the world, if they are simply the same content of existing parks and built on a small scale, it becomes very obvious to consuming public that Disney is simply trying to charge additional gate fees for the same old thing. That stretches the company's brand too thin with very little substance.

Disney is primarily an entertainment company. How many people at Disney these days actually create? How many actors, writers, composers, choreographers, directors, illustrators, sculptors, animators, etc. does Disney directly employ versus how many administrators, accountants, marketing specialists, lawyers, analysts, lobbyists, etc.?

Now, I have nothing against "overhead" positions. They are necessary to function. The primary drive of the company like Disney, however, needs to be strategic creative endeavors that set it apart from the crowd.

Relying too heavily on outside producers and consultants who have an option of to whom they will sell can leave you with a product that is indistinguishable from every other company. Disney needs to cultivate and keep the next Ward Kimball, the next Marc Davis on-staff.

What Disney needs to do, and what investors should support, is to invest capital with a longer-term perspective. Disney needs to create its own memorable characters and settings, tell compelling stories, and exploit them/preserve them - not overexposing but not underutilizing them. Use them where it makes sense, not just because "we can". Push them, then put them in the background for a while and then push them again, exploiting nostalgic feelings in aging generations and appreciation for classic properties in newer generations. Elevate the brand name - don't tie up resources in lower quality or mundane products that might bring short term revenue but will weaken the brand worth and corporate integrity in the eyes of the consumers and cause a loss of respect and clout among talent.

Disney can do it. The company can restore the value of the stock, remaining an independent corporation and setting standards for the industry. It can create the next generation of entertainment and leisure experiences (and the must-have merchandise to boot) if the creative talents are valued and there is a proper respect for history and well-cultivated nostalgia.

Speaking of Creative Talents and Nostalgia…
The Summer music series at Disney's California Adventure park reminds me of what Disneyland Park featured as part of the parkwide "Blast to the Past" themed promotion in the late 1980's (yes, I'm old). It was themed to the 1950s, and I got to see people like Frankie Avalon and Chubby Checker perform live. What memories. I hope people are having the same experience with the current performances.

Just last night, I visited the Orange County Fair for the first time. I was there to see my favorite performing act, "Weird Al" Yankovic. Al has been featured on Disney Channel programming and the songs he and his extremely talented band have made it to Radio Disney fairly frequently. If you think Al is just a guy who sings funny song parodies, you don't know the half of his talents. His band is great, too. Unlike with Mrs. Sherman, I was not formally introduced to Mrs. Yankovic, but I was sitting just a couple seats from her and was able to wave to her. She looks every bit as beautiful as she did in the wedding pictures (she and Al were married last year) that were posted on Al's official website.

There is a whole exhibit centered around Al, and they are performing through Friday. Also there were Dr. Demento and Whimsical Will. Will used to work westside attractions at Disneyland Park for the longest time, and it was so nice to see him again. You can e-mail me if you want to read what I have to say about the event and the display.

Thanks for reading. Would love to hear from you either via feedback or the discussion link below.

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-- Ken Pellman

Ken Pellman is a writer who has experience as a Disneyland Park cast member and has a BA in Thematic Environmental Design. He can be reached directly at Kenversations[at]flash{dot]net or at http://www.Pellman.com, where you can learn more about him.

Kenversations is posted on the fourth Wednesday or Thursday of each month.

The views, opinions and comments of Ken Pellman, and all of our columnists, are not necessarily those of LaughingPlace.com or any of its employees or advertisers. All speculation and rumors about the future of the Walt Disney Company are just that - speculation and rumors - and should be treated as such.

©2002 Ken Pellman, all rights reserved. Licensed to LaughingPlace.com.

-- Posted July 29, 2002

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