Disney/Pixar Merger

mmatty (apparently) - 04:56pm Jan 31, 2006 PST
via email

A few thoughts on the Disney/Pixar union that I'd like to add to
Geoff's very astute observations in this week's TidBITS:

<http://db.tidbits.com/getbits.acgi?tbart=08404>

Disney has huge international operations, Apple isn't nearly as
strong overseas as it is in the US. Some kind of tie-ins could
greatly benefit the international exposure and sales of Apple
products and services, esp. with theme parks, resorts, cruise lines,
etc. At the very least Jobs might be able to help Disney with
Tomorrowland.

There aren't two companies out there that have been as dependent on
full length animated feature films as Disney and Pixar have
historically been, in terms of % of profit and corporate culture.
Disney's profits from live action films are at least equalled (and
probably dwarfed) by their animation business, and it's a company
that has built and maintained a reputation on family oriented
entertainment. And maybe Jobs would be able to put the kabosh on any
moves to turn Pixar content into ice shows.

Pixar doesn't have to go out to raise money for each film, and
they'll be less vulnerable if there are any flops.

Disney has been very aggressive about pushing for the simultaneous
release of films on DVD, the internet and in theaters. Since it looks
like Apple will be rolling out the ability to control Macs via a
remote, this could have potential for future partnerships.

In addition to ABC, Disney owns ESPN, and think of how big sports can
be in iVideo in the future; particularly in terms of convergence -
the potential for games, news, beamed directly to an iPod. ESPN is
already doing Podcasts - the potential for cross promotion and
content distribution is enormous, I think. They've also got a growing
number of ESPN Zone restaurants/bars that have special beamed content
and offer premium membership. I'm sure the Jobs/Disney relationship
had Fox, NBC (who has the US Olympics franchise), etc. doing some
serious thinking about the future.

While Jobs might not have the passion for Disney that he has for
Apple, he is passionate about quality and innovation, particularly in
regard to technology and design; Disney has been lacking in these
areas in recent years.

Having Jobs on the Disney board is getting generally positive
reactions in the trade press, which is probably good for its stock as
well as for Apple's. Not only is there continuing PR value; It will
look good for Apple to have its CEO on the board of a major
entertainment company. It's certainly better for Apple than if Bill
Gates (who still hasn't been able to turn a profit on the Xbox) were
on the board of The Magic Kingdom ;-)

Marilyn