Disney Empire

The central purpose of studying political economy of communications (Dallas Smythe, 1960s)

Evaluating the effects of communications agencies through the policies by which they are organized and operated within their social settings.

Michael Eisner's "financial box" concept for the creative process

The belief that creative efforts must operate strictly within tight, controlled financial parameters managed by executive finance.

Post-Walt Disney management era (1966–1983) corporate behavior

A cautious management approach focused on "sitting on assets" that caused Disney to pass on hit scripts like Raiders of the Lost Ark and E.T.

Role of Bass Brothers Enterprises in the 1984 Disney takeover

Invested nearly $500 million to acquire ~25% of Disney stock, preventing a hostile corporate takeover and installing "Team Disney."

Key leadership figures in "Team Disney" (1984)

Michael Eisner (CEO), Frank Wells (President/COO until his 1994 death), and Jeffrey Katzenberg (Head of Film Division).

Impact of the 1995 Capital Cities/ABC acquisition ($19 billion)

Temporarily made Disney the world's largest media company, expanding its assets into broadcast television, publishing, and sports (ESPN).

Reason for Steve Jobs ending Pixar-Disney distribution negotiations in 2004

Pixar demanded a deal granting them 100% of film profits rather than the previous 50/50 split of costs and profits.

Shareholder response during the March 2004 "Save Disney" campaign

An unprecedented 43% of Disney shareholders withheld their votes for Michael Eisner's re-election to the board of directors.

Robert Iger's three strategic priorities upon becoming CEO in 2005

1) Capital investment in high-quality branded content, 2) Aggressive adoption of new technologies, and 3) Operational efficiency to get closer to the customer.

Disney's "limiting exposure" business strategy (e.g., Euro Disney)

Minimizing corporate financial risk by relying on external financing, limited partnerships, and government subsidies/tax breaks.