Disney 1st-Qtr Profit Rises
Walt Disney profit rises on theme parks, networks
Disney moves higher ahead of results
'Incredibles' Has Incredible Run At Annie Awards

Walls and more walls at WDW
Euro Disney shares surge on launch of capital hike
Much Ado About What's in a Disney Book
Options players see big moves in Disney, Google
Dizzying Days for Disney
Tower Preparations?

12th Annual Epcot International Flower & Garden Festival - April 15 - June 5
It's now footwear collections from Disney
'Sleuthing the Alamo' digs for the truth behind the demise of Crockett
Mary Poppins Lost Song To Be Finally Released
The big 5-0 for Disneyland

Miniature Golf at Walt Disney World

Lawsuit Claims Disney Stole Pirates of the Caribbean Screenplay

Disney 1st-Qtr Profit Rises

 

Walt Disney Co., the second-largest U.S. media company, said fiscal first-quarter profit rose 5.1 percent, bolstered by higher advertising rates at the ESPN cable channel and more visitors to the company's theme parks.

Net income was $723 million, or 35 cents a share, from $688 million, or 33 cents, Burbank, California-based Disney said today in a statement. Sales for the quarter ended Dec. 31 rose 1.4 percent to $8.67 billion.

Disney, led by Chief Executive Officer Michael Eisner, said it boosted ad prices and affiliate fees that cable and satellite operators pay to carry ESPN. Theme-park revenue rose as more local and international tourists visited Walt Disney World. Results were trimmed by lower profit at the film unit, where home- video sales in the quarter couldn't top ``Finding Nemo,'' the biggest selling DVD in 2003.

``We have been seeing strong gains from ESPN,'' said Jack Liebau, president of Liebau Asset Management Co. in Pasadena, California. ESPN benefited from ``the pressure that they had been putting cable companies to increase subscribe fees,'' said Liebau, whose company owns the shares.

The company today began a two-day analyst and investor conference at Walt Disney World near Orlando, Florida.

Profit beat analysts' estimates. Before one-time items related to the sale of the Disney Store chain in North America, profit was 34 cents, compared with the 29-cent average estimate of 21 analysts polled by Thomson Financial.

Disney is recommended ``buy'' by 15 analysts, while 11 rate it ``hold'' and one says ``sell,'' according to data compiled by Bloomberg.

Television

A successor to Eisner, 62, will be named by June, the board said last year. Directors searching for a new CEO have said Disney President Robert Iger, 53, is the only internal candidate.

Disney shares rose 40 cents to $28.63 at 4 p.m. in New York Stock Exchange composite trading. They rose 19 percent in 2004, compared with a 9 percent gain in the Standard & Poor's 500 Index and an 8.1 percent increase in the shares of New York-based Time Warner Inc., the largest media company.

Operating income at the media networks business rose 36 percent to $467 million. Revenue rose to $3.46 billion. Advertising rates rose at ESPN and ABC Family because audience ratings rose, the company said.

The business probably also was helped by improvement at the ABC broadcast network as new hit shows ``Desperate Housewives'' and ``Lost'' attract viewers and advertisers, said David Miller, a Los Angeles-based analyst at investment bank Sanders Morris Harris, who rates Disney ``buy'' and doesn't own the stock.

Parks

Operating income at Disney's parks and resorts, which includes Disneyland in California and Walt Disney World in Florida, rose 11 percent to $258 million. Revenue rose to $2.1 billion.

There's ``a turnaround, or a continuation of a turnaround, at their theme-parks division,'' said Paul Kim, an analyst at New York-based Tradition Asiel Securities, who rates Disney shares ``sell.''

Operating income at Disney's studio unit, which includes Walt Disney Studios and Miramax Films, fell 27 percent to $333 million. Revenue fell to $2.36 billion.

Disney's first-time release of ``Aladdin'' on DVD was the quarter's top seller, grossing an estimated $268 million, compared with $486 million from ``Finding Nemo,'' said Katherine Styponias, an analyst at Prudential Equity Group in New York.

Film

Disney's highest-grossing film at the box office in the quarter was Pixar's ``The Incredibles,'' which has brought in $603.4 million in ticket sales worldwide since it opened Nov. 5. A year ago, Disney's top theater attraction was ``Brother Bear,'' which brought in $250.4 million.

Disney's distribution agreement with Emeryville, California- based Pixar ends with ``Cars,'' which will be released in June 2006. Pixar, led by Chief Executive Officer Steven Jobs, has produced six films that generated more than $3 billion in worldwide box-office sales.

Pixar is looking for a new distribution partner after cutting off talks to renew its agreement with Disney last year.

``One could argue that Pixar accounted for more than half of their operating income for the filmed entertainment division'' in the quarter, Kim said. ``It's crucial.''

Operating income at Disney's consumer products unit, which includes products licensed to retailers, fell 2.5 percent to $231 million. Revenue fell to $725 million.

Walt Disney profit rises on theme parks, networks

Walt Disney Co. posted an unexpected rise in quarterly earnings on Monday as theme parks and media networks units showed improvement.

Net income rose to $723 million or 35 cents a share in the fiscal first quarter ended in December from $688 million or 33 cents a share a year earlier.

Revenue was $8.7 billion, compared with $8.5 billion a year earlier.

The earnings included a net 1-cent-per-share benefit from tax matters and restructuring and a 1-cent benefit from a change in the calendar. Even excluding those items, the results topped Wall Street expectations of 29 cents a share, according to Reuters Estimates.

Disney confirmed that it expects double-digit earnings growth this fiscal year.

'Incredibles' Has Incredible Run At Annie Awards

"The Incredibles," the computer-animated family comedy about a family of superheroes that comes out of retirement, had an incredible night at the 32rd annual Annie Awards Sunday in Los Angeles, scoring eight trophies including Best Picture and Best Director for Brad Bird.

Bird also won Annies for Best Screenplay as well as Best Voice Role for a Feature Film -- for his role as Edna Mode, the Incredible family's diminutive costume tailor and gadget guru.

"The Incredibles" was nominated in 16 categories total. Sunday's awards were presented by ASIFA-Hollywood and the International Animated Film Society.

The Pixar Animation production scored an Oscar nomination for Bird for Best Original Screenplay last week. The film is also competing against "Shrek 2" and "Shark Tale" for the Best Animated Feature Film Oscar.

Other big winners at the Annie Awards included the Nickelodeon show "SpongeBob SquarePants," which won for Best Animated Television Production, DisneyToon's "The Lion King 1 1/2," which was named Best Home Entertainment Production and the Oscar-nominated Disney short "Lorenzo," which won for Best Animated Short Subject.

Legendary animation veterans Don Bluth, Virginia Davis and Arnold Stang were also honored with the Winsor McCay Award, in recognition of "lifetime or career contributions to the art of animation."

Walls and more walls at WDW

Below are some of the rehabs going on around Walt Disney World. The Castle is still in full view other than the crane behind it and the walls in front of it for the Hub clearing. Sneak peak of it's a small world. Dumbo under rehab. Astro Orbiter under rehab. The walls are also up at the Magic Kingdom Monorail Station.  At Epcot The Land still under rehab, looks like there ready to layout some cement.

                                               
                                             
    
                                               
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'DisneyWar' Publisher Wants Text Back from Disney

Disney's desperate line of lingerie

Doing Disney World in four days? With three kids under 10?

Disney Stocks

Lion King to open in Melbourne

Sydney says goodbye to Simba
2004 Radio Disney Music Awards

Disney case has full attention of directors

'DisneyWar' Publisher Wants Text Back from Disney

 

Publisher Simon & Schuster on Friday said it had demanded that Walt Disney Co. return a manuscript of a forthcoming book about Michael Eisner's 20-year reign as Disney chief executive and the shareholder revolt against him.

"It is definitely under wraps," said Victoria Meyer, a spokeswoman for Simon & Schuster. The publisher's lawyers had told Disney it believed the entertainment conglomerate possessed a copy of the highly anticipated book that should be returned, she said. Meyer said it was not known how Disney obtained a copy of the book.

Disney declined to comment on whether it possessed a copy of the book, but a spokesman said, "The company engaged in a lengthy and thorough discussion on fact-checking with the author."

The book by Pulitzer Prize winning author James Stewart has already caused a stir due to an excerpt printed in the New Yorker magazine, which gave detailed accounts of Chief Executive Michael Eisner's hiring and dismissal of Michael Ovitz in the late 1990s.

Ovitz's $140 million severance is the subject of a shareholder suit.

The book will be published on March 7 with an initial run of 200,000 copies, a large run on par with the initial run for Bob Dylan (news)'s best-selling memoir "Chronicles." The company has not sent out advance copies to reviewers, aiming to use the mystery to create a bigger launch.

"It is a subject that people are keenly interested in, and it has some news value," Meyer said. Simon & Schuster is owned by Viacom Inc.

Disney's desperate line of lingerie

Whatever would Mickey and Minnie say? Disney, the purveyor of squeaky-clean family fun, appears to be making a foray into the world of lingerie. Before anyone starts to have ungallant thoughts about Snow White, one should say that the inspiration is the new darkly comic hit TV series, Desperate Housewives, made by Disney's subsidiary ABC.

The show - whose stars include Teri Hatcher - peeks behind the picket fences of Wisteria Lane, where the housewives walk around in scantier apparel than Tarzan.

Last week, the lingerie group La Perla reported a buying frenzy after their frillies were featured on the show. Now Walt's wallahs are planning to launch their own collection of bras, panties and even aprons.

"We'd jump at the chance to sell this, we'll be all over it," pants Michael Ross, the chief executive of Figleaves, the UK's largest online undie retailer. "It's the first time a TV show has spawned an underwear range." It's the kind of innovation we like

Doing Disney World in four days? With three kids under 10?

Scheduled flights, changing in New York, and with three children under 10? Totally bonkers.

Reaction to our plan to tackle Disney during Halloween mid-term break was sceptical. Do it properly in the summer, people said. It's too far to go, and there's too much to do.

Unfortunately, the peculiarities of Northern Ireland's school holidays system meant we couldn't get a week off together - just five days. So, sensibly, we ignored their advice, packed our bags and headed for Dublin airport.

The gamble paid off. Florida's weather was perfect - every day was like a good summer's day back home with no humidity. Even more importantly, however, there were none of Disney World's famous queues.

Smart use of our Disney Fastpass cards meant our longest wait for attractions was about 15 minutes. And on many rides we Fastpassed we walked virtually straight on.

We stayed in Walt Disney World, in a Disney hotel complex called Port Orleans French Quarter. The accommodation was excellent - with a good swimming pool to keep the kids happy, and river taxis to Downtown Disney.

The only weak point was a limited restaurant. We always went Downtown or to the Riverside complex next door, which has a choice of eating places.

The time element meant we couldn't see all the attractions in Walt Disney World - its 43sq miles boast four theme parks, two water parks, a sports complex and two night-time entertainment districts - so we choose the fairly obvious Big Four and plumped for an afternoon at a beach park as well.

Despite its vastness, getting around Disney World is easy: the place is criss-crossed with its own transportation systems that include four lane highways, elevated monorails and a canal system.

Our adventure was also made easier by a borrowed copy of The Unofficial Guide to Walt Disney World - packed with tips and even strategies for tackling the sprawling Disney World complexes. At 798 pages, however, it is too heavy to carry everywhere: next time we'll get bring a pocket-sized one, too.

Day 1 brought a trip to Magic Kindgom, the first park and still the heart of Disney. Favourites were Mickey's Philharmagic - a delightful and stunning 3D show - and Splash Mountain. The latter's final, and impressively steep, water drop looked scary, but Annie (5) took it in her stride.

That night we made the only big mistake of the holiday - trying to eat in Downtown Disney without a reservation. An hour's wait and three grumpy kids later we ditched the pizza restaurant that had been our choice and headed for McDonalds.

Eating and shopping were the only fault we found with Disney World. Downtown Disney was hopelessly overcrowded despite being low season. Always make a reservation if you intend to dine there.

Shopping for provisions is very limited, too, unless you leave Disney World. Hotel shops are stuffed with branded toys and trinkets, but have virtually nothing in the way of food, toiletries and other basics.

Undeterred, however, Day 2 saw us venture to Disney MGM studios. Highlights included the Rock 'n' Rollercoaster and Tower of Terror. Neither is for small children, but there's plenty else to keep them entertained.

The following day we hit Epcot, famous for its golf ball-shaped dome, Futureworld and World Showcase. All interesting for adults, but possibly a bit tedious for kids under 10, with one exception, the fabulous Mission: Space - an incredible recreation of a Mars take-off and landing.

Day 4 saw Animal Kingdom, with the African safari the awesome centerpiece. This was followed by an afternoon at Typhoon Lagoon, a 'beach park' with slides, waves and other attractions.

Timing was tight, and a week would have been better. But the verdict from both adults and children on our four day mini-tour was: well worth it!

Disney Stocks

Disney (DIS) is expected to report earnings of 29 cents a share, down from 33 cents a share a year ago, although strong results at its broadcast and cable television networks may push it past estimates, analysts said.

Lion King to open in Melbourne

Hit musical, The Lion King, will move to Melbourne in July, after the city's historic Regent Theatre is adapted to house the large-scale show.

Disney Theatrical Productions (Australia) announced The Lion King would open in Melbourne on July 28 after its season in Sydney exceeded expectations, playing to 97 per cent capacity at the Capital Theatre.

"We have been encouraged by both the Victorian Government and Marriner Theatres (owners of the Regent) to mount a Melbourne production," The Lion King producer Thomas Schumacher said.

"We are also delighted that David Marriner has agreed to undertake the necessary work to enable a production of this scale to play at Melbourne's beautiful Regent Theatre."

Born of the Disney animated film of the same name, The Lion King follows the adventures of lion cub Simba as he struggles to accept the responsibilities of his future role as king.

Sydney says goodbye to Simba

The Lion King is set to close in Sydney, despite boasting capacity audiences throughout its 18-month run. Simba and friends will roar for the last time on stage at the Capitol Theatre in Haymarket on April 30, before the large-scale production shifts to Melbourne for a limited season.

"Sydney has had a love affair with this musical," said a spokesman for The Lion King last week. And even as they prepare to close down the show, the financiers behind the project are continuing to celebrate the success of the multimillion-dollar stage production.

"It has exceeded all expectations and we have set an end date confident that the show will play to capacity," Disney Theatrical Productions (Australia) managing director James Thane said.

"The Lion King will certainly leave Sydney on a high."

Box office operators are bracing for a further rush on tickets, given Sydneysiders have only three months left to see the show. Many performances are already booked out.

The musical has become a global phenomenon with massive audiences in countries from the US to Japan.

Key cast members from the Sydney production, including lead actor Jay Laga'aia, who plays Mufasa, will perform in the Melbourne show which begins in July.

The show opened in Sydney in late 2003 with VIP guests, including Prime Minister John Howard and film director Jane Campion, clamoring to see the production. Julie Taymor, the acclaimed stage designer and director behind the local version of the show, was also a guest of honor.

Taymor's stage version has been critically acclaimed because of breathtaking costumes, choreography and sets.

Throughout its Sydney season, the production has played to 97 per cent capacity, with visitors from all over Australia travelling to NSW to see the show. The state has reaped millions of tourist dollars as a result.

Big-budget shows such as The Lion King, Mamma Mia! and We Will Rock You are credited for turning around Sydney's ailing musical scene.

2004 Radio Disney Music Awards

The winners of the 2004 Radio Disney Music Awards were announced today. Kids across the country cast over 650,000 votes online at RadioDisney.com and via mail through Disney Adventures magazine. Hilary Duff swept six out of the 15 categories ranging from "Best Song" and "Best Female Singer" to "Most Stylish Singer." Radio Disney will air a special music awards show featuring all the winners on Saturday, January 29 at 6:00PM CST and then again on Sunday, January 30 at 10:00AM CST. The complete list of winners will be available online at RadioDisney.com after January 31. The Radio Disney Music Awards also includes other fun and wacky categories such as "Best Song to Watch Your Dad Sing" and "Funniest Band Name." Kids can also tune in to Disney Channel's Disney 411 and see Hilary Duff and Raven accepting their Radio Disney Music Awards.

Radio Disney is not only "Your Music. Your Way" but "Anywhere. Anytime." Created and produced by ABC Radio Networks, Radio Disney is the only 24/7, nationwide, listener-driven radio network dedicated to kids, tweens and families. With 50+ terrestrial stations, XM and Sirius satellite radio and digital cable and satellite TV music provider MUSIC CHOICE, Radio Disney covers 97% of the United States reaching millions of tweens and families every week. Radio Disney's current brand extensions include the best selling Radio Disney Jams CDs, as well as the Radio Disney apparel line found in Kohl's Department Stores nationwide. Internationally, Radio Disney can be heard in Japan, the UK, Poland, Argentina, Paraguay, Guatemala, Uruguay and the Dominican Republic.

2004 RADIO DISNEY MUSIC AWARDS WINNERS

BEST SONG
COME CLEAN – Hilary Duff

BEST FEMALE SINGER
Hilary Duff

BEST GROUP
Black Eyed Peas

BEST MALE SINGER
Usher

BEST NEW ARTIST
Ashlee Simpson

FUNNIEST BAND NAME
Hoobastank

BEST ACTRESS TURNED SINGER
Hilary Duff

BEST SONG TO WATCH YOUR DAD SING
DRAMA QUEEN (That Girl) – Lindsay Lohan

MOST ROCKIN' RELATIVES
Hilary and Haylie Duff

BEST SONG TO AIR GUITAR TO
HAPPY ENDING - Avril Lavigne

BEST VIDEO THAT ROCKS
LEAVE - JoJo

BEST SONG TO DANCE TO
LET'S GET IT STARTED – Black Eyed Peas

MOST STYLISH SINGER
Hilary Duff

BEST HOMEWORK SONG
THE MATH – Hilary Duff

BEST TV MOVIE SONG
CINDERELLA – The Cheetah Girls

Disney case has full attention of directors

As cases in the Delaware Court of Chancery go, it has been pretty juicy.

It has star power, oodles of money and intense office politics behind the scenes at a company built on a happy, warm-and-fuzzy image.

But the case of whether Walt Disney Co. directors were grossly asleep at the switch when it came to the hiring and firing of former president Michael Ovitz has implications far beyond mere fascination with the players involved.

Testimony wrapped up earlier this month, and observers are anxiously awaiting a final decision in the coming weeks.

However the case turns out, experts said, it already has had an effect on corporate directors across the country.

"We are all following that," said longtime board member C. Warren Neel, executive director of the Corporate Governance Center at the University of Tennessee.

Directors who simply rubber-stamp key hiring decisions, he said, do so at their peril.

"Now you're going to get very involved in senior management selection," Neel said. "You might go with the CEO, but you can voice your concern."

One reason, experts said: The case may make it easier for investors to seek penalties from directors themselves, rather than from their insurers, which has been a daunting task.

"Certainly, if the plaintiffs win, you'll see more of these cases," said John Faldetta Jr., an attorney with Waller Lansden Dortch & Davis in Nashville, who has written on the Disney case. The case so far "definitely gives them [investors] the ammunition," he said.

And that may not change even if the plaintiffs lose, he said.

"It would show it's pretty hard to win," given the facts in the case, Faldetta said. "But the fact that they got where they are would encourage some plaintiffs to go forward."

Disney's is not the only case in which plaintiffs claim directors were inattentive, at best, to their jobs.

A suit filed this year by the Teachers' Retirement System of Louisiana against Chicago-based Hollinger International Inc., the owner of the Chicago Sun-Times, and several current and former officers and directors cites deals that plaintiffs say enriched Hollinger's former chief executive, Conrad Black, at the expense of shareholders.

That suit says directors "simply rubber-stamped, often after-the-fact, these deals and agreements in a complete failure to exercise any independent review or oversight." The suit was particularly critical of the audit committee.

The defendants contest the allegations, and James Thompson, the audit committee chairman and former governor of Illinois, has defended his performance in the audit post, saying he was engaged and prepared for meetings.

$140 million package

The Disney case centers on the tumultuous tenure of Hollywood superagent Ovitz, who was forced out as the company's president in 1996 after 14 months on the job, cut loose with a severance package estimated at $140 million.

Plaintiffs filed suit in 1997, seeking to have Ovitz return that money, plus interest, and to hold directors liable for what they deem to be lax oversight. They say board members breached their fiduciary duty to the firm by deferring to Disney's chief executive, Michael Eisner, in the hiring of Ovitz, a longtime friend; by barely discussing his contract before and after he went to work for Disney; and by not having an outside expert examine the deal.

Eisner, in his testimony, defended the hiring of Ovitz and his ultimate departure, saying he ousted Ovitz after their working relationship deteriorated to the point that Ovitz proved untrustworthy and all but impossible to manage.

Directors have testified that they examined Ovitz's pay package, and that the company had no choice but to get rid of him and pay the severance.

Ovitz defended his tenure at Disney and said he was undermined and fired before he had an opportunity to fully develop on the job.

Plaintiffs' experts have countered that Disney could have fired Ovitz for cause without paying him the huge severance.

At its heart, the case is about whether directors acted in good faith in discharging their duties. The upshot: If not, they could be personally liable.

Although courts generally give board members the benefit of the doubt, Chancellor William Chandler III ruled in 2003 that the suit could proceed, saying plaintiffs had presented evidence that "the Disney directors failed to exercise any business judgment and failed to make any good faith attempt to fulfill their fiduciary duties to Disney and its stockholders."

That ruling alone has corporate directors shuddering.

Timothy Burns, a partner with Neal, Gerber & Eisenberg in Chicago, was at an institute for corporate directors when word arrived about the decision, which "instantly caused disquiet among directors."

"The discomfort was visible. It caused the directors to think twice about what they were getting into," he said.

The response has been a renewed emphasis on the process by which directors make decisions, with attorneys urging clients to ask more questions, document discussions thoroughly, review all documents carefully and hire outside experts to guide the board.

Although some experts fear boards will be more concerned with process than substance, Faldetta said that is not generally an issue, noting that the court has been sharply critical of the Disney directors on this front. "In this case, they didn't do anything. That was the problem," he said. "Any structure or process would have been helpful."

Too risky to serve

The case, along with settlements in WorldCom Inc. and Enron Corp. suits that have directors paying millions out of their own pockets, has spawned predictions that top-notch candidates may well decide it's simply too risky to serve on boards.

But to some, the circumstances surrounding the Disney case are so unusual, its reach as a precedent will be limited.

Some experts, including UCLA corporate law professor Stephen Bainbridge, argue that if boards can provide evidence of an adequate decision-making process, courts would defer to their decisions, right or wrong.

That doesn't seem to be reducing the concern across corporate America.

No matter how unusual the circumstances, "the fact that it's out there is causing apprehension," Burns said.

That risk, Neel said, has directors sitting up a little straighter.

"I think the implication is if you're on a compensation committee, you'll be far more strident in discharging your role," he said. "We're seeing the end of the era of the icon CEO."

Disney Annual Meeting May Be Happier Place This Year

Traffic Enforcement at WDW
Moscow Disneyland to Be 3 Times Bigger Than U.S. Version — Russian Sculptor

Soarin' Previews For Passholders

'DisneyWar' Whets Appetite for a Battle

'Toy Story 3': Does Anyone Want to Do It?

ABC Opens 'Eyes' in April

Skarsgard in Pirates Sequels?

Is Hawaii Losing Lost?
Disney Shoes now in India

Disney Annual Meeting May Be Happier Place This Year

 

Shareholders filing into Walt Disney Co.'s (DIS) annual meeting this year will probably look more like Happy than Grumpy given the company's success at defusing hot-button corporate governance issues.

Disgruntled was a key word at 2004's fireworks-filled meeting in Philadelphia, which ended with Chief Executive Michael Eisner being relieved of his chairman's post by the board after 45% of the votes were withheld for his re-election.

At that time, the end of talks to keep Pixar (PIXR) as a partner, the ratings woes of its ABC television network and the costly ABC Family cable network, and the disappointing stock performance in the years before the meeting were being placed at Eisner's feet by some investors. The lack of a clear succession plan at Disney and the perception of Eisner's control of the board were also worries.

Two key Disney players, directors-turned-dissidents Stanley Gold and Roy Disney, launched a noisy campaign for investors to vote their opposition to Eisner and three other board members, which led to Eisner's being stripped of his chairmanship.

However, a confluence of factors looks to turn the 2005 meeting in Minneapolis on Feb. 11 into a calmer affair. Those factors include shareholder insurgents holding back amid succession promises, the company's artful handling of two shareholder proposals that could have generated some noise at the annual meeting, and largely positive comments from Institutional Shareholder Services.

"I don't see any groundswell of interest on the part of shareholders to withhold votes from the board this year," said Gregory P. Taxin, chief executive of Glass Lewis & Co., a San Francisco proxy advisory firm that hasn't yet issued its own annual meeting recommendations. "The board has taken some swift, if not fully satisfying, actions in response to last year's vote, and I think shareholders will find their attention better spent elsewhere this year."

After the chairman's post was transferred to director George Mitchell, the board said it would start succession planning and have a candidate for chief executive by June 2005.

Eisner said in September that once his contract expires in September 2006, he will resign and not seek to retain a seat on the board. He has supported President and Chief Operating Officer Robert Iger as his successor.

As for performance, Disney has forecast double-digit percentage earnings growth through at least 2007. The ABC network has picked up ratings momentum, and advertising dollars, with hit shows such as "Desperate Housewives" and " Lost" - prompting Iger to predict that the network will reach profitability in fiscal 2005. Even ABC Family has been doing better in the ratings.

In the 12 months leading up to last year's meeting, Disney's stock had risen about 60%, with a failed, unsolicited bid from Comcast Corp. (CMCSA, CMCSK) adding to that rise. The stock started 2004 at $23.33 and closed at $27.80 on Dec. 31, then nudged up to a 52-week high of $28.94 on Jan. 19 of this year.

The changes at Disney moved ISS to ease its criticism of Eisner. Last year, the Rockville, Md., proxy firm recommended that shareholders withhold their votes from him. This year, ISS said Disney had taken some positive steps, such as separating the chairman and CEO posts, hiring an executive search team for a replacement for Eisner, and naming a new independent director.

A Wait-And-See Approach

That doesn't mean that shareholders are turning into clones of Bashful. Indeed, "not fully satisfied" may aptly describe some of the activist shareholders who have hounded Disney in the past on a range of issues.

"I think most of the major public pension funds are now taking a wait-and-see attitude," said Richard Ferlauto, director of pension investment policy at the American Federation of State, County and Municipal Employees. He added that pension funds will be keeping close tabs on how succession planning for both the CEO and the board seat held by Mitchell, who is hitting retirement age in 2006, plays out.

"If the board doesn't fulfill its promise on an effective succession process, then the public funds will feel even more aggrieved and come roaring back next year with challenges to the board," Ferlauto said.

And Gold and Roy Disney, nephew of the late Walt Disney, haven't let up on their scrutiny of the board's actions.

"Messrs. Disney and Gold, like many other shareholders from whom they have heard, are concerned that despite the board's pledge to run a fair and impartial search for a replacement for Mr. Eisner, the company appears to be running a campaign to promote Mr. Iger for the job," an executive of Shamrock Holdings said on behalf of the pair. Shamrock is the Disney family investment vehicle, where Gold also serves as chief executive.

Gold and Disney "remain hopeful that the board recognizes its responsibility to act independently, without undue influence from management and in the best interest of their shareholders and will conduct the search as they originally pledged," according to the statement from Gene Krieger, vice chairman of Shamrock.

Disney Chairman Mitchell said in a statement to Dow Jones Newswires that " there is a process under way, and the board is conducting the search in good faith, with open minds, and without any prior determination or preconditions."

In terms of other corporate governance issues, the company sidestepped two potentially controversial topics that nearly appeared on the annual meeting ballot.

Last month, Disney appeased pension fund activists who were urging the company to permanently separate the CEO and chairman positions, after Disney agreed to formalize the separation of the two positions. Disney first tried to win the Securities and Exchange Commission's blessing to keep the nonbinding resolution out of its voting materials. But that effort was rejected by agency staffers last month.

The company did manage to kill a second, more controversial, shareholder resolution, floated by the AFSCME and others, aimed at giving investors more direct power to nominate directors in the corporate ballot. After first rejecting Disney's bid to exclude the question from its proxy, the SEC staff reconsidered the issue and ruled in the company's favor.

Traffic Enforcement at WDW

Speeding remains a significant problem on Walt Disney World Resort property and impacts the safety of our Cast Members and Guests. During the past year, Florida Highway Patrol has had an increased presence to help reduce the number of Cast Members, Guests and others who speed while traveling on our property. In addition, the cities of Bay Lake and Lake Buena Vista, which provide municipal services to the Walt Disney World Resort, have recently signed a services agreement with the Orange County Sheriff's Office to provide an increased law enforcement presence, including traffic enforcement 24 hours a day, 7 days a week.

Florida Highway Patrol has issued almost 1,000 citations on our property, some as much as $540. For most of us, this would be a huge financial burden. Unfortunately, Cast Members continue to constitute the majority of citations that have been written. A combined speed-control effort -- a partnership between the Orange County Sheriff's Office and Florida Highway Patrol -- will be ongoing. I strongly encourage voluntary compliance of posted speed limits.

In future Eyes & Ears issues, you will see information about the physical and financial risks of speeding. Some of these risks include harm to yourself and others, premium increases in your car insurance and points against your driving record.

The Walt Disney World Resort has more people in a concentrated area than downtown Orlando. Because of this, the risk of accidents is greater, and speeding increases this risk factor. Please pay attention to and comply with posted speed limits. Voluntary compliance of posted speed limits helps create a safe environment for all who work and play at the Walt Disney World Resort, and in turn, enhances the Cast and Guest experience.

Thank you.

Distribution:
All Walt Disney World Resort Cast Members

cc: Al Weiss

Moscow Disneyland to Be 3 Times Bigger Than U.S. Version — Russian Sculptor

Russian sculptor and chairman of the Russian Academy of Arts Zurab Tsereteli said on Friday that he will construct a "Russian Disneyland" in Moscow.

                                              

The new Park of Wonders will be "three times bigger than the American one," Tsereteli was quoted by Interfax news agency as saying. The entertainment park's area will cover about 300 hectares.

The Russian Disneyland model is ready, the sculptor said.

Tsereteli's works have sparked numerous protests among Muscovites in the past. However, he is strongly supported by the Moscow mayor, Yuri Luzhkov.

Soarin' Previews For Passholders

According to the February Mickey Monitor, Annual Passholders will be among the first to go "Soarin". Special sneak previews for Annual Passholders will be held during regular park hours on Friday, April 15 through Sunday, April 17. Soarin' will be the newest addition to Future World's The Land Pavilion, enhancing the already popular agriculture and ecology theme. Valid Passholder ID is required when attending this preview.

'DisneyWar' Whets Appetite for a Battle

Five weeks before its scheduled debut, James B. Stewart's book "DisneyWar" is living up to its name.

In a recent letter to Walt Disney Co., lawyers for Simon & Schuster accused the Burbank company of obtaining a copy without the permission of the publisher or the Pulitzer Prize-winning writer. The book goes on sale March 7.

"We have informed Disney that they have an unauthorized copy of the book and put them on notice not to disseminate it," said David Rosenthal, executive vice president and publisher of Simon & Schuster. "It's ours, and we want — and need — to control the timing of its release."

Simon & Schuster has been closely guarding all advance material on the book, whose full title is "DisneyWar: The Battle for the Magic Kingdom." The publisher has refrained, for example, from the usual practice of circulating advance copies to critics.

Last week, it became clear that Disney had somehow gotten a copy. Rosenthal confirmed that Disney representatives had contacted Stewart to dispute certain aspects of the book. Disney lawyers also have put Simon & Schuster, which is owned by Viacom Inc., "on notice" that they could take legal action if the book contains inaccuracies, a source close to Viacom said.

A 12-page excerpt that ran in the Jan. 10 edition of the New Yorker focused on Chief Executive Michael Eisner's hiring — and subsequent firing — of his friend Michael Ovitz, who served for 15 months as Disney's president. Though many details in the piece had been widely reported, it whetted the appetites of Hollywood insiders, many of whom were interviewed by Stewart.

In recent weeks, the anticipation has grown as Stewart has begun circulating pages of the manuscript — a common fact-checking technique.

According to several people who have read excerpts, the book paints a largely unflattering portrait of Eisner's nearly 21 years at Disney's helm and raises questions about how Disney President Bob Iger has managed the ABC-TV network. Iger is the leading candidate to replace Eisner, who is retiring.

Zenia Mucha, a Disney spokeswoman, declined to discuss the matter.

'Toy Story 3': Does Anyone Want to Do It?

No one wants to direct "Toy Story 3."

That's the word in Hollywood's animation world, where the third installment of the incredibly successful Pixar series has no director, writer or, possibly, stars.

My sources in the animation biz tell me that Disney, which will make "Toy Story 3" without Pixar, cannot find a director to guide the project.

John Lasseter, who directed the first two movies, will stay with Pixar after he finishes its last Disney-distributed movie, "Cars," set for release in 2006.

It's also undetermined whether stars Tom Hanks and Tim Allen will reprise their roles in the new film. The odds are that Hanks won't, but that Allen — who's made some successful family films at Disney — will.

Hanks, it's noted, is very close to former Disney chief Jeffrey Katzenberg, who now runs Dreamworks. Hanks has already made two films for Dreamworks, thanks to his friendship with another of the company's three principal partners, Steven Spielberg.

Pixar just received four Oscar nominations for its current Disney-distributed film, "The Incredibles." "Cars" will mark the last collaboration between the two studios, since Disney's Michael Eisner has essentially told Pixar to take a hike.

Disney has the right to make sequels to all the Pixar movies it distributed, including "Toy Story," "The Incredibles," "Finding Nemo," etc. But there's a hitch — since Pixar developed all the animation materials to create the movies, it also gets to keep them.

In other words: Disney is now trying to hire another team of animators to recreate Buzz Lightyear, Woody and all the other "Toy Story" characters so that they look the same. It will have to start from scratch to reproduce Pixar's creative work.

The next step, of course, is to find a writer and director for the project. With Lasseter gone, my source says, "Every single animator of note has turned down the director's job. They don't want to cross Pixar. They've become the only deal in town."

One source told me that a possible offer had been floated to an assistant director who worked on Disney's straight-to-video traditional cartoon, "The Lion King 1½."

But even that film was a bastardization, since most of the creative people who worked on the original 1994 "The Lion King" were long gone from Disney.

Both the original "Lion King" director, Roger Allers, and writer, Irene Mecchi, are said to be now working on Pixar projects. Allers' last big project for Disney animation was "Kingdom of the Sun," the movie that became "The Emperor's New Groove" after he was unceremoniously replaced.

The entire debacle was recorded in a wonderful but unreleased documentary called "Sweatbox," made by Trudie Styler while her husband, rock singer Sting, was writing songs for the film which were ultimately cut from the final release.

Meantime, Disney announced last week that the script for "Toy Story 3" would be based on a proposal submitted to them by a young student in their feature animation story development program.

Skarsgard in Pirates Sequels?

 

Sweden-based newspaper Aftonbladet is reporting that Swedish actor Stellan Skarsgård (Exorcist: The Beginning, King Arthur) will come aboard the forthcoming sequels to Pirates of the Caribbean.

                                                                           

Disney Shoes now in India

 

The U.S. based Walt Disney company has entered into a tie-up with Sierra Industrial Enterprises and has licensed them to manufacture and market Disney shoes for kids in India. Disney shoes collection being introduced in India will include booties, sandals, slippers and sports shoes for boys and girls. The Disney footwear collection will be priced from Rs.150 to Rs. 850 and will be available in mega malls, multi brand outlets and chain stores across the country, according to a company release.

Disney Executives to Speak to Investors

 

Senior management of The Walt Disney Company including CEO Michael Eisner, Bob Iger, president and COO; and Tom Staggs, senior executive vice president and CFO; business unit leaders; as well as Sen. George Mitchell, Chairman of the Disney Board of Directors; will speak to investors at Disney's 2005 Investor Conference on Monday and Tuesday, January 31 and February 1, 2005.

The conference will begin at 1:00 p.m. EST on Monday, January 31 with a presentation on Disneyland's 50th anniversary celebration, followed at 4:30 p.m. EST by a discussion of fiscal first quarter 2005 financial results (which will be released shortly after 4:00 p.m. EST). The conference will resume with a general session at 7:15 p.m. EST. On Tuesday, February 1, the conference will continue at 9:00 a.m. EST. The business sessions on that day are expected to conclude at approximately 6:00 p.m. EST.

All presentations will be available live via Web cast. Please point your browser to www.disney.com/investors. Replays for each 
presentation will be provided through February 8, 2005 at 4:00 p.m. PST.

Disney troubles

Disney management is so distraught over damaging revelations in a book on CEO Michael Eisner that the public relations head offered to resign, The Post has learned.

Sources say Disney obtained several chapters of James B. Stewart's soon-to-be published book "Disney War" last week, and immediately put their lawyers and spinmeisters into overdrive to try to get Stewart to soften the portions most damaging to Eisner and his top deputy, Bob Iger.

                                                                         

Sources say the publisher, Simon & Schuster, has no idea how the Mouse House was able to obtain an advance copy of "Disney War," and is trying to find out how it was leaked.

A spokeswoman for Simon & Schuster declined to comment beyond saying, "The book will speak for itself when it's published."

The material was believed to be so damaging to Eisner that public relations exec Zenia Mucha offered to resign an offer that Eisner refused. Sources said the move was spurred by the anticipated negative public relations, and that as department head she felt she should take the fall. Both top executives cooperated with Stewart on the book.

Mucha said she "can't confirm or deny" that she got an unauthorized copy, adding, "I went through a normal fact-checking process."

She declined to comment on whether she offered to resign from Disney.

The hard-charging Mucha known for her aggressive p.r. tactics was formerly an adviser to New York Gov. George Pataki.

The only public glimpse thus far of Stewart's exposé is an excerpt this month in The New Yorker, which detailed the ill-fated relationship between Eisner and his ex-No. 2, Michael Ovitz, the subject of a high-profile shareholder lawsuit.

"Disney War" is set to hit store shelves March 7. Stewart, a Pulitzer Prize-winning reporter, also wrote the Wall Street classic, "Den Of Thieves."

Iger, Eisner's preferred successor, stands to suffer even more from any negative portrayals since his boss has agreed to resign in September 2006.

This partly explains Disney management's "overly harsh reaction," according to one source.

While Disney's board of directors has promised to conduct an independent search for Eisner's successor it has hired search firm Heidrick & Struggles management has been waging a pro-Iger campaign, while the board has yet to seek out any outside candidates. The next chief is expected to be named by June.

"I think the danger for Iger is that [management is] controlling the process and not the board," said one industry source close to Disney.

The perception that a wide-ranging search is not being conducted could ignite further outrage from disgruntled shareholders, as well as Stanley Gold and Roy Disney, the former board members who resigned in late 2003 to campaign for Eisner's ouster.

Disney and Gold largely succeeded in their efforts, as Eisner resigned his chairmanship last March and later announced he would not continue on as CEO beyond the terms of his contract.

Disneyland Resort Promotes Claire Bilby to Senior Vice President

The Disneyland Resort announced today that Claire Bilby has been promoted to senior vice president, Sales and Distribution Marketing.

                                                                             

In her new role, Bilby will continue leading all sales efforts and work closely with a variety of travel industry partners to maximize Resort sales opportunities.

"Claire is a very talented executive," said Matt Ouimet, president of the Disneyland Resort. "She brings innovative thinking to all that she does and is an inspirational leader to all the Cast Members in our sales organization."

"From the moment she begins a relationship with a Disney client to when she helps deliver the final product, Claire exemplifies the high standards of professionalism and commitment to Guest service that our sales partners expect and deserve," said Randy A. Garfield, CTC, executive vice president, Sales and Travel Operations for Walt Disney Parks & Resorts, and president of the Walt Disney Travel Company.

Bilby leads the sales and marketing efforts for all Disneyland Resort sales channels, both domestically and internationally. This responsibility includes overseeing the sales and travel industry marketing initiatives of Disneyland park and Disney's California Adventure park and the Resort's three hotels, the Disneyland Hotel, Disney's Paradise Pier Hotel and Disney's Grand Californian Hotel.

She is also responsible for Disneyland Resort's meetings, conventions and incentive sales programs and directs the Walt Disney Travel Company's West Coast operation. Bilby is providing an even more integral role to the business as Disneyland celebrates its 50th anniversary. Beginning May 5, 2005, and continuing for 18 months, Bilby will help lead a global sales and marketing blitz with the spotlight expected to bring more tourists to Southern California.

In addition to her Disney duties, Bilby currently serves as Vice Chair of the California Tourism Commission and Co-Chair of the Orange County Tourism Council. In 2002, Travel Agent magazine named her as one of the "Most Powerful Women" in the travel industry, an honor she garnered twice before.

In 1998, Bilby came to the Disneyland Resort from The Walt Disney World Resort in Orlando, Fla., where she served as director, International Marketing. Prior to her Disney career, Bilby held other positions within the travel industry that provided her with a broad background of tourism and sales experience.

Aliens of the Deep

Aliens of the Deep, James Cameron's new 3-D underwater exploration film opens in 27 IMAX theaters across the US today.

                                                                             

Disney to report results Monday

Analysts polled by Thomson First Call expect Disney to earn 29 cents a share on $8.54 billion in revenue, compared with a profit of 33 cents a share on revenue of $8.5 billion in the same quarter a year earlier.

CIBC World Markets analyst Michael Gallant said the Burbank, Calif.-based media and entertainment company has "plenty of room" to surpass that profit forecast, but added that the stock already reflects that possibility.

Looking to what might be addressed on the quarterly conference call with analysts, Merrill Lynch's Jessica Reif Cohen indicated earlier this month that she wants to see Disney address an extension of its partnership with Pixar Animation Studios, the creator of "Toy Story," "Monsters Inc." and other successful computer-animated movies.

Cohen also said she'd like to hear more on the possibility of Disney entering the video game industry "in a meaningful way," and about smooth succession plans for the chief executive role when Michael Eisner steps down next year.

Chief Operating Officer Bob Iger is seen as the front-runner for the top position.

Laura Martin at Soleil-Media Metrics is looking for some detail on what worst-case scenario might result from a shareholder lawsuit related to a $140 million severance package given to former Disney President Michael Ovitz when he resigned in 1996.

Led by its turnaround at the ABC television network and continued strength from its cable networks, the Mouse House is expected to report significantly better results in its media networks division.

Martin is looking for revenue to rise 12 percent to $3.5 billion over the year-earlier period, with operating income climbing 40 percent to $480 million.

ABC has some of the highest-rated shows on TV this season, including "Desperate Housewives," "Lost," "Extreme Home Makeover" and "Wife Swap."

The shows have helped erase the memory of the 2003-04 season, when the network finished fourth in the Nielsen race behind Fox Broadcasting, a unit of Fox Entertainment Group.

CIBC's Gallant points out that ratings at ABC have only declined "marginally" since the debut of Fox's latest season of "American Idol" began, unlike in previous years.

Theme park revenue should rise 3 percent to $2 billion, Martin told clients, with operating income accelerating 9 percent to $260 million.

The studio entertainment division will benefit from the performance of theatrical films such as "The Incredibles" and "National Treasure," according to Gallant.

Martin, however, sees difficult comparisons with the prior year in the home video segment, which should drop revenue in the division by 26 percent to $2.2 billion.

She said that this year's December quarter home video releases included "King Arthur," "Hero," "Raising Helen" and "The Princess Diaries 2," which can't match the results achieved by "Pirates of the Caribbean," "Freaky Friday" and "The Lion King 11/2" in the year-ago period.

Shares of Disney declined 7 cents to $28.23 on Friday.

Don't Duck it, Disney is better in France

Would our children like Disneyland Paris? Well, that wasn't really the issue. What concerned my three girls more was would daddy/husband survive without one of his high-minded, embarrassing hissy fits?

When it comes to travel, the Mills family are the antithesis of National Lampoon's Griswalds.

Instead of pulling together we wrench each other apart - and it's at its worst during school holidays.

Our two daughters are only the start of the problem. Yes, culturally speaking, Maddie, five, is still hooked on cartoon silliness such as SpongeBob SquarePants, while Laurie, 10, precocious and sophisticated, is locked into the adolescent West Coast angst of The OC.

Maddie needs constant entertainment while Laurie is happy with sunshine, a book and a friend. But the real spoilt brats are the parents.

Yasmin is a vigorously fashionable, urban type who is satisfied only in a cosmopolitan location.

She wants luxury, glamour and a heady social mix while daddy craves simplicity, spectacle and solitude. Usually, I give in to their demands and go somewhere hot, coastal and lively because it makes life easier, but I draw the line at crowds. For me, hell is other people.

So, Disneyland Paris, at half term? A heinous hell of 30,000 bodies shuffling around a twee, cotton-candy Sodom and Gomorrah? How I was dreading it.

Damage limitation was uppermost in my mind. I wanted culture, café society and Left Bank opulence. Of course, people-hating moi refused to sleep in the Disneyland complex, so we grandly checked into the Plaza Athénée on Avenue Montaigne just off the Champs-Elysée.

The Plaza, as the jet-set call it, is wonderful. An effortlessly chic Audrey Hepburn of hostelries with red awnings and a dreamy private courtyard of red geraniums, it has always been a magnet for the rich and famous - Grace Kelly, Jackie Kennedy, various Vanderbilts and Rockefellers stayed there - and it is now celebrity catnip since its subtle refurb a couple of years ago. It enjoys regular visits from Britney Spears, Keanu Reeves, Uma Thurman and Jack Nicholson.

The Plaza's décor - old world meets 21st-century edgy - strikes exactly the right balance between trad and trendy.

We admired the huge glass chandeliers in the Alain Ducasse dining room which had been modishly shrouded in cylinders of metal gauze. Service-is attentive without being obsequious. Laurie, a fan of Sex and the City (they grow up fast these days) intantly recognised the place as Carrie Bradshaw's Parisian base in the final episode and was delighted to spot Penelope Cruz having tea and cakes in La Galerie des Gobelins, next to the lobby.

Madeleine, meanwhile, liked the Plaza because it looked just like the house that naughty schoolgirl Madeline (of the charming Ludwig Bemelmans children's books) used to live in. Sadly, we couldn't lie down in our room (the size of Provence), switch on the plasma and order room service for 48 hours because - the horror! - Blanche Neige et les Septs Nains (Snow White and the Seven Dwarfs) were calling us.

But I shouldn't have worried, because, guess what? I really liked my day out with Mickey, Goofy and co. Purists are going to hate me, and they will regard the following statement as theme-park sacrilege, but here goes. Disneyland Paris is better than Walt Disney World in Florida. Or Disneyland, Los Angeles.

It's better because it's less offensive and easier on the eye, because it's full of European people who are better looking, better dressed, thinner and just plain cooler than those in fat 'n' folksy Florida. I applaud its lack of year-round sunshine which, in true Parisian style, nicely tarnishes Disney's puerile optimism. I know Florida has Epcot, but who needs an Experimental Prototype Community of Tomorrow when you are but a train ride away from La Defense and the Pompidou Centre?

Bolton grants a C'ville wish

Students head effort to send CHS senior on Disneyland dream trip

"Wish Kid" Mandie Walker of Collierville proved to be the belle of the ball at Bolton High School.

Students raised money to make her wish come true.

Eighteen-year-old Walker thought she was going to a seminar for band, but when she arrived at Bolton High School, events turned crazy and that "seminar" turned out to be a dream come true -- literally.

Walker was diagnosed with thrombotic thrombocytopen, a rare blood disease where the red blood cells form microclots which affects blood flow, on Thanksgiving Day 2003. Constantly enduring aggressive medical treatment, Walker was referred to the Make-A-Wish Foundation of the Mid-South by her mother, Pam.

When Make-A-Wish volunteers visited Walker at her home, she wished more than anything in the world to go to Disneyland in California to meet Cinderella. She also wanted to take her best friend, Whitney Hurdle, with her.

"Going to Disneyland is something she has always wanted to do," said mom Pam. "She has always been fascinated with Cinderella. If you ask her to make a list of everything she could possibly wish for, it would always go back to Cinderella."

For the wish granters at Make-A-Wish, the trip to California was easy part. Trying to surprise an 18-year-old was a different story.

"Mandie twirls the flag for the Collierville High School band, so it was easy to convince her that she was invited to a Shelby County Color Guard Conference," said Brooke Castleman, Make-A-Wish's master wish granter.

When Mandie arrived, she was treated with a manicure, a personal hairstylist, and evening gowns (thanks to David's Bridal) to make her feel like a princess. After her pampering was over, she was whisked into the gymnasium -- full of Bolton High School students -- where she was told her wish had been granted. Her mom, best friend and sister Lauren were seated in the audience.

"She looked like a deer in headlights," said Pam. "She didn't have a clue what was going on. She knew something was strange, but she couldn't figure out what."

Walker only had one thing to say about her surprise wish-granting: "It was awesome!"

Walker not only got her trip to Disneyland, best friend Whitney was going along as well.

"I wanted her to go because she gets to experience it with me," said Walker. "And that is important to me. We will have fun."

The average cost of granting a wish is $5,000. All funds to ensure that Mandie's wish came true were raised by students in the school's National Honor Society. This is their fourth wish granted to a Make-A-Wish child. Marti Martin, sponsor of the club, says the students hope to grant another wish this spring.

Bolton High School sponsored Mandie's wish as part of the Kids for Wish Kids program. Collierville-area schools and groups participating in the Kids for Wish Kids program this year are Collierville High School, Collierville United Methodist Church youth group, Houston High School, Schilling Farms Middle School and St. George's Independent School.

The mission of the Make-A-Wish Foundation is to grant the wishes of children with life-threatening medical conditions to enrich the human experience with hope, strength and joy. The children served by Make-A-Wish are referred to the Foundation.

The Make-A-Wish Foundation of the Mid-South covers North Mississippi, West Tennessee and all of Arkansas. Since the chapter's inception in 1986, more than 2,000 wishes have been granted to the most deserving children.

For information to sponsor a child's wish or volunteer for the Foundation, call 680-9474 or visit the Web site at www.wish.org.

Amanda Sexton is communication coordinator for Make-A-Wish Foundation of the Mid-South.

Kids Fly Free* to Disneyland Resort with United Vacations

With United Vacations, when travelers book a Disneyland Resort vacation by March 14, 2005, children ages 2 to 11 fly free* per full paying adult. This offer is valid for Monday through Thursday departures on or before May 25, 2005, excluding departures Feb. 21 and March 24 and 28, 2005.

Plus, for travel now through April 28, 2005, travelers who stay four nights or longer at a Disneyland Resort Hotel will receive up to $200 in Disney Dollars. Additionally, children ages 3 to 9 play free (per paying adult) at the Disneyland Resort theme parks.

Sample Disneyland Resort vacations include roundtrip airfare on United Airlines; four-night accommodations; and a 4-Day Disneyland Resort Park Hopper Bonus Ticket that includes a free child's ticket, a $10 ESPN Zone Arena Game Card, and one admission for early entry into a designated land inside Disneyland Resort theme park (before the park opens to the general public).

Vacations with accommodations at Disney's Paradise Pier Hotel begin at $694 from San Francisco and Los Angeles; $774 from Seattle; Fargo, N.D.; and Rapid City and Sioux Falls, S.D.; $809 from Denver; $869 from Chicago; and $889 from New York City, Boston and Washington, D.C. Vacations include $125 Disney Dollars per booking, an adult's Disneyland® Resort Park Hopper Bonus Ticket, and a free child's ticket.

Vacations with accommodations at Disneyland Hotel begin at $809 from San Francisco and Los Angeles; $889 from Seattle; Fargo, N.D.; and Rapid City and Sioux Falls, S.D.; $924 from Denver; $984 from Chicago; and $1,004 from New York City, Boston and Washington, D.C. Vacations include $150 Disney Dollars per booking, an adult's Disneyland Resort Park Hopper Bonus Ticket, and a free child's ticket.

Vacations with accommodations at Disney's Grand Californian Hotel begin at $944 from San Francisco and Los Angeles; $1,024 from Seattle; Fargo, N.D.; and Rapid City and Sioux Falls, S.D.; $1,059 from Denver; $1,119 from Chicago; and $1,139 from New York City, Boston and Washington, D.C. Vacations include $200 Disney Dollars per booking, an adult's Disneyland Resort Park Hopper Bonus Ticket, and a free child's ticket.

Prices are per person, based on double occupancy and reflect Monday departures through March 15, 2005. *Every flying passenger, including any child age 2 to 11 flying free, is responsible for the following government-imposed per passenger taxes and fees, which are not included in the prices shown and which vary by itinerary: passenger facility charges up to $18, air segment fees of $3.20 per domestic segment and the September 11th Security Fee of up to $10. Kids Fly Free Offer: One child (age 2 to 11) flies free per paying adult. The offer must be booked roundtrip in a special class of service. If the vacation includes travel on April 1, 2005 or after and is booked 16 or less days prior to travel, the trip must include a Saturday night stay. For travel now through April 28, 2005, receive one free child's (age 3 to 9) Disneyland Resort Park Hopper Bonus Ticket with the purchase of the same Adult (age 10+) Ticket of three days or longer. Only one free child ticket per qualifying adult ticket purchased. Tickets expire 13 days after the first day of use or on April 28, 2005, whichever occurs first; each day of use constitutes one full day of use. Tickets may not be sold or transferred for commercial use. Park Hopper Bonus Tickets include a $10 ESPN Zone Arena Game Card valid at the ESPN Zone in the Downtown Disney District and one admission for early entry into a designated theme park. An early entry admission allows access to a designated Disneyland Resort theme park before the park opens to the general public. While not available daily, it will be available multiple times per week. Disney Dollars are applied once to the total reservation and are valid for new reservations only. Blackout dates and restrictions apply. All offers, events, tickets, age ranges, services, attractions and entertainment may be seasonal and are subject to change without notice. As to all logos, artwork, properties: Disney. For full details, see United Vacations' Terms & Conditions. Air segments may be serviced by United, Ted, United Express carriers Air Wisconsin, Chautauqua Airlines, Mesa, Republic Airlines, Shuttle America, SkyWest, and Trans States and/or code share partners including US Airways.

Purchase United Vacations online at www.unitedvacations.com, by calling 888-328-6877 or by contacting a local travel agent.

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Disney Wins as Judge Refuses New Pooh Trial

 

A Los Angeles judge on Wednesday denied a new trial to owners of the U.S. marketing rights for Winnie the Pooh after dismissing the firm's lawsuit against The Walt Disney Co. last year. Superior Court Judge Charles McCoy threw out the suit last March, ruling that Stephen Slesinger Inc., which holds the rights to the honey-loving bear, had stolen evidence and tainted the case.

                                                                  

Slesinger's lawyers had argued that other remedies besides throwing out the case were possible, but McCoy ruled on Wednesday that the knowledge improperly obtained by the Slesinger family could not be purged and there was no alternative to dismissal.

A Slesinger lawyer said he would appeal the case, which Disney had said could be worth hundreds of millions of dollars.

The family-owned firm which acquired the rights to Pooh in 1930 from British author A.A. Milne had accused Disney of short-changing it in product royalties, a charge Disney strenuously denied.

Disney board picks up support

 

For Walt Disney Co., it was a welcome about-face.

In early 2004, the influential Institutional Shareholder Services advisory firm joined Disney dissidents in recommending that Chief Executive Officer Michael Eisner be given the thumbs down in his bid to be re-elected as a director.

The group's report fortified a protest movement that saw Eisner rebuked with a 45 percent no-confidence vote, leading to his being stripped of the chairman's title by the board of the entertainment company.

On Tuesday, however, ISS praised Disney, saying the company was for the most part doing the right things. With the annual shareholders meeting a little more than two weeks away, ISS is recommending a favorable vote for all 12 Disney directors, including Eisner.

"Overall, Disney has taken some positive steps in the past year," the Rockville, Md.-based group said. Its report was prepared for institutional investors as they are about to cast votes for the Feb. 11 annual meeting in Minneapolis. An ISS recommendation carries significant weight with large institutional shareholders, such as pension funds.

And it's a big boost for the Disney board, which still carries scars from last March's battle with dissidents led by former directors Roy Disney and Stanley Gold.

Back then, citing management problems and historically low returns, ISS sided with Gold and Disney on the Eisner issue, giving credibility to a group that had been portrayed as a bunch of gadflies.

The change of heart by ISS came after Disney's board made the separation of chairman and CEO roles more permanent -- addressing a fundamental concern shared by ISS and several investors.

Beyond that, ISS said it welcomed changes aimed at linking executive pay more closely with performance and acknowledged Disney's "strong financial performance" in 2004, when it outperformed other media companies with earnings per share rising 72 percent.

ISS qualified its endorsement by saying it was based on good faith that Disney's turnaround would continue and that its board would abide by good corporate governance.

The company had no comment on the report. Neither did Gold and Disney.

'Who Wants To Be A Millionaire' & The Knot Hitch Up for Wedding Edition of the Game Show

Top rated game show, "Who Wants To Be A Millionaire," with host Meredith Vieira, will be teaming up with The Knot (www.theknot.com), the nation's top source for 'all-things-wedding' for "Play To Pay For Your Wedding." The specialty edition will feature engaged couples, several who are members of TheKnot.com, playing as a team in the hot seat as they try to win $1 million to help pay for the wedding of their dreams. Couples will be allowed to discuss the questions with each other before agreeing on one "Final Answer." The five-episode series will air in syndication February 7-11, '05 (check local listings).

While the couples are winning the bucks to pay for their weddings, home viewers will have a chance to win a six-day, seven-night trip for two to the new Coco Palm Resort on the tropical isle of St. Lucia through The Knot 'Escape to St. Lucia Sweepstakes.' Each day, host Meredith Vieira will ask a special wedding-themed "sweepstakes" question on-air. To enter the contest, viewers go to www.theknot.com/millionaire to enter their answer. The winner of The Knot 'Escape to St. Lucia Sweepstakes' will be drawn from all correct answers submitted. Details of the contest and the complete official rules can be found at www.theknot.com/millionaire (website will be available as of 02/07, the first day of the sweepstakes).

"These are some of my favorite shows to produce," said "Millionaire" executive producer, Michael Davies. "We've done successful couple editions before, but nothing like this. We are putting an innovative twist on a proven format," he added.

"Having been married for 19 years myself, I am fascinated by the idea of seeing couples play as a team on "Millionaire," said host, Meredith Vieira. "Experts say that the number one item couples argue about is money. The prospect of winning $1 million might just bring out a side to these contestants that their mates have never seen," she added. "I think the couples will come out of this experience knowing their mates better than ever before."

"In a day and age when the average American wedding costs $25,000 -- or twice that in metropolitan areas like New York City -- the chance to win $1 million towards your wedding is a once-in-a-lifetime opportunity for any bride and groom," said Carley Roney, cofounder and editor in chief of The Knot. "Taking the hot seat on 'Millionaire' is a great roadtest for marriage. Though we expect money to put the pressure on, we foresee that couples will ultimately prevail ... hopefully a bit richer, than poorer."

Each couple that plays during the week will also be given an "early wedding gift" on behalf of "Millionaire" and partners of The Knot. The gifts will be a complete surprise to the unsuspecting couples and ensures that even if they don't win $1 million, no one will walk away empty-handed. Gifts include a $2,500 gift certificate from the Kohl's Bridal Aisle gift registry; a shimmering Swarovski-encrusted ball gown from celebrity-gown designer Henry Roth; a one-carat, three-stone Leo diamond ring, hand-crafted by Leo Schachter, from Kay Jewelers; two hand-sculpted platinum and diamond bridal bands, designed especially by Scott Kay; four five-piece place settings of Grand Baroque sterling silver flatware from Wallace Silversmiths; 12 five-piece place settings and serving pieces of Grand Central Dinnerware from Lenox; 8 sets of Italian-made silverplated flatware serving pieces from Fifth-avenue luxury retailer Michael C. Fina; and two 18K white gold handcrafted wedding bands, designed by Bergio.

Meredith Vieira and the "Millionaire" Team

Meredith Vieira, host of "Who Wants To Be A Millionaire," is fresh off of her 2004 Daytime Emmy nomination. A critically-acclaimed broadcaster and moderator of ABC's "The View," Vieira has brought her own unique style to the game show. "Who Wants To Be A Millionaire" is produced by the same Emmy Award-winning team, Valleycrest Productions, which brought the original "Millionaire" to ABC in 1999. Michael Davies, Paul Smith and Leigh Hampton are executive producers; Vincent Rubino is co-executive producer. The show is currently in its third season.

Disney's On the Record to Close July 31

The new Disney musical On the Record, which features songs from both classic Disney films and Disney's Broadway outings, will close after its July engagement at the Denver Center for the Performing Arts.

A spokesperson for the production confirmed to Playbill.com that the musical, which currently co-stars Kaitlin Hopkins and Brian Sutherland, will play its final engagement July 19-31 at the Denver Center's Buell Theatre.

Disney Theatricals President Thomas Schumacher told Daily Variety, "[On the Record] captured the people who love the Disney catalog, but once we got into a market, (business) didn't expand from there. We don't get walk-up business. . . .There is no reason to stop [the tour] today. All of these theatres need nine to 12 months to announce a season." He also added that there is the possibility that the show may play venues overseas.

The national tour of On the Record began performances Nov. 9, 2004, in Cleveland. Emily Skinner, who began the tour, was recently replaced by Hopkins. The cast also includes Ashley Brown and Andrew Samonsky as well as company members Meredith Inglesby, Andy Karl, Tyler Maynard, Keewa Nurullah, Josh Franklin, Leigh Ann Larkin, Koh Mochizuki and Lyn Philistine.

On the Record, according to production notes, "is the story of a recording session that changed the lives of a young unknown who is about to get her big break, a pop diva who is about to meet her match, and a matinee idol who is about to meet the 'new kid' who could take his place."

Directed and choreographed by Robert Longbottom, the musical's creative team comprises Natasha Katz (lighting), Robert Brill (scenery), Gregg Barnes (costumes), David Chase (musical supervision and arrangements), Chad Beguelin (scenarist) and Acme Sound Partners (sound design).

The On the Record itinerary follows:
Feb. 1-6 at the Landmark Theater in Richmond, VA
Feb. 8-27 at the Fisher Theatre in Detroit, MI
March 1-6 at the Wharton Center East Lansing, MI
March 22-27 at the Clowes Memorial Hall in Indianapolis, IN
April 19-May 1 at the Broward Center in Ft. Lauderdale, FL
May 3-8 at the Tampa Bay Performing Arts Center in Tampa, FL
May 10-15 at the Barbara B. Mann Performing Arts Hall in Ft. Myers, FL
May 24-May 29 at the Majestic Theatre in San Antonio, TX
May 31-June 12 at the Hobby Center in Houston, TX

A CD of the musical is currently being recorded.

Hyperion Reports Record Fiscal Second Quarter

Hyperion Solutions (Nasdaq: HYSL), the leading provider of Business Performance Management (BPM) software, today announced record financial results for its fiscal second quarter ended December 31, 2004.

Total revenues for the quarter increased 13% to a record $177.0 million, compared to $156.1 million for the same period a year ago. Software license revenue increased 15% to $68.5 million, compared to $59.7 million for the same period a year ago, while maintenance and services revenue grew 12% to $108.5 million, compared to $96.4 million in the year-ago period. The company's second-quarter net income, as reported in accordance with U.S. generally accepted accounting principles (GAAP), increased 135% to $15.6 million, the highest in the company's history, or $0.38 per diluted share. This compares to net income of $6.6 million, or $0.16 per diluted share, for the second quarter of fiscal 2004.

Second quarter non-GAAP pro forma net income increased 46% year-over-year to $20.4 million, or $0.50 per diluted share, excluding the impact of charges, net of related tax, for the amortization of purchased intangible assets, the amortization of deferred stock-based compensation, and restructuring costs, including the charge taken for the global headquarters relocation that occurred during the quarter. These results compare to non-GAAP pro forma net income of $14.0 million, or $0.35 per diluted share, for the second quarter of fiscal 2004.

Hyperion's balance sheet reflects cash and short-term investments totaling $405.0 million at December 31, 2004. This compares to $362.6 million in cash and short-term investments at September 30, 2004. Cash flow from operations for the quarter was $29.7 million. The company used cash of $2.3 million to repurchase stock during the quarter, as part of its $75 million stock repurchase program announced in May 2004. Days sales outstanding (DSO) improved two days to 68 days from year-ago levels.

"Our second quarter was marked by record results, strong execution, and continued innovation," said Godfrey R. Sullivan, Hyperion's president and chief executive officer. "We generated record revenues, net income, and earnings per share. Demand for our market-leading solutions drove 15% license revenue growth over the same quarter last year and we achieved record pro forma operating margins of nearly 17% during the quarter. Hyperion Performance Suite had a break-out quarter, delivering license revenue growth of more than 50% from year-ago levels. This demonstrates the strong market demand in the Business Intelligence sector for our industry-leading management reporting solutions. In addition, our financial applications had another healthy quarter with double-digit year-over year growth.

"It's a very exciting time for the entire Hyperion team," continued Mr. Sullivan. "We're leveraging our management reporting solutions to reach beyond the finance department and into new areas of the enterprise. We're in a great position to lead the next wave of Business Performance Management as we unify Business Intelligence and financial and analytical applications into our BPM System. Hyperion has never been stronger."

"Three Little Pigs" Populate Disney's Animal Kingdom Lodge Savannah

Three red river hogs are the newest animals to populate the savannah at Disney's Animal Kingdom Lodge. The hotel's 33-acre savannah is home to more than 200 African animals and can be viewed by guests 24 hours a day.

Also known as African bush pigs, the hogs are indigenous to sub-Saharan Africa and are known for their unique ears. They now share a habitat on the wildlife reserve with giraffes, Ankole-Watusi cattle and ostriches.

The trio is among fewer than 100 red river hogs in the United States. Disney's Animal Kingdom Lodge is an American Zoo and Aquarium Association accredited zoological facility and one of the deluxe resort hotels at Walt Disney World Resort.

Eyes on Eisner

Even before embattled Disney Chairman Michael Eisner wraps up the shareholder lawsuit in Delaware, he seems to have launched a media charm offensive to smooth the path for his favored successor, COO Robert Iger. Last month, Lowdown hears, Eisner flew Fortune scribe Patty Sellers - who's writing a major profile of the Mouse House - to London on the Disney jet for the veddy posh opening of the stage production of "Mary Poppins."

Sellers didn't return messages for comment. Yesterday, Fortune rep Carrie Welch told Lowdown, "I know that she's been traveling to report this story, but I couldn't tell you how she got where she's going. None of our writers would have accepted an actual ticket. You have to get these people where you can get them, whether it's their house, a restaurant or a private jet."

A Disney spokeswoman elaborated: "Fortune came to us and said they were doing a story either with or without our cooperation. This isn't something we were looking for - it would be unfair to characterize this as something we were soliciting in any way." As to whether Sellers got a free ride, "I can't speak to that."

Disney Names Channel Distributor for Thailand

Disney Channel and Playhouse Disney Channel are set to crack the Thai market, via a deal with P. Southern Network Company Co. Ltd. (PSN).

PSN will work closely with Thailand's Cable TV Association–consisting of about 500 cable TV platforms–to roll the two channels out on basic programming tiers across the country.

Animated shows on both channels will be dubbed into the local language, will live-action series will be subtitled. Completion of the full schedule is expected by February 2006. An English-language feed will also be available in appropriate areas.

New England Patriots captain Troy Brown, under the auspices of the Celebrities For Charity Foundation, is offering one lucky football fan the chance of a lifetime. Not only do you have a chance to win two tickets to this year's New England Patriots vs. the
Philadelphia Eagles Super Bowl, but you can help the victims of the devastating tsunami in South Asia and East Africa at the same time.
   
Raffle tickets can only be purchased online at luckyfan.org, a special website created just for this event. Tickets for the raffle are priced low at just 5 tickets for $10.00 so that all football fans can afford a chance to attend the Super Bowl. Celebrities For Charity will donate to the American Red Cross at least 85% of every ticket sold for the Super Bowl raffle for Tsunami Victims Relief. The raffle, which is open to everyone in the continental United States, has an entry deadline of 9:00 AM EST Monday, January 31, 2005. The drawing will be held at noon that same day. The Grand Prize includes the following:

    GRAND PRIZE:

    * Two Tickets to Super Bowl XXXIX at Jacksonville's Alltel Stadium
      (Includes complimentary luxury coach transportation to and from
      Jacksonville)

    * Airfare for two to Orlando from within Continental United States (Arrive
      Feb 3, Depart Feb 7)

    * 5 days 4 nights' accommodations at the Disney Boardwalk Hotel (Double
      Occupancy)

    * Mid-Size Car Rental For Length of Stay

    * Full Breakfast Each Morning

    * Opening night "Welcome to Florida" cocktail party

    * Two Single Tickets to all four Walt Disney World Theme Parks (Magic
      Kingdom, Epcot, Disney MGM Studios, Animal Kingdom.

    * Two Tickets to the NFL Experience

    * Pre-Super Bowl XXXIX Sunday Kick-off brunch

    * Football Autographed by the 2004 New England Patriots

    * Taxes -- CFC will remit $1,600 to the IRS and $550 to the Commonwealth
      of Massachusetts to mitigate the winner's tax liability for this prize.

"I have worked with the Celebrities For Charity Foundation in the past for my other charitable work and I asked them to find a way for me to help the people affected by the Tsunami," said Troy Brown.  "You see all that death and devastation and you can't even imagine what those people are going through. I also always wanted to find a way to give the average football fan a chance to
experience the Super Bowl.  Tickets are so tough to get unless you spend thousands of dollars, and that's just too expensive for most fans. This gets both jobs done."
   
"We are heartened by the support offered by Troy Brown and the Celebrities For Charity Foundation in the midst of this crisis," said Stephanie Millian, spokesperson for the American Red Cross. "The humanitarian challenges connected with the tsunami disaster in South Asia and East Africa are immense, and we greatly appreciate this generous help."
   
Troy Brown is a 12-year veteran of the New England Patriots who is as well known for his work in the community as his work on the field. In addition, Troy won the fan-voted New England Patriots 12th Player Award this year as the player who best "personifies the Patriots team spirit" both on and off the field. He also won the team's Ron Burton Award (for community service), and he has been nominated for the NFL's Walter Payton Man of the Year Award. His "I've got Bingo" campaign for the United Way last season was a favorite of both teammates and fans. The campaign led to the Troy Brown Celebrity Bingo event, which benefited several charities including the Celebrities For Charity Foundation, the United Way, and the New England Patriots Charitable Foundation.
   
The Super Bowl Raffle for Tsunami Relief is being conducted by the Celebrities For Charity Foundation, Inc. For more information about the American Red Cross, please contact the American Red Cross at 1-800 797-8022 or
info@usa.redcross.org.

Chinese stars dub 'Incredibles'

Disney blockbuster The Incredibles will hit cinema screens in China on Friday, dubbed by Chinese film stars Jiang Wen, Xu Fan and Chen Peisi.

Jiang Wen, who also dubbed the popular Chinese cartoon Bao Lian Deng, plays the main character Mr. Incredible.

He said he planned to show the cartoon to his 4-year-old daughter as a New Year gift.

Acclaimed actress Xu Fan, whose voice will be familiar to fans of Finding Nemo as the little blue fish Dolly, will this time play the female lead, an elastic superwoman.

The renowned comedian Chen Peisi is the voice of Edna Mode, a role which is voiced in the original version by the film's director and screenwriter Brad Bird. 

Disney trip will open 'a whole new world' to WRHS band

Hanging in the White River High School band room is a poster of Disney's Twilight Zone Tower of Terror and a photograph with Mickey Mouse, Goofy, Donald Duck and other Disney characters. Both provide an incentive for band members who are saving their nickels and dimes for a trip to the famous playland during April's spring break.

But, like the trips the school has taken in the past, the four-day excursion to Southern California won't be all fun and games. There will be a mix of education and some work along the way.

"The group works hard all year long," band director Mike Osborn said. "Every once in a while it's good for the team, or group, to have a good, fun experience that's a learning experience, too. It gives them exposure beyond their musical area. A taste of possible careers and post-secondary exposure."

Since 2000, the WRHS band department has established a routine of taking an "airplane trip" every three years. The trips are designed to provide a quality music experience and opportunities to broaden horizons in a safe and fun format.

Osborn is planning to take this year's group to the University of California-Los Angeles (UCLA) campus for a close look at the music department and campus tour. He is also hoping to run the group through a rehearsal workshop session with the university director.

"The plan is to get a detailed peek at what it's like at a college program," Osborn said. "It should be an eye-opener and perhaps an inspiration."

The White River band will also perform at Disney's Magic Music Days and run through the rigors of a recording session at the Disney studios with a college band director. During the 1 1/2-hour session, Osborn said, band members will sight-read music and play popular Disney movie favorites.

"And all the pressure involved," Osborn said. "They'll never forget it because it's very intense."

That's the part White River senior Rachael Hoffman is most interested.

"I'm really looking forward to the studio time," the flutist and Hornet drum major said. "I've never done that before - and performing at Disneyland - because a lot of people can't say they've done that before."

Hoffman was part of the 2002 group that went to San Francisco. She said that was a wonderful experience.

"It was neat to see other bands from California," she said. "They're different from what we're used to up here in Buckley. It was neat to go to wharf. We got to play there which was really cool. We saw Chinatown and went to a live performance of 'STOMP.'

"It's a lot of fun. It's not just like we're going to Disneyland to go on rides, we do get something out of it."

Like the other students, Hoffman has been saving her pennies for the trip. The school district does not provide funding for the adventure, which costs approximately $31,000. Each of the 55 students, which are a conglomeration of White River's jazz, percussion, concert and wind ensemble, was asked to raise $552 by Feb. 1. Five parent chaperones and Osborn will also make the trip.

Students have been working toward that goal by selling coupon books and setting up rummage sales. The Band Booster Club is helping out by running the high school's winter concession stand. White River band students will make one final fund-raising burst in January with a community-wide candy sale.

But Osborn is concerned some kids will still come up short. He's hoping to enlist some community sponsors or donors who will support those kids.

"I don't want to leave any kids behind just because they come up short," Osborn said.

For information or to sponsor a student contact Osborn at 360-829-5681 or e-mail him at mosborn@whiteriver.wednet.edu">mosborn@whiteriver.wednet.edu.

Advisory firm gives backing to Disney
DirecTV to offer ABC high-definition in 10 markets

Paul Newman Races for New Record in Disney and Pixar Sponsored Racecar

Miramax basks in Oscar limelight while fate hangs in the balance

It's Carnival

'Lion King' displays ingenious stage work

Disney benches Super Bowl ad

 

Since 1987, Disney has been at the Super Bowl, thrusting a camera in front of a winning player and asking what his plans were after the big game.

But not this year.

The Mouse won't be in Jacksonville, so TV audiences won't hear Donovan McNabb, Tom Brady or anyone associated with the Eagles-Patriot matchup say, "I'm going to Disney World!"

Disney's been doing these ads practically forever -- or at least since Ronald Reagan was president and Donald Trump was still on his first marriage.

I wondered if the change had anything to do with last year's trashy bare-all by Janet Jackson during Super Bowl halftime. Or did Disney think Fox was demanding too high a price for the privilege of talking to sweaty players post-game? (Thirty-second spots during the game are selling for $2.4 million.)

But the official word from spokesman Craig Dezern is that Disney is focusing on the two big ad campaigns it already has under way.

One, the "Happiest Celebration on Earth," includes global spots for all Disney parks pegged to the 50th anniversary of Disneyland. The other, "Magic Your Way," is about new prices for vacations in Orlando.

Both campaigns happened to start earlier this month.

"We're not saying we won't do this again," Dezern said, leaving the locker-room door open for future Super Bowl ads.

Still, bad timing aside, I'm puzzled why Disney wouldn't toss just one more spot into its mix.

The Super Bowl ads run for just a few days and are followed by a parade in the parks with the appointed sports hero, which is a huge crowd pleaser.

And it's not as if the company's suffering. Disney has bragged lately about the rebound of its parks business and its success in other areas, such as the wildly popular Desperate Housewives on the ABC network.

Eli Portnoy, a brand expert and president of The Portnoy Group, said that, for all the measurement tools out there, marketing is still tough to gauge.

The absence of the popular spots after this year's game could go unnoticed by TV viewers, or it could disappoint millions and officially fall into the blunder archives -- not as bad as New Coke, mind you, but not good.

"I would say anytime a company gives up a marquee brand position, there is a loss. Whether that's offset by the fact it would have cost a fortune" is difficult to know, Portnoy said. "It is just something the public expects."

Disney has done 35 "What's Next" spots, featuring everyone from Santa Claus to Stanley Cup winners, since the inception of the campaign 18 years ago with New York Giants quarterback Phil Simms.

Last year's Super Bowl spot featured Brady of the Patriots. A second ad was done later in the year after the World Series with the Boston Red Sox.

The first commercial runs shortly after the game, which is a bit of a production miracle considering the painfully long process usually associated with advertising.

The ads were the brainchild of Big Mike's wife, Jane Eisner. She had the idea at a luncheon with aviator Dick Rutan, who joked that he would top his latest flying feat by taking his family to Disneyland.

In the end, maybe it's a good thing there won't be ads this Super Bowl. Now, if anyone asks the players after the game what their plans are, they can say -- with complete candor -- what I've always wanted to hear:

"I'm taking a shower!"

Chicken Jambalaya from Boatwright's Dining Hall at Disney's Port Orleans Resort

 

Today's recipe request is for Chicken Jambalaya from Boatwright's Dining Hall at Disney's Port Orleans Resort. Andouille (an-DOO-ee) sausage is a heavily smoked sausage important to any jambalaya and many other Cajun dishes. In Central Florida, look for it in full-service gourmet stores and larger supermarkets.

Chicken Jambalaya from Boatwright's Dining Hall at Disney's Port Orleans Resort

Yield: 5-7 servings.

1 pound boneless chicken thighs, cut into small pieces 3/4 cup roughly chopped andouille sausage 3 tablespoons oil 1/2 cup diced onion 1/3 cup diced celery 1/3 cup diced green peppers

1/4 teaspoon cayenne pepper 21/2 cups uncooked rice 2 tablespoons Creole or Cajun seasoning 2 tablespoons tomato paste 3 cubes chicken bouillon dissolved in 5 cups hot water Salt and freshly ground black pepper to taste

1. Add oil to 4-quart saucepan. Cook chicken and sausage in pan just long enough to sear the outside of the meat. Add onion, celery, green peppers, and cayenne pepper to the meat. Cook until onions are translucent.

2. Add rice and Creole or Cajun seasoning to pan, stirring slowly to coat the rice. Add tomato paste and the chicken stock. Stir well.

3. Cook on low heat until all water has been absorbed. Add salt and pepper until seasoned to taste.

Vaulting the Disney gap and its plan for profits

 

There is a dark, desolate and arguably uninviting corner of this Earth. It is a place few will ever see, but who would really want to?

It is known as the "vault."

Well, particularly the "Disney Vault," which is a declared moratorium for retired and "discontinued" features. It is all within the household name of the multi-corporate mogul/giant known as the Walt Disney Company - a purveyor of playful happiness and magic all around the globe.

For the Walt Disney Company, the Disney Vault is a prized possession, or in other words, more power to them in regards to market control.

For the consumer, however, the Disney Vault means more hours strolling down the DVD aisles of Best Buy, Fry's, Circuit City or even the movie wall at your local The Disney Store searching for a copy of your favorite childhood animated feature. In the end, you leave empty-handed and uninformed to the consumer status of films such as "Pinocchio" (1940), "Fantasia" (1940) and "Peter Pan" (1953), to name a few.

During the last holiday season, Nathon Newbold, a sophomore majoring in screenwriting, was on the hunt for a copy of "Beauty and the Beast" (1991) for his little sister's birthday. Like many, he was unaware of its retail unavailability and searched high and low for the scarce disc.

"I couldn't believe how many places I had to look for a DVD that seemed to be everywhere only a few months prior," Newbold said. "It wasn't until later that I found out they had discontinued the movie."

He ultimately located the disc at an overblown price on Amazon.com just before Christmas. It had been too late for his sister's birthday but he compensated with it as a Christmas present.

So what is the deal with the "discontinued" (a term no eager consumer likes to hear) discs that essentially fuel the demand and propel ridiculous market value in forums such as eBay and Amazon.com?

That's the "deal." A giant mega-company/conglomerate such as the Walt Disney Company seeks to drive up the demand for their supposed "limited" amount of discs so that consumers will weigh in with inflated values for your average $20 DVD for "Beauty and the Beast" with a $45 "buy-it-now" option on eBay.

If basic arithmetic falls into this equation it's not hard to see a price has doubled for a now discontinued and "vaulted" disc that was once a readily available product about a year ago.

Or better yet, someone can sweep up the $97 bargain for "factory sealed" DVDs of "Beauty and the Beast" and "Snow White and the Seven Dwarfs" (1937). Basic economics are surely at hand now.

As of now, consumers have bid farewell to the aforementioned discs in addition to a collection of Disney favorites such as "One Hundred and One Dalmatians" (1961), "The Little Mermaid" (1989) and "Lady and the Tramp" (1955). And by the end of this month we will bid adieu to yet another beloved feature that assuredly convinced us of "no worries" (or "hakuna matata") - "The Lion King" (1994).

This means Simba, Pumbaa and Timon are hitting the moratorium vault for the designated minimum of 10 years, by which point Disney will most likely release another "special," "limited" or "collector's" edition of the same film. All this while knowing so much demand has been driven up for the family feature that parents and collectors will embrace it with open arms and wallets.

In fact, demand has already reached its peak for a couple Disney features that haven't even seen the light of day on DVD as of yet. Namely, "Cinderella" (1950) and "Song of the South" (1946), both of which are a part of the "Top 10 Most Requested DVDs" on Amazon.com.

While the consumer is led to believe certain "classics" are released on such a limited basis, there is a greater likelihood of enormous pre-sales and overall retail sales for unreleased discs.

However, as much as the Walt Disney Company can easily be seen at the forefront of this demand-driven DVD market, they are not alone.

MGM functions similarly with its bankable James Bond franchise.

Through a slow, yet steady process, MGM has issued and then re-issued each of the first 18 Bond films at least twice, and the most recent two once (covering all five Bond actors thus far). And the company has shelved the boxed collection until they're prepared to re-release the "new" collection of Bond films for the die-hard fan and persistent collector.

Sounds like another moneymaking marketing tactic that most film studios are implementing regularly.

The studios will claim the vaulting process is a method of ensuring the enjoyment of "classic" and timeless films for generations present and generations to come.

Disney's 10-year moratorium cycle allows future generations of children to continue the joys of films their parents grew up with. Disney and other studios get to boast "enhanced," "loaded" and "never before seen" versions of their vaulted films to keep on selling those re-released discs.

First-year Marshall MBA candidate Paul Murray said: "It seems in their (Disney) market research they've found they actually get greater sales from it. One thing to note is that they want to keep their brand image fresh so that it's 'new' each time they release it. There's a certain bulk of demand where parents look forward to sharing their childhood with their own children."

In 10 years we will then look back on our college years as we can once-again embrace "no worries" for our children who will experience "The Lion King" for the first time.

Advisory firm gives backing to Disney

In a sign Walt Disney Co.'s attempts to bolster its governance are paying off, a leading proxy advisory firm is recommending shareholders vote for all directors at its annual meeting.

A year after stockholders withheld a remarkable 45 percent of the vote from Chief Executive Michael Eisner's election to the board, the influential Institutional Shareholder Services said Tuesday that it was advising clients to vote for him and the other 11 directors at the Feb. 11 meeting in Minneapolis.

Last year, ISS recommended shareholders withhold votes from Eisner.

"Overall, Disney has taken some positive steps in the past year subsequent to the vote of shareholders at the 2004 meeting," ISS said in its 23-page report, saying this year's meeting "will be nothing like last year's shareholder revolt."

"Critics may argue that Disney made its positive governance changes only when it was under the harsh glare of shareholder criticism, and wonder whether the company will continue to embrace shareholder rights going forward," ISS said, adding it believes that "sustainability now becomes the key issue."

Still, some shareholders aren't satisfied with the pace of change.

After the withheld vote, Disney directors stripped Eisner of his chairman's position, and he later said he would step down as CEO when his contract expires in September 2006. Disney has engaged a search firm and says it plans to identify his replacement by June.

ISS also gives Disney credit for a number of shareholder-friendly steps since last year's annual meeting, including holding talks with institutional investors, appointing former Sen. George Mitchell as chairman and committing to keeping the chairman and CEO positions separate--although it left an opening to combine them if the board deems it appropriate.

After that decision, Connecticut Treasurer Denise Nappier, who had been a sharp Disney critic, withdrew a proxy resolution calling on the firm to formalize separation of the positions in its corporate governance guidelines.

William Atwood, executive director of the Illinois State Board of Investment said he'd like to see change at Disney come about more quickly.

"The best way to do it is to remain engaged with the shareholders and seek their input," he said.

Disney has helped placate shareholders with strong results: It raised its dividend 14 percent last month, and its stock had a total return of more than 20 percent last year.

DirecTV to offer ABC high-definition in 10 markets

In an agreement with the Walt Disney Co., DirecTV Inc. said Tuesday it will offer ABC high-definition to eligible customers in the 10 markets where ABC owns television stations.

ABC is a unit of media giant Walt Disney (NYSE: DIS), which operates out of Burbank.

Customers who subscribe to the DirecTV local channels package in ABC's owned television station markets, which include Los Angeles, New York, Chicago, Philadelphia, San Francisco, Houston, Raleigh, N.C., Fresno, Flint, Mich., and Toledo, Ohio, will receive the local ABC programming free of charge.

To access DirecTV HD programming, customers must have a DirecTV-enabled high-definition set-top receiver and a single 18 x 20-inch multi-satellite dish.

El Segundo-based DirecTV (NYSE: DTV) is the second-largest pay television service in the United States, with more than 13.5 million customers.

Paul Newman Races for New Record in Disney and Pixar Sponsored Racecar

At an age when most people think about slowing down, film legend Paul Newman, who celebrates his 80th birthday today (1/26), is set to put the pedal to the metal behind the wheel of a Disney and Pixar sponsored racecar on February 4th, and race for a new record at the Rolex 24 at Daytona, it was announced today. The Academy Award-winning actor, who voices the character of a 1951 Hudson Hornet named Doc Hudson in the summer 2006 computer-animated feature, "Cars" (a Disney presentation of a Pixar Film), already holds a place in the Guinness Book of World Records as the oldest driver to win a professionally sanctioned race in 1995 at Daytona. Newman will be joined by Sebastien Bourdais (2004 Champ Car World Series Champion for Newman/Haas Racing); Cristiano da Matta (2002 Champ Car World Series Champion for Newman/Haas Racing); and Michael Brockman, Newman's co-driver when they won the Rolex 24 Hours of Daytona in 1995.

                                                     

Pixar's John Lasseter, director of "Cars" and an Oscar-winning director responsible for the "Toy Story" films and "A Bug's Life," added, "When Paul races next week at Daytona, I'll be there cheering him on along with a few others from the 'Cars' production team. It's been a thrill working with him on our movie, and getting a chance to discuss our mutual love of cars. Moviegoers are going to love hearing Paul's amazing performance as Doc Hudson in 'Cars,' and we're really honored to have him in our cast."

Dick Cook, chairman of The Walt Disney Studios, said, "This is the second year that Disney and Pixar are sponsoring Paul's car at Daytona, and we're proud to be associated with this great actor and car enthusiast. 'Cars' is shaping up to be another spectacular movie from John and the Pixar animation team, and a worthy successor to our Oscar® nominated hit, 'The Incredibles.' We'll be rooting for Paul to win at Daytona, and eager for audiences to hear his memorable performance in the film next summer."

"Cars," a Disney presentation of a Pixar Film, is scheduled to reach the starting line at theatres everywhere on June 9, 2006. After taking moviegoers into the magic realm of toys, bugs, monsters, fish, and superheroes, the masterful storytellers and technical wizards at Pixar ("The Incredibles," "Finding Nemo," "Monsters, Inc."), and Academy Award®-winning director John Lasseter ("Toy Story," "Toy Story 2," "A Bug's Life"), hit the road with a fast-paced comedy adventure set inside the world of cars. Lightning McQueen (voice of Owen Wilson), a hotshot rookie racecar driven to succeed, discovers that life is about the journey, not the finish line, when he finds himself unexpectedly detoured in the sleepy Route 66 town of Radiator Springs. En route across the country to the big Piston Cup Championship in California to compete against two seasoned pros, McQueen gets to know the town's offbeat characters -- including Sally (a snazzy 2002 Porsche voiced by Bonnie Hunt), Doc Hudson (a 1951 Hudson Hornet with a mysterious past, voiced by Paul Newman), and Mater (a rusty but trusty tow truck voiced by Larry the Cable Guy) -- who help him realize that there are more important things than trophies, fame and sponsorship. The all-star vocal cast also includes free-wheeling performances by racing legend Richard Petty and Cheech Marin. Fueled with plenty of humor, action, heartfelt drama, and amazing new technical feats, "Cars" is a high octane delight for moviegoers of all ages.

Miramax basks in Oscar limelight while fate hangs in the balance

Miramax Films again has won the Academy Awards prestige prize, with two films in contention for best picture and 10 nominations overall.

But this year's awards may be the swan song for the studio, at least under the leadership of its founders, Bob and Harvey Weinstein.

Miramax is owned by The Walt Disney Co., and the Weinstein brothers are in talks to separate from Disney, which will likely result in their separation from the Miramax name as well.

Tuesday, two Miramax films - the Martin Scorsese epic "The Aviator" and the smaller Johnny Depp vehicle "Finding Neverland" - were nominated for Academy Awards in the best picture category. The French film "The Chorus," distributed by Miramax, was nominated for best foreign language film.

Under ongoing negotiations which are in the home stretch, according to people familiar with the talks, the Weinsteins will form their own independent production company while Disney keeps the Miramax name and the library of films that includes Oscar winners such as "Shakespeare in Love" and "Chicago."

The New York-based studio was named for the Weinstein's parents, Miriam and Max, and was sold to Disney for $80 million in 1993. Miramax became famous for raising the profile of independent films and nurturing such directors as Quentin Tarantino and Robert Rodriguez.

Over the years, even as Miramax turned out hits and Oscar wins, Disney became disenchanted with the Weinstein's move toward larger budget films. Last year, Disney refused to give Miramax more than its $700 million annual budget, forcing layoffs at the studio and furthering the rift between Disney CEO Michael Eisner and the Weinsteins.

The dispute also reached a new public level last year, with executives disputing whether Miramax was profitable and Disney saying the company's funding level would be reduced this year.

The Weinstein brothers are under contract to run Miramax through 2009. But Disney has the right to revisit the terms of the pact this year.

Those talks have shifted in recent months from reconciliation to separation.

Even as Miramax is once again competing for Oscar gold, the two sides are discussing which current projects will remain at Disney, which will leave for the Weinstein's new company and which will be developed jointly, sources familiar with the talks said.

Miramax spokesman Matthew Hiltzik characterized the discussions as "amicable," but would not comment on their substance.

"We're grateful that the Academy recognized a wide range of Miramax films, from foreign language to a modestly budgeted classic to the Scorsese epic," the Weinsteins said in a statement. "We congratulate our nominees and are thankful that the focus is finally where it should be - on the movies."

Analysts said that Miramax's success at the Oscars has not always translated into profitability at the box office. There is little correlation between awards and ticket sales, except for the occasional low-budget film that gets wider distribution.

But awards are important for other reasons.

"It attracts talent," said Paul Kim, an analyst for New York-based Tradition Asiel Securities. "There are tangential benefits. You always want to be perceived as a talent-friendly organization."

The Weinsteins will face considerable risks going forward, raising capital and launching a new independent studio.

Disney, too, faces risks. The company will be able to profit from the Miramax library. But it will need to find new executives to lead the label into future awards seasons.

"It's not just about setting a strategy and a budget," Kim said. "It's about finding the people who can actually execute on it. That is the question mark."

It's Carnival

Disneyland Paris - Officially the Kid's Carnival season will only premier on February 5th ... but after the official website now the first decorations inside the Disneyland Park are premiering. Yesterday the Town Square Gazebo was already topped of buy a strange construction with a plastic "Kid's Carnival" flag on top. The dark spaces between the colorful frames might be covered / filled with additional themeing elements later on or might be used for loud speakers as the party this year is meant to make children dance all over the Main Street with their friends from the jungle as well from the depths of the sea.

                                                 

'Lion King' displays ingenious stage work

In the beginning, there were animals.

Lions, leopards, antelopes, and a swaying elephant all danced down the aisles of Gammage Auditorium as the opening strains of "The Lion King," beckoned them to stage.

It was like Mardi Gras as all the animals swayed and paraded to an irresistible beat.

The magic of this musical bursts out in the first 10 minutes of the show. The players effortlessly convince us, with puppetry and dance, that they are the animals.

Sky-high giraffes were actors on stilts. The antelopes were dancers gliding across stage, images of the horned creatures held high and gliding with them. The lions, majestic and fierce, were muscular men with masks atop their heads.

Every move the actors made echoed the animal they represented.

Director Julie Taymor broke all rules with this musical, and created a new kind of thrilling theater.

"The Lion King" is a visual feast. While nothing quite matches that opening sequence, when all the animals gather in the Pridelands to greet the newborn lion cub, the production contains enough of Taymor's wonders to make you want to stay the full 2 hours and 40 minutes of the play. That's more than an hour longer than the original Disney movie on which the play is based.

While there are additional songs in this production, the musical pretty much follows that 1994 movie.

Simba, a young lion and the future king, feels responsible for his father's death and flees, leaving the Pridelands to his evil, self-centered Uncle Scar. Of course, Scar all but destroys the lands (he lacks the proper reverence for the circle of life). The hope is Simba will return to make all right. This is Disney, so take a wild guess how it ends.

This cast is up to the task of becoming animals who graze and stampede and fly and stalk and pounce.

And all had voices worthy of Broadway shows. Especially wonderful was Thandazile A. Soni as the wise Rafiki. The South African gospel star can steal your breath with her powerful, commanding voice.

The story works OK for an 89-minute movie. It lags in a 160-minute musical.

Some songs echo long after the show is over - think "Circle of Life," and "Hakuna Matata." And an added musical number, a mesmerizing African call song that opened Act II, was delivered with such expression and feeling that it made no difference that the language was likely not known to most of those in the audience. We understood.

The eco-friendly message is beaten over the audience's head, and there isn't enough meat to sustain a story here.

But you don't go see "The Lion King" for the story. You know the story. Your kids know it, too.

You go to this to see what's possible in theater. You go to see ingenious stage work borrowed liberally from ritual theater of Asia and Africa. You go to see actors with long blades of green on their heads sway and become the grasslands.

You go to see great magic at work.

Next Step to the Panorama

Disneyland Paris - The rather impressive looking artwork for the actual balloon and gondola design as well as for the small building for the ticket sales got fans really excited over the upcoming attraction for the Disney Village on the shores of Lake Disney: PanoraMagique - but actual construction work is rather slow now that the fence is up and the landings for the rental boats have been moved. All we can report that had changed as of yesterday was the addition of new signs as one can be seen below. It seems that finaly an addition of the Village is done in style.

                                             

It's a good thing Mickey has gloves

As corporate strategies go, this might seem a little, well, goofy.

The Walt Disney Co. will hold its annual shareholders' meeting in Minneapolis (a balmy 35 degrees Monday) on Feb. 11, instead of its California hometown of Burbank (70 degrees Monday).

Local boosters are delighted they were able to snag the meeting, which could fill hundreds of downtown hotel rooms during a slow month in the dead of winter.

But they're also wincing, their fingers crossed, because it will, after all, still be the dead of winter.

"One of the risks for us is that we have a horrendous cold snap and we start confirming in a lot of people's minds that we're the frozen tundra," said Greg Ortale, CEO of the Greater Minneapolis Convention and Visitors Association.

Ortale said he'd "be happy with average" temperatures, which in February works out to 15.69 degrees. Of course, the convention is being held nine days after the ninth anniversary of the coldest February day of the past century: 32 degrees below zero.

"We want to hold the meeting in different cities so our shareholders in different parts of the country can attend," Disney spokeswoman Michelle Bergman said.

After all, she pointed out, last year's shareholder meeting was held in Philadelphia, hardly a February fun-in-the-sun spot.

Walker Heads to Antarctica

Fast and the Furious star Paul Walker is headed to Antarctica, a forthcoming Disney-based adventure drama.

Today's Variety scoops that Walker will play the lead role in the Mandeville-produced feature which will be directed by Frank Marshall (Congo, Arachnophobia).

The story reportedly follows two explorers who venture to Antarctica in search of a meteorite, but are forced to desert their sled dogs and turn back. Walker will portray a National Geographic reporter who retraces his steps with a rescue team.

Antarctica had been schedule to start shooting in April of last year, with Bruce Hendricks (Ultimate X: The Movie) directing, but it was delayed due to bad weather in Greenland. Josh Duhamel (Win a Date with Tad Hamilton!) was originally attached to Walker's role.

David DiGilio wrote the script with a rewrite by Mike Rich (The Rookie).

Walker can next seen on the big screen opposite Jessica Alba in MGM's Into the Blue.

Antarctica will start shooting this winter in Canada.

ABC pulls poorly rated 'Complete Savages'

ABC has pulled "Complete Savages" because the comedy starring Keith Carradine and produced by Mel Gibson registered a cellar-level TV rating.

The Friday night comedy about a single father raising his sons was replaced with reruns of "8 Simple Rules" at least through the February sweeps period. "Complete Savages" will return in March with a shortened run.

Earlier this week, "Savages" creators Julie and Mike Scully left DVDs and notes for reporters attending the Television Critics Association meeting promoting the comedy, Zap2it.com reported.

"Complete Savages," which Gibson produced and occasionally directed, was No. 94 on network TV.

Disneymania 3 IN CONCERT at Disney's California Adventure Park!

See some of your favorite Artists, perform AND be part of the audience for the "Disneymania 3 In Concert" TV Special!

Hosted by Radio Disney AM1110's DJ Adam!

January 29-30, 11am-3pm

Artist Lineup:

Saturday:

• Raven-Symone
• fan_3
• Vitamin C
• Kimberly Locke

Sunday:

• The Cheetah Girls
• Lalaine
• Christy Carlson Romano
• Everlife

Concert is included with paid admission into Disney's California Adventure Park. Concert will be broadcast on Music Choice in April 2005.

ABC Chief Considers 'Legal' Issues

By most measures, ABC's "Boston Legal" has been a solid hit in its inaugural season. It wins its Sunday timeslot in both total viewers and the key adults 18-49 demographic and ranks among the top 25 shows of the season. Star William Shatner just won a Golden Globe for his performance on the series.

About the only way "Boston Legal" doesn't measure up, really, is in comparison with its lead-in, the breakout hit "Desperate Housewives." And that concerns ABC Entertainment president Stephen McPherson a little bit.

"I think we need to make it a better show, and we have," McPherson told reporters Sunday (Jan. 23) at the TV Critics Association midseason press tour. "And I think we need to make it more compatible with 'Desperate,' and that's what [creator David E. Kelley] is really working on.

Will American Idol Fave Diana DeGarmo Be Beauty and the Beast's Next Belle?

Will American Idol's Diana DeGarmo be Broadway's next Belle? Broadway.com has learned that Disney Theatricals is looking to have the singer headline Beauty and the Beast on the Great White Way.

                                                                              

DeGarmo, the 17-year-old runner-up on last season's American Idol, is best known for her rendition of "Don't Cry Out Loud." After her run in the series ended, she embarked on a tour with the other American Idol finalists. She has also been concentrating on her recording career--RCA Records released her first solo CD, Blue Skies, in December 2004.

Under the guidance of her mother, DeGarmo started pursuing an entertainment career at a very young age. As a child, she performed one summer at Music Mansion in the Dollywood Amusement Park in Tennessee. She was then invited back to perform in the park's 1997 Christmas show. She also opened at the Georgia Music Hall of Fame Awards in 1997. A year later, she performed with Mike Snider and Steve Wariner on The Nashville Network's Christmas special. She has opened for The Baja Men, Pam Tillis, Diamond Rio, Trace Adkins, Tracy Byrd, Billy Dean, Toby Keith, Ty Herndon, Delbert McClinton, Dolly Parton and the Opry singers. Her previous musical theater credits include mountings of Annie and Joseph and The Amazing Technicolor Dreamcoat at the Fox Theatre in Atlanta.

DeGarmo would not be the first American Idol veteran to come to Broadway. Idol alum Frenchie Davis is currently performing in Rent, and Tamyra Gray, who appeared in the first season of the hit reality show, stepped into Bombay Dreams late last year. (Another first season alum, Justin Guarini, was announced for the cast of Good Vibrations, but he withdrew from the project during rehearsals.)

Beauty and the Beast currently stars Brooke Tansley as Belle and Steve Blanchard as the Beast.

A production spokesperson could not confirm the casting of DeGarmo.

Despite losses and bailouts, France stays devoted to Disney

For years, France has fought what it sees as an American cultural invasion, powered by Hollywood movies, U.S. pop music and giant brands like Coca-Cola.

Now, it is going to great lengths to save an American cultural icon in its backyard: Disneyland.

The French government has just finished helping Walt Disney Co. bail out Euro Disney SCA, the operator of two Disney theme parks outside Paris. A state-owned bank is contributing around $500 million in investments and loan concessions to save Euro Disney from bankruptcy. This comes after 17 years during which French leaders have spent hundreds of millions of dollars and countless hours to ensure that the land of Monet could keep Mickey Mouse. Still saddled with debt, Euro Disney is gambling that expensive new attractions and an improved tourism climate will deliver a turnaround.

In an interview last fall as the rescue negotiations hung in the balance, French Prime Minister Jean-Pierre Raffarin vowed not to let Euro Disney go bankrupt. "We are grateful to the American people and have lots of respect for their culture," said Mr. Raffarin.

France hasn't always shown such consideration. President Jacques Chirac, during a trip to Vietnam in October, called the spread of American culture an "ecological disaster." France subsidizes its film industry to counter the influence of Hollywood, imposes quotas on non-French movies and songs on the airwaves, and officially discourages the use of English words such as "e-mail."

When it comes to Euro Disney, however, the America-bashing yields to another French preoccupation: job creation. Mr. Chirac has made it a top priority to reduce France's stubbornly high unemployment rate, now at 10 percent, and sees Euro Disney as a job-creation success. The company accounts for an estimated 43,000 jobs and ranks as the biggest employment site in the Paris region. Its parks attract over 12 million visitors a year, more than the Louvre museum and the Eiffel Tower combined, although short of original projections. They have helped transform the once-barren Marne-la-Vallee area east of Paris into a booming urban sprawl.

Disney also has a lot at stake in France. Failure would hurt the company's global brand just as it prepares to expand into China. But the Euro Disney saga has exposed shortcomings in Disney's strategy of adding new parks at each of its locations. Its goal is to keep visitors longer while saving on fixed costs. The strategy has backfired in Disneyland's Anaheim, Calif., flagship destination, where the new California Adventure park is a disappointment, and in Paris, where a troubled Hollywood-themed second park was the key trigger of Euro Disney's latest brush with bankruptcy.

While the new bailout gives some breathing room to Euro Disney, in which Walt Disney owns a 41 percent stake, its future is anything but certain. If a planned Tower of Terror ride and other new attractions fail to bring in millions of new visitors, Disney and the French government might once again be forced to consider dramatic measures.

Euro Disney got off the ground in 1987 with a deal between Disney Chief Executive Michael Eisner and Mr. Chirac, who was then mayor of Paris and prime minister. Paris, eager to keep its status as a top tourist destination, beat out Barcelona in the competition for Euro Disney. France expropriated land from local farmers and sold it to Disney at a steep discount to market prices. It then funded road and rail links to the resort. A state-owned bank called Caisse des Depots et Consignations lent Euro Disney the equivalent of 672 million euros, or $878 million at the current exchange rate, and the French government guaranteed the loan. Disney received full managerial control.

"Welcome to the Walt Disney Company -- it's the best," Mr. Chirac told television cameras in accented English when the French realm of the Magic Kingdom opened in the middle of sugar-beet fields on April 12, 1992.

But Euro Disney soon ran into debt trouble. Mr. Eisner had decided to make Disneyland Paris into Disney's nicest park with the fanciest centerpiece castle, and construction costs soared to 2.4 billion euros. Disney also imposed annual royalty payments of around 6 percent of revenue on Euro Disney in exchange for using Disney characters and other intellectual property. Antoine Jeancourt-Galignani, chairman of Euro Disney's supervisory board, calls those financial constraints "the original sins."

Operational blunders compounded the debt burden. The American executives Disney first sent to Paris priced tickets too high and decided not to serve alcohol in a country accustomed to wine with meals. French labor inspectors bridled at the company's strict dress code, which regulated perfume and makeup while banning beards and mustaches. A French theater director called the park a "cultural Chernobyl."

Less than two years after it opened, the first park faced closure because Euro Disney couldn't meet interest payments on its loans. A restructuring ensued, under which Disney agreed to give up some royalties temporarily.

Euro Disney's fortunes brightened in the mid-1990s under a French chief executive, Philippe Bourguignon, who took over as CEO in August 1993. He introduced wine at the resort's restaurants, shrank their menus, made peace with the most troublesome unions, cut ticket prices and introduced the popular Space Mountain roller coaster based on French novelist Jules Verne's "From the Earth to the Moon." From 1995 to 2001, Euro Disney eked out small profits.

Walt Disney executives were confident enough in the recovery that they decided to add a "second gate" in Paris, part of Disney's global plan to improve performance by building new parks at each theme-park destination -- Anaheim, Orlando, Tokyo and Paris. The idea is that visitors will extend their stays, filling up hotel rooms and buying more Disney T-shirts and stuffed animals. The company can then enjoy better profit margins because the new park shares fixed costs such as maintenance and food service with the old one.

Euro Disney called its new park Walt Disney Studios, with Hollywood-themed attractions such as a ride called "Armageddon -- Special Effects" that is based on a movie starring Bruce Willis. It took out another loan worth the equivalent of 381 million euros from Caisse des Depots et Consignations, or CDC, to help pay for it.

The new park flopped. Some guests said it lacked attractions to justify the entrance price, and other detractors complained it focused too much on American, rather than European, film-making. Jay Rasulo, who oversees Disney's theme parks world-wide, blames other factors: the post-9/11 tourism slump, strikes in France and a summer heat wave in 2003.

Mr. Rasulo says the "second gate" strategy is successful on the whole, pointing to the popularity of Orlando's four parks and the DisneySea park next to Tokyo Disneyland. However, Anaheim's California Adventure park has struggled since its 2001 opening, in part because of complaints that it offered young families too little to do. Disney has added family fare -- an area based on the animated film "A Bug's Life" -- and a Tower of Terror thrill ride.

Mr. Rasulo notes that parks are meant to last for decades. "One thing we know for sure is that you never get it 100 percent right the first time," he says. "We open every one of our parks with the notion that we're going to add content."

The 1989 initial public offering prospectus for Euro Disney had projected that the first park would have around 16 million visitors in 2004. It predicted the second park, whose completion date wasn't clear at the time of the IPO, would record eight million visitors in its first year. Instead, the second park received only 2.2 million visitors in 2004, according to Amusement Business magazine, and together the two parks had slightly more than 12 million visitors. Euro Disney reported a record loss of 145.2 million euros, or nearly $190 million, for the year ended Sept. 30, 2004.

By the summer of 2003, Euro Disney was at risk of bankruptcy. Back in Burbank, Calif., Disney's board was briefed on a range of options, such as letting the company go bust or pulling the Disney name off the park, according to a person close to Disney. But while Disney wanted to give the impression that it might take such extreme measures, that was the outcome it favored the least, this person says.

Negotiations between Disney, the French government and creditors over saving Euro Disney soon stalled. Francis Mer, the French finance minister at the time, insisted that the state-owned bank CDC, Euro Disney's largest lender, not be forced to contribute more than the other lenders, according to people familiar with the matter. Disney, meanwhile, refused to do what it had agreed to once before: give up its royalties. It felt it would set a bad example for other theme park partners around the world who pay royalties.

After collecting royalties of about 70 million euros during Euro Disney's first two years of operation, Disney had suspended payments for five years until 1998. Since the payments had resumed in 1999, Disney had collected more than 140 million euros from Euro Disney.

At one meeting in March 2004 near the Champs Elysees, James Hunt, the chief financial officer of Disney's theme-park unit, insisted that Disney's royalties were "sacrosanct," according to a person who was there. Pressed on this point by the other creditors, he banged his fist on the table in frustration and made good on a threat to fly back to the U.S. Disney declined to make Mr. Hunt available for an interview.

With Euro Disney just months away from running out of cash, the French government grew nervous. Nicolas Sarkozy, who succeeded Mr. Mer in late March and was intent on using the finance ministry as a springboard for his presidential ambitions, asked his top aides to reach out to more senior Disney executives. They phoned Thomas Staggs, Disney's chief financial officer, and asked him to come to Paris, according to people familiar with the matter.

But Mr. Staggs begged off because Disney faced two more urgent crises in California: a shareholder revolt that ultimately led the Disney board to strip Mr. Eisner of his chairmanship, and an unsolicited takeover bid from Comcast Corp. He asked the French side to keep talking to Mr. Hunt and Christine McCarthy, Disney's treasurer. Mr. Sarkozy then tempted Disney back to the table by proposing that it enter into direct talks with state-owned CDC, without the other creditors.

Francis Mayer, the head of CDC, invited Mr. Hunt, Ms. McCarthy and the then-head of the French Treasury, Jean-Pierre Jouyet, to CDC's palatial 18th-century mansion behind Paris's Musee D'Orsay. A friend of Mr. Chirac, Mr. Mayer has tastes that run more toward opera and German literature than amusement-park fare, but with his coaxing the parties found a basis for a deal to keep Euro Disney alive.

Under the agreement, Disney would pay around 100 million euros to buy new shares in Euro Disney. It would also forgive some debts and defer other debts as well as some royalty payments. CDC would pitch in by underwriting new shares and forgiving some loan payments.

It was not "simple" to get Disney to "do its duty," Mr. Sarkozy later told France's parliament. Disney officials chafed but held their tongues.

Euro Disney still wasn't out of the woods because other creditors had to agree to the restructuring. According to bankers involved in the talks, U.S. hedge funds including Cerberus Capital Management LP had bought some of Euro Disney's debt from the original lender banks. The hedge funds were holding out for higher interest payments on the debt in exchange for allowing the deferral of some principal payments. They figured France would do anything to avoid a Euro Disney bankruptcy because of the jobs at stake, according to a banker involved in the negotiations. A spokesman for Cerberus declined to comment.

CDC and Disney eventually made further concessions to allow the hedge funds to get what they wanted. Disney agreed to forgive an extra 10 million euros in loans and CDC agreed to forgive an additional 20 million euros in interest payments. In the final deal, Disney's contribution totals up to 1 billion euros. CDC is paying 75 million euros to underwrite new shares and forgiving or deferring loan payments worth up to 320 million euros.

As shareholders gathered last month to vote on the restructuring plan at the Hotel New York, a property inside the Euro Disney resort modeled on New York skyscrapers, French Transport Minister Gilles de Robien led a cheer from a giant video screen. Shareholders approved the plan. Last week, Euro Disney formally offered new shares to investors for just nine European cents apiece, in an offering expected to raise 253 million euros. The offering will increase the number of shares to about 3.8 billion from one billion now, meaning investors who don't participate will see their stakes severely diluted.

Euro Disney shares, which made their debut on the Paris stock market in 1989 at 11 euros, have lost 98 percent of their value and closed Tuesday at 23 European cents. The company continues to carry around 2 billion euros in debt, costing it 100 million euros a year in interest payments.

To meet those payments, the parks need more visitors. Euro Disney's French CEO, Andre Lacroix, is lobbying the government to open up Charles de Gaulle airport to more low-cost airlines to make Euro Disney a cheaper vacation destination. Under his stewardship, Euro Disney has created its first original character tailored for a European audience: the Halloween-themed "L'Homme Citrouille" or "Pumpkin Man."

Mr. Lacroix, a former Burger King executive, also introduced a one-day pass giving visitors access to both parks in place of two separate tickets. He's planning to spend most of the money raised from the share issue on new rides, such as the Tower of Terror, a 140 million euro simulation of a hair-raising elevator ride.

Laurent Vallee, a portfolio manager at Paris investment firm Richelieu Finance, thinks it might not be enough. "If Euro Disney had been left to operate like any other public company," says Mr. Vallee, "it would have gone bankrupt a long time ago." 

---

'Aviator,' top Oscar nominee

 

Films about a billionaire with social issues and a poor woman whose determination and charm propel her to the heights of the boxing world headed the list of movies nominated for Oscars, released on Tuesday.

"The Aviator" and "Million Dollar Baby" topped the list of films nominated for the 77th Academy Awards, along with "Finding Neverland," a film about "Peter Pan" creator James M. Barrie.

The awards will be handed out Feb. 27 by the Academy of Motion Picture Arts and Sciences at the Kodak Theater in Hollywood.

"Aviator," a biopic about reclusive tycoon Howard Hughes, received 11 nominations, including nods for best picture, best director Martin Scorsese and best actor Leonardo DiCaprio, who also helped produce the film.

Disney characters soon to star on a child's dinner plate near you

Mickey Mouse and other popular Disney characters will soon be tempting America's kids to eat more Alaska seafood.

Disney has teamed with American Pride Seafoods, a subsidiary of American Seafoods Co., to produce a line of lightly battered fish dishes that will be rolled out in major U.S. grocery stores at the end of February. The entrees, made from Alaska pollock, include Cheddar Treasures, crunchy nuggets featuring Mickey Mouse; Dip Sea Dooz, nuggets featuring the Little Mermaid; Pirate Planks, fish strips touted by Peter Pan and Tinker Bell; and Pizza Fins, crunchy fish wedges featuring characters from the Lilo and Stitch animated film.

"We are really excited," said Disney spokesman Clint Hayashi. "We wanted to give moms a more healthy alternative for their kids." He added that the venture allows Disney to expand into a new category, apart from the cereal, candy and snacks that are usually associated with Disney characters.

Hayashi said that many years ago Disney introduced a Donald Duck seafood product that fell flat, and this new venture represents the company's first line of seafood selections at retail. "We are delighted to partner with a company known to produce superb products," he said in a phone interview.

The match was a matter of being in the right place at the right time, said Randy Rhodes, director of sales and marketing for American Pride. The company decided at the last minute to participate in a seafood show in Chicago last May, and was assigned a booth way off the main aisles. Two representatives from Disney just happened to stop by, and the deal was struck.

Rhodes said the four Alaska pollock items represent the first step in developing an entire product line aimed at helping mothers to get their kids to eat more fish. "Moms trust Disney, and the branding will enable them to try and buy new products," he said.

Disney's Hayashi said it's no mistake that the new line of seafood products comes at a time when the federal government has issued an advisory for Americans to eat seafood twice a week as part of new "food pyramid" dietary guidelines. He was not sure if Alaska salmon might become part of the Disney seafood family, "but we are always looking at new opportunities and would love to get more choices out there for American moms," Hayashi said.

Its NACCU time again: Learn from campus card experts and 'Disney Institute' training

Lowell Adkins, executive director of the National Association of Campus Card Users, has just one word for those attending–or thinking of attending–the organization's annual meeting in March: Disney.

But he's not talking about the Magic Kingdom, or EPCOT, or MGM, although those certainly provide nice incentives for bringing the family. No, it's Disney as in Disney Innovation and the Disney Institute. At no extra cost -- and no increase in the conference registration fee over last year–those attending the NACCU conference March 12-16 at Disney's Coronado Springs Resort in Orlando will get three 90-minute Disney Institute sessions. Complete all three and you end up with a certificate. But, more importantly, you'll have received training from the company that practically invented customer -- and employee -- satisfaction.

And for an extra $125, there's the pre-conference workshop on March 12 -- a three-hour behind-the-scenes tour of Walt Disney World. "This is not only a fun thing to do but it will be a great professional development program," said Mr. Adkins. "Folks who attend this pre-conference will get insight on how to manage a complex operation. It will be a good learning experience."

Disney icing

But Mr. Adkins considers Disney "icing on an already very rich cake. There is so much going on in the industry ... We've got educational breakout sessions, plus Disney." Even the conference theme, "The Magical Road to Card Kingdom," is tied to Disney.

The goal is to have 350 to 400 attend this year's conference. Last year's event in San Antonio drew 325, he said. "We already expect that a destination like Orlando will draw more. Conference chair is Dianna Norwood, Florida State University and co-chair is Kathleen Kelly, Carlton University, Ottawa, Canada.

There will also be some 55 exhibitors composed of major system integrators, financial institutions, accessory providers, and more, added Mr. Adkins.

"Every year, we have an excellent conference because of incredible networking opportunities. We'll have six breakout sessions. Each will have five tracks. That's 30 education opportunities. Plus there's always those networking opportunities, talking to folks in the hallways," he said.

"Learning from the experiences of others is the keystone to the success of this association and its members' card programs," commented Ms. Norwood. "Ask anyone why they attend the annual NACCU conference year after year, and they will quickly point out the advantages of networking with others who are experiencing the same day-to-day challenges on their campuses. Many of our veteran members take advantage of the face-to-face opportunity to exchange ideas with our corporate members in the exhibit hall."

Conference attendees will "get the best of what we've always done, plus an extra added attraction -- the Disney Institute, a great professional development opportunity," added Mr. Adkins.

"We are very excited to be able to include three premier Disney Institute sessions in this year's strong educational line-up," said Ms. Norwood. "This is another perfect example of NACCU's commitment to its educational mission for our membership."

Wireless and more

Some of the other key sessions will cover wireless, security, access control, and even how to set up a card program. "There are still people who are doing that," said Mr. Adkins, "particularly in community colleges where a lot of the new installations are happening now. That's a real growth place for the campus card industry."

Marketing will also be there. "It's so important that it will be part of every one of the six breakouts. Disaster recovery is another important topic. That can be a natural disaster (Florida's four hurricanes, for example), or what do you do when your system fails or you've been hit by a hacker," added Mr. Adkins.

There will also be award presentations, such as the NACCU PERSONA Professional Development winner, "which we'll be announcing in late January or early February," said Mr. Adkins. Also, the winners of the best card and best marketing contests will be announced. Attendees will get to vote for their favorites at the conference.

Not to be forgotten is Sales Pitch Sunday. "As always, that's a win-win opportunity for folks to see what's going on and it's a great chance for vendors to toot their own horns," said Mr. Adkins.

The three 90-minute Disney Institute sessions Monday through Wednesday, will cover Leadership, quality service, and people management.

Disney wins Getaway Award

Family Travel Forum, an Internet-based family travel service, lists the Walt Disney World Resort as one of its Top 10 getaways for family reunions. The Orlando complex is one of two Florida resorts named. The other, the Club Med Sandpiper, is located on the Saint Lucie River, inland from the Atlantic coast near Vero Beach.

Family Travel Forum ranked the resorts for their "ability to excel at satisfying the needs of children and adults participating in a family reunion."

The resorts were nominated and voted on by the groups contributing writers, managing editors and more than 80,000 subscribers to their inter-linked Web sites.

According to the Travel Industry Association, 72 million adults have reunited with their family members since 2000, with one-third traveling more than 500 miles. The award includes Disney as a "top Dream Getaway," describing the variety of activities for visitors of every age and lauding the company's "Magical Gatherings" program designed for people planning a group vacation.

"Due to frequent air service and intense competition," says the award, "Orlando is easy and cheap to reach."

Narnia Set Visit

With remarkable performances in films like “Young Adam,” “The Deep End,” and Tim Roth’s “The War Zone,” Tilda Swinton has quietly built a reputation as one of the most striking actresses on the independent scene. But come next December, moviegoers are likely to see Swinton in a very different light. As Jadis, the White Witch, Swinton has taken on the most anticipated role in one of this year’s most anticipated studio films- “The Chronicles of Narnia: The Lion, The Witch, and The Wardrobe.”

When I meet Swinton on the first day of my weeklong visit to Narnia’s New Zealand set, she doesn’t look much like the diabolical White Witch. Dressed simply in slacks (no sweeping robes or excessive makeup for this actress), Swinton spent several minutes chatting charmingly about director Andrew Adamson’s Narnia interpretation with members of the online press. It’s hard to imagine someone so nice playing such an evil character, but I’m sure Swinton will more than pull it off.

Q: We’ve been told that you wear seven costumes in the movie…

TILDA: Disney must be pretty pleased about there actually being seven dolls now. (Laughs)

Q: Will they all be Barbies?

TILDA: Yeah, me as Barbie, that’s quite a leap. I’m trying to work out a punk make-up (laughs).

Q: Do you have to do a lot of make-up?

TILDA: There’s not much make-up, no. Which of course is shocking! The most shocking thing you can think of. It’s not very Disney to not have a lot of make-up, is it? Eye liner and red lips. But it’s all good - it’s certainly Narnia. These children (Georgie Henley, Anna Popplewell, Skandar Keynes, and William Moseley) are toiling away.

Q: Had you read the books long before you started working on this movie?

TILDA: No, I read the books this very year.

Q: So you didn’t read them as a child?

TILDA: I don’t what it was; I think the world is divided between those who read it and those who didn’t; or had it read to them. But those were the days before Disney’s marketing actually machine got a hold of Narnia, you see. It’s not like “Harry Potter” and “Lord of the Rings” now, which are pushed down everybody’s throats. In those days people kind of discovered it. Let’s hope children will still be able to discover it.

Q: It’s much more accessible to children than “Lord of the Rings.”

TILDA: Yeah. Well it’s about a children’s world. “Lord of the Rings isn’t,” really. I think the real question, and I speak as the mother of two six-year-olds, the real question is “What do the parents want to read?” And it’s lovely to read the Narnia books to children. I’m not taken to the idea of reading “The Lord of the Rings to my children.” I’d be interested to know if most people discovered “The Lord of the Rings” by reading it themselves or whether people read it to them.

Q: And when did they discover it?

TILDA: I think most discover it when they’re thirteen or something; they get a bit nerdy about it. (laughs)

Q: Have you seen the BBC production of the movie?

TILDA: No, I’ve never seen that. I saw the American cartoon. (laughs)

Q: It doesn’t give you much to go on.

TILDA: Well, you know at the very beginning, this American kid says: “We’re going to stay with the professor.” And you’re going: “No, you didn’t go stay with the professor, you were English and it was the blitz and you were sent away from your family…” (laughs). Slightly different. And that’s going to be great in this film; we’re really laying that down nice and hard.

Q: Yeah, that’s less than a paragraph in the book and I think it’s about the first ten or twelve minutes of the film.

TILDA: It really does set the tone.

Q: It’s something that people need to be told about. It’s sixty years since the blitz.

TILDA: I think it’s the labels on their clothes; I think that’s what does it. You put a little child in a forties coat on a railway platform…it’s tricky, you know.

“The Lion, The Witch, and The Wardrobe,” will be released nationwide in December 2005. Check Cinema Confidential for additional interviews from the “Narnia” set.

ISS recommends OK for Disney board

Institutional Shareholder Services recommended Tuesday that Walt Disney Co. shareholders approve the re-election of all members of the Disney board of directors at the company's annual shareholder meeting next month -- including Chief Executive Michael Eisner, who was ousted from the chairman role during the tempestuous 2004 meeting.

Disney's annual meeting will be held Feb. 11 in Minneapolis.

In a statement, the Rockville, Md.-based provider of proxy voting and corporate governance services quoted Disney Chairman George Mitchell as saying the company has "learned a lot of lessons" since last year's meeting and has made progress in adopting good governance practices.

"Critics may argue that Disney made its positive governance changes only when it was under the harsh glare of shareholder criticism, and wonder whether the company will continue to embrace shareholder rights going forward," ISS said. "Nevertheless, the fact that the company has taken positive steps is a gain for shareholders."

Among several moves, Disney appointed an independent search firm to find a replacement for Eisner, who said that he will step down as CEO in 2006 and resign from the board.

It also pledged to place more independent directors on its board, and did so in December, bringing in Fred Langhammer, chairman of Global Affairs for Estee Lauder. Earlier this month, it amended its corporate governance guidelines to reflect the separate roles of board chairman and chief executive.

The firm is also impressed with the financial turnaround that appears to be taking place at Disney, noting that fiscal 2004 earnings jumped 72 percent from the previous year, excluding the effects of an accounting change. The company's move last month to raise its dividend 14 percent to 24 cents a share was also mentioned as a positive.

Improved attendance at the theme parks and an about-face at the ABC Television Network this season have helped Disney stock accelerate 25 percent from its mid-August level of $21. The shares were up 90 cents at $28.85 Tuesday afternoon.

Disney board members also include: Bob Iger, the company's president and chief operating officer, who is seen as the front-runner for the CEO job when Eisner leaves; John Bryson, chairman of Edison International, the parent of electric utility Southern California Edison; John Chen, chairman of software developer Sybase Inc.; Judith Estrin, co-founder and chief executive of Packet Design LLC, a computer networking technology provider; Alwyn Lewis, chief executive of retailer Kmart; Monica Lozano, publisher of the Spanish-language newspaper La Opinión; Robert Matschullat, a private equity investor; Fr. Leo Donovan, president emeritus of Georgetown University; and Gary Wilson, chairman of Northwest Airlines Corp.

ISS also recommends that PriceWaterhouseCoopers LP be approved as Disney's auditor for the coming year.

ISS said shareholders should OK Disney's omnibus stock incentive plan for all employees and non-employee directors. Under the plan, the board can grant individuals incentive stock options, non-incentive stock options, restricted stock or stock units based on certain performance criteria. The firm said it's convinced that Disney's executive compensation program is "heading towards the right direction," following revisions announced last month.

Additionally, the consultant recommends approval of a proposal that the company never pay greenmail to any would-be corporate raider. When an individual buys a substantial amount of stock in a company, then agrees to sell the stock back to the company in exchange for not trying a hostile takeover, the payment given to the individual is known as greenmail.

Disney management is against the proposal, ISS said, saying that it's too broad. ISS counters that there is no anti-greenmail policy in Disney's existing charter or its bylaw amendments.

Finally, ISS said the New York Comptroller's proposal that Disney prepare a report disclosing the extent to which Disney's suppliers in China are complying with International Labor Organization laws should be rejected.

The consultant acknowledged that certain contract manufacturers hired by licensees and vendors for Disney's Chinese manufacturing operations have been accused of various workplace labor rights violations. But ISS said shareholders should "accept the company's commitment to improve policies and disclosure through its ongoing [monitoring] program and scheduled reports."

Wynonna Judd Guest Stars On ABC's "Hope & Faith"

Country superstar Wynonna Judd will tape a guest starring role this week for ABC's hit comedy, "Hope & Faith." In a two-part story titled "Wife Swap," inspired by ABC's reality show of the same name, Judd plays "Cynthia," a rich, spoiled, self-indulgent, Manhattan wife and mother, who changes places with Hope (Faith Ford), an Ohio housewife who takes the roles of wife and mother very seriously.

The fun starts when Judd has to deal with the reality of chores and domestic responsibilities, not the least of which is sister-in-residence, Faith Fairfield (Kelly Ripa).

"Hope & Faith" stars Faith Ford as Hope, Kelly Ripa as Faith, Ted McGinley as Charley, Megan Fox as Sydney, Macey Cruthird as Hayley and Paulie Litt as Justin.

As a solo artist, Wynonna Judd has sold more than nine million CDs. Last year she celebrated her 20 years of hit albums with "What the World Needs Now is Love" and just added another hit -- "I Want to Know What Love Is" as she entered her third decade of success. She is currently on the cover of "Ladies Home Journal," with her sister Ashley Judd.

Mulan II DVD Launch Party held last Saturday in Los Angeles

                                

Members of the voice cast Michelle Kwan (Shopkeeper), Lea Salonga (Mulan's singing voice), and Ming Na (Mulan's speaking voice) with unidentified infant.

                                  

Left: Ming Na (Mulan), Mulan, and Lea Salonga (Mulan). Right: June Foray, the voice of Grandmother Fa.

                                               

Jerry Tondo (voice of Chien-Po), Lea Salonga (Mulan's singing voice), and Gedde Watanabe (voice of Ling).

                                               

Chris Bess (of Buena Vista Home Entertainment) with Mulan II directors Lynne Southerland and Darrell Rooney.

Bringing it down

Disneyland Paris - Since last Monday the entrances to Space Mountain have been boarded up with new construction walls - interestingly in the same dark blue that was first used for the Buzz Lightyear's AstroBlaster construction site in the former Visionarium building. It seems to be the new Discoveryland-specific construction wall color.

As most work is taking place inside the attraction there is not much to report ... except that the gigantic poster complete with its frame on the facade of the building has been taken down. According to the Imagineers at the Space Mountain Farewell Fan Event a new poster will be installed depicting the adventurous awaiting the guests on their new mission. The entrance marquee has been taken down too, as the construction fence also closses down the walkway leading up to the mountain itself which was the "stand-bye-queue" most recently. The new entrance arch is supposed to feature the new Mission 2 style.
No news from inside even so some sources were able to get a photograph of what is claimed to be a repainted train for the Space Mountain.

Rehabs around The World

Below are photo's of the Astro Orbiter at Magic Kingdom and The Land at Epcot, just two of the many rehabs and changes going on at Walt Disney World.

  

Who Stole the Tea-Pott?

Disneyland Paris - Even so Belle's Christmas Village has been dismantled again the walkways in the back of Fantasyland leading to March Hare Refreshments, the Old Mill and the Storybook Land with its two attractions are still closed off. But a view from Queen Heart's Castle inside Alice's Curious Labyrinth reveals shocking details ... and no, we are not speaking of the roof of the small buildings nestling to the Old Mill, which need some sprucing up again ... we are talking about the missing tea pott at March Hare Refreshments!

The giant, smoking tea pott originally stood between the chairs in the seating area to the right of the small hut. Every few seconds its top would be lifted as a mouse would move up out of its mean body ... but since the reopening of the area for the Christmas season this cute feature is gone. Most recently seen in its place was a Christmas Tree but now the spot is just bare of anything but a round slightly elevated concrete plattform (only partially visible in this photo as it is mostly obstructed from view by the hut). Hopefully the tea pott will return with the fences come down.

Buh-Bye Jazz Company! Hello Irish Pub!

Irish hospitality and a bit of blarney will be coming to Downtown Disney at Walt Disney World Resort in the form of an authentic Irish pub and restaurant. Scheduled to open in summer 2005, the pub (yet to be named) will feature the very best of Irish food, flair, heritage and entertainment.

The Irish culture is known for its warmth, character and hospitality, and the new Downtown Disney pub promises to deliver an experience immersed in genuine Irish atmosphere -- from food and drink to music and entertainment.

The pub will be warm and welcoming with one-of-a-kind fixtures and furnishings -- all designed and built in Ireland by Irish craftspeople. Additional decor items include Irish antiques and bric-a-brac.

Traditional and contemporary Irish music, storytelling and dance will help create a lively social ambience and the friendly pub staff will bring Emerald Isle charm to Downtown Disney.

The restaurant's gastronomic delights will be the work of Chef Kevin Dundon, one of Ireland's best-known chefs. He will introduce a menu that blends traditional Irish fare and fresh ingredients, all with a modern flair. Chef Dundon's credits include cooking for celebrities and heads of state, overseeing deluxe international hotel cuisine, opening a premiere hotel and restaurant, and appearing in his own television series.

"We are thrilled to introduce an authentic Irish pub to Downtown Disney," said Ed Baklor, vice president of Downtown Disney. "The superior level of quality, energy and appeal that this new venue brings is a perfect complement to Downtown Disney's lineup of world-class retail, dining and entertainment."

The pub will be owned and operated by Great Irish Pubs Florida, Inc., the Irish-owned company that previously created "Nine Fine Irishmen" at the New York-New York Hotel & Casino in Las Vegas.

"We are working extremely hard here in Ireland preparing to deliver what we believe will be the very best expression of Irish hospitality ever seen in the U.S.," said Paul Nolan, one of the establishment's co-owners. "We are extremely proud and excited to have the opportunity to bring a real slice of Ireland to Downtown Disney."

The Irish pub will occupy the building that formerly housed The Jazz Company. Pleasure Island club admission will not be required for entrance to the pub.

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Last Chance to see the Castle at Magic Kingdom

 

Today, Monday January 24, was the last day to see Cinderella's Castle unobstructed until April in preparation for the Happiest Celebration on Earth, so far just a crane has been added to the scenery along with walls covering the crane at ground level. Also, Main Street USA sidewalks will be going down sometime in February or March.

ABC Was 'Desperate' For Madden

ABC's first choice for the infamous "Monday Night Football" dropped towel episode wasn't Terrell Owens — it was announcer John Madden.

For reasons that are unclear, Madden couldn't find the time to perform for the skit. Owens, the Philadelphia Eagles receiver, filled in for him in the steamy sketch that drew viewer protests and a network apology, said ABC entertainment president Stephen McPherson on Sunday.

In the spoof that preceded the football game Nov. 15, "Desperate Housewives" actress Nicollette Sheridan persuaded Owens to skip the game by dropping the towel wrapped around her and jumping into his arms.

ABC initially thought it would be funny to have the, uh, less attractive heavyset Madden as the subject of Sheridan's ardor, McPherson said.

The towel-dropping was another last-minute addition to the script that plainly backfired, said Marc Cherry, executive producer of "Desperate Housewives," who helped write it.

Cherry said it was all a mistake. But he and McPherson both said they were surprised at the reaction.

"I feel really bad about it," Cherry said. "I didn't want to upset people. I didn't realize that 'Monday Night Football' was such a family viewing experience. I wouldn't let my 5-year-old watch beer commercials with big-busted cheerleaders, but that's just me."

Sheridan, appearing before television writers Sunday, said the purpose was simply to amuse people.

"Taking a pop culture incident like that and having it take precedence over the underlying problems of the world was absurd," Sheridan said.

ABC relaunches 24-hour news net

 

The Walt Disney Co. is getting into the 24-hour cable news business.

ABC News Now was initially launched as an experiment by ABC News as a way to provide more complete coverage of the Republican National Convention, and the Alphabet is planning to relaunch the net with a business model based on advertising and subscription fees from cable and satellite operators.

"We've learned a lot about what we can and can't do, and what the consumer appetite is," said ABC News prexy David Westin. "We're convinced from the data this is viable; the next step is to figure out how to put this business together."

The cable net was picked up by 10 ABC-owned stations and 70 affiliates, which offered it free to cable systems in those markets as a digital channel. While the business plan for the net hasn't been completely hammered out, Westin said the channel will be dropped from those cable systems and then relaunched both to cable operators and satellite distributors for a subscription fee.

Westin is expected to announce a staff for ABC News Now on Monday, including executive producer Michael Clemente, who had been running the channel on loan from "20/20," where he was a producer.

Westin said the philosophy of ABC News Now will be different from that of 24/7 news networks MSNBC, CNN and Fox News. ABC News Now will draw on talent from ABC News rather than hiring producers and journalists to staff the channel. ABC built the network from the ground up to be all-digital and transmittable to Internet-connected devices such as phones and handhelds.

During the inauguration, for example, two dozen parade participants used Sprint video phones to provide footage for ABC News Now, while Sam Donaldson and Michel Martin anchored the coverage from Washington, D.C., and New York.

ABC News Now is available to about 65% of the country through its current deals with the affiliates, as well as 30 million Internet viewers through AOL, Comcast.net, SBC Yahoo! and Bell South DSL.

"The fundamental underlying idea is to take ABC News and make it available at any time of day over any device," Westin said.

Initiative fits with a Disney philosophy recently articulated by prexy-chief operating officer Bob Iger at a Credit Suisse First Boston media conference. Disney, he said, is "placing its bet on content" that can be transmitted and received on a "platform-agnostic basis."

But cable and satellite operators will see Disney's initiative as yet another 24-hour news channel asking for carriage --- and for subscription fees. Those fees are unlikely to be forthcoming, particularly since operators are girding to fork over a big fee increase to Fox News Channel when its long-term contracts start to expire next year.

Under increasing pricing pressure from satellite TV, cable operators can no longer easily pass on subscription fees to consumers in the form of a higher cable bill.

From a distribution standpoint, ABC News Now will be available only to those with digital cable, making it even more difficult to gain ratings and advertising dollars. Its digital-only status will put the channel at a disadvantage compared to Fox News, CNN, MSNBC and even low-rated Headline News --- all of which are carried on analog channels and are available to nearly all households with cable or satellite.