Hello DreamWorks, Goodbye Pixar? - Business Week, 3/28/05

[Darkbeer]

http://www.businessweek.com/magazine/content/05_13/b3926056_mz011.htm

But Iger has other options. Some studio insiders say he may make a bid for DreamWorks Animation SKG, the studio started by David Geffen, Steven Spielberg, and former Disney studio chief and longtime Eisner foe Jeffrey Katzenberg. DreamWorks produced edgy hits like the two Shrek blockbusters and last year's Shark Tale.

Despite Katzenberg's courtroom battles with Eisner over his compensation, a deal with DreamWorks might not be as unlikely as it seems. As president of ABC prior to its 1996 acquisition by Disney, Iger bought a 1% stake in the upstart DreamWorks studio and ordered two TV shows for the network. When Iger married TV reporter Willow Bay in 1995, Katzenberg was front and center. "They have a good relationship," says a friend of both. The deal could be structured as a stand-alone unit, similar to Disney's 1993 arrangement with Miramax, which was negotiated by Katzenberg. But it would still face hurdles, including a hefty price tag and DreamWorks' existing distribution deal with NBC Universal. Neither Disney nor DreamWorks would comment.

[Darkbeer]

http://www.fool.com/News/mft/2005/mft05032104.htm

Iger will need to take bold steps to set himself apart from Eisner's mold while repairing the many frayed relationships that Eisner will be leaving behind. Acquiring DreamWorks Animation would certainly help to accomplish that, but can Disney afford a buyout? I don't think so. Can a collaborative deal be struck? That is also unlikely. Both DreamWorks Animation and Pixar are successful and established, so it's not as if they need Disney's mentoring. The box office indicates that if any mentoring is required, it would be the other way around.

That's why Iger's first move should be reversing one of Eisner's last ones. Eisner all but dismantled Disney's in-house animation studio. Yet DreamWorks Animation and Pixar combine for nearly $10 billion in market cap these days, so there's money to be made if you do it right. That means a commitment to rebuilding the only brand that used to matter in feature animation. Iger will need to act quickly on that front. Focus on crafting original inked films that will become instant classics before the company's brainless wave of direct-to-video sequels dries up that last diluted drop of integrity that Disney once had by the bucketful.

[Importance]

Aye Caramba. This would be a terrible match. The strength of Pixar is not simply in its animation department, but in its storytelling, which matches the best of Disney's storytelling (which was Disney's strength). Dreamworks Animation has terrible storytelling skills. Shrek and Shrek 2 were humorous and fairly decent. Shark's Tale? Sheesh. Madagascar looks equally terrible.

Dumb, dumb, dumb, dumb, dumb.

[Mr Snappy]

Aye Caramba. This would be a terrible match. The strength of Pixar is not simply in its animation department, but in its storytelling, which matches the best of Disney's storytelling (which was Disney's strength). Dreamworks Animation has terrible storytelling skills. Shrek and Shrek 2 were humorous and fairly decent. Shark's Tale? Sheesh. Madagascar looks equally terrible.

Dumb, dumb, dumb, dumb, dumb.

Shrek and Shrek 2 were fairly decent? Everyone has their own opinion, but the only one that counts in the corporate world is BOX OFFICE, and the Shrek series is serious BANK !

Disney has an opportunity here to right the animation ship and build a the best digital animation division in business. As far as talent goes, where do you think both PIXAR and DREAMWORKS got their talent? Most of it was Disney animators that they lured away with big $$$ (and they deserved it) As most of us know, if someone offers to double your salary, you go in a heartbeat. If Disney is serious, they dont need PIXAR, they just need to open the wallet.

[testtrack321]

Shrek and Shrek 2 were fairly decent? Everyone has their own opinion, but the only one that counts in the corporate world is BOX OFFICE, and the Shrek series is serious BANK !

Which is off-set by such great movies such as Road to El Dorado, Prince of Egypt, Sinbad, and others. If this isn't a bad move for Disney I don't know what is, I mean, Shrek has a huge presence in Universal attractions and advertising!

[Importance]

Shrek and Shrek 2 were fairly decent? Everyone has their own opinion, but the only one that counts in the corporate world is BOX OFFICE, and the Shrek series is serious BANK !

Yes, and they've done well. However, I'm really not sure how well those movies will age (too many pop culture references) and there isn't much else that has come out of that studio. Everyone can lucky, once. Pixar and Disney have been consistent performers. Dreamworks Animation, not so much.

[MickeyMania]

Which is off-set by such great movies such as Road to El Dorado, Prince of Egypt, Sinbad, and others.

Those weren't created by the CGI department.

Plus, Emperor's New Groove and a few other recent works had decent plots. The direct-to-video sequels and obligatory movie entries such as Brother Bear and Home on the Range were pretty much designed to be low-brow during the creative and animation process. I'd blame those failures more on money hunger than anything else.

Besides, now I'm dreaming of a second Fantasia sequel in the future, and thinking of what the Dreamworks CGI group could do for the first all-CG Fantasia work... Oooh, pretty.....

[MickeyMania]

.......

[testtrack321]

Those weren't created by the CGI department.

That dosn't matter, they are making a bid for the ANIMATION department, the whole enchalada.

[Importance]

If Iger wants to be real bold and get an animation studio that knows a little bit about creativity and story-telling ... why not go after Miyazaki's Studio Ghibli? Now that would be bold and show a real commitment to quality, inventive entertainment.

[Cousin Orville]

I say he makes a run for Art Clokey. no one will be watching.

[Dustysage]

Don't believe everything you read. Disney is doing what they do best. Trying to leak a story to get a better deal from Pixar. If Pixar is afraid that Disney might buy Dreamworks Animation . . . Disney will get a better deal.

However, I must say that if a Dreamworks deal comes with the big "K" in the SKG, then that is a VERY good deal indeed for Disney. Disney needs a ringer, and Jeffrey is exactly the creative type that Iger needs to get his animation department back in business.

These are very interesting times my friends.

-The Dusty One

[Reaver]

Besides, now I'm dreaming of a second Fantasia sequel in the future, and thinking of what the Dreamworks CGI group could do for the first all-CG Fantasia work... Oooh, pretty.....

No, no, no, no, no, no, NO!!!!!

As much as I want another Fantasia (2005 is out of the picture ), an entirely CG Fantastia is just not right. Fantasia was about the animation, and the ART of animation. I want to see the work of pen to paper, brush to canvas, not finger to keyboard. Fantasia is an art piece, and while CGI has it's place in the art world, the day Disney ditches traditional animation for an entire CG piece is the day we might as well turn our backs, sell our stocks and mourn, for Disney will be officially dead...

[Mr D]

All I can say is this, "Pride Runs Deep"

Katzenburg has made some great box office hits ONLY after he was forced out of Disney by Eisner... so in retrospect creativity would have neen lessened if not for the friction between Katzenburg and Eisner, or in other words, no Shrek, no Shrek 2, no Shrek in Universal etc.

Supposing Iger was able to buy Dreamworks, we would then see "moderated" films, no little punches at Disney (what made Shrek famous) and of course the eventual cost cutting, layoffs, outsourcing of talents etc. and for awhile most likely some Eisner micromanaging.

This is why Pixar is at the top of its game, it has NO Disney governess of how to do business, and Disney is drooling at making money which is the business gameplan enacted by the Eisner regime.

A perfect world would have Pixar and SKG still doling out their trademark CGI films of THEIR style while Disney stays in the traditional manner or more specifically animation that can exceed 100 years of credibility (Snow White, Bambi, Cinderella etc) and thats how I look at it, will Shrek have repeat value generation after generation? Unlikely, but then again Disneys flops may not either (Home on the Range and such).

Joining Disney and Dreamworks is a BAD BAD idea, it will dilute creative enterprise and most likely will become an automated socialistic mass producing bland generic film machine.

OTOH.....IF Pixar and Dreamworks were to join together and subesquently tied into Universals theme parks we would have modern day competition that supports creative one up-ness that DOES support new E-ticket rides, shows and films, on both sides.

Katzenburg should in my opinion should absolutely ignore Disney, and that is mostly because of the almost unrepairable damage Eisner has caused all these years.

[cellarhound]

Katzenburg has made some great box office hits ONLY after he was forced out of Disney by Eisner...

Disagree... Katzenburg was collaborating with Little Mermaid, Toy Story, Aladin, and Lion King as the head of the studio... He does have those production credits... And they are attached to the DreamWorks Animation name... In fact part of the court settelment had to do with that issue.

Disney's production under Katzenburg was phenominal and even the live action movies were considered cutting egde... Truly, Disney needs someone like Katzenburg again... But only if Eisner is GONE...

Supposing Iger was able to buy Dreamworks, we would then see "moderated" films, no little punches at Disney (what made Shrek famous) and of course the eventual cost cutting, layoffs, outsourcing of talents etc. and for awhile most likely some Eisner micromanaging.

Purchasing DreamWorks Animation would be difficult for Disney to pull off at this time... Luring them away from NBC/Universal would be an interesting move... But the real question is does Iger want a distribution deal? The Pixar contract has a lot to do with merchandizing and control of creative content... I doubt that DreamWorks Animation would want the same kind of distribution deal...

Joining Disney and Dreamworks is a BAD BAD idea, it will dilute creative enterprise and most likely will become an automated socialistic mass producing bland generic film machine.

I don't know if that would be the result... That is somewhat unsupportable... Particularly if Pixar, Blue Sky, Wild Brain remain...

DreamWorks Animation would make a good move because of it's location... but that would be it...

OTOH.....IF Pixar and Dreamworks were to join together and subesquently tied into Universals theme parks we would have modern day competition that supports creative one up-ness that DOES support new E-ticket rides, shows and films, on both sides.

Not likely... I think you may see one jump ship to Viacom Distribution... with a deal with Viacom parks...

Katzenburg should in my opinion should absolutely ignore Disney, and that is mostly because of the almost unrepairable damage Eisner has caused all these years.

Nope... I disagree... You can't ignore Disney, they are just too darn big... Katzenburg knows that he should be CEO of Disney and not Iger... How's that for brine in the cornflakes... And in all cases... "Know thy enemy..."

[Mr Snappy]

If Iger wants to be real bold and get an animation studio that knows a little bit about creativity and story-telling ... why not go after Miyazaki's Studio Ghibli? Now that would be bold and show a real commitment to quality, inventive entertainment.

Because Anime is not commercially successful in the states and never will be.

[Reaver]

Because Anime is not commercially successful in the states and never will be.

That's a bold and premature statement... Anime isn't big here now, true, but i has made huge strides in the last 5-10 years. Anime movies released theatrically, 3/4 of Cartoon Network programming made up of Anime... The Thundercats/Transformers/Robotech crowd is all grown up now, and wants more from their animation than many animation studios are doing. Spawn the animated series was drawn in Anime style, there were heavy anime influences in Atlantis for crying out loud. Never will be? We'll see....

[Importance]

Because Anime is not commercially successful in the states and never will be.

Studio Ghibli is not straight-up anime. In many ways it follows the old Disney formula with a fantastical twist. And I agree with Reaver that there is a growing appetite for anime in this country.

Dreamworks has given us Shrek and Shark Tale.

Miyazaki has given us Princess Monoke and Spirited Away.

If you haven't seen many of his movies, do so. Castle in the Sky, Kiki's Delivery Service. These remind me more of Disney then anything from Dreamworks.

[Mr D]

You do know Disney has years ago signed distribution rights for those anime?

Spirited Away is a a wonderful film, Kikis Delivery Service had the last grace to have a well known actors english dubbing, I'm in a brainlock, I think he did The Little Toaster, his wife shot and killed him a few years ago. The problem of japanimation entering the US market is that a majority of it is very graphic and violent, which is normal and accepted in the japanese culture, often its better to hear the film in Japanese to get the real feeling of it.

[Importance]

Yes, they have the distribution rights, but if they are looking to buy an animation studio, Studio Ghibli would be a better choice than Dreamworks Animation. Much Japanimation is graphic, but not Studio Ghibli's.