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Technology Stocks : Walt Disney -- Ignore unavailable to you. Want to Upgrade?

To: Chip Anderson who wrote (1469)	2/7/1999 10:46:00 AM
From: MoneyPenny	Read Replies (1) \| Respond to of 2222

from the Street.com and LA Times article it quotes: << An L.A. Times story Tuesday offers more proof that Disney, whatever its short-term problems, remains more focused on long-term profitability than any other company in the entertainment industry. The story, by Claudia Eller, details the company's plans to shrink its investment in live-action (as opposed to animated) movies. Disney spent $1.2 billion on live-action films last year; it plans to spend $600 million this year, and its future target is closer to $300 million. That means Disney won't be making any more flicks like Armageddon, which cost $150 million. Instead, the company plans to focus on lower-cost family films like The Parent Trap, which are more likely to generate video sales and ancillary revenues. Disney Chairman Michael Eisner has grown irritated at the fact that Disney's profits dropped badly last year even though the company had higher U.S. box-office revenue than anyone else. "Nineteen ninety-eight was a tough year for us. As in 1991, we succumbed to the overall industry trend of paying more and more for talent in front of and behind the camera," Eisner wrote in his annual letter to shareholders last month. "In too many instances, profits did not materialize from the revenues achieved by our films." Of course, the move toward cheaper movies means Disney executives will have fewer chances to hobnob with Bruce Willis, Ben Affleck and other expensive A-list celebs. To other industry moguls, that thought might be an anathema. For Eisner and Disney studio chief Joe Roth, it's just good business.>> here's the link to read yourself. fnews.yahoo.com