Lawyer Challenges Ovitz Spending Testimony

 

Lawyers Friday challenged an account of allegedly excessive spending by former Walt Disney Co. president Michael Ovitz on dinners, magazines, a home screening room and a $2 million office renovation.

It was the third day of a trial in Delaware's Court of the Chancery on shareholder allegations that Disney's board didn't properly scrutinize Ovitz's contract when he joined the company in 1995 and was wrong to grant him a non-fault termination in 1996 that entitled him to a $140 million severance package.

In Thursday's testimony, John J. Donohue, a Yale University law professor and expert witness for the investors group suing the company, testified that auditors found that Ovitz incurred about $4.8 million in expenses at the company, including $2 million for renovations of an office for Ovitz.

Donohue said the auditors identified $370,535 in expenses that exceeded spending limits or violated Disney's policies. They also identified 92 occasions of expenses with no apparent business purpose, 112 occasions of gifts that exceeded a $100 limit and home entertainment expenses in excess of an agreed-upon $125 limit.

Mark Epstein, one of Ovitz's lawyers, said that Ovitz didn't violate Disney's spending policies. Rather the auditors were tasked after he left the company with examining expenses that exceeded a certain level. Esptein also said the $2 million renovation figure included renovations on offices of two floors at Disney's headquarters.

In cross-examination Friday, Donohue testified that he wasn't aware of the extent of the office renovation, but assumed from the auditor report that the $2 million figure referred specifically to Ovitz.

Stephen D. Alexander, a lawyer for former Disney directors Roy Disney and Stanley P. Gold, asked Donohue if his conclusion that Disney had the right to fire Ovitz for cause would change if his assumptions about the auditor report were wrong. Donohue wouldn't concede that point.

"A lot of them (the expenses) I would have questioned for business purposes," Donohue said. In particular, he pointed to subscriptions to variety of magazines, including Playboy and Martha Stewart Living, that were paid by Disney.

The trial is expected to last four weeks. Ovitz may testify as early as next week.

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Disney CEO Called Ovitz 'Psychopath'

Michael Eisner, Walt Disney Co.'s chief executive, described the company's former president, Michael Ovitz, as a "psychopath" with a "character problem" in company memos revealed Thursday in a shareholder lawsuit.

The lawsuit, which has been in progress for more than seven years, claims Disney's board did not properly scrutinize Ovitz's employment contract when he joined the company in 1995 and then wrongly granted him a non-fault termination that entitled him to a $140 million severance package 14 months later.

"If I should be hit with a truck, the company can not leave him as CEO or figurehead CEO," Eisner said in a memo. "It would be catastrophic."

John J. Donohue, a Yale University law professor and witness for a group of Disney shareholders, testified about the memos during the trial's second day.

Donohue also said that under his review of California law, Ovitz's contract and depositions in the case revealed that the board had the right to fire Ovitz for cause.

In particular, Donohue cited "habitual lying" by Ovitz during his time as Disney's second-in-command.

Under the terms of Ovitz's contract, he could be fired for cause in case of gross negligence or malfeasance, Donohue said.

Neither term was fully defined in the contract, but applicable laws didn't require the company to prove that acts of criminal conduct, scandalous behavior or fraud had occurred for an executive to be fired for malfeasance, according to Donohue.

Bernie Roswig, a spokesman for Ovitz, countered that "The plaintiff's expert based his unfounded opinion on nothing more than second- and third-hand hearsay and gossip."

"When the actual facts are presented and fairly considered, they will clearly show that there was absolutely no cause to terminate Mr. Ovitz's employment, and that he was absolutely entitled to accept the contractual benefits he received from Disney," Roswig wrote in a statement.

Current and former Disney directors who are defendants are expected to contend that Ovitz's contract was given careful consideration, and that there were no grounds for denying his severance.

Citing a draft report by auditor PricewaterhouseCoopers, Donohue said Ovitz during his 14 months with the company charged Disney for $370,535 in expenses that exceeded spending limits or violated Disney's policies.

On 92 occasions, he charged the company for expenses that had no business purpose, including a dinner with Eisner and their families at New York's trendy Nobu restaurant, Donohue said. He also billed the company on several occasions for home entertainment expenses in excess of an agreed-upon $125 limit, Donohue said.

Mark H. Epstein, one of Ovitz's lawyers, said Ovitz didn't violate any Disney expense policies or exceed spending guidelines. After he left the company, PricewaterhouseCoopers examined expenses that exceeded a certain level. "This is not a Disney policy," Epstein said.

Donohue said Ovitz spent $2 million to renovate his office and $68,000 to build a home screening room at his residence. According to Epstein, the renovation included offices on two floors at Disney's corporate headquarters, not just Ovitz's.

Epstein also said Ovitz repaid the company for the "vast majority" of the cost of the screening room, which was included as a perk as part of his employment contract.

Ovitz, in a videotaped portion of his deposition played during Donohue's testimony, said he was "embarrassed" by the renovation, adding that he did not pay enough attention to it initially. Ovitz is expected to testify as early as next week.

Donohue said Ovitz failed to meet a number of key goals established for him when he was hired, including easing the work burden on Eisner and becoming a potential successor to Eisner.

"He was work," said Sanford M. Litvack, Disney's general counsel, in a portion of videotaped deposition played in court. "I walked behind him with a shovel."

The trial is being held in the Delaware Court of the Chancery, a specialized business court. It is expected to last four weeks.

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Big names yet to show at Disney trial

The few spectators who showed up Wednesday for the opening of a world-class corporate trial involving the Walt Disney Co. in Delaware's Court of Chancery in Georgetown were hoping to see some of Tinseltown's brand names.

"Which one is Michael Eisner?" said Marcia DeWitt of Rehoboth Beach, referring to the company's fabled chief executive who is named as a defendant in the shareholders' lawsuit.

Eunice Carter of Georgetown, who sat with her mother on The Circle and gazed toward the courthouse, just wanted to know whether actor Sidney Poitier had arrived.

Eisner and Poitier, a former director of the Disney company, weren't in Georgetown and aren't expected to take the witness stand until later in the trial, which got off to a slow start with muted public interest and no big-name personalities.

But DeWitt, at least, didn't go away disappointed. She immediately spotted Dominick Dunne, the novelist and Vanity Fair writer sitting in the press section. Dunne has covered some of the country's most celebrated trials.

"I'm happy Dominick Dunne is here," said DeWitt, who was accompanied by Judy Catterton and Joyce Lussier, both of Rehoboth Beach. The three women were among four obvious spectators in the courtroom.

Despite the army of reporters, the trial got off to a tame start with the day taken up by expert testimony from Deborah A. DeMott, a professor of law at Duke University School of Law. DeMott was called by the plaintiffs to testify about corporate governance practices at Disney.

At issue in the case is the $140 million severance package former company president Michael S. Ovitz received when he left Disney at the end of 1996 after a little more than a year on the job. Shareholders of the Burbank, Calif.-company sued Eisner, Ovitz and certain directors for wasting Disney's money in bestowing such a lavish package on Ovitz after what was agreed was a failed tenure.

The lawsuit alleges the directors, including former director Poitier, were asleep on their watch and did not uphold their duty in the hiring of Ovitz and the payment of the severance benefits.

DeMott testified that Disney's board did not conform to "customs and practices" of good corporate governance in some decision-making processes regarding Ovitz.

People in Georgetown, however, were less interested in the details than in the rumor that, unrelated to the case, talk show celebrity Oprah Winfrey had been spotted somewhere near Seaford or Laurel.

"She's at the hotel across from the Wal-Mart," said Stephanie Harper of Georgetown Antiques Market as her mother, Mildred Bowie, made phone calls to gather more news about the Winfrey sighting.

"We hope she comes in here," Bowie said. "We even vacuumed."

Back at the courthouse, it was quiet. Aside from the media presence and the cordoned off area in front, business went on as usual.

In fact, Debbie Marker, at Smith's Family Restaurant, thought the buildup might have kept regular customers away.

"Normally on Wednesdays people are standing here waiting for a table," she said.

Activity could pick up next week when Ovitz is expected to testify. The trial is scheduled to last at least four weeks.

"It'll be something to see," said Koskey, of Chardon Ltd. fine jewelry, located next to the courthouse.

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Singh back in Disney swing as $10 million mark awaits

No Tiger, no problem.

Well, not much of one anyway.

Vijay Singh could turn Tiger Woods' absence at the Funai Classic at Disney into a footnote if he wins -- or even remains in contention through Sunday -- one of the final PGA Tour events of the season.

The four-day tournament, which starts today and concludes Sunday, will be played on the Palm and Magnolia courses at Walt Disney World in Lake Buena Vista.

Singh, who has all but wrapped up Player of the Year honors, tries to defend his title and push his earnings over $10 million for the season. True, the latter may only be a couple of commercial shoots for Woods, but no player has ever cracked the $10 million mark.

After a season in which he has won eight tournaments, added a third major championship to his Hall of Fame credentials and wrested the world's No. 1 ranking from Woods, it would be a surprise if Singh didn't eclipse $10 million in earnings.

He has three tournaments, including the Funai Classic, to collect $544,434. He can do it one fell swoop by winning the Funai Classic, and if the Singh needed any more motivation he could make history in Woods' backyard.

The two are not exactly friendly rivals.

"It's been pretty impressive to see what he's accomplished," Billy Andrade said of Singh. "He's got something we ain't got."

His eight wins in one season give him something Nicklaus never got during a career that is widely considered the best of all time.

"I never thought I was going to win this many events," said Singh, who tees off at 12:20 p.m. today on the Magnolia Golf Course's first hole and will play with John Daly. "It is happening and I'm enjoying it. My focus is on this event and I try not to get complacent. That's the way I look at it."

Singh won the Funai Classic last year by shooting a 23-under-par 265. Woods, who finished tied for second in 2003, is on his honeymoon and is missing the event for the first time since turning professional. Other notable names taking the week off include Ernie Els, Phil Mickelson, Davis Love III and Mike Weir.

There are a number of players who may be fighting for their livelihood this week. The top 125 money winners this season retain full playing privileges for 2005.

Since there are only two PGA events after this weekend, the Funai Classic looms large in who will make the top 125. That explains why only two players who are anywhere between 114 and 143 on the money list will skip the event and that is because of injuries.

Of course, the big story will be Singh and how much bigger his season can get.

"These last three tournament," he said, "I want to end on a high note."

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Sky High

Sky High, a different upcoming Disney film about superheroes, is currently filming. This live-action production (starring Kurt Russell and Kelly Preston) has transformed parts of the campus of California State University Northridge into the location for the titular academy for budding superheroes.

A staple of Disney comedies of the '60s and '70s, screen star Kurt Russell returns again, to make a second film for the studio in two years. In Sky High, Russell and Kelly Preston (Jerry Maguire) play Commander Stronghold and Josie Jetstream, parents to a boy named Jeremy (Michael Angarano), who is struggling to fit in as a freshman at an academy for budding superheroes.

Tackling roles as the academy's staff are Bruce Campbell (Evil Dead) as gym teacher Coach Boomer, Dave Foley ("NewsRadio") as teacher of sidekicks Mr. Boy, and Lynda Carter (TV's "Wonder Woman") as the principal of Sky High. Mike Mitchell (Deuce Bigalow) is directing the film.

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Cheese for the Mouse House's Investors?

After shareholder unrest and takeover fights, good news is finally outweighing bad at Disney, and many analysts are high on its stock

It was probably a slip of the tongue. Speaking to an investor conference on Sept. 30, Walt Disney President Robert Iger noted that it was the end of Disney's fiscal year -- adding: "And what a year it has been. I'm not talking about takeover battles or shareholder issues," the Disney No. 2 quickly clarifies. "I'm talking about performance."

Indeed, the last year has had more dips and turns for Disney investors than Thunder Mountain. During that time, Disney withstood a hostile takeover offer from cable giant Comcast and weathered shareholder unrest that forced the board to strip CEO Michael Eisner of his chairmanship. The board has just launched a search for a successor to Eisner, who in his 20 years as Disney's chief remade the once sad-sack company into a world-class entertainment giant.

But Iger, the front-runner for Eisner's job, was there to talk good news, not turmoil, projecting that the outfit would report "better than 50% growth in earnings per share" when it announces end-of-year results on Nov. 18.

PITFALLS REMAIN.  It's a point that hasn't been lost on investors. For the first time in years, Wall Street analysts believe Disney may be on the rebound: Its long-suffering ABC network is coming up with hits, theme-park attendance is up, and even Disney merchandise is starting to sell once more. All of this while ESPN and its other cable channels are starting to mint money.

The result: In the last two months Disney's stock has increased by 11%, to $24.88, outperforming the S&P 500 over that time, as well as competitors such as News Corp. and Viacom. Since spring, four analysts who follow Disney have upgraded its stock, according to the Thomson Financial Network. Of 28 analysts following the shares, 15 now have a buy or strong buy on the stock.

The company isn't out of the woods yet. Its stock is trading significantly below where it was five years back, when it was in the 40s. It faces the possibility of losing key supplier Pixar Animation, which has created such animated megahits as Toy Story and Finding Nemo. And some of its board members are being dragged through a trial in Delaware, reliving the 10-year-old embarrassment of the $140 million that Michael Ovitz received for a rocky 15 months as Eisner's No. 2.

ABC IN THE BLACK.  But enough positives exist to cheer many investors. The key turnaround is at ABC, which has had hits with shows such as Desperate Housewives and Lost and has reversed its ratings free fall. Today the network's ratings are up 5% among the 18-to-49-year-old viewers advertisers most covet, according to Nielsen, moving ABC into second, behind CBS, for total viewers and into a tie for second, with NBC, for the younger demographic groups.

That ratings bump means a $300 million turnaround for the network, figures Merrill Lynch analyst Jessica Reif Cohen, who says ABC will swing from a loss to a small profit in the quarter. For the year, she predicts Disney's broadcasting unit (which includes the ABC TV stations) will show operating earnings of $270 million, up from just $37 million in 2003. Overall, Cohen has increased her fourth-quarter estimates for Disney to match the Street consensus of $0.17 a share -- up from her estimate of $0.14 a share.

Cohen isn't raising her neutral rating on Disney, which she believes is fairly valued compared to its peer group. But other analysts say the Mouse House is poised to see its shares climb. A.G. Edwards analyst Michael A. Kupinksi, who rates Disney an aggressive buy, targets the stock at $28 a share, a 12.5% increase over its Oct. 21 price. "We believe that the favorable operating momentum should continue through the fourth quarter and into next year," Kupinksi wrote in an Oct. 6 report.

NOT ALL CHEERY.  Kupinksi stresses that Disney's balance sheet is in good shape, now that debt levels have been cut, and that it has $3 billion in cash that could be used for share repurchase or dividend payouts. Indeed, Disney CFO Tom Staggs says the outfit has bought back more than $300 million shares already and is recommending a dividend hike to its board.

Disney is poised to boost revenues from its theme-park unit, which provides about 30% of the group's operating income, many analysts believe. Though the parks are susceptible to terrorism or an economic downturn, Prudential Equity Group analyst Katherine Styponias projects that the theme-park unit will see attendance grow by 5% at its California locations and 9.9% in Orlando. She sees the parks' earnings increasing to nearly $1.4 billion next year, from $1.1 billion this year. Overall, Styponias, who rates Disney "overweight," with a $28 price target, projects that the outfit will announce fourth-quarter revenue of $7.58 billion, up 3% from last year, with earnings higher by 4%, to $907 million.

Not every analyst is quite as cheery. CIBC World Markets' Michael E. Gallant cut Disney's fourth-quarter earnings-per-share estimates by 9%, to $0.18, due to a lackluster string of movies including Mr. 3,000 and Ladder 49 that hasn't matched last year's hits like Pirates of the Caribbean. He also thinks Florida's hurricanes will knock $45 million to $50 million off Walt Disney World's revenue.

CABLE POWERHOUSE  But Gallant notes that Disney's cable unit will hike operating earnings in the quarter by 25%, improving its operating margins by increased advertising at its powerhouse ESPN and at once-struggling ABC Family, where he sees advertising sales climbing by 32%. And he sees earnings rising by 23% at Disney's consumer-products unit, in part because of selling its money-losing Disney Store chain and an uptick in its characters' licensing.

Still, Gallant recently removed his $25 price target for Disney stock, figuring a lot of the good news is already priced into Disney's stock. That may not be a ringing vote of endorsement. But after years of lackluster earnings, some on Wall Street still have a show-me attitude toward Disney -- even if, as Bob Iger says, it's having quite a year.

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Sith Trailer: November 5th?

There are few films whose trailers can draw crowds to theaters all by themselves. The Star Wars prequels have proven to be among those few, and next month will they will exert their influence once again as fans converge on local theaters for a glimpse of Revenge of the Sith.

So which movie is the lucky one? That was a guarded secret until this week, but now Cinescape is reporting that the trailer will be shipped with The Incredibles, Pixar's new animated film which opens November 5th. We suggested this as one possibility in last week's Star Wars trailer update.

Cinescape's source also mentions that theater managers in some cases might choose to put the trailer on another movie instead. If you're set on seeing the Sith preview on the weekend of November 5th, it would be smart to check with the manager at your local cinema for confirmation.

If you can't wait for the big screen, the teaser will also most likely be aired on the November 4th broadcast of Access Hollywood, which is syndicated by NBC in the US. An online version will probably appear the same evening, and Hyperspace subscribers might get an early peek (there's no official word yet).

Posters and banners will also probably begin appearing in theater venues once the first trailer is out. Stay tuned for more!

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A Ghoul and His Money ($37,400!) Will Soon Part

Cary Sharp is not a Disney zealot. Truth be told, he's been to Disneyland only once.

But he acknowledged Thursday afternoon — minutes after winning a $37,400 EBay charity auction to have his name and epitaph carved on a tombstone in the Anaheim park's Haunted Mansion attraction — that reasonable minds might disagree.

"I enjoy Disney; I'm not a Disney fanatic," said Sharp, a 37-year-old doctor and health care attorney from Baton Rouge, La. "Of course, this would raise questions now."

He placed his first bid Monday for a whopping $35,500 "as a joke" to give his friends one more thing to tease him about.

"To be honest, I seriously thought I would be outbid," he said. "I guess I'm a little bit stunned right now…. But I definitely have no regrets. It's a once-in-a-lifetime opportunity."

Disneyland has never given fans a chance to be a part of any attraction. Only longtime employees are immortalized in the park — in Haunted Mansion gravestones and in the store names along Main Street.

"It's been phenomenal," said Duncan Wardle, vice president of press and publicity for the Disneyland Resort. "I think it just completely caught people's imagination. We've never done anything like that."

When the tombstone offer first hit EBay, horror author Clive Barker started the bidding at $750. By the end of the first night, it had far surpassed Disney's expectations, climbing to $16,000.

But there are people like Patrick Hurd, 29, of Oklahoma City, a huge Haunted Mansion fan who went so far as to give his son the middle name of Gracey, after the ghost host in the attraction.

His final bid was $35,666.

"We honestly couldn't have gone any higher than we did," Hurd said. "We were going to max out the credit cards."

Sharp, meanwhile, logged back on to the auction with five minutes to spare, figuring he'd be willing to go a little past his $37,400 bid, which held steady Tuesday night and through Wednesday afternoon. But he didn't have to.

Within minutes of winning, he was on the phone with Disneyland officials, confirming that he had the money to pay (he does) and making sure he would sign all the necessary waivers (he will).

The money will be split between the Boys and Girls Club in Anaheim and one in Sharp's hometown. And it's a tax-deductible contribution.

"At least that'll be a plus," he said. "That'll take the bite out of the $37,400."

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Hong Kong Disneyland appoints first ambassador to spread magic

Hong Kong Disneyland, set to open in late 2005 or early 2006, announced here Thursday its very first ambassador Angela To, who will act as the official representative for the theme park.

Initiated in 1964 by Walt Disney, the Disney Ambassador programcame to life during the celebrations for Disneyland's 10th anniversary. The ambassador is selected from among Disneyland employees and acts as the park's official representative and host as well as an emissary of goodwill in the community.

Angela To, who has been a cast member with the Walt Disney Company (Asia Pacific) Limited since 2001, will begin her new roleas Hong Kong Disneyland Ambassador in January 2005 for a duration of 12 months. Next month, Angela will visit Disneyland in Anaheim,California and Walt Disney World in Orlando, Florida, to participate in the Disney Ambassador training program.

The selection process for the Hong Kong Disneyland Ambassador took several months with applicants required to submit essays and participate in a series of interviews.

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Visa's Holiday Promotion Ties to Disney's Blockbuster 'National Treasure'

Visa USA is teaming up with the Walt Disney Pictures to market National Treasure, one of the year's most anticipated films. The movie is the focus of Visa's upcoming promotional campaign to drive usage among millions of cardholders this holiday season.

integrated marketing program will include a multi-million dollar advertising campaign, online interactive elements and special events tied to the movie's "treasure" theme. The campaign launches Nov. 1, building up to the film's national release on Nov. 19. As part of Visa's long-term Disney alliance, Visa Members and select merchants have the ability to use the campaign as part of their own marketing efforts.

"We designed this campaign to provide a compelling way to connect with consumers during the busiest time of year," said Susanne D. Lyons, Visa's chief marketing officer. "This partnership gives us the opportunity to create a memorable tie-in for cardholders that will help add to the bottom line for Visa's Members and merchants."

Campaign Elements

The Visa campaign contains several key elements, including the Year of Treasure sweepstakes. This promotion automatically enters cardholders who use their Visa card in November and December for a chance to win the total amount of their Visa purchases made on their winning Visa card from Jan. 1 to Dec. 31, 2004. Twenty-five winners will be randomly selected at the end of the promotion period.

Visa also plans a supporting promotion entitled Reveal the Treasure, which is an online instant win game that uses eDecoder game pieces to instantly reveal prizes at www.Visa.com/treasure. Prizes include AAA vacations valued at $4,000 each and Visa AAA prepaid gift cards ranging from $100 to $500. Nine million eDecoder game pieces will be distributed via Visa's Member financial institutions as well as AAA branches nationwide, select college campuses, movie theatres and grass roots events. No purchase or obligation is necessary to enter or win either sweepstakes. Visit Visa.com/treasure for more details and Official Rules for each promotion.

In addition to the above promotional programs, Visa has planned the following:

• A Visa card will be integrated into a key scene in National Treasure
• The official National Treasure website links to Visa.com/treasure
• Thousands of National Treasure-themed Visa prepaid gift cards will be distributed during select Buena Vista Pictures Marketing and Visa events and also at the movie premiere.
• Member financial institutions will promote the Year of Treasure campaign to cardholders through statement inserts, direct mail, signage, and web marketing materials.

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Disney To Make New Offer To Top Unions

Disney negotiators are set to make a new offer Thursday in the seven-month standoff with its largest unions, Local 6 News has learned.

The offer is expected to be delivered to the Services Trades Council off Disney property Thursday at a hotel on Highway 192.

The Services Trade Council is a group of six unions representing more than 20,000 Disney employees.

Health care costs have been a stumbling block in reaching a deal this year, according to the report.

Union members have rejected the first two offers from Disney.

Sources said Disney executives spent Wednesday working out the latest counter-proposal.

Disney spokesperson told Local 6 News, "Both sides want an agreement and we are focused on getting there." 

Witness: Disney Had Right to Fire Ovitz

 

Disney Board Had the Right to Terminate Michael Ovitz for Cause, Expert Witness Testifies.

 

Walt Disney Co.'s board had the right to fire Michael Ovitz, the company's former president, for cause under California law, an expert witness testified Thursday as a high-profile shareholder lawsuit continued for a second day.

The lawsuit, which has been in progress for more than seven years, claims Disney's board did not properly scrutinize Ovitz's employment contract when he joined the company in 1995 and then wrongly granted him a non-fault termination that entitled him to a $140 million severance package 14 months later.

John J. Donohue, a Yale University law professor and witness for a group of Disney shareholders, testified that under his review of California law, Ovitz's contract and depositions in the case revealed that the board had the right to fire Ovitz for cause.

In particular, Donohue cited "habitual lying" by Ovitz during his time as Disney's second-in-command.

Under the terms of Ovitz's contract, he could be fired for cause in case of gross negligence or malfeasance, Donohue said.

Neither term was fully defined in the contract, but California employment, Social Security and tort law didn't require a company to prove that acts of criminal conduct, scandalous behavior or fraud had occurred for an executive to be fired for malfeasance, according to Donohue.

Donohue said deposition testimony showed that Sanford M. Litvack, Disney's general counsel, failed to research this point at the time Ovitz was terminated.

The trial is being held in the Delaware Court of the Chancery, a specialized business court. It is expected to last four weeks.

Current and former Disney directors who are defendants are expected to contend that Ovitz's contract was given careful consideration, and that there were no grounds for denying his severance.

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Viacom, Disney Agree to Pay $1.5M

Viacom, Disney to Pay $1.5M to Settle Charges They Violated Ad Limits on Children's Programs.

Viacom and Disney agreed Thursday to pay a total of $1.5 million to settle government charges the companies violated advertising limits for children's television programming.

The combined settlement with the Federal Communications Commission is the largest negotiated with the agency for such violations.

Viacom will pay $1 million for ad programming that aired on Nickelodeon, and Disney will pay $500,000 for ad programming that aired over the ABC Family Channel.

FCC rules limit the commercials that can be aired in certain children's TV shows to 10 1/2 minutes per hour on weekends and 12 minutes per hour during weekdays. The time limits apply to over-the-air broadcasters and cable operators for programming originally produced and aired for an audience of 12 years and younger.

The rules also bar broadcasters from airing commercials that refer to or offer products that are related to the children's program. For example, a cartoon program cannot air a commercial for the dolls of its characters during the program broadcast. In that case, the entire program would be considered a commercial and thus a violation of the federal rules.

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Mickey's Smart Move: Selling Stores

Disney and Children's Place have consummated a deal, and it's a good one for Mickey's investing club. Children's Place will take over North American Disney Stores' 313-location retail operation. The exact value of the arrangement isn't clear yet, but Disney will receive a working capital adjustment when the deal actually closes.

I  wrote about talks and negotiations between the two companies not long ago. Now the deal has come to pass, and it hasn't come soon enough for me. I used to be bullish on the Disney Stores. I even thought sometimes that fighting for them was worthwhile. But reality eventually tempered my enthusiasm. I came to accept the inevitable conclusion: Disney just wasn't extracting any value from them. For any number of reasons -- overexposure, improper merchandising techniques, inventory selection issues -- take your pick, the boutiques no longer possessed their previous pizzazz.

The proposed licensing scheme is the way to go: Children's Place will actually manage the real estate and operate the business, and Disney will collect royalties. Children's Place seems confident it can make a go of this, pledging $100 million toward transforming the stores into unique, must-visit destinations once again. It won't be dependent on just magic and pixie dust, though; the action plan indicates pricing will be important to attract value-oriented consumers. As a Disney shareholder, I'd like to think that brand equity alone is enough to warrant premiums on merchandise, but such is life. Kids still love Mickey and Goofy, but their parents want those iconic characters at the right price.

Disney is now free to concentrate on managing its portfolio of licenses. Children's Place can hopefully be the catalyst that this business needs. If it can get things going, the consumer products segment of Disney should have some favorable reports down the line. As for Children's Place, its stock rose 18% as investors approved of the acquisition, believing that it will be a good fit for the company, one that is intrinsically and significantly incremental.

Time will tell, as they say, but I'm glad I'm on the Disney side of things. I'd rather be the licensor than the licensee, since I've already seen what those stores can do to shareholder value.

Recent Disney Takes:

• Disney and eBay summon a grave auction.
• ABC is in hot competition with Viacom's CBS and Fox.
• Is Disney giving Mattel's Barbie a run for her money?

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Forbes.com Names Disney Home to Three of Top Five Most Valuable Character Franchises in the World

The Walt Disney Compan, owns three of the top ten character franchises according to Forbes.com's annual "Top Earning Fictional Characters List." Forbes.com estimates the top-ten fictional characters grossed more than $25 billion in 2003. Mickey Mouse and Winnie the Pooh -- number one and two, respectively -- topped all character franchises, with Disney/Pixar's $860 million box office blockbuster, Finding Nemo, rounding out the top five. Collectively, all three character franchises amount to nearly half the combined retail sales of the entire "Fictional Billionaires" list. Disney's Power Rangers and Disney/Pixar's Buzz Lightyear were included in Forbes.com's "Near Misses" list. Forbes.com's complete list can currently be viewed at: http://www.forbes.com/.

"At Disney, we strive to develop characters that engage a child's imagination, tell stories that connect with families and find ways for our characters to live on in the hearts and minds of children everywhere," said Matt Ryan, senior vice president of brand management at The Walt Disney Company. "The consistent top ranking of Mickey Mouse and Winnie the Pooh on Forbes.com's list tells us that these characters live on with new generations. And we will continue to introduce classic characters, like Nemo, which children can enjoy for years to come."

Mickey and his friends, Donald, Goofy and Pluto accounted for $5.8 billion in retail sales, up from $4.7 billion in 2003, to claim the top spot from Disney's other multi-billion dollar character franchise, Winnie the Pooh.

"It's not just kids who love Mickey and his entourage either: Disney says Mickey's impressive boost in earnings has been driven in part by a surge in popularity of vintage adult apparel," according to Forbes.com.

Pooh, Eeyore, Tigger and the rest of the 100 Acre Wood gang recorded $5.3 billion in retail sales. The Walt Disney Company's third billion dollar franchise include Disney Princess -- featuring Ariel from The Little Mermaid, Sleeping Beauty, Belle from Beauty and the Beast, Cinderella, Jasmine from Aladdin and Snow White -- a franchise that recorded an excess of $2.4 billion in global retail sales. Disney Princess was not included on Forbes.com's list due to the fact the characters originated from multiple stories.

"The resurgence of Mickey to this year's top ranking can be attributed to the successful programs we implemented, including the Mickey 75th Anniversary, Mickey postage stamp program, vintage Mickey fashion line, as well as new DVD and television releases surrounding the character," said Andy Mooney, chairman of Disney Consumer Products Worldwide. "Although Disney Princess was not eligible for this list, the power of the Disney Princess brand is truly making its mark among young girls -- with 300 percent growth in the past three years alone."

To qualify to be on the Forbes.com list, a character must be both "fictional" -- not based on a real person -- and a "character" in the sense of having made its debut in a narrative story -- book, a film or videogame. To calculate the earnings of the world's top fictional characters, Forbes.com added together worldwide toy/merchandise sales, videogame sales, publishing and box-office revenue, as well as DVD/VHS sales and rental revenue.

For further information, please contact Clint Hayashi, Disney Consumer Products, +1-818-567-5947.

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Ovitz ‘did not grasp executive position’

Michael Ovitz, the former Walt Disney president, “seemed to have no understanding at all” of the basic responsibilities of an executive in his top-rank position, a leading employment law professor said on Thursday. 

There were also good and sufficient grounds for him to be fired “for cause” under the terms of his contract, John Donohue of Yale Law School told a hearing in Delaware chancery court.

He did not achieve or advance any of the goals set when he was hired, failed to take any of the burden off Michael Eisner, chairman and chief executive, and failed to establish himself as a worthy successor, Mr Donohue said.

Mr Donohue, called by share holder plaintiffs seeking the return of Mr Ovitz's $140m pay-off, made in 1996, directly contradicted one of the entertainment group's core assertions.

Based on advice from Sanford Litvack, the company's general counsel at the time, Disney has claimed it had no alternative to paying the full severance package because Mr Ovitz had not been guilty of gross negligence or malfeasance. The definition of these terms, used in his contract as the only justification for firing, was central to Mr Donohue's testimony.

While the defendants have proposed they referred only to fraudulent or criminal behaviour, Mr Donohue offered several less dramatic definitions.

In his opinion, documented instances of Mr Ovitz's violation of company rules on expenses, gift-taking and his disregarding orders from Michael Eisner, group chairman and chief executive, could justify his dismissal for cause.

According to a review after he left the company, Mr Ovitz's expenses during his employment were about $5m and included more than $9,000 for flowers for lunch and breakfast meetings at his home.

Mr Donohue also referred to Mr Ovitz's “habitual lying”, quoting a deposition from Sid Bass, a former major shareholder in Disney and close associate of Mr Eisner, who “repeatedly alluded to Ovitz's veracity problem”.

According to Mr Bass's deposition, Mr Eisner was aware of this issue even before he hired his friend but was to conclude Mr Ovitz “was incapable of changing his ways”.

The former president, who co-founded Creative Artists Agency, had no previous experience of working in a public company. He “seemed to have no understanding at all of his duty of care”, Mr Donohue said, referring to a statement by Mr Ovitz during his deposition that he “thought it was about what went on in a hospital”.

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Walt Disney Records Releases Disney Channel Hits: Take 1, the First-Ever Collection of Hit Songs and Music Videos from Favorite Disney Channel TV Shows

Available October 26, 2004 on Walt Disney Records, Disney Channel Hits: Take 1 is the first complete collection of hit songs and music videos from favorite Disney Channel TV shows such as Lizzie McGuire, The Proud Family, That's So Raven and Kim Possible. The CD features never-before released songs from Even Stevens, Lilo & Stitch: The Series, Phil of the Future and Dave the Barbarian. A special bonus DVD contains five music videos, including Hilary Duff's "I Can't Wait" and for the first time, Raven's "Supernatural."

Disney Channel Hits: Take 1 track listing:

DISC ONE

1. "Lizzie McGuire Theme Song (Extended Supa Mix)" - Lizzie McGuire

2. "I Can't Wait" by Hilary Duff - Lizzie McGuire

3. "That's So Raven Theme Song" by Raven - That's So Raven

4. "Supernatural (Crystal Ball Mix)" by Raven - That's So Raven

5. "Shine" by Raven - That's So Raven

6. "Say The Word" by Christy Carlson Romano - Disney's Kim Possible

7. "It's Just You" by LMNT - Disney's Kim Possible

8. "The Naked Mole Rap" by Ron Stoppable (Will Friedle) and Rufus (Nancy Cartwright) - Disney's Kim Possible

9. "The Proud Family Theme Song" by Solange featuring Destiny's Child - The Proud Family

10. "Enjoy Yourself" by L.P.D.Z. - The Proud Family

11. "It's All About Me" by Penny Proud - The Proud Family

12. "Even Stevens Theme Song" - Even Stevens

13. "Aloha, E Komo Mai (Theme Song from Lilo & Stitch: The Series, Extended Version)" by Jump5 - Lilo & Stitch: The Series

14. "Phil of the Future Theme Song" - Phil of the Future

15. "Dave the Barbarian Theme Song" - Dave the Barbarian

DISC TWO: Music Video DVD

"I Can't Wait" by Hilary Duff

"Enjoy Yourself" by L.P.D.Z.

"That's So Raven Theme Song" by Raven

"Supernatural" by Raven

"The Naked Mole Rap" by Ron Stoppable and Rufus

A must-have collection for Disney Channel fans, Disney Channel Hits: Take 1 will be available on October 26, 2004 for a suggested CD retail price of $18.98. All Walt Disney Records audio products also can be ordered by visiting DisneyRecords.com.

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Passport Prices STABLE

Disneyland Paris -  - As of November 1st, so in not even two weeks time the new passport prices take effect at the Disneyland Resort Paris which are mostly the old!

Departing from the recent traditions single and multi-day passports will not increase in price, in fact the "top-of-the-line" three day park hopper passport for adults will be offered for one Euro less at 108,- Euro. The childrens' version's new price of 80,- Euro is full four Euro below last seasons identical passport. No changed pricing of the Annual Passports has been communicated so far. Important note for all guests planning to buy their tickets in advance: according to the official website the one day park hopper passport is on sale exclusively at the ticket counters of the theme parks

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Choose Your Color

Disneyland Paris - The rehab related closure of Space Mountain is still several months away and the rehab of the facade seemed finished (with the exception of the change of the attraction's logo) already, but in its drive to transform the Space Mountain into an attraction as good as new for its tenth anniversary nothing is forgotten - so now the concrete base of the mountain / dome is going to receive a new paint job too. As with many major repaintings this year Imagineering is trying to figure out on-site, which would be the color best fitting into the overall atmosphere of Discoveryland. For this small parts of the mountain's base have been painted in the different colors up for "election". The small test patches are located right at the FastPass entrance as the photo shows.

                                          

Speaking of the major rehab: strange happenings are also reported from the attraction's station, where all but the windows of the control booth have been covered temporarily including the ride's logo. Not even rumors have surfaced so far about the purpose of that.

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Disney Releases January-April Discounts

Disney has announced Room-only discounts for travelers vacationing at Walt Disney World Resort between 1/2 - 4/16/05. Rates range from $55+ per night for Value Resorts, $85+ per night for Moderate Resorts and $164+ per night for Deluxe Resorts. Ask for code BDP. Reservations must be made by 12/01/04. Package discounts for these dates are also available. For more information visit their web site and fill out a quote form.

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Kimmel keeps talking

"Jimmy Kimmel Live" lives on.

ABC has renewed the latenight gabber for another year, keeping the show on the air through early 2006. Skein bowed in January 2003, following "Nightline" in most markets.

"I'm delighted that ABC has exhausted all other options and picked up mine for another year," Kimmel said of the net's decision to renew the show. Host also took a comic swipe at remarks Jay Leno made during the recent announcement of his intent to retire.

"In 2006, I'll be 38 years old, and I promised Mavis I would take her out for dinner before I turned 40," Kimmel quipped.

Renewal is particularly important since earlier this year Kimmel lost one of his biggest backers when ABC chairman Lloyd Braun exited the Alphabet. That led to speculation that ABC's new leadership might try to make a latenight switch, but the renewal -- along with the decision to go with Kimmel as host of next month's American Music Awards -- indicates he's on solid ground with the new regime, at least for now.

Move also comes in the wake of NBC's signing Conan O'Brien to host "The Tonight Show" starting in 2009 and Craig Kilborn's exit as host of "The Late Late Show."

ABC exec VP of alternative programming/latenight Andrea Wong called Kimmel "a great talent who has brought us an innovative show that we know he will only make stronger and stronger."

Despite its title, Hollywood-based "Jimmy Kimmel Live" earlier this year switched to a taped format, though with an 8 p.m. tape time, skein is produced closer to live than any other latenight gabber. Kimmel also tweaked his opening monologue.

Kimmel exec produces his show, with Jason Schrift as co-exec producer. Duncan Gray is the ABC exec in charge of production.

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Gray to pen Blume's 'Deenie' for Disney

Screenwriter Pamela Gray has been hired to adapt Judy Blume's novel "Deenie" for Disney.

Blume's bestseller concerns a young woman's struggle to define herself independently from the dreams and expectations her parents have for her.

Jane Startz, Blume and Tashmoo Prods. prexy Lawrence Blume, the author's son, are producing. Gillian MacKenzie is co-producing. Buena Vista Motion Pictures Group senior VP production Karen Glass is overseeing the project.

Gray's credits include "A Walk on the Moon" and "Music of the Heart" as well as uncredited work on "Dirty Dancing: Havana Nights."

She most recently contributed to Working Title's "Betty Anne Waters," helmed by Tony Goldwyn. Other pics including Universal's "The Seamstress," with Peter Kominsky directing; Imagine/Universal's "Untitled Female Dating Project" for Rita Wilson; and HBO's "Ruthie and Connie," with Betty Thomas directing.

Next month Blume receives the National Book Foundation Medal for Distinguished Contribution to American Letters -- the first time the distinction will go to a children's author. Last year it went to Stephen King.

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Arielholics Invited to the 2004 ArielCon Pacifica at Disneyland This Weekend

You are invited to join a group of self-described "Arielholics" for their annual celebration of The Little Mermaid. This delightful group travels throughout the Disneyland Resort sharing their love of Ariel and visiting various Ariel-related attractions, restaurants, etc.

This year they will be join on Saturday by animator Philo Barnhart. Philo not only helped bring Ariel to life in the animated feature but he is also the writer of the How to Draw the Little Mermaid book.

There is a $50.00 registration fee for this which can be paid by pay pal, my I.D. is floundering. The goodie bags alone are worth $80.00 each and that is before we get to the cameras and the film developing and all the prizes.  I will constantly be handing out goodies all weekend long!  I cleaned out the Ariel closet!

Even if you don't officially register, stop by one of their events for some fun and a chance to make new friends. This is not affiliated with Disneyland or the Disney Company in any way. It is just a bunch of fun Little Mermaid fans that want to get together and have a great time.

Friday, October 22th  Disneyland

10 a.m. Everyone meet in front of city hall.  Receive T-shirts and name badges.

10:30 a.m.  Parade ourselves down Main Street to let everyone know that we  are here and head to Ariel's Grotto.

10:45  Pictures with Ariel!  What a great way to start the day....

11:30  Head over to Innoventions and ride a Segway and play Disney Dance Dance Revolution

12:30  Meet in front of the globe of water in the center of Tomorrowland and I will pass out your picture hunt and cameras

3 p.m. For those brave souls who wish to dance in the 4 o'clock parade meet  me in front of the castle

4 p.m.  Dance in the parade or take pictures of crazy Arielholics in the parade.

5:30 P.M. Head over to go see the last Snow White show of the day at 6:15 I know it isn't Ariel but it is something not to be missed!

8 p.m. meet in the lobby of the Grand Californian in front of the fireplace and have an "Ariel" gift exchange.  Everyone who wants to participate bring a mermaid gift of around $10.00 to exchange.  We will also play to sea who is the pretty pretty princess.

By 9 p.m. all cameras from the teams must be turned into me here in the  lobby.

There is fireworks at 9:25 p.m. and the park is open until 11 p.m. and seeing the Haunted Mansion at night is quite fun.  This time of the year is the Nightmare Before Christmas there and this is totally worthwhile.

Saturday, October 23rd  Disney's California Adventure

Meet at 10:00 a.m. in front of the big sun in the center as you walk in to  California Adventure.

10:30  head off to the Animation area and watch Ariel come up on the big screens inside.  We will then go into the Beast's library to find out what character we are most like and then we go to Ursula's Grotto and she steals our voice!

11:30 take the official Arielholic ride on Tower of Terror...hey there is no Ariel on this ride is there Tim?

12:30 we will all meet up in front of Tritons Carousel and I will give your team a task of very special importance to complete.

5:00 p.m. Meet  up in front of Ariel's Grotto for dinner with Ariel!  Fun, fun, fun!

After we have gorged ourselves we will head over to the Grand Californian Lobby to watch Mermaid together.

After mermaid for those who are not faint of heart there will be a Dance Dance Revolution Contest in the game room.

Sunday morning, October 24th:  Picnic Grove Area to the left of the Disneyland Entrance

All meet up at 10 a.m.  so I can hand out all the prizes and everyone gets a copy of all the pictures that you took to go home with you in a little photo book.

And then I will sadly adjourn Arielcon Pacifica 2004.  But many new friends will be made!

As usual, the schedule may change, because I have more things that are up in the air.  I have left plenty of room for people to have fun time on their own.  The  Haunted Mansion Holiday is up and is fabulous and I will be there.

As always things might and will change but I will keep to the posted times as best as I can so people can meet up with us whenever they wish. This is not affiliated with Disneyland or the Disney Company in any way. It is just a bunch of fun Little Mermaid fans that want to get together and have a great time. You do not need to worry about a park hopper pass.  We will be in Disneyland on Friday and California Adventure all day Saturday.  Sunday will be in Downtown Disney.....it's free!

I can hardly wait to sea all of you!  This is going to be an awesome Arielcon

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New French Collector's Edition DVDs

Why does the European market sometimes get better DVD covers than the U.S.?

Every once in a while, Disney creates some great DVD covers for its movies, but releases these covers only in other markets. Beauty and the Beast and Who Framed Roger Rabbit were both incredible looking covers for the European market. Now we have our first look at 3 collector's editions coming to Region 2 in the next few months. While these titles are also planned on being released here in the U.S., chances are, their covers will be drastically altered. We know that the new 3 disc set of Pirates of the Caribbean in the U.S. is just the same 2 disc set already offered with the third disc sitting in its own case to the side.

                  

The Children's Place and the Walt Disney Company Enter into Definitive Agreement Regarding the Sale of the Disney Store North America Retail Chain to the Children's Place

 

The Children's Place Retail Stores, Inc. (Nasdaq: PLCE) and The Walt Disney Company (NYSE: DIS) today announced that the parties have entered into a definitive agreement for The Children's Place to acquire and operate under a long-term licensing arrangement the Disney Store retail chain in North America, which currently includes 313 stores.

"This exciting and unique opportunity gives us instant access to one of the most magical brands in the world, and is consistent with our goal of being the leading retail player in the newborn to age 10 category," said Ezra Dabah, chairman and chief executive officer of The Children's Place. "The Disney Store North America profile is strikingly similar to that of The Children's Place: the chain is a mall-based, vertically integrated specialty retailer, with a comparable customer demographic. Disney Store North America generates high sales productivity, driven by significant customer traffic. We believe that by utilizing our merchandising and sourcing expertise and leveraging our infrastructure we can further increase the level of profitability and build on the chain's positive momentum."

"The Children's Place management team has a proven track record of growing a unique and compelling retail concept," said Peter E. Murphy, senior executive vice president and chief strategic officer of The Walt Disney Company. "We believe their commitment to quality, the Disney brand, and entertainment retailing will maximize the Disney Store opportunity. We look forward to a long and rewarding relationship with The Children's Place."

"The sale of the Disney Store North America marks another step in the ongoing refocusing of Disney Consumer Products' resources and expertise toward growing our core character franchises such as Mickey and developing new and exciting character franchises such as Disney Princess and W.I.T.C.H." said Andy Mooney, chairman of Disney Consumer Products. "We will continue working with all our retail partners and licensees, including the Disney Store, to optimally showcase Disney's character franchises to consumers of all ages across all channels of distribution. The current management team's success in improving the performance of the Disney Stores over the last year should serve as a platform for The Children's Place to continue growing and improving the Disney Store business."

Mr. Dabah continued, "By combining the Disney brand with our retail expertise, we believe we can increase sales, produce significant margin expansion and leverage operating expenses - resulting in increased earnings power for our shareholders. Assuming a November closing, we anticipate that the transaction will be accretive to earnings in fiscal 2004 and on an annualized basis in fiscal 2005."

TRANSACTION OVERVIEW

The Children's Place will acquire the equity of the Disney Store North America from Disney Enterprises, Inc. in exchange for a working capital adjustment payment to Disney at the close of the transaction. The Disney Store North America will retain responsibility for the store lease obligations. The Disney Store North America will be held in a wholly owned subsidiary of The Children's Place and will have the exclusive right to operate the Disney Stores in the United States and Canada under a long-term license agreement. The Disney Store North America will continue to manufacture, source, offer, and sell merchandise featuring "Disney-branded" characters, past, present and future, and will begin to pay royalties to Disney on its physical retail store sales on the second anniversary of the closing of the transaction. Furthermore, beginning in October 2005, the Disney Store North America will operate an Internet store featuring a select assortment of merchandise offered in the physical retail locations. The Walt Disney Company will continue to operate the Disney Catalog and will maintain a Disney online retail presence.

The Children's Place has committed to invest up to $100 million into the remodeling and operations of the Disney Store North America. Of this amount, an initial $50 million will be funded at closing. The Children's Place will fund the transaction with cash on hand and short term borrowings and at this time, does not anticipate taking on any long-term debt or issuing any stock as a result of this transaction. In connection with the acquisition, The Children's Place is in the process of expanding its credit facility and establishing a working capital facility for its new subsidiary with its working capital lender, Wells Fargo Retail Finance.

The Hart-Scott-Rodino waiting period has expired, and subject to various closing conditions, the closing is expected to occur during the fourth quarter of the 2004 calendar year.

OPERATING PRIORITIES

Mario Ciampi, Senior Vice President of Store Development and Logistics for The Children's Place, will be appointed President of the Disney Store North America and will report directly to Ezra Dabah, Chairman and Chief Executive Officer.

Mr. Dabah commented, "Mario Ciampi is a proven leader and we fully expect his leadership and experience to translate into long term success for the Disney Store business. Over the past 13 years Mario has played a pivotal role in building and growing The Children's Place, including spearheading our successful expansion into new markets like Canada and Puerto Rico."

The Company's operational action plan will encompass the following key areas:

-- Enhance the store concept and in-store entertainment experience through store remodels;

-- Strengthen the value proposition by offering quality merchandise at affordable prices;

-- Utilize the Company's direct sourcing expertise and infrastructure;

-- Implement a character driven merchandise strategy that will include more frequent product flows; and

-- Leverage existing back office functions and systems infrastructure.

"The Disney Store provides us with the ability to capitalize on the popular licensed character apparel market and gives us a new growth vehicle. We believe we can significantly grow the chain through selective expansion into quality malls, and lifestyle and outlet centers," Mr. Dabah concluded.

CONFERENCE CALL

Management of The Children's Place will host a conference call this morning at 9:00 am Eastern Time with investors to discuss the transaction. Interested parties can access the call by dialing 785-832-1508, ID # "PLCE." The call can also be accessed through the Investor Relations section at The Children's Place website www.childrensplace.com. A replay of the call will be available approximately one hour after the conclusion of the call, until midnight on Wednesday, October 27, 2004. To access the replay, please dial 402-220-0857, or you may listen to the audio archive on the Company's website, www.childrensplace.com.

ABOUT THE CHILDREN'S PLACE

The Children's Place Retail Stores, Inc. is a leading specialty retailer of high quality, value-priced apparel and accessories for children, newborn to age ten. The Company designs, contracts to manufacture and sells its products under the "The Children's Place" brand name. As of October 2, 2004, the Company operated 725 stores, including 674 stores in the United States, 49 stores in Canada, and two stores in Puerto Rico. The Company also sells its merchandise through its virtual store located at www.childrensplace.com.

This press release and above referenced call may contain certain forward-looking statements regarding future circumstances. These forward-looking statements are based upon current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements including, in particular, the risks and uncertainties described in the filings of The Children's Place and The Walt Disney Company with the Securities and Exchange Commission. Actual results, events, and performance may differ. Readers and listeners on the call are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by The Children's Place or The Walt Disney Company or any other person that the events or circumstances described in such statement are material.

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Shareholders Vs Disney's Board Opens

Walt Disney Co.'s  board of directors went on trial on Wednesday, on shareholder accusations that it merely rubberstamped a decision to hire Michael Ovitz and allowed him to walk away months later with a $140 million severance package.

Shareholders are demanding that the severance package plus interest be returned to the company, a sum that could amount to $200 million.

Shareholders contend that Ovitz, who was hired as president in a deal engineered by Disney Chief Executive Michael Eisner, and a personal friend, should have been fired.

Lawyers for the shareholders opened their case by calling expert witness Deborah DeMott, a law professor at Duke University and corporate governance expert, who testified that based on the records she reviewed the board never met to discuss hiring Ovitz.

She said the board was no more involved when it came time for Ovitz to leave.

"With regard to Mr. Ovitz's termination by the corporation ... I saw nothing in the record to indicate that the decision was precipitated by a meeting of the corporation's board of directors," DeMott testified in Delaware's Court of the Chancery.

Steven Schulman, the head Milberg Weiss attorney representing shareholders, has said directors approved the deal after giving it only a cosmetic glance, failing to live up to their corporate responsibilities.

Ovitz at the time was one of Hollywood's most powerful talent agents and co-founder of Creative Artists Agency, but his tenure as Disney's president lasted only 14 months and was marked by turmoil. Shareholders claim he should have been fired, but instead the board awarded Ovitz the lucrative package and allowed him to walk away.

Schulman has also said publicly that Ovitz was untrustworthy, unable to delegate and unethical, charging he had financial interests in conflict with his job at Disney.

Scheduled to last four weeks, the case will be decided by a judge who will base his finding on whether the board acted with good faith and with the interests of the company at heart.

Lawyers for shareholders plan to call three witnesses, then the defense will put on its case, with testimony expected from Ovitz, Eisner and most of the Disney board.

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Children's Place stock surges on Disney deal

Shares of Children's Place Retail Stores Inc. spiked after the company finalized its agreement to buy Walt Disney Co.'s North American retail-store chain.

The stock of Secaucus-N.J.-based Children's Place soared as much as 21.2% in afternoon trading. At 3:30 p.m., it was up 18.6%, to $29.61. Disney's stock edged 0.9% lower, to $24.67.

The deal, which is expected to close in November, includes 313 stores that sell toys, clothing and other merchandise based on Disney characters. Children's Place plans to invest up to $100 million into the operations and remodeling of the stores, which it will operate under a long-term licensing deal with Disney.

Not included in the deal are the Disney store on Fifth Avenue, which reopened this month, and the retail units at Disney theme parks.

Children's Place CEO Ezra Dabah said in a statement that the transaction is expected to add to company earnings in fiscal 2004 and on an annualized basis in fiscal 2005.

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Witness: Disney May Have Violated Bylaws

Disney May Have Violated Own Bylaws in Way It Hired and Fired Michael Ovitz, Witness Testifies

The Walt Disney Co. will sell its chain of 313 mall-based retail stores to The Children's Place while continuing to sells dolls, toys and other Disney-branded products through its own catalog and Web site, it was announced Wednesday.

The Children's Place Retail Stores Inc said the deal to buy Disney's North American stores was expected to close next month.

The Children's Place, based in Secaucus N.J., will continue to operate the stores under the Disney name with a 15-year licensing agreement and three, 10-year renewal options.

It will not make an upfront payment to Disney. Instead, it will provide a "working capital adjustment payment," valued by one analyst at $50 million to $100 million.

The payment will be based on the value of inventory at the stores at the time the deal closes. The cost of the licensing deal was not disclosed.

The royalty will not begin until two years from the closing date to give Children's Place time to remodel and operate the stores.

Disney has been trying to unload its stores as part of a larger effort to dispose of noncore assets such as sports teams. The once-profitable retail chain hit a high of 700 stores in 2000. Since then, Disney has been trimming the number of stores, while losing money on the operation.

Children's Place has agreed to invest up to $100 million in the remaining stores, with half of that coming at closing. It intends to fund the deal from cash on hand and short-term borrowing. It does not expect to seek long-term borrowing or issue stock as a result of the deal.

Disney will continue to operate the stores located inside its theme parks, as well as the flagship Fifth Avenue store in New York. The stores will be run by Disney's theme park division instead of its consumer products arm.

Disney is continuing to seek a buyer for its European stores.

Children's Place will sell items online from its retail stores, using the Web site www.disneystore.com.

Last week, Disney switched its Internet retail operation to www.disneydirect.com.

Disney will continue to sell similar toys and items on its Web site and through its mail order catalog, operating as a competitor to the retail stores on items such as plush toys. The company will sell other merchandise, such as snow globes, exclusively.

Disney's consumer products division has been operating at a profit recently as it began to license products to large retailers such as Wal-Mart while creating specialty lines of merchandise.

Disney has also entered the consumer electronics business, selling Disney-themed computers, telephones and DVD players.

The deal was announced before the start of market trading on Wednesday. Shares of Children's Place were up more nearly 14 percent, or $3.47, to $28.43 in afternoon trading on the Nasdaq Stock Market.

Disney shares were down 16 cents, at $24.73, on the New York Stock Exchange.

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Boosted View For The Incredibles Lifts Pixar

Merrill Lynch raised earnings estimates and the target price for Pixar. Merrill Lynch cited a move to a 2005 discounted cash flow analysis and Pixar's full participation in film economics after 2005--currently The Walt Disney Co. receives about 50% of film profit or about 60% with distribution fees. The research firm also increased the worldwide gross box office projection for The Incredibles, to be released theatrically Nov. 5, to $600 million from $525 million. Merrill left the third-quarter estimate unchanged for earnings of 21 cents per share on revenue of $28 million, but raised the fourth-quarter estimate to 67 cents per share from 56 cents. The firm raised the 2004 estimate to earnings of $1.97 per share on revenue of $232 million, from earnings of $1.86 per share on revenue of $225 million. Merrill also raised the 2005 estimate to earnings of $1.97 per share on operating income of $180 million and revenue of $252 million, up from estimated earnings of $1.56 per share on operating earnings of $140 million and revenue of $202 million. The firm also raised the 12-month target price to $95 from $78.

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Walt Disney Records Releases the Ultimate Christy Collection, ``Christy Carlson Romano: Her Greatest Disney Hits'' Available October 26, 2004

Features 2 Newly Recorded Tracks and an Enhanced CD With 2 Music Videos

For the first time ever, Disney Channel favorite Christy Carlson Romano's hit songs are available on one disc with "Christy Carlson Romano: Her Greatest Disney Hits," set for release October 26, 2004 on Walt Disney Records. The compilation features two newly recorded tracks - "Colors of the Wind" from the upcoming "Disneymania 3" release and "Dive In," written by Matthew Gerrard (Hilary Duff's "Why Not"). As a bonus, the CD is enhanced with two of Christy's music videos, "Teacher's Pet" from Disney's "Teacher's Pet" movie and "Say the Word" from the Disney Channel's "Kim Possible" TV series soundtrack.

"Christy Carlson Romano: Her Greatest Disney Hits" contains "Let's Bounce" from "The Princess Diaries 2: Royal Engagement" soundtrack, "Anyone But Me" from Disney Channel's Original Movie "Zenon: Z3," "Say The Word" from Disney Channel's "Kim Possible" TV series soundtrack, "Teacher's Pet" from Disney's "Teacher's Pet" movie, "Could It Be" from the upcoming "Kim Possible: So the Drama" movie and "Dream Vacation" from Disney Channel's "Even Stevens."

TV, music, film and stage, Christy has done it all. She shines on Disney Channel with lead roles in both the "Even Stevens" and "Kim Possible" television franchises. Last year, Christy completed her freshman year at Columbia University's Barnard College where she is majoring in political science with an emphasis on human rights. Rolling Stone recently hailed her as one of "Five on The Rise" upcoming young female artists, while VARIETY called her one of the "Top 10 Talents to Watch" in 2000. Christy currently is working on her first solo album and recently starred as Belle in Disney's Broadway production of "Beauty and the Beast." She is the youngest performer to helm the role in the production's 10-year run.

"Christy Carlson Romano: Her Greatest Disney Hits" will be available October 26, 2004 for a suggested CD retail price of $12.98. All Walt Disney Records audio products also can be ordered by visiting DisneyRecords.com.

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Annual Passholder Discounts Announced

Disney has released room-only discounts for annual passholders. Discounts include select Value Resorts for $49+, Moderate Resorts from $79+ and select Deluxe Resorts from $151+ per night. Rates available most nights 1/2/05-2/16/05. Not available at all from 1/14/05-1/16/05, 2/3/05-2/5/05 and 2/10/05-2/12/05. The number of rooms offered at these rates is limited. For details on these and other vacation specials call INTERCOT's Official Travel Agency, Magical Journeys at 1-570-785-3283, or visit their web site and fill out a quote form.

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Celebrity Narrators Announced for 2004 Candlelight Processional at Epcot

A celebrity lineup of narrators will retell the traditional Christmas story during the 34th annual Candlelight Processional and Mass Choir Program Nov. 26-Dec. 30 at Epcot at Walt Disney World Resort.

Candlelight Processional is a moving presentation of the traditional Christmas story told by celebrity narrators who are joined by a mass choir and 50-piece orchestra. There are performances each evening at 5, 6:45 and 8:15 p.m. (Dates and celebrity narrators subject to change without notice.)

The celebrity lineup:

• Nov. 26-28 Rita Moreno
• Nov. 29-Dec. 1 Heather Headley
• Dec. 2-4 Kirk Franklin
• Dec. 5-7 Jim Caviezel
• Dec. 8-10 Marlee Matlin/Jack Jason
• Dec. 11-13 Joshua Morrow
• Dec. 14-16 Eartha Kitt
• Dec. 17-19 Steven Curtis Chapman
• Dec. 20-22 Edward James Olmos
• Dec. 23-28 Gary Sinise
• Dec. 29-30 LeVar Burton

Guests can make an entire evening of Candlelight with special dinner packages starting at $28.99 for adults and $11.99 for children ages 3-11. No dinner packages will be available at 5 p.m. on Dec. 5. In addition to dining at Epcot restaurants, the packages include parking, merchandise discounts and guaranteed seating for the Candlelight Processional. Guests can make dining reservations by calling 407/WDW-DINE.

This moving presentation is part of Holidays Around the World, Epcot's international celebration featuring musical groups, choirs, holiday light displays, storytellers and decorations all around World Showcase. Guests can enjoy Holidays Around the World Nov. 26-Dec. 30. It is included with regular Epcot admission.

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Cinderellabration' Salutes Disney Princess With Gala Crowning Ceremony Debuting at Walt Disney World Resort in May 2005

The "happily ever after" tale of Cinderella and Prince Charming continues for Walt Disney World guests in May 2005 when a glittering stage show adapted from Tokyo Disneyland debuts at Magic Kingdom.

Filled with sparkling pageantry, luxurious costumes, romantic choreography and a lush musical score incorporating new compositions and several classic Disney songs, "Cinderellabration" welcomes a who's-who of Disney princesses to join in the gala coronation ceremony in which Cinderella is at last crowned a princess.

The Magic Kingdom production takes center stage in front of the towering spires of Cinderella Castle, the majestic icon of Walt Disney World Resort, and continues the rags-to-riches story of Cinderella after the events of Walt Disney's classic 1950 animated feature film.

Joining Cinderella on her special day are Disney's most beloved princesses, including:

• Snow White (from 1937's "Snow White and the Seven Dwarfs")
• Aurora (from 1959's "Sleeping Beauty")
• Belle (from 1991's "Beauty and the Beast")
• Jasmine (from 1992's "Aladdin")

Also on hand are Cinderella's Fairy Godmother, the king, his majordomo and members of the king's royal court, all dressed in their finest attire.

Part of "The Happiest Celebration on Earth," the live musical spectacular is one of several new attractions Walt Disney World Resort will unveil in 2005-2006 in conjunction with a global salute to the 50th anniversary of California's Disneyland, festivities that will involve each of the Disney theme parks around the world.

"Cinderellabration" is inspired by a popular stage show created for the 20th anniversary of Tokyo Disneyland in 2003 and will be staged several times daily at Magic Kingdom.

From storybook-themed meals with characters such as Cinderella and Sleeping Beauty to Disney's Fairy Tale Weddings program, Walt Disney World Resort offers myriad ways for guests of all ages to indulge their inner princess. For more information, call 407/W-DISNEY or visit disneyworld.com.

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ABC Drops Miss America From TV Schedule

ABC has dropped Miss America, leaving the famous beauty pageant without a network TV outlet for the first time in 50 years.

The network, which had carried the annual telecast since 1997 with a series of one-year contracts, notified Miss America Organization officials that they will not pick up the option this year, acting President and CEO Arthur McMaster said Wednesday.

"We are now free to pursue other parties who have expressed interest in our organization, and we are excited at the limitless opportunities that are now available for us to grow our brand," he said.

The move, which comes on the heels of a Sept. 18 pageant that drew a record low 9.8 million viewers, could jeopardize the foundation of a program that grew from an Atlantic City publicity stunt into a TV icon, largely on the strength of the contest and crowning beamed into millions of living rooms each September.

Since Lee Meriwether was crowned on Sept. 11, 1954 in the first televised pageant, Miss America has grown into a nonprofit corporation that makes available more than $40 million annually in scholarship aid and oversees 52 local pageants.

"It's certainly an ominous sign," said former CEO Leonard Horn. "Whether or not they can get a contract with another network is going to be very important."

ABC officials didn't immediately respond to requests for comment.

ABC, which took over Miss America after 30-year sponsor NBC lost interest in 1996, has had rocky relations with Miss America officials in recent years, in part because of the sinking ratings.

McMaster, who had pressed the network to move Miss America to a weeknight and televise some part of its three nights of preliminary competition, said the pageant was happy to part ways with ABC.

"There's already been companies that have contacted us and expressed an interest," he said. "This thing's been around for 84 years and it'll be around for another 84. I'm not going to say I'm not worried, but I think there's much more out there."

Without a network, Miss America would lose its chief asset a nationally televised spectacle.

Moreover, the loss deals the Miss America Organization a financial blow. In 2003, ABC paid $5.6 million for the rights to televise it.

"There's no doubt, TV is the catalyst that keeps this company going. But it's not a one-night-a-year organization. It's a 52-weeks-a-year organization. We want to grow beyond that one night," said McMaster.

Bird Goes 3-D In Incredibles

Brad Bird, the writer-director of the upcoming Disney/Pixar computer-animated movie The Incredibles, told SCI FI Wire that the film represents a move to 3-D animation from the more traditional 2-D of his last toon movie, 1999's acclaimed The Iron Giant. The change presented a host of technical challenges. "The technology is really amazing, but it's also on the edge of failing a lot of times," Bird said in an interview. "It's kind of like an old TV set versus a really advanced digital one. If the signal is bad on an old TV set, you get a little bit of snow, maybe the image rolls a little bit, but it's still the same image. But if the digital thing gets its signal broken, people start turning purple and going as though you've dropped acid or something. That's kind of what this system is like; when it goes south, really weird things happen."

The Incredibles is about a family of superheroes who are called into duty after premature retirement to stop a new villain whose stronghold is constructed on a remote and dangerous island. Bird said that even the most minuscule mistakes made by his crew of animators could sometimes create big problems. "If the decimal point isn't in the right place, really bizarre stuff happens," he said. "There's one scene where Helen [voiced by Holly Hunter] is in the tunnel. We were watching it, and there's this little flash, so we go back a frame at a time, and we find one frame where there's this white streak that goes all the way from off screen up to her face. One frame. And I said, 'What is that?' So one of the computer guys went into it and analyzed it, and it turns out that it's one of her teeth shooting out of her head at Mach 5."

But Bird said that focusing on the film's technology ignores the creative contributions of the various animators. "I think people focus too much on [the] technique of animation," he said. "I think the most important areas to a film's success are the same as a live-action film. Do we understand the characters? Can we empathize with them? Can we follow them? Is the plot surprising and logical? If we don't do those jobs, we're not going to have a good film, no matter what the technology is. I think what makes a good animated film is what makes a good live-action film."

Bird added that digital filmmaking allows animators to cut corners, but that doesn't necessarily translate into a better movie. "When [an animated movie] was hand-drawn, they all said if you lay each drawing end to end it will go to Mars and back three times or whatever," he said. "But that's not the point. You could have a million drawings that don't make you feel anything, or you could have 20 drawings that capture a feeling beautifully. People get obsessed with the numbers of things." The Incredibles opens Nov. 5.

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Disney taps lobbyists, flacks for image control

The Walt Disney Co. has gone on the offensive in an escalating fight to defend the image of embattled CEO Michael Eisner while also angling to win the war of words with subsidiary Miramax Films.

To push Eisner's luster in the Big Apple, the Mouse House has hired PR maven Howard Rubenstein, who has counted Rupert Murdoch and George Steinbrenner as clients.

Mobilizing more than PR, Disney brought Pat Lynch --- a onetime aide to New York Democratic Assembly Speaker Sheldon Silver --- on board in February to lobby New York Comptroller Bill Thompson to back Eisner. Thompson manages close to $80 billion in pension funds. Lynch is retained as a Disney liaison for state and city affairs.

Now people close to Miramax wonder whether Disney's image-building could potentially reach into the contractual dispute with the Weinsteins.

This month, an exec at Goldman Sachs crowed in a New York magazine cover story that he and "every other banker on Wall Street would jump" at the chance to fund Miramax co-topper Harvey Weinstein with as much as $1 billion. According to people close to Miramax, this infuriated Disney, a client of the giant investment bank.

Goldman Sachs media analyst Anthony Noto subsequently issued a research report last week that the loss of Miramax would not be a "financial negative" for Disney because "it is important for Disney to continue to maintain the financial discipline required to walk away from deals that would not result in profitable economic outcomes for the company and its shareholders."

Noto's report was a boost to beleaguered Disney, which is on the cusp of ending its lucrative Pixar pact at about the time the Weinsteins may ankle. Noto did not return calls from Daily Variety.

The unnamed Goldman exec was not the first to bandy about that $1 billion figure. But it's interesting to consider --- as it looks increasingly likely that the duo will move out of the Mouse House --- whether Disney could or would exert influence on banks that are potential backers of any new venture by the Weinsteins. Disney is a $30 billion company and a major banking client.

The troika of Disney, Miramax and Goldman Sachs share a prickly past: Disney brass in May refused a proposal from the Weinsteins to bring in $450 million in outside financing to reduce Disney's capital exposure to Miramax's film slate while supplementing the company's budget beyond the level to which Disney had agreed.

Jeffrey Logsdon of Harris Nesbitt Gerard is one outspoken Disney backer who has taken the additional step of downplaying the Weinsteins' ability to generate investor backing in various press accounts, including a Los Angles Times piece Monday that reported Logsdon as saying the $1 billion figure "defies financial logic." In a New York Times piece last month, he was quoted as saying: "It seems to me that Miramax would like to have an unlimited budget, participate in every successful film and chalk up less profitable ones to someone else's profit-and-loss statement."

Some close to Miramax are saying such assessments --- which have come after an initial wellspring of optimism over any independent venture --- are part of a campaign aimed at portraying the Weinsteins as spendthrifts. In June Cablevision's James Dolan said he felt the Weinsteins could raise as much as $2 billion, telling the New York Times: "There are many people interested in investing with them. I would definitely be interested."

Others dismiss the talk of any conspiracy to block the Weinsteins' progress. Either way, the development reveals just how deep the animus between the parties has become.

 

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Comcast, Disney pact for kids net 

 

Comcast and Walt Disney Co. launched broadband portal Comcast Kids Channel on Monday, part of the cabler's broader effort to cater to tots, which will include a 24/7 children's cable network.

Deal is the second part of an online distribution pact between Comcast and the Mouse, which also includes a news channel with video from ABC News, "Nightline," and "World News Tonight."

Pact also marks a warming in relations between the two, after the Mouse House rejected a proposed merger between the cabler and the media conglom last spring. Comcast senior veep Greg Butz said Disney chose Comcast as the venue to debut its broadband service Disney Connection in the United States.

With 5.7 million subscribers, Comcast is by far the leading high-speed Internet provider in the United States. The cabler says 40% of those customers have small children in the household.

"We at Comcast from (chairman-prexy-CEO) Brian Roberts to (chief operating officer) Steve Burke say kids are an important audience for us," Butz said.

The other key interest groups targeted by the cabler include sports, movies, communications, games and music.

Comcast, Disney and Sesame Workshop are developing a 24/7 cable network devoted to kids. Comcast declined to give a timeframe on the launch of that channel, or if carriage agreements had been reached with other cablers or satellite TV companies.

Butz said Comcast's strategy is to create content that gives dial-up users a reason to convert to broadband, which has been the main driver for revenue and subscriber growth for cablers for the past two years.

The company has rolled out video email and expects to introduce video instant messaging in the first quarter of next year. 

 

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There's Money in Haunted Headstones

If you have ever wanted to live long enough to read your own epitaph -- or if the grim, grinning ghost in you yearns to come out to socialize -- has eBay (Nasdaq: EBAY) got an auction for you.

Now through Thursday Disney (NYSE: DIS) is using the world's most popular auction site to take bids on a personalized tombstone. So? Well, Disney's crew of Imagineers (yes, that's what they call themselves) will engrave a witty ditty on a headstone bearing the winner's name and then install it in the final graveyard scene at Disneyland's Haunted Mansion attraction.

Last night bids were already topping the $35,000 mark though it should be noted that Disney will donate all of the proceeds to the Boys and Girls Club. That still hasn't stopped the pricey auction from becoming a hot topic in our popular Disney discussion board. Is it right or wrong? Should it be charities or the company -- and its shareholders -- on the receiving end of the naming rights? Our community is all over the map on the issue.

Sponsors have paid for name placement in amusement parks for decades. Over the past dozen years Disney has extended that territorial perk to its patrons through personalized tiles outside of the Magic Kingdom and etched likenesses on monuments at the entrance to EPCOT.

In the interest of full disclosure, the next time you get off the monorail at the Magic Kingdom, align yourself with the turnstile furthest to the right on that side of the entrance. Look down. Tread kindly on the Munarriz tile.

Whether it's tens of thousands of Disney fans paying about $100 for a ceramic tile or one loaded patron ready to lay claim on dark ride immortality, the trend is obviously here to stay. Just as product placement has permeated television shows to skirt the TiVo (Nasdaq: TIVO) generation, theme parks are simply milking their magnetism.

Trust me, I would be shocked if within the next few years Disney didn't auction off a speaking role in its Haunted Mansion attraction, an audioanimatronic likeness in Pirates of the Caribbean, or monorail naming rights. Love it or loathe it, if you want to leave your mark in your favorite theme park you now have alternatives to vandalism and graffiti.

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Disney and Pixar's ``The Incredibles'' Characters Now on Mobile Phones

Disney Mobile today announced an incredible offering with its broadest, richest lineup of motion picture-based content to date. As the highly anticipated Walt Disney Pictures presentation of A Pixar Animation Studios film "The Incredibles" nears its November release, fans in the U.S. and abroad can take their enthusiasm to the small screen through an array of wireless fare inspired by the film.

The Sunshine Food Fair will be demolished and replaced by a brand new, smaller restaurant. It may have seating back where the current Food Fair is or perhaps in the center of the pavilion with more permanent tables.

Living with The Land will have its queue changed with potential ride changes. (No, the greenhouses aren’t going anywhere). There may be a new opening scene and brand new Animatronics.

The balloons and fountain will be demolished and removed.

California gift shops, fastpass, you name it.

Entire re-theming of the pavilion.

Living with The Land would be rethemed to a Cruise Line. It is unknown if this will affect the ride. 

Potential re-theming of the future restaurant to suit the pavilion's needs.

Circle of Life would remain. 

 

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Disney raising most annual-pass prices

Costliest yearly ticket will rise $50 when changes take effect Monday.

If you're buying Disney theme-park passes for Christmas gifts, you might want to shop early.

The Disneyland Resort will raise prices on three of its annual passes Monday, with the most expensive premium pass jumping $50, to $329. That includes free parking and has no blackout dates.

The Southern California pass jumps $20, to $149, and the Deluxe pass gets a $30 bump, to $209. Each of those has blackout dates, particularly in the peak summer season.

The Southern California Select pass remains at $99. It's not valid on weekends and is designed for people who can visit on weekdays when crowds are lighter.

Disneyland also raised prices on the annual pass last March, when it increased the one-day admission price nearly 6 percent to $49.75.

The resort is preparing to celebrate Disneyland's 50th anniversary beginning in May and expects to attract large domestic and international crowds. Industry experts said raising the price of the annual pass now is one way to manage capacity and minimize overcrowding.

Disney officials said the passes – good for admission to Disneyland and California Adventure – still offer good value to people who visit frequently. Some annual passholders visitthe theme parks more than 150 times a year.

"Our annual-pass products offer an affordable way for guests to make multiple visits to experience all that our parks have to offer," said Bob Tucker, a Disney spokesman. "Periodically, we analyze our pricing to ensure that it is in line with the value guests receive and competitively priced within the market."

An adult annual pass to Knott's Berry Farm and Soak City water park in Buena Park costs $159.95.

For more information on passes, see www.disneyland. com.

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Bob Johnson brought Disneyland to life

As a sculptor and taxidermist for the theme park for 23 years, he tied leaves on trees and attached fur to animals.

The next time you're at Disneyland, hot and tired, and you sit in the shade of the tree that used to be the Swiss Family Robinson Treehouse (now the Tarzan Treehouse), give a silent salute to Bob Johnson.

Bob helped tie the leaves on that tree, one by one, more than 40 years ago.

He called it the most tedious job he'd ever had.

But the rest of his 23-year Disneyland career - as sculptor and taxidermist - was anything but.

He gave furry coats, twitching black noses and beady eyes to many park animals, including the abominable snowman in the Matterhorn and the dynamite-chewing goat on the Big Thunder Mountain (formerly the Rainbow Canyons Mine Train) ride.

He had many friends among the staff, loved seeing Walt Disney zip around the park in his golf cart, overseeing construction, and said he loved the work so much, he'd gladly have done it without pay.

A native of Marshall, Minn., Bob worked with his father as a plasterer after high school and married Lillian Lindberg in 1941.

They moved almost immediately to California in pursuit of a new life and a milder climate and made their home first in Compton, then in Lynwood. Soon after, Bob was drafted into the Navy.

When he was discharged, they moved to Florida to be near Bob's brother. But Bob quickly discovered he couldn't bear the bugs and spiders and snakes, which he hated, and he and Lillian packed up again and returned to California.

They settled in Santa Ana in 1952, and two years later bought the house in Orange where Bob died Oct. 11 at age 88.

He was working as a plasterer when he heard there were openings at Disneyland. His first job was mending cracks in the pavement. His second job was tying leaves onto the treehouse tree.

From tree leaves Bob graduated to the park's taxidermy shop where, in 1963, a switch was made from real fur and animal skins to life-like acrylic and nylon fibers. The full-time taxidermist didn't like working with the synthetic materials and quit. Bob took over his job.

Bob was, at heart, an artist, a sculptor with an eye and the patience for detail. He painstakingly cut the furry fabrics, dyed them appropriately for each animal, then applied the fake skins to pre-formed fiberglass bodies constructed at Walt Disney's studio in Burbank.

He also feathered 170 Tiki Room birds and meticulously applied, one by one, the hairs on the heads and backs of the partially submerged elephants on the Jungle Cruise ride.

According to an old Disneyland employee newsletter, the first animated animals were covered with real skins. But after daily exposure to the weather, the skins turned into shoe leather that burned out the electric motors that moved the animals. Over time, Bob redid many of the park animals with synthetic fur.

His mark is everywhere in the park. He helped sculpt heads and gave them their hair, beards and mustaches.

The teasing dog in Pirates of the Caribbean who holds the jail-cell keys in his mouth just out of reach of the pirates owes his long-haired coat to Bob.

Bob was a quiet man, highly intelligent, who didn't talk a lot, but was worth listening to when he did. Any time he wasn't puttering in his garage, he was reading - National Geographic, Smithsonian, two newspapers a day and countless novels.

He made beautiful sculptures for his garden and for his children.

A sculpture of daughter Sigrid has her holding her skirt out as a bird feeder. Another, of daughter Lindy, he called Lady Bird Johnson.

While he worked in a garage that smelled heavily of resin, he smoked and listened to music - Frank Sinatra, Tony Bennett, Dean Martin.

Bob loved music and wanted it on first thing in the morning. "I don't hear the music," he'd say when he got up to find no record was playing.

It's the one thing he requested for his funeral.

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All Too Superhuman

Breaking rules, making megahits, the Pixar team now unleashes a family of repressed superheroes.

Poor man — he's addicted to heroism. Late for an important date, he can't help helping an old lady whose cat is up a tree (by uprooting the tree and shaking the kitty down). He leaps tall buildings to catch a thief, and zooms into the air to save a man plummeting to the ground. All right, so he's late for his date. All right, the date is his own wedding. But a man's got to do his job. And when his name is Mr. Incredible, most stalwart of all superheroes, a job can be an obsession.

Maybe we all don't think of ourselves as demigods in Spandex, like the protagonist of the latest Pixar astonishment The Incredibles, which opens Nov. 5. But we can understand the love a man has for his work, no matter what the obstacles, no matter who's left at home.

Brad Bird felt that tug of loyalties in the '90s when, as a Disney-trained animator who had helped launch The Simpsons, he was trying to get backing for cartoon features he would direct. Except for The Iron Giant, a critically praised fable that didn't do Lion King business, "I was always getting my films on the runway, but I wasn't getting them off the ground," recalls Bird, sitting in the huge playpen that is Pixar headquarters in the San Francisco suburb of Emeryville. "And I wanted so bad to make movies. I also had a family that was getting bigger" — his second son was an infant — "and demanding more attention. I wanted to be a good filmmaker and a good father. If you spend too much time on one, you're shorting the other. That fueled this idea of somebody whose mind is elsewhere when it really should be on what's happening under his own roof."

Thus was born The Incredibles, a fantasy rooted in familiar family angst. The town has turned against superheroes — in part because of rising insurance premiums from unwanted rescues — so Mr. Incredible (voiced by Craig T. Nelson), his bride Elastigirl (Holly Hunter) and their kids Violet (Sarah Vowell) and Dash (Spencer Fox) have gone into some witless protection program. The Parrs, as they are known, now endure a subpar life. Dash is punished at school for flashing his gift of meta-speed. Violet, who can disappear, is invisible to the boy she adores. Mom, now called Helen, copes with raising two troubled kids, while Mr. Incredible, now just plain Bob, faces a joyless desk job with thinning hair and a gigantic spare tire. He still does furtive good deeds, but when he makes a celebratory air punch, he throws his back out. He sounds like an ex-high school football star mired in memories as he says, "Reliving the glory days is better than acting like they didn't happen."

Wait a minute. This is a Pixar cartoon? Instead of toys, bugs, monsters or funny fish, we get a midlife crisis and, in the first half-hour, enough domestic strife to fill a Mike Leigh film. But yes, this is Pixar, the studio that pretty much invented and perfected computer-animation entertainment, with such spectacular success that it wiped out the traditional approach that its distribution partner, Disney, had virtually patented. (The two animation titans have fallen into a rancorous dispute that's likely to end with Pixar's boss, Steve Jobs, taking the company elsewhere.)

Pixar, though, is also the studio whose previous two blockbusters, Monsters, Inc. and Finding Nemo, were about fathers or father substitutes fretting over their young charges. And it's the place that routinely achieves the unexpected and finds a huge audience to devour it. "Oftentimes people call animation a genre, and that's completely wrong," Bird says. "It's a medium that can express any genre. I often think people stress the technology too much. The heart of the matter is still characters."

The Incredibles has those characters, that heart. And after that poignant stretch of family dysfunction, the movie brings on its supervillain — Mr. I's onetime groupie Incrediboy, now the cunning, gadget-obsessed Syndrome (Jason Lee) — and explodes into the year's wittiest, zippiest adventure, with each knockout action sequence eclipsing the last and with echoes of '60s James Bond films and Fantastic Four comic books. But it's still unusual: in its length (nearly two hours), in its rating (PG for "action violence," a first for G-loving Pixar) and in its cast of human characters.

"It's a simple rule of thumb," says John Lasseter, Pixar's creative director and the auteur of its first hits, Toy Story, A Bug's Life and Toy Story II. "The more geometric a figure is, the easier it is to do with computer animation. The more organic something is, the harder it is. Everything about a human is organic. The audience looks in the mirror every day, so if you don't get it right, it's obvious to them." The solution: comically distort the subjects' features, make 'em cartoony. As Bird says, "You want them to be caricatured and believable. Disney used to call it 'the plausible impossible.'"

In the past, a Pixar human was essentially a model of hollow skin, which was manipulated to mimic human body movement. The computer models for the lead cast of The Incredibles had muscles over which a sheath of skin was placed. So when Bob or Helen moves, it's the muscle that's animated, which causes the skin to move, which in turn gives the humans a much more solid presence. The Pixar team also worked hard to make the fabrics realistic (it took three months to nail one brief scene of Bob sticking his finger through a hole in his superhero costume). Another challenge was making the hair look natural. Violet's long, floppy mane kept flying off her head every time she shook it. When producer John Walker pressed the lead simulator to diagnose the problem, he was told, "Dammit, long hair is still theoretical!"

Computer-animated movies were still theoretical back in 1975, when Bird, now 48, and Lasseter, 47, met as freshmen at California Institute of the Arts. "Brad and I were in the first year of the character-animation program," recalls Lasseter, "and we bonded with our love of cartoons. At that time animation was thought of as something just for children. But Brad and I believed animation was for everybody. That's the way Walt Disney made his films. That's the way Chuck Jones made his cartoons."

That wasn't the way the Disney studio was making them in the late '70s. "When Brad and I both went to Disney, we had this fire in our bellies to do great animation. But the creative vision of the studio was more concerned about control than the potential of the films." Bird landed at Turner Pictures (which was folded into Warner Bros.); Lasseter became an Oscar-winning auteur at fledgling Pixar.

Bird's one feature was The Iron Giant, which he says "had the highest test scores in years" but wasn't marketed well. "About two weeks before it opened, I saw people utterly confused by the poster. They were going, 'Is that Japanese?'"

If Bird battled indifference at Warner, he met some resistance when he and a dozen of his top lieutenants came to Pixar in 2000. Some Pixarians had been waiting impatiently for their turn to direct; now Lasseter had hired an outsider. "There's a tremendous amount of internal pressure here," says Walker, one of the new boys. "Other directors have gone to the plate, stretched a little, taken one swing and hit it out of the park." The Bird bar was raised with the runaway success last year of Andrew Stanton's Finding Nemo. "After Andrew won the Academy Award [for Best Animated Feature], I said to him, 'What's next, a knighthood?'" says Walker. "But it's a wonderful kind of pressure because it's not about winning. It's about making a movie as great as you can. Not good. Not very good. Great."

Even Pixar needs real actors sometimes — not always the big stars courted by rival DreamWorks for its Shrek and Shark Tale hits but gifted, lower-wattage voice artists like Nelson (TV's Coach), who can appreciate the Pixar culture. "These guys haven't become jaded," Nelson says. "They maintain a filmmaking sense that's fun, kinetic and spontaneous." Vowell, the comic essayist who's a regular on NPR's This American Life, notes "how smart and funny and cool every single last person who works there is. And it extends beyond the people. Every offering for lunch at the lunch counter is delicious."

Bird, who nearly steals his own show as the voice of Edna, catty costumer of the super-Parrs, sees a difference between Pixar and its rivals. "Pixar films are personal passion projects. They are not concocted by a focus group or somebody saying this latest trend is important: 'People like kangaroos, hip-hop is hot, so let's have a hip-hop kangaroo. Grab three animators, they're all interchangeable, have them direct. Get five sitcom writers and throw them in there.'"

At the heart of The Incredibles is a melancholy for lost opportunities, in art and life. "The superhero can do all these marvelous things," Bird says, "but no one wants him to. To me that's the medium of film. It can do all these great things, and yet so many times it isn't allowed to."

At Pixar, marvels are allowed, encouraged, demanded. That makes Lasseter, Bird and their cohorts the superheroes of animation: the untoppable Incredibles.

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Hero may help Pixar, Disney mend rift

In "The Incredibles," next month's computer-animated offering from Pixar Animation Studios and Walt Disney Co., a bored superhero with a bulging waistline springs back from retirement to save the world.

For the two companies, rescuing a planet seems a snap compared with saving a relationship that began imploding in January when talks over renewing their partnership collapsed. But with that deal nearing doomsday, there are flickers of optimism that one of Hollywood's most successful collaborations may be salvaged.

Opening Nov. 5, "The Incredibles" marks the next-to-last film under the Pixar-Disney partnership that is set to end with the release of its next movie, "Cars," in November 2005.

To date, the two companies have joined forces on five consecutive digitally animated hits: two "Toy Story" films, "Monsters, Inc.," "A Bug's Life" and "Finding Nemo." Those movies are expected by analysts to ultimately generate more than $3 billion in total profit, split between the two sides.

Despite those successes, Pixar Chief Executive Steve Jobs walked away in frustration from negotiations that would have extended the 13-year relationship.

The talks had dragged on for nearly a year as Disney CEO Michael Eisner refused to agree to some of Jobs' more aggressive demands -- notably that Emeryville-based Pixar would retroactively own all the movies and control sequels, if they were made.

The personal animus between Jobs and Eisner is widely believed to have played a central role in the dissolution of the partnership.

Last month, however, the Disney chief of 20 years announced that he would leave the company when his contract expired in September 2006.

Although many on Wall Street remain convinced that reconciliation is a lost cause, others close to both parties hold out a glimmer of hope now that Eisner is leaving. Disney's board is expected to identify a successor by June.

People close to Jobs say he would be open to resuming talks with Eisner's successor.

"It's fair to say that given the successful partnership, investors would be happy if these two companies came together," said Lowell Singer of SG Cowen & Co. "I think Eisner's impending departure keeps the door open for that possibility."

In an interview, Jobs, who is recovering from successful pancreatic cancer surgery, declined to answer questions about the Disney-Pixar disagreements. He said the companies were focused for now on making "The Incredibles" a success. He did, however, note that yet

another Pixar hit would open up even more opportunities for the company.

"Pixar is lucky enough to be five-for-five," Jobs said. "If 'Incredibles' makes that six-for-six ... it gives us wonderful options to work with all sorts of people."

With $755 million in cash and no debt, Pixar is poised to finance its own movies and reap the profits, paying a studio a fee to distribute the movies in theaters and on DVD.

Another hit would give Jobs even more leverage with Disney or any replacement studio.

At Disney, some executives aren't ready to concede defeat.

"I would love to think it's never over until it's over," Disney studio Chairman Dick Cook said. "There hasn't been anything quite like it," he added, referring to the partnership's winning streak.

Disney President Robert Iger, however, recently sounded resigned when asked at a London television conference about the company's future with Pixar.

"It would be nice to continue that relationship into infinity, but ... I think we outgrow one another in a sense," Iger said. "And while I'm not ruling out some continuation, it's unlikely that there will be one."

Iger suggested that Pixar had "weaned itself from its need for Disney" and its dependence on the entertainment giant's checkbook to fund production, as well as Disney's marketing and distribution prowess.

But people close to the Disney president said he had privately expressed regret for coming across as too pessimistic.

They said Jobs liked Iger, the company's lone internal succession candidate, and would be open to resuming talks if the executive replaced Eisner.

The two sides haven't bargained since Jobs pulled the plug in January.

Disney continues to hold one card other Pixar suitors can't play: future profit on next year's "Cars."

As it stands now, Disney and Pixar would share the receipts. But during earlier negotiations, Disney indicated that it would be willing to fold both "The Incredibles" and "Cars" into a new arrangement giving Pixar full profits on all future films. Disney's money would have come from a distribution fee, estimated by analysts at as much as $100 million a picture.

Disney's willingness to forfeit profits on those two films suggests the company may still be flexible on giving up its share of the profit from "Cars."

In the near term, though, Disney stands to profit richly from the old agreement.

Wall Street is counting on "The Incredibles" to be a big hit despite carrying Pixar's first PG rating, for intense action. "The Incredibles" also is the first Pixar film featuring humanlike characters in lead roles instead of toys, bugs, monsters or fish. Jobs said the appeal of "Incredibles" was that, like other Pixar movies, it was unique and "not formulaic."

Although analysts don't see "The Incredibles" equaling the box-office success of last year's "Finding Nemo," which was Pixar's biggest hit with more than $860 million in worldwide ticket sales, they expect another blockbuster.

Analysts estimate that "The Incredibles" will gross $500 million to $600 million in global box-office receipts. Hundreds of millions more are expected to flow over the life of the film from TV airings and DVD and merchandise sales.

For Disney, the film's success could cut two ways. Although the company would profit from a hit, the success also would be a painful reminder to shareholders of the impending loss of a steady creative partner after Disney's own bedrock animation business faltered with "Treasure Planet," "Home on the Range" and other disappointments. Disney also has yet to prove it can make the kind of computer-animated hits audiences now crave.

"Not having Pixar will be a very meaningful loss," said media analyst Jessica Reif Cohen of Merrill Lynch & Co. She said that in some years Pixar had accounted for more than 50 percent of Disney's film revenue.

Given the corporate tensions, cynics have speculated that Disney wouldn't put its usual marketing juggernaut behind "The Incredibles" or "Cars."

But studio executives said Disney was spending more than $55 million on the domestic marketing campaign alone.

The studio also has such major advertisers as McDonald's Corp. and Kellogg Co. backing the film.

"We're in this with" Pixar, said studio boss Cook, "regardless of what else is going on."

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The Light That Might Have Failed

A favorite pastime among historians (and military strategists) involves conjectures as to how nations or even entire civilizations might have been affected if certain events had different outcomes. This intriguing hobby has even taken the form of formal academic debates, and it is interesting to ponder on how a single pivotal event may have had the potential to change every life on Earth. Suppose that Xerxes had triumphed in the Peleponnesian War, or that the automobile had been invented in China, or that the outcome of Gettysburg had been reversed? What if Hitler had never opened a second front, if Martin Luther King Jr. had lived, or if Khrushchev decided that Cuba would be stocked with nuclear weapons no matter how many threats JFK issued?

Animation has been faced with several pivotal events during the past century, and it's entertaining to engage in conjecture about any one of them, or indeed what they might even be. One of the most interesting questions an animation historian may be tempted to ask concern events that occurred in 1937. At that time the Disney studio was taking one of its greatest gambles and the outcome was by no means certain until the curtain rose on opening night. What indeed would have happened to the history of animation if Snow White and the Seven Dwarfs had been too expensive to produce or, just as bad, flopped?

That notion is not as far-fetched as it sounds. Many executives at other studios were astounded that Walt Disney would even attempt such an endeavor. During the time Snow White was in production, it was widely and openly being referred to as "Disney's Folly." As the costs mounted and production time lengthened, Walt himself began referring to the film as "Frankenstein." At a final cost of $1,480,000, Snow White cost the studio every dime it had. The average first-run film released in 1937, by comparison, was produced on a budget of roughly $250,000. At one point the money actually dried up. Disney was forced to screen bits and pieces of Snow White for Bank of America director Joseph Rosenberg in hopes of securing a loan; whatever could not be shown was desperately acted out by Walt himself.

Inkers, painters and animators worked seven days a week without overtime to finish the film, and there was absolutely no guarantee — or precedent — to ensure that an audience would actually watch 90 minutes of any animated cartoon, let alone one produced by Disney. We know well what happened on Dec. 21, 1937. Snow White and the Seven Dwarfs premiered at the Carthay Circle Theater in Hollywood to the astonishment and praise of all who saw it. Millions more would follow suit. The Disney studio had served up a quality film, to be sure, but Snow White was still an expensive risk that dodged more than a few poisoned apples on its way to immortality.

Had this gamble not paid off due to financial pitfalls or mediocre box office, animation history may have been irrevocably changed. Aside from conjecture about which individuals might have gone where or done what with their careers, it would be as interesting to speculate what might have happened in a more global sense. There are three significant areas where animation might have been affected: economic, artistic/aesthetic and cultural. It is important to note that animation would not have degenerated or even suffered greatly had Snow White been unsuccessful or economically unfeasible. The art form was far too vital and its styles diverse enough not to be plowed under by the failure of any one film. Animation simply might have changed course in several areas and here's how it could have happened.

In examining the economic domain, the most obvious occurrence may have been the elimination of the animated feature, perhaps for decades. It has been stated that other studios thought Disney's idea too risky in the first place, and they would have been vindicated. Disney may have had to stay with shorts for the long haul. The tremendous loss of funds might have meant that Walt Disney Prods. turned into a public company well before it actually did in April of 1940. Stockholders, remembering the fate of Snow White, may well have voted against considering a feature film in the future.

An even greater portion of Disney's income would then have to come from licensing, and it is possible that other animation companies would have invested more in licensing and marketing as well, since features were a proven loser. There may have been more Fleischer, Terrytoons and Lantz product on the market, and animation may have been used to sell merchandise much in the same way that baseball cards were originally used to sell bubble gum.

It is also possible that Disney may have gone into live-action films much earlier in the studio's history and his shorts would have been used to sell his features. Mickey Mouse could have been animated more actively (he was falling into disuse in the late 1930s) and the studio might have been more aggressive in the creation of new characters and the licensing of existing ones. Another scenario may have been an industry-wide disenchantment with commercial animation in general. The failure of animation to move into the realm of feature films may have meant the rise of independent animation to a degree where America's animation scene began to resemble Europe's. It is almost certain that this new strain of animation would have contained several (if not countless) radical departures from the prevailing commercial style.

The greatest changes to American animation would indeed have been artistic/aesthetic in nature. Some of the consequences of Disney's success, as exemplified in Snow White, were attempts by other studios to copy Disney's formula. Fleischer eventually fell into this trap, as did Hugh Harman at MGM and Charles Mintz at Screen Gems. Had Disney failed to impress anyone by introducing increasing realism into his story-driven films, we may have seen an increasing diversity in animation styles throughout the 1940s and beyond. It had already been shown that the Fleischer's surrealist approach to animated shorts was a viable and popular alternative to what Disney had been doing. Animation across the industry might have become wilder and far less concerned with naturalism or coherent narrative.

Cartoons may also have become far more gag-driven, with less emphasis placed on story and personality development. This would have played well into the hands of studios such as Warner Bros, which never for a moment considered doing an animated feature film. The introduction of more mature themes, such as those portrayed in Snow White, might have become the province of independent animators.

Another issue to be raised is one of technology. Had Snow White been too expensive to complete or poorly received, animation may have become bereft of the technological advances that accompanied Pinocchio or Fantasia. Although there were some technical geniuses working in the field such as Max Fleischer and Ub Iwerks, independents may not have had the money to advance animation technology to the degree Disney did. Animation units owned by major film studios might have been advised — or forced — to keep the costs down even more, lest "Disney's Folly" be repeated, a factor that would have worked against the importation or development of any equipment that raised the costs of animated shorts.

There may have been a partial return to shorts as they appeared in the 1920s, with significant portions of the film being shot in live-action accompanied by animated characters or cheaper forms of animation (such as using cutouts) might have developed. Perhaps, more abstract, graphic efforts may have been made in approach to design, layout and character animation much earlier than those attempted by UPA in the 1950s. Again, this would be an artistic revolution only in part; the rest would be dictated by finance, capital and audience response.

Cultural changes are more difficult to predict, but it is to be remembered that art generally follows public dictates. Had people not been willing or able to watch 90 minutes of animation or been less than enchanted with what they saw, animation might have missed a chance to be accepted as one of the higher arts. Mickey Mouse, Betty Boop, Popeye and Porky Pig were popular stars in their own right and many of their cartoons were imaginative and beautifully crafted. However, the studios producing them never saw these shorts as "art" or even as aesthetic statements. Neither did critics or the public, despite some pretentious period pieces about the deep significance of Mickey Mouse as a cultural icon.

Snow White and the Seven Dwarfs made a very strong case for animation as an elevated art form rather than simple entertainment. At the same time the animated film became the equal of the live-action feature film in the eyes of both critics and paying customers. Had Snow White not made such an impact or folded due to its exorbitant cost, these perceptions may not have formed. Animation might have remained a poor cousin to other forms of cinematic expression, a second-class entertainment to be hastily enjoyed seven minutes prior to a live-action feature.

These developments would have resulted in less critical attention and a cultural mentality that the animated film could never aspire to an art. Not only would Disney have been financially unable to produce Fantasia, the ne plus ultra of animation's attempt at "high art," it is likely the project would never have been given a second thought at all.

This possibility would not be unrealistic; it should be recalled that prior to the early 1970s there was no serious historical study of the animated short. The first historians were basically cultists. In the hands of independents, animation could have gained recognition as an avant-garde novelty, but the distribution of independent shorts would have been sorely lacking. Animation may have ended up seeing its greatest service in advertising, especially after the theatrical short died out in the mid-1950s.

Might animation have been better or worse off if Snow White (and by extension the direction taken by Disney animation) had stalled out? The answer truly depends on two factors: what might have risen or continued to develop as an alternative and how audiences would have reacted to it. Since the possibilities are as diverse as individual animators or audience members, that will forever be a matter of guesswork. Some may have produced or welcomed increasing surrealism or abstraction, some wilder humor, some a more mature, aesthetic approach. In time, another studio or consortium of artists might have attempted a full-length feature or an experimental film lasting between 75 and 90 minutes.

The only conjecture that can be made with any amount of certainty is that the art form would have survived in a rich multiplicity of styles. The success of Snow White and the Seven Dwarfs certainly did influence the development of American animation to a degree, but had the film failed or been unproduceable, animation would not have been devastated.

Animation was well on its way to becoming an established cinematic variant even before Disney had a studio and "Disney animation" was only one evolutionary branch in the medium's development. Artistic evolution would still have taken its course (even at Disney) and simply produced new species, some vibrant and some less so. 2D animation, for example, is unjustly on the verge of disappearing from every major animation studio in favor of CGI, proving this point emphatically. Technology, tastes and economics will continue to influence animated films: Snow White and the Seven Dwarfs had to negotiate all three. The film's ability to do so successfully allowed its studio to help shape the future of American animation and introduce a set of standards that defined the medium to the general audience and most critics.

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Dining at Tortilla Jo's

The Downtown Disney restaurant does south-of-the-border cuisine – and premium tequilas – on a grand scale.

It's funny how the mind works. Before I visited Tortilla Jo's at Downtown Disney, I kept referring to it as Tequila Jo's. But before you send me to the Betty Ford clinic, hear me out. One of the restaurant's highlights is a list offering more than 100 tequilas, and the restaurant itself has a wall displaying some of them. Maybe I was fixated.

Even if one doesn't get the name right, this place is hard to miss. Like most of the restaurants and shops that line the pedestrian mall that links the Disney hotels with the theme parks, Tortilla Jo's is on a grand scale.

The stand-alone building is a standout even from its position behind the Monorail station. It actually is three dining concepts.

Outside on the mall there is a taqueria where fast Mexican food is offered to those who don't have time for the full dining experience. There is also an attractive cantina area, with a palapa-style bar, where a lighter menu is offered.

The wait is short, and we're quickly, if not overly warmly, ushered to our booth. The restaurant, which opened early this summer, is part of Joachim Splichal Patina Group. This is the famed European chef's third Downtown Disney restaurant and marks a departure from the cuisines of Europe - Naples is Italian and Catal is Spanish. Much of the credit for the menu and concept is given to Patina Group's co-founder and chef Octavio Becerra.

The space itself is imposing. The two-stories-high dining room curves around an open kitchen, and long wooden tables in the center are topped with impressive hand-hammered candelabras. Still, or maybe because of the large scale, the space feels a little cold to me.

Things warm up when I start reading the menu. The one-page list is offered for lunch and dinner and includes classic Mexican dishes.

To start, we opt for guacamole ($6.50). The avocado dip comes in a heavy mocajete-style bowl with thin, salty chips. The chips are just sturdy enough to scoop bites of the freshly mashed avocado, onions and tomato into our mouths as we contemplate the rest of the menu. Other appetizers include a fine quesadilla ($7.75) made with Monterey Jack cheese and plenty of smoky poblano chilis.

I also like the shrimp and lettuce cuplette ($9.95), though I must say that this south-of-the-border version of soothing lettuce wraps are not an unqualified success. The spicy sauce in which the shrimp has been simmered needs the cooling addition of rich crèma fresca (Mexican sour cream) and a touch of sliced avocado when it's wrapped in the romaine lettuce leaves. It's only when all the textures and flavors come together that it really works.

Seabass ceviche ($9.95) is served in a thick-stemmed glass and topped with thin slices of avocado. The mild white fish is marinated in lime, which chemically cooks it, and it is tossed with finely diced red onion, cilantro and cubes of mango.

Pozole ($6.95), served Thursday through Sunday, is worth planning a visit around. The rustic, red chili stew comes with garnishes, including limes, white onion, cilantro, cabbage and leaves of dried Mexican oregano. Each adds a winning touch to the flavorful but not spicy brick-red broth, which is jammed full of large, moist pork pieces and tender hominy.

Margaritas are a fine accompaniment to this robust food. The best are the Jo'sHandcrafted, made with tart limes and a choice of tequila from that lengthy list that so distracted me before my first visit.

I opt for a Herradura anejo ($10 for the margarita, $9 for 2 ounces straight up). Anejo tequilas are aged at least one year, and some up to 10 years. And some are as dear as the best-known brandies: For instance, Herradura Seleccion Suprema is $80 for 2 ounces and it's not the most expensive tequila on the list - that honor goes to the 1800 Celeccion, which is $304 for 2 ounces.

Numbers such as those can scare me, since I came of age when the tequila shot was a party game. But this tequila is not designed to be gulped with lime and salt. Neither is the Corralejo ($8 for 2 ounces) that we order one night, so I'm a little disappointed that it's delivered in a shot glass.

An attractive glass, yes, but not the kind that invites one to fully savor this flavorful spirit. Reposado is tequila that is aged in an oak cask for at least two months. The result is a sipping drink that one could compare in complexity to a fine single malt scotch.

Corralejo is one of the smoothest of the lot. It has a long, fruity finish that goes nicely with food.

This night it's terrific with poblano chili relleno ($12.50). The relleno as done here is superb. The large green pepper can be fiery, but that flame is tempered by the aromatic filling that includes tomatoes, mushrooms and black bean cream.

Habanero-tequila pork ribs ($15) are also a good choice. The sweet barbecue sauce has just a hint of fire, and the side dishes are inspired. Roasted mashed sweet potatoes and chayote-apple slaw make me want to return.

Less successful on this night is the pork in green chili ($14.50). The chili verde is rather bland, as are the undercooked black beans served with it. I'm also not overly impressed with the masa boat filled with chicken that comes with my Combination Five dinner ($14.50). The small cornmeal disks are tough, and the chicken topping them is dry, a fate it shares with chicken that fills the tamale also served with this combination.

Better takes on typical Mexican restaurant fare include the crispy tacos, beef tamales and cheese enchiladas. I also like the tostada ($12.50). Most of the time, these main-course salads resemble parade floats, and here it is no different. One day, I order mine with rotisserie chicken and it arrives in a high-sided flour tortilla basket.

The fried and edible tortilla "dish" is overflowing with ingredients. Black beans (tender and savory this day) and chicken (also better) share the crowded space with guacamole, sour cream, cilantro-flecked rice and tomatoes. I dig down to find the lettuce, which is crisp, fresh and still cool - a nice balance to the warm topping.

Mexican restaurants are rarely known for their desserts, but Tortilla Jo's could change that perception. Oaxacan pastry ($7.50) is a cunning blend of chocolate-and-banana bread pudding topped with a scoop of banana-cashew ice cream. It is as good as it sounds. Tres Leches cake ($6.95) is ably done here: The moist sponge cake soaked with three types of milk is further enhanced with a sheet of cinnamon macadamia brittle.

They say tortilla, I say tequila, I'm just glad I didn't call the whole thing off.

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Seoul Next Stop for Disney's `Hunchback'

The first Disney musical to premiere in a non-U.S. city is coming to Seoul for its second overseas tour later this year.

In 1999, the U.S. entertainment giant premiered its first new musical outside of the United States when ``Der Glockner Von Notre Dame (The Hunchback of Notre Dame) opened in Berlin, Germany.

Five years later, Seensee Musical Company, a local musical producer and distributor, held a press meeting at Polimedia Theater, downtown Seoul, last Friday, and announced it will be staging a locally produced version of ``The Hunchback of Notre Dame at the Haeorum Theater stage of The National Theater of Korea for a month from Dec. 23.

What seems to be especially charming about the musical, which is an adaptation of the Disney animated film and produced under license from Disney Theater Productions, is that it will allows maximum flexibility in the musicals localization process. Thus, while maintaining the original story, characters and score, the stage set and other concepts will be new creations from the Korean teams hard work and ingenuity.

Disneys original creative team and producers from Japan and China are scheduled to visit here to see the opening of the show. ``Depending on its turnout, our version could be a model for the shows next production in other countries,Park Myung-sung, president of the musical company said during the meeting.

According to Park, Disneys staff came to see the companys production of ``Urine Town, were fascinated by Seensee¡¯s unique interpretation and direction of the Broadway musical, and later proposed the deal.

The original musical was almost beyond comparison in its magnificent special effects and grandiose scale, as more than 200 laser projectors were used to work magic on the stage. However, many people, including Park, found the special effects to be a little distracting, which inspired Park to consider the balance between such effects and dramatic factors.

``There is more to see than just the gorgeous gothic cathedral in Notre Dame from its original story, Park said. ``What is more important are social rules and oppressions symbolized by the building.

The musical also boasts some of composer Alan Menkens best work from the original animation. Menken, who has provided the tunes for Disneys ``The Little Mermaid, ``Beauty and the Beast, ``Aladdin,``Pocahontas and many more, is in top form. In particular, songs like ``Out There, ``God Help the Outcasts and ``Hellfire from the musical showcase his indelible ability of linking certain emotions to proper tunes.

The film's most controversial element was its story, which deviated greatly from Victor Hugo's revered novel. The story had been softened, with less death, the change of villain Frollos occupation and the omission of any overtly sexual overtones in the original book. However, the musical version will be more faithful to Victor Hugos original novel, featuring more dark and somber moments.

More than two hundred actors, including some of the nation¡¯s top musical performers, participated in the auditioning process. Lee Jin-kyu, who is practically anonymous to many, has been chosen for the role of Quasimodo. Lee, who applied for the chorus, appealed the shows production staff with his strong singing talents. Chung Sun-ah, star of the companys past productions such as ``Urine Town and ``Rent will play the gypsy dancer, Esmeralda, while Huh Joon-ho, who is also well known from television series and films, will play Frollo.

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Holiday Season Transforms The Disneyland Resort Into 'The Merriest Place On Earth," November 5 Through January 2

The magic turns distinctively merry when Disneyland Resort celebrates the holiday season November 5 through January 2. "The Happiest Place on Earth" becomes "The Merriest Place on Earth" as a jolly array of entertainment and festive décor fills the two theme parks – Disneyland and Disney's California Adventure – the three outstanding hotels – Disney's Grand Californian Hotel, Disneyland Hotel and Disney's Paradise Pier Hotel – and the Downtown Disney District, Southern California's hottest entertainment and dining destination, as well as a perfect locale for holiday shopping.

All of the special holiday events at Disneyland Resort are in addition to the many popular attractions in Disneyland and Disney's California Adventure. The amazing new "Twilight Zone Tower of Terror," a supernatural thrill ride on an unpredictable elevator, is the latest thing in Disney's California Adventure. "Snow White – An Enchanting New Musical" is charming guests of all ages in the Fantasyland Theatre in Disneyland.

Disneyland park continues its long tradition of holiday cheer beginning November 5 with the premiere of nightly holiday fireworks capped by an amazing Southern California snowfall and the return of the special "it's a small world holiday" attraction. Many of the park's theme lands are decked out with scores of wreaths, colorful lights and other decorations. Main Street, U.S.A., is covered with garlands and highlighted by a 60-foot-tall Christmas tree; New Orleans Square offers a Southern-style Yuletide celebration; Mickey's Toontown is trimmed with wacky, oversized adornments; and Frontierland is brightened with rustic, handcrafted decorations.

A tremendously popular holiday feature is "Haunted Mansion Holiday," a madcap mixture of the spooky and the silly in which Jack Skellington, the hero of Tim Burton's Nightmare Before Christmas, brings his own weird version of Christmas to the popular "Haunted Mansion" attraction in New Orleans Square.

Creating a nighttime spectacle in the sky is "Believe … In Holiday Magic," a special holiday version of the Disneyland fireworks choreographed to a medley of Christmas tunes. The show concludes with a magical snowfall along Main Street, Small World Mall and New Orleans Square. In Fantasyland, the "it's a small world holiday" attraction creates a merry twist on the classic ride, depicting holiday celebrations around the world, with a "Jingle Bells" musical soundtrack and more than 300,000 twinkling lights adorning the exterior of the attraction and mall area.

Beloved Disneyland characters have a holiday reunion in "A Christmas Fantasy" parade, which makes its season debut on November 19 and continues daily through January 2. This Disneyland holiday pageant showcases marching toy soldiers, wintry vignettes including Mickey and Minnie skating on an ice rink, dancing snowmen and Santa Claus joined by his team of friendly reindeer.

Another holiday highlight is the "Christmas Candlelight Procession," a Disneyland holiday tradition, which takes place December 4 and 5 on Main Street, U.S.A., featuring a full orchestra and chorus performing music of the season and a retelling of the Christmas story by a celebrity narrator.

Meanwhile, Disney's California Adventure park offers a lineup of shows and attractions for holiday revelers. Seasonal décor includes a 30-foot-tall Christmas tree in Hollywood Pictures Backlot; garland, wreaths and lights strung along the park's Golden Gate Bridge; hanging lanterns in the Pacific Wharf, and golden ornaments, banners and wreaths in the Golden State area.

Every day throughout the season at Disney's California Adventure, Sunshine Plaza is transformed into "Santa's Beach Blast," a continuous party where classic holiday images and Disney characters collide with contemporary California beach culture in a merry celebration of the season. The plaza's planters are filled with beach sand, seashells and surfboards, while Santa Claus, dressed for surfin', greets guests and poses for photos near a sleigh styled after a Woody wagon. The Beach Blast also features interactive games for kids and the opportunity to join Lilo and Stitch in a limbo contest.

New Year's Eve, December 31, brings a special celebration to Disneyland, which will be open past midnight to welcome the arrival of 2005.

Downtown Disney and the Disneyland Resort hotels will also join in the holiday festivities with twinkling lights, special entertainment and Yuletide dining experiences. The hotels and Downtown Disney feature a combined total of more than a dozen fine dining locations, including the award-winning Napa Rose at Disney's Grand Californian, the whimsical Goofy's Kitchen at the Disneyland Hotel, Yamabuki at Disney's Paradise Pier Hotel and, in Downtown Disney, ESPN Zone, Rainforest Café, House of Blues and more.

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Bionicle 2 Legends Of Metru Nui Premieres October 19

 

Experience the awesome action-packed adventure of BIONICLE 2: LEGENDS OF METRU NUI, the all-new, full-length CGI-animated movie revealing new layers of the amazing world of BIONICLE, premiering on DVD and video October 19. One of the top-selling toy franchises* in entertainment, the toy inspired characters of BIONICLE first came to life in the award-winning, hit movie BIONICLE: MASK OF LIGHT, one of the top 10 selling direct-to-video movies of 2003.

Presented by the LEGO Company, BIONICLE 2: LEGENDS OF METRU NUI is produced by Miramax Films and Create TV & Film Limited and distributed by Buena Vista Home Entertainment. This epic thrill ride, filled with bio-mechanical villains and heroes, follows the adventures and challenges that create true heroes no matter what the universe. The film features state-of-the-art CGI animation, with many highly detailed, environments and heart-stopping action sequences.

Available for $29.99 (S.R.P.) for DVD; $22.99 (S.R.P.) for VHS.

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I'm Not Scared Available On DVD October 19

Miramax Home Entertainment presents I'M NOT SCARED, the suspenseful and compelling thriller about a young boy who discovers a shocking secret, available to own on DVD October 19. This masterfully crafted, haunting film is directed by Gabriele Salvatores, director of the Academy Award winning film "Mediterraneo" (Best Foreign Language Film, 1991).

In I'M NOT SCARED, something sinister is lurking under the surface of 10-year old Michele's (Guiseppe Cristiano) idyllic summer. While the days in his remote southern Italian village are filled with the familiar routines of childhood, a chance discovery leads to a shocking revelation. Now, suddenly beyond the point-of-no-return, Michele digs further to find that even his own parents may be involved in a monstrous crime.

Screenplay by Niccoló Ammaniti and Francesca Marciano. Based on the novel by Niccoló Ammaniti. Directed by Gabriele Salvatores. Available for $29.99 on DVD

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Disney Rethinks a Staple: Family Films but Decidedly Not Rated G

 

When the Walt Disney Company's "National Treasure" arrives in theaters on Nov. 19, it will tell the story of an adventurer, played by Nicolas Cage, on a hunt for riches, with clues hidden in pieces of Americana, like the back of the Declaration of Independence and the weird images on a dollar bill.

Mr. Cage's mission is not unlike that of Disney, which hopes "National Treasure" will help crack the code for a new, edgier kind of family entertainment that is meant to become the hallmark of its cherished Walt Disney Pictures brand. Previous Walt Disney films typically relied on youths on screen, as in "Heavyweights," "Freaky Friday" and "The Princess Diaries."

So far, "National Treasure," a big-budget film directed by Jon Turteltaub, has had a relatively low profile among a welter of holiday releases that will include Warner Brothers' "Polar Express" and Disney's "Incredibles," from its animation partner, Pixar. But that is about to change, as the studio unleashes the kind of promotional push clearly meant to polish a family jewel, the Disney brand.

On Tuesday, the company will take the unusual step of unveiling 10 minutes of "National Treasure" scenes on America Online. What the company is calling its largest-ever campaign of promotional tie-ins will follow. The campaign for the film, which is being produced by Mr. Turteltaub and Jerry Bruckheimer, past master of R-rated romps like "Bad Boys" and "The Rock," will involve McDonald's, Verizon, Visa, Kodak, Dodge and Nascar.

Disney executives say the drive is about more than selling "National Treasure," though they are eager to do that. The goal is to "open up more and more possibilities for what makes a Disney movie," said Nina Jacobson, president of Buena Vista Motion Pictures Group, part of the Disney Company.

Rated PG, the new film is the next big step in a strategy that was described only weeks ago to investors by the company's president and chief operating officer, Robert A. Iger. He said the strategy was crucial to Disney's future in live-action films.

The studio faltered this year with costly and darker flops like "The Alamo" and "Hidalgo," both from its Touchstone imprint. Now the company, based in Burbank, Calif., is planning to focus more on live-action films from the Walt Disney label, less brutal movies like Mr. Bruckheimer's surprise 2003 hit "Pirates of the Caribbean: The Curse of the Black Pearl" and the fantasy epic "The Chronicles of Narnia: The Lion, the Witch and the Wardrobe," which is expected late next year.

The incentives are clear. Films rated PG and PG-13 (parental guidance suggested and parents strongly cautioned) drew 75 percent to 90 percent of the domestic box office, compared with 10 percent or less for G-rated, or family, films, among the 20 highest-grossing movies for each of the last four years, according to the Motion Picture Association of America.

"It's the sweet spot," said Robert Marich, author of "Marketing to Moviegoers: A Handbook of Strategies Used by Major Studios and Independents," a book to be published next year by Focal Press.

Some competitors believe Disney is well on its way to mastering the more expansive approach that will characterize the separate Walt Disney brand. "We emulate Disney," said Terry Curtin, head of marketing and distribution for Revolution Studios. "They're certainly not emulating us."

Ms. Curtin, who said the industry buzz on "National Treasure" was strong, said her company's holiday entry, "Christmas With the Kranks," was meant to imitate the emerging Disney formula. That movie's main characters are played by two actors, Tim Allen and Jamie Lee Curtis, who were turned into family film stars by Disney. And the film was directed by Joe Roth, a partner in Revolution who was previously chairman of Walt Disney Studios.

Some observers warn that Disney may dilute its appeal if it stretches too far in becoming identified with stars like Mr. Cage, who made his mark with distinctly adult performances in "Leaving Las Vegas" and other films.

"If they make a lot of movies that should have been rated R but sneak in under the PG-13 banner, then they could hurt their brand," said James Steyer, founder and chief executive of Commonsense Media, a nonprofit children's advocacy organization that publishes family film reviews at www.commonsensemedia.org.

Mr. Steyer said he believed that Disney would hold the line, and Disney executives said they had no intention of breaking faith with their core audience. Ms. Jacobson said, "It's all about moving from the conventional definition of a family film to the more sophisticated idea of a general audience film that is appropriate for a family audience."

With "National Treasure," Mr. Bruckheimer has emerged as a clear, if unlikely, point man for Disney's new family line, a business he stumbled into when he set out to make an R-rated football movie but wound up with the PG-13 hit "Remember the Titans," which was released in 2000. That film was backed by the Disney Studios chairman, Richard Cook, after competitors vetoed the tougher version.

"I was an unwilling participant initially," Mr. Bruckheimer said by phone from Louisiana State University, between bites of a late lunch last week. He was in Baton Rouge shooting Disney's "Glory Road," which he described as the story of a coach who changed basketball in 1966.

Mr. Bruckheimer said the only films on his production schedule were PG and PG-13, though he has some R-rated ones "in the hopper." He agreed to produce "National Treasure" only two and a half years ago, about six years after it was conceived around an idea from a Disney marketing executive, Oren Aviv, and Mr. Aviv's friend, Charles Segars, an executive previously at CBS and now at the Fine Living cable network. It was developed with a string of writers and Mr. Turteltaub, who is known less for action films than for strong character portrayals in films like Disney's "Kid," with Bruce Willis.

If Mr. Bruckheimer, the impresario behind more risqué 1980's fare like "American Gigolo" and "Beverly Hills Cop," has softened somewhat as Disney has become more intense, one thing has not changed.

Only days ago, the stubble-bearded producer - known for laserlike attention to detail and for tinkering that goes down to the wire - was still putting finishing touches on "National Treasure." His director was in an editing bay at his Santa Monica, Calif., offices.

"You'll have to excuse me," Mr. Turteltaub told a visitor, turning back to his work. "If I don't get going, we won't have a movie at all."

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Forests For Our Future Exhibit to Continue at INNOVENTIONS at Epcot

With the generous support of The Weyerhaeuser Company Foundation, the American Forest and Paper Association, and International Paper Company, TAPPI's Forests For Our Future exhibit will continue for another year, through June 30, 2005. Forests For Our Future, located at INNOVENTIONS at Epcot at the Walt Disney World Resort, is a unique forest experience that combines discovery, entertainment, and family fun.

Since opening in October 1994, INNOVENTIONS invites guests to travel down "The Road to Tomorrow" as they discover how science and technology can simplify and enhance their lives. In the Forests For Our Future exhibit, guests from around the world are introduced to the science and technology of the forest products industry while enjoying a feel-good experience at one of the world's greatest theme parks. Once guests step into the fascinating world of Forests For Our Future, they come to understand how the forest products industry is protecting the future of our world's forests while providing the forest products we all need.

Forest For Our Future opened in 1999 and the design and content of the exhibit were updated by the TAPPI Foundation in 2000 and 2001 to feature additional interactive activities, such as hand papermaking. These enhancements further refined the exhibit's messages and have made the experience even more enjoyable and memorable for guests. The exhibit was scheduled to end its run in June 2004, but due to its overwhelming success and the support of The Weyerhaeuser Company Foundation, American Forest and Paper Association (AF&PA), and International Paper Company, the exhibit will continue its presence at INNOVENTIONS through June 30, 2005.

Many individuals, companies, and organizations have helped make Forests For Our Future an experience like no other. Whether providing props for the TAPPI Field Station, participating in cast training, hosting tours, or contributing ideas, it is the involvement of the entire forest products community that has enabled the TAPPI Foundation to tell the industry's story so effectively to such a wide audience.

TAPPI is the leading technical association for the worldwide pulp, paper and converting industries. The TAPPI Foundation works to recognize and reward the volunteerism and individuals who contribute to advancing technology, as well as to attract talented people to careers in the industry. The mission of the Foundation is to support and encourage TAPPI members as they solve problems and seek the future of the industry.

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FamilyFun.Com is Crawling With Easy, Last-Minute Halloween Costume Ideas

 

Halloween Fright Site Offers Cool Party Ideas, Spooky Crafts and Do-It-Yourself Costumes for the Entire Family

FamilyFun.com's annual Halloween Fright Site (www.familyfun.go.com/halloween) is one of the site's most popular content areas every year. Launched in September, the Fright Site is packed with ideas and step-by-step, simple directions for Halloween decorations, party ideas, recipes, 100s of costumes, and more. But there is a special section for those folks who don't start thinking about Halloween until the last week of October: last-minute costumes (www.familyfun.go.com/halloweencostumes). This year, FamilyFun has 9 creative costume ideas, ranging from a gypsy to a construction worker to King Tut, which can be made on the 31st with hours to spare. Many use printable masks that can be downloaded right from the site.

Under pressure from 'pro-family' groups upset over ABC's naughty new hit, some companies halt ads.

 

Walt Disney Co.'s best shot at reviving its sickly ABC network may have plenty of skin and sin, but "Desperate Housewives" also has fewer original advertisers than it did just a few weeks ago.

Tyson Foods, Lowe's Cos., and Kellogg have all aired spots on the weekly prime time soap that debuted late last month. And none plan to air any more.

Officials at two of the advertisers -- Arkansas-based Tyson Foods and North Carolina-based Lowe's Companies -- confirmed that the decision against buying more commercial time on "Desperate Housewives" was based on the hit show's cheeky script, which centers on a tony suburban neighborhood where four middle-aged women live in misery and a fifth who committed suicide narrates from the grave.

In conjunction with the NBA's annual Read to Achieve Week, DisneyHand, worldwide outreach for The Walt Disney Company, and Disney Publishing Worldwide have agreed to donate more than 160,000 books to NBA teams, which will then be distributed to schools and youth organizations throughout the season.

The tip-off event of the program and the culmination of Read to Achieve Week will be a Basketball & Books Clinic at Walt Disney World Resort in Orlando, Fla., on Tuesday, October 26, when 100 children from the Magic Jr. NBA/Jr. WNBA program will be treated to a reading timeout with Orlando Magic stars Grant Hill and Steve Francis along with Mickey Mouse. Afterwards, they will break into groups and the players will conduct basketball clinics with drills to improve such skills as dribbling, passing and shooting.

"As part of our DisneyHand Reading Together program which encourages adults and children to read together in engaging and effective ways, we have teamed up with the NBA to further reach underserved children with books," said Jody Dreyer, senior vice president, Disney Worldwide Outreach. "We are pleased to work with an organization that shares our belief in the value of reading."

"The new relationship between Disney and the NBA will put books in the hands of thousands of children across the country who do not normally have access to such needed resources," said Kathy Behrens, NBA vice president of Community Relations.

Children participating in the Read to Achieve program will receive books, including: "Crispin: The Cross of Lead"-By Avi, "The Million Dollar Strike"-By Dan Gutman, "Praying at the Sweetwater Motel"-By April Young Fritz, "Liberty's Journey"-By Kelly DiPucchio-Illustrated by Richard Egielski, and "Picture My World: Nature"-By Helen Perelman.

Following is a list of some of the Read to Achieve Week events for October 18-22:

• Detroit -- The World Champion Pistons along with "Liberty's Journey" Author Kelly DiPucchio will host a reading timeout on Thursday, October 21, at 1:30 p.m. at The Palace of Auburn Hills. DiPucchio will be reading to an anticipated 350 kids.
• Atlanta -- The Hawks will host 15,000 kids for a pre-season game against the Memphis Grizzlies, which will feature reading-related activities and programs.
• Charlotte -- The Bobcats will hold a book drive at the Harris YMCA and host a Cool School field trip for more than 14,000 kids who were rewarded with attendance to the Bobcats preseason game against Miami on October 26 at Charlotte Coliseum.
• Cleveland -- The Cavaliers will open their second Reading and Learning Center in Akron, OH.
• Houston -- The Rockets will host a reading timeout at the Toyota Center reading different versions of "Cinderella" in Chinese, Spanish and African.
• Indiana -- The Pacers will hold a backpack drive where fans are asked to bring backpacks full of school supplies for underprivileged children.
• Los Angeles -- The Lakers will host a reading timeout with Kobe Bryant and Rudy Tomjonovich.
• Utah -- The Jazz will host a reading timeout at the Museum of Natural History in Salt Lake City.

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Be careful what you wish for, Harvey.

For months, Miramax Film Corp. honcho Harvey Weinstein has been telling his industry friends that he can't wait to get out from under Walt Disney Co. He has complained that for all of Disney's resources, the company led by Chief Executive Michael Eisner is too rigid and restrictive to be a good creative partner.

But as talks about extending Miramax's relationship with its corporate parent have foundered, the prospect of life after Disney may not be as bright as Weinstein and his brother Bob once hoped. Even if they can find private investors to bankroll a new venture, many say, it seems unlikely that life outside the Magic Kingdom will be better than life inside.

"It's difficult to envision the Weinsteins finding the resources or capital that would give them the same financial flexibility that they've had," said media analyst Jeffrey Logsdon. Though the brothers will surely lure some investors, Logsdon said a recent press report suggesting that they could easily raise $1 billion to create their own production company "defies financial logic."

To assess what the future might hold, the Weinsteins have engaged in talks with such investment banking houses as Goldman Sachs and Lehman Bros. as well as private equity firm Blackstone Group. Although prohibited from entering into any formal agreements before resolving Miramax's deal with Disney, Harvey Weinstein has been promoting the idea of an independent start-up with the kind of bravado he uses to wage his Oscar campaigns.

But some analysts and deal makers say that despite the brothers' track record of award-winning hits, including "Chicago" and "Shakespeare in Love," the hype is getting ahead of the reality.

In recent weeks, Disney put the Weinsteins on notice that their current employment contracts would not be renewed under the existing financial terms when they expired next September. That leaves open the possibility that a new deal could be struck. But sources close to both parties say the chances are slim.

More likely, they say, is a settlement agreement that would end the Weinsteins' 11-year partnership with Disney for good.

The Disney board, which has rejected the Weinsteins' requests to present their case, is expected to address the company's relationship with Miramax at a meeting this month.

A source close to the board said Disney directors "have grown increasingly unhappy with [the Weinsteins'] financial performance and behavior."

The Weinsteins and Disney executives declined to comment.

If the Weinsteins end up on their own, their trademark brusque style could make investors wary. Harvey, in particular, is famous for bucking authority.

"They're not going to get everything they want because people are aware of their reputation," said Dennis Leibowitz, money manager with Act II Partners in New York.

Another potential turn-off for investors is the fact that the Weinsteins must leave behind not only their famed moniker, which the brothers invented by combining their parents' names — Miriam and Max — when they founded the company 25 years ago, but also Miramax's 550-title library.

For investors leery of the volatile movie business, film libraries are attractive because they generate steady cash flow, which in turn helps fund overhead and film development, production and marketing. Equity investors who backed Sony Corp.'s recent acquisition of Metro-Goldwyn-Mayer Inc. were attracted to the deal mainly by the legendary studio's 4,000-film library, which throws off about $400 million a year in cash. Such revenue streams are especially important to new production companies because movies can take years to show a return.

In addition to leaving their library behind, the Weinsteins would be walking away from a guaranteed annual production and marketing budget of $700 million. They'd also have to live without access to Disney's powerful distribution organization, which releases Miramax's movies on DVD and packages them with its own more mainstream fare for TV syndication sales. Being part of a well-funded media company has also at times afforded the Weinsteins the kind of flexibility they need to make quick decisions on movie projects that fall outside their financial parameters.

In the mid-1990s, when they wanted to invest in "The English Patient" and the amount exceeded their budget cap, the Weinsteins quickly got the OK from then-Disney studio chief Joe Roth.

That kind of nimble maneuvering is more difficult to pull off with investors less savvy about the movie business and who are not known for making snap decisions. Moreover, investors usually give money with strings attached, which the Weinsteins might find hard to live with.

"Sophisticated financial investors are going to be very careful as to how to structure an investment to rein in Hollywood's historical spendthrift ways," said Christopher Dixon, a managing partner at investment firm Gabelli Group Capital Partners.

Sources say Disney executives are not easing Wall Street's concerns. In recent months, they have portrayed the brothers as fiscally irresponsible, noting that Miramax has been profitable during only two of the last five years. The Weinsteins have argued that Disney's formula for calculating profit is flawed.

As the Weinsteins continue to talk with investment banking firms, the role they've played in revolutionizing the world of independent film gives them undeniable cachet. There is little doubt that the brothers could generate some heat — and dollars — on Wall Street. The issue is: How much?

"There's no question that these are very bankable people," said Jill Greenthal, a partner at Blackstone Group.

Still, it's clear that investors will need to be convinced that any new venture will be run with firm fiscal restraints. "It's going to be tough for Harvey unless he has a business plan that makes sense and can give people around him comfort that he can control his excessive appetite," said one Weinstein associate.

Since selling their maverick New York-based movie company to Disney in 1993 for about $80 million, the Weinsteins have had a tempestuous relationship with their corporate parent. Harvey Weinstein, a P.T. Barnum-like showman who is known almost as much for his volatility as his creativity, has often feuded with Disney chief Eisner over how much creative and financial autonomy Miramax should have.

For example, Weinstein chafed when Eisner refused to allow him to make the "Lord of the Rings" trilogy, citing its enormous costs. Rival New Line Cinema Corp. produced the three films and has multiple Oscars and huge profit to show for it.

For his part, Eisner bristled at Weinstein's risky investments in bigger-budget movies such as "Cold Mountain," which cost $80 million and had disappointing returns. He was also put out when Weinstein embarked on new ventures, including money-losing Talk magazine.

Then, this spring, long-simmering tensions boiled over when Eisner prohibited Miramax from investing in and releasing Michael Moore's anti-President Bush documentary "Fahrenheit 9/11." Weinstein defied him, publicly casting Eisner as a cowardly bureaucrat. The brothers bought back the rights to the movie, releasing it through Lions Gate Films.

Nevertheless, as recently as last summer it appeared that Disney and the Weinsteins might find a way to work things out. One proposal was that Harvey Weinstein would leave Miramax to form his own production outfit, while Bob would continue running Miramax's Dimension Films on Disney's dime. That option evaporated when Disney offered Bob Weinstein a deal with compensation figures so low, sources say, he was insulted.

Despite their gripes with Disney, some industry insiders say, the Weinsteins may only now be realizing how good they've had it. Sources close to them say they still hold out hope that, particularly now that Eisner has announced his retirement in 2006, there may be a chance to make a new beginning with Disney.

Said one Hollywood executive who knows the Weinsteins well: "It's the classic case of you want what you don't have and take for granted what you do have."

 

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Disneyland skippers on the Jungle Cruise ride are once again armed, but not dangerous. It's part of the company plan to "restore the magic" in the California theme park. For more than 40 years, drivers had fired blanks at mechanical hippos that appeared to be charging the boat in the fake Amazon River. That stopped in 2001, a change a former skipper said was a nod to "political correctness." But now, the skippers are getting their guns back, and are again free to open fire.

There are other changes in the works ahead of next year's 50th anniversary. For one thing, the name tags are back on horses that pull carriages down Main Street U-S-A.

And some gut-wrenching twists will return to the Mad Tea Party ride's teacups.

 

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Expedition Everest Lift Installed

In what seems an overnight job, the main lift to Expedition Everest has been installed. Work is currently in progress on that and the rest of the mountain.

                                          

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Stroller Parking in Fantasyland now open

The former Skyway station in Fantasyland has reopened as a stroller parking to release congestion in the Fantasyland section between "It's a small world" and Peter Pans Flight attraction. 

                                          

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Steve Martin, ABC enroll teens for 'Scholar'

 

Steve Martin is teaming with ABC to give bright, ambitious high school students a chance for a free education at a top university of their choice.

Tentatively titled "The Scholar," the series will take place on the campus of a major university. Fifteen qualified high school seniors who might not otherwise have an opportunity to pursue a college education will compete against each other in such challenges as academics, leadership, school spirit and community service.

"Every student in this country should be entitled to a college education," Martin and production partner Joan Stein said in a statement. "With this show, we intend to empower both students and parents with the knowledge that a higher education is realistic and attainable for everyone."

Martin and Stein will serve as executive producers, along with Jon Murray (MTV's "The Real World")", and Marcy Carsey and Tom Werner ("That '70s Show").

The search for high school students to participate in "The Scholar" is under way. Production is slated to begin this year for a premiere next year.

ESPN to launch Chinese-language monthly magazine targeting young men

 

Sports broadcaster ESPN Inc in December will launch a Chinese-language monthly magazine targeting young men, the Wall Street Journal reported, citing senior executives.

The company will base the Chinese publication on its US edition, ESPN The Magazine, translating some of the English-language material, using the same name and striving to reach men in the 18-34 age group, the paper said.

ESPN has entered the venture with Vertex Communications & Technology Group Ltd (HK 8228), a Hong Kong-listed company that also publishes Newsweek Chinese Edition and MIT Technology Review China Edition. Vertex will produce the magazine in Shanghai to distribute in China and license the rights from ESPN, a unit of Walt Disney Co, the paper said.

The company did not provide financial details.

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Mouse holes

Have you been putting off that trip to Disney World out of a fear of crowds? According to the 2004 edition of "Walt Disney World: Expert Advice From the Inside Source," the park's official guide, the least crowded times of year are:

• The second week of January through the first week of February;
• The week after Labor Day until Thanksgiving;
• The week after Thanksgiving through the week before Christmas.

Expect average attendance during the first week of January, the second week of February through the beginning of President's Day week; the last week of April through May, and Thanksgiving week.

The most crowded times at Disney are, of course, when school is out: June through Labor Day; Christmas through New Year's Day; President's Day week; and the third week of March through the third week of April, as kids young and old roll through their spring breaks.

Understanding daily trends can also reduce your stress.

Downtown Disney and Disney's water parks are most crowded on weekends. Golfers should note that weekend tee times are most in demand, while Monday and Tuesday tee times are easiest to come by.

When the weather is steamy, the water parks tend to reach capacity soon after the gates open. Days that are kicked off with "Extra Magic Hour" tend to be more crowded than others at their respective theme parks. And weekends and Mondays are generally the busiest days at the theme parks during the summer and other peak periods.

Don't forget FastPass, a free timed ticketing system that allows you to return and wait just a few minutes rather than up to several hours for some of the most popular attractions. Despite its efficiency, the system tends to be underused by visitors.

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Desperate? Not ABC

 

The network hasn't been able to buy a big hit in years. But with 'Desperate Housewives,' 'Lost' and 'Wife Swap' (see a theme here?), ABC has found a groove

                                              

 

Faced with the daunting task of resuscitating ABC, the network's new president of prime-time programming, Stephen McPherson, was understandably skittish as he pondered the list of pilot shows last spring. Staring back at him among the titles were words like "lost" and "desperate," and he could only imagine the headlines if the shows were flops. "When you sit around in development, you honestly think of the title and what the press is going to do with it,'' he says. "When I was working on 'Just Shoot Me!' at NBC, I thought, 'This is gonna be a disaster'."

 

Breathe easy, Mr. McPherson. The sexy suburbanites of ABC's "Desperate Housewives" are the darlings of the fall TV season, with more than 20 million viewers tuning in to each of the first two shows. And more than 18 million people are watching "Lost'' to find out which castaway will be the next meal for the mysterious monster. Those two hits have given something ABC hasn't seen in a long time: solid berths in the Nielsen top 10. In addition to "Housewives" (No. 4) and "Lost" (No. 9), two other new shows, "Boston Legal" and "Wife Swap," have been strong performers, providing ABC momentum to pull out of its fourth-place slump. The network is now in second place among the coveted 18- to 49-year-old audience, running ahead of NBC, whose once unbeatable Thursday lineup is no longer must-see TV. The good news couldn't come at a better time for McPherson's bosses at Walt Disney Co.: ABC's struggles have been the biggest strike against president Robert Iger in his bid to succeed Michael Eisner, who will retire in 2006. Eisner has said Iger is the best man for the job, and an ABC turnaround would shrink a huge question mark hovering over Iger.

When McPherson, 39, came to ABC from Disney's Touchstone Television production arm last April, the landscape looked a lot like the opening scene of "Lost," with dazed and bloodied survivors wandering around a fiery crash site. Only a month before the network unveiled its fall lineup to advertisers, Disney swept the ABC executive suite, kicking out Lloyd Braun and Susan Lyne, the latest in a string of execs brought in to fix the network, only to be shown the door a few years later. Luckily for McPherson, the dearly departed left behind a few gems. Braun had pushed hard for "Lost" over the objections of Disney brass, and had turned out an expensive, $12 million effects-laden pilot. Lyne, meanwhile, wanted to attract more women viewers and set her sights on the quirky "Desperate Housewives" (critics of Iger and Eisner like to point out that they dispatched the very people who picked the hit shows). Normally, the new guy would throw out the work of the deposed regime and start anew. But McPherson had been involved with both shows, which were produced at Touchstone. Says his boss Anne Sweeney, brought in to run ABC following her success with Disney's cable operations: "He had unique understanding of what these shows were and what they would be."

What they needed, of course, was buzz. Taking a cue from the presidential campaign, Sweeney told her troops to stay focused on a few shows—"Lost," "Housewives" and "Wife Swap"—and put their advertising muscle behind them. There wasn't much muscle available, however. Disney had been cutting costs to staunch the bleeding at ABC—a $500 million operating loss two years ago and $200 million last year—so the ad department had to make its dollars go farther. Playing off the "Housewives" tag line "Everybody has a little dirty laundry," ABC put the wives' faces on a million dry-cleaning bags in L.A. and New York. Labor Day beachgoers discovered a thousand plastic bottles in the sand with a message tucked inside: "Help. I'm Lost. You can find me on ABC on Sept. 22." Add in the usual Disney "synergy"—a "celebration" of ABC's fall season at Disneyland, an appearance by the housewives on "Oprah" last week—and the marketing push helped ABC launch its best season since the heady days of "Who Wants to Be a Millionaire."

Of course, all the clever marketing in the world can't make a turkey fly. But the good news is that ABC's new shows aren't fowl. The intoxicating mix of sex, camp and middle-aged angst wafting down fictitious Wisteria Lane has made "Housewives" a welcome replacement for viewers still mourning the loss of HBO's "Sex and the City." Creator Marc Cherry calls his show the anti-"Sex and the City" because "the women pretend to be friends, but they're keeping tons and tons of secrets from one another." The show airs at the same time that "Sex" did—9 p.m. on Sundays—and was launched when HBO was between series, allowing ABC to lure the kind of viewers who'd normally tune in to HBO Sunday. Actress Marcia Cross, who plays the show's perfectionist Stepford Wife, has been amazed by the response from women who identify with the characters. "Oh, my God, they just love it," she says, explaining how one fan on "Oprah" last week confessed she was exactly like "Desperate's" Bree Van De Kamp, right down to the obsessive-compulsive quirks and constipated emotions. Truth be told, Cross is nothing like her character. "I'm messy,'' she reveals. "My cleaning lady comes in and laughs at me." The show has also touched a nerve with men. " 'Desperate Housewives' is the new 'Dynasty,' where people will be throwing parties just to watch it," says Robert Kalin, a Palm Springs, Calif., real-estate agent who was hooked by all the advertising even before the show aired.

McPherson is careful not to crow too loudly. He knows he inherited some good shows from his predecessors: "I give Susan and Lloyd a tremendous amount of credit for all the hard work they'd done," he says. And while McPherson has a track record of picking hits (this is the guy who tried to get ABC to buy "CSI," now a blockbuster franchise for CBS), he knows it's a lot like picking horses. "I think any-one who tells you they have the magic formula for why shows hit and miss is lying," McPherson says.

Knowing all too well how quickly good luck can run out, his Disney bosses are leery of declaring that ABC has turned the corner. "I am very good at managing failure," Michael Eisner told a Goldman Sachs conference recently. "We have to learn now once again at ABC how to manage success. So we all high-five each other and we get it out of our system, and then we say, 'Now let's go in and look really mature and talk about how it's going to take a while, and not overpromise'." The mantra at the network these days, handed down by Eisner, is "It's a marathon, not a sprint." But you can hardly begrudge ABC's beleaguered troops for doing a bit of backslapping.

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Photo Updates from Animal Kingdom's Everest

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Unique court brings Disney to Delaware

The simplest explanation is that Disney is incorporated in Delaware, along with more than half of the Fortune 500 companies and businesses whose stock is traded on the New York Stock Exchange. As a Delaware corporation, the state's corporate laws govern the internal workings of the company.

Chances are, lawyers decided to file the lawsuit in Delaware because the case will be heard in the state's unique Court of Chancery, a forum that is not duplicated anywhere in the country, experts said. The chief judge of this court, Chancellor William B. Chandler III, has his office in Georgetown at a new courthouse on The Circle.

"The trial is where the judge sits," said Charles M. Elson, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware.

Chancery Court, which dates to feudal England, is a court of equity - or a court of conscience - rather than a court of law. Thanks to various twists in the state's history, Delaware managed to preserve one of the purest forms of jurisprudence based on notions of fairness, experts said.

The court grew out of the medieval practice of petitioning the king for relief when a case had been lost in the common law courts because of procedural reasons, corruption or inadequate enforcement, writes former state Supreme Court Justice William T. Quillen and Wilmington lawyer Michael Hanrahan in a history of the court.

The king would refer the cases to his lord chancellor. Like most clerical assistants, the chancellor was educated in canon, or Roman, law. In fact, until 1529 the chancellor was a bishop, experts said.

Using principles of fairness and moral concepts derived from ecclesiastical training, the chancellor could grant relief of any sort in the name of the king. He could tailor a remedy to fit the facts of the case.

Eventually, chancery developed into a full court between 1400 and 1672 and used flexible procedures similar to ecclesiastical courts.

Many states jettisoned their courts of chancery during the Revolution because of the association with the crown. Delaware, by contrast, created its Chancery Court in its constitution in 1792. When other states merged their equity and law courts, Delaware kept each separate.

Companies like to bring matters in Chancery Court because cases are not heard by juries but by five judges who spend the majority of their time handling corporate and commercial matters. The court does not hear criminal cases, tort damage suits or most family matters.

Judges try both fact and law and the court is not bound by strict statutes of limitations. The court also retains a touch of the moral sentiment from the cleric tradition, Quillen said.

The court may issue temporary restraining orders, injunctions or other forms of relief. Experts said the court's ability to issue injunctions in civil matters is one of its most important aspects.

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Delicious Gingerbread and Chocolate Creations on Display Beginning Thanksgiving Weekend at Walt Disney World Resort

Walt Disney World pastry chefs spice things up this holiday season, baking festive chocolate goodies and delightful gingerbread treats in all shapes and sizes.

Disney's Animal Kingdom Lodge

Boma-Flavors of Africa will have a miniature African village (entirely edible) made out of yummy chocolate, gingerbread and sugar. The houses and buildings will be inspired by architecture styles throughout Africa.

Disney's Beach Club Resort

A life-size, completely edible carousel -- made with gingerbread, chocolate and sugar paste -- will be located in the lobby. Small gingerbread houses and Christmas stollen will be sold in the merchandise stores. Chefs will give demonstrations throughout the day giving tips to guests on how to decorate their own gingerbread creations.

Gingerbread carousel fun facts:

• 36 lbs. of honey
• 96 lbs. of bread flour
• 100 pints of eggs
• 10 lbs. of spices
• 10 quarts of simple syrup
• 100 lbs. of icing
• 50 lbs. of dark chocolate
• 10 quarts of egg whites
• 100 lbs. of confectioner sugar

Lots of enthusiasm, energy, and talent!

Disney's BoardWalk

A 15-by-20-foot display depicting a boardwalk area with a five-foot-tall Ferris wheel, carousel, water slide, buildings and a beach area. Everything will be made with chocolate, sugar and gingerbread. Better than a day at the beach.

Disney's Contemporary Resort

A gingerbread holiday village will be on display in the main building of the hotel, on the 4th floor.

Disney's Grand Floridian Resort & Spa

Inside a life-size holiday gingerbread house, guests may purchase mouth-watering Santa lollipops, gingerbread cookie people, gingerbread ornaments, gingerbread cookies, stollen bread, and Grand Floridian chocolate logo boxes filled with truffles, peppermint bark and small gingerbread houses.

Gingerbread house fun facts: 400 hours are spent on baking the gingerbread and 160 hours are spent on decorating the house.

Structure

• 16 feet high
• 17 feet wide
• 1,000 board feet of trim
• 60 sheets of plywood
• 40 window panes
• 80 square feet of retail space
• 100 square feet of display

Gingerbread

• 1,050 lbs. honey
• 600 lbs. powdered sugar
• 35 lbs. spices
• 800 lbs. flour
• 140 pints egg whites
• 180 lbs. apricot glaze
• over 10,000 pieces of gingerbread used

Disney's Polynesian Resort

On the 2nd floor of the Ceremonial House pastry chefs will create an exotic gingerbread village with volcanoes and edible palm trees. Christmas cookies, biscotti and other confectionary delights will be sold at the Kona Island coffee bar.

Disney's Yacht Club Resort

In the resort's lobby a miniature train races around a sugary mountain and village. Small gingerbread houses, Christmas stollen and pannettone (traditional Italian bread) are sold in the merchandise stores.

Epcot

In Santa's Bakeshop, located in Liberty Inn at the American Adventure pavilion, Santa's Gingerbread House will enchant guests of all ages. The life-sized structure will be made entirely of gingerbread, cookies and icing, and will contain more than 800 pounds of sugar and more than 1,000 eggs. Christmas cookies and hot and cold beverages may be purchased from inside the gingerbread house.

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Disney jet set lands in Georgetown

William B. Chandler III, chief judge of Delaware's Court of Chancery, has lived all his life in an area so removed from Hollywood that the only movie theater in town shut down about the time Walt Disney Studios released "Sleeping Beauty" in 1959.

But Chandler's decision to hold a world-class corporate battle involving the Walt Disney Co. in historic Georgetown shows he has the instincts of a screenwriter.

By choosing Georgetown as the backdrop for the trial that begins Wednesday, Chandler is dropping some of Tinseltown's outsized egos into a small town so archetypal it could be a set for "It's a Wonderful Life."

"For people from Manhattan or Los Angeles, it's going to be culture shock," said James A. Fuqua Jr., a lawyer with offices on Georgetown's scenic village green known today as The Circle.

This is where folks flock to Smith's Family Restaurant for its chicken-and-dumpling dinners. People say hello to strangers on the street. George Strait can be heard singing "I Hate Everything" in the local antiques store, and the airport literally is minutes from downtown.

"People in Georgetown look you in the eye, hold doors open for you," said Wilmington lawyer William J. Wade, the author of "16 Miles from Anywhere," a history of Georgetown.

A short walk from the village green stands the infamous whipping post where justice was administered publicly for stealing chickens and other crimes - a punishment known as "hugging old Susan." No wonder Chancery Court's chief of security is used to friendly ribbing about his name: Rocky Justice.

Onto this stage will parade a gaggle of suits, including glittery industry hotshots such as Disney CEO Michael D. Eisner and former Disney President Michael S. Ovitz.

The trial is expected to highlight some of Ovitz's spending habits - extravagant even by Hollywood standards, according to news reports. The talent agent - once considered one of the most powerful men in Hollywood - reportedly threw a star-studded house party for $90,000 that he described as "bargain basement."

Former board members Roy E. Disney, the nephew of the company's founder, and actor Sidney Poitier - both named as defendants - are expected to be called to the witness stand. Add to this mix the teams of corporate lawyers from New York, Los Angeles and Wilmington.

"They'll see how the other half lives," said Chandler, head of what many consider the most powerful business court in the country.

"Main Street is not Main Street in the Magic Kingdom. We've got hardworking people with good common sense," he said.

Shareholders sue

Indeed, the everyday stockholders in this southern-style crossroads community are the folks who seem to get most riled up about the lawsuit.

At issue in the case is the $140 million severance package Ovitz received when he walked away from Disney at the end of 1996 after a little more than a year as the company's president.

Shareholders of the Burbank, Calif.-company sued Eisner, Ovitz and certain directors for wasting Disney's money in providing Ovitz with such a lavish severance package after what was agreed was a failed tenure with the company.

Plaintiffs allege Ovitz lacked focus, was inattentive to his duties and spent Disney money in violation of company protocol. What's more, the lawsuit alleges the directors were asleep on their watch and did not uphold their duty in the hiring of Ovitz and the payment of the severance benefits when he left the company.

The investors are asking that Ovitz, Eisner and some current and former directors be held financially liable for the severance package.

The trial is being held in Delaware because Disney is incorporated in the state. As such, Delaware corporate law

applies to the company's internal workings, such as the duties of directors and managers.

"I can't understand those kinda severance packages," said Raymond Mraz, a small Disney shareholder who works at Delaware Camping Center in Georgetown. "If they think they're going to come in and run this town, they're gonna be in for a surprise."

While some think the trial will generate plenty of conversation at Smith's restaurant about Tyco-style corporate extravagance, many residents said they'll take the proceedings in stride, despite the limousines, television trucks and increased activity at Sussex County Airport.

"Let's put it this way, there aren't going to be people hanging outside to hear the outcome," said David W. Baird, manager of this town of about 4,700 people.

If anything, residents just hope the trial doesn't interfere with Return Day festivities, the political celebration held the first Thursday after the election. The event could date from as early as the town's founding in 1791. But it's clear it was an established tradition by the 1840s when election results were returned to the county seat by horsemen, according to Wade's book. Sussex countians would gather to hear the results announced from the courthouse steps, while enjoying hot corn bread, roast oxen and whiskey.

"We don't mess with Return Day for anything. Not even Disney," said Becky Davis, a real estate agent with Century 21 Wilgus Associates Inc.

Getting ready

Not that Georgetown is designed to accommodate the hoards of lawyers and media who have descended on the town.

Unlike Wilmington, which has a cottage industry supporting the corporate legal community, Georgetown has a somewhat limited supply of hotel rooms, catering capabilities and office support.

So, like preparations for a military campaign, law firms began months ago working to create a full infrastructure for the trial, ranging from lodging to lunches.

"It's well planned, I can tell you that," said Robert H. Moore, an owner of The Bellmoor Inn in Rehoboth Beach, where some of the lawyers are staying.

Gregory P. Williams, a partner with Richards, Layton & Finger in Wilmington, which is representing Disney directors and former directors, including Poitier, said preparations for the trial have been a team effort from the partners to the paralegals to the clerical help. The firm expects to have about 10 people in Georgetown, including associates, paralegals and a secretary.

"Logistics are essential," Williams said. "No matter how prepared the legal team is, if witnesses don't have transportation and the team doesn't have hotel rooms and food, obviously the entire effort suffers."

For temporary office space, a group of law firms will occupy a historic building on Bedford Street that has been leased from the Fuqua and Yori law firm. The building is a short walk from the courthouse.

Fuqua said the firms have had their technical staff busy for several months getting the building wired for the trial.

Young, Conaway, Stargatt & Taylor, which is the local counsel for Ovitz, has an office in this courthouse town.

William A. Sullivan, who as former head of the Hotel du Pont in Wilmington handled other major corporate trials, said it could be a challenge for smaller hotels in Sussex County to accommodate the teams of lawyers because they are heavy users of hotel services, such as laundry and room service.

"Basically, all they do is work, eat, sleep and exercise," said Sullivan, who is now managing director of the Courtyard Newark at the University of Delaware. "You've got to become more of a business environment than a hotel."

At The Bellmoor, for example, lawyers have created a full-blown "war room" in the inn's conference space.

Larry Owens, director of sales and events with the Comfort Inn & Suites on Du Pont Highway in Georgetown, said law firms and journalists have booked rooms in blocks of three weeks to two months.

Lawyers also have booked blocks of rooms and conference space at the Boardwalk Plaza Hotel on the oceanfront in Rehoboth Beach, said Jennifer Zerby, director of marketing with the hotel. She said she also expects the hotel's Victoria's Restaurant to be busy.

Chandler said he thinks Eisner, Ovitz and other Hollywood witnesses will fly in for the day but stay in other cities - even if they are on the witness stand for a few days. That was the case with another top executive in a separate corporate trial held in Georgetown, he said.

Even so, the business from the lawyers alone could mean hundreds of thousands of dollars for Sussex County hotels, Sullivan said.

"You could have a bill for a half-million," Sullivan said. "They're good spenders."

Because lawyers will work through lunch and probably through the weekends, they will need to have meals catered.

Jimmy's Fly-In Grille in Georgetown will provide lunches for 20 lawyers for six weeks, according to John-Eric Lemieux, general manager.

One challenge for the town is to accommodate the media trucks. Town manager Baird said Georgetown is trying to coordinate parking for the trucks on private property.

Sussex County Airport, which has a 5,000-foot runway that can accommodate planes up to a Boeing 737, is gearing up, said Stephen T. Masten Sr., airport manager and director of economic development for Sussex County.

The Economic Development Office will coordinate security and transportation, he said.

"I think there will be dollars generated as a result of this. After the trial I think folks will come and explore Delaware," Masten said.

Top-notch courthouse

As chief judge, Chandler could have held the trial in Wilmington at the New Castle County Courthouse. Instead, he chose the $4.1 million Georgian-style courthouse that opened a year ago.

"I think most of us recognized that when Chandler got a new courthouse for the Court of Chancery he wasn't doing it for show," Fuqua said.

Far from being a threadbare country courthouse, the courtroom has plasma screens, video capability, a document camera, wireless Internet access and a wireless printer located just outside of the courtroom.

Chandler, who is proud to be descended from generations of Sussex countians, said he decided to hold the trial in Sussex County because it will allow him to manage it most efficiently.

"Wherever this trial is held the litigants will have to pick up and move," Chandler said.

Not only is the courthouse convenient to Chandler's Dagsboro home, it's where his support staff is located. It's unclear whether Chandler will take his usual noontime jog around town, however.

Because the courtroom where the trial will be held seats just 50 people, Chandler has limited the number of lawyers in the courtroom to 35.

As for Return Day, Chandler will not hold court that day.

Since Return Day is traditionally a day for burying the hatchet, locals said maybe the lawyers will attend the festivities.

"Maybe they'll come and have an ox sandwich - or at least an oyster sandwich," Fuqua said.

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Dailycandy, Hyperion Ink 2- Book Deal

DailyCandy founder Dany Levy just made a sweet deal with Hyperion publishers, The Post has learned.

The founder of the daily e-mail service on style has contracted for two books with the Disney-owned publishing house. Senior Editor Kelly Notaras negotiated the high-six-figure deal with the William Morris Agency.

DailyCandy, founded in 2000, sends subscribers a free daily e-mail telling them about the newest, hottest designers, restaurants, beauty secrets, books and more.

DailyCandy carries advertising, and also releases regular advertiser-sponsored e-mail. Earlier this year, Levy sold a reported $3 million stake in DailyCandy to the Pilot Group, an investment fund of which former AOL Time Warner COO Bob Pittman is a principle. She remains the largest single shareholder, editor in chief and chairman of the board.

The challenge of the book project, the 32-year-old Levy admits, was to make the signature DailyCandy "Sex and the City"-like voice work in a longer-than-two-paragraph form.

The first of the two books — to be published in early 2006, if not sooner — is tentatively titled "Daily Candy A-Z: The Insider's Guide to the Sweet Life."

It will not just deal with "stuff," Levy said, but with an approach to life. "It's more how to deal with the world through the DailyCandy persona."

The byline is as yet undetermined, but "the editors of DailyCandy" will be credited.

Style-advice books, especially when they come from a known brand author, have been very successful of late. In 2003, Gotham published "The Lucky Shopping Manual" by the editors of Lucky magazine. It has sold over 100,000 copies.

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'Cinderellabration' Salutes Disney Princess With Gala Crowning Ceremony Debuting at Walt Disney World Resort in May 2005

The "happily ever after" tale of Cinderella and Prince Charming continues for Walt Disney World guests in May 2005 when a glittering stage show adapted from Tokyo Disneyland debuts at Magic Kingdom.

Filled with sparkling pageantry, luxurious costumes, romantic choreography and a lush musical score incorporating new compositions and several classic Disney songs, "Cinderellabration" welcomes a who's-who of Disney princesses to join in the gala coronation ceremony in which Cinderella is at last crowned a princess.

The Magic Kingdom production takes center stage in front of the towering spires of Cinderella Castle, the majestic icon of Walt Disney World Resort, and continues the rags-to-riches story of Cinderella after the events of Walt Disney's classic 1950 animated feature film.

Joining Cinderella on her special day are Disney's most beloved princesses, including:

• Snow White (from 1937's "Snow White and the Seven Dwarfs")
• Aurora (from 1959's "Sleeping Beauty")
• Belle (from 1991's "Beauty and the Beast")
• Jasmine (from 1992's "Aladdin")

Also on hand are Cinderella's Fairy Godmother, the king, his majordomo and members of the king's royal court, all dressed in their finest attire.

Part of "The Happiest Celebration on Earth," the live musical spectacular is one of several new attractions Walt Disney World Resort will unveil in 2005-2006 in conjunction with a global salute to the 50th anniversary of California's Disneyland, festivities that will involve each of the Disney theme parks around the world.

"Cinderellabration" is inspired by a popular stage show created for the 20th anniversary of Tokyo Disneyland in 2003 and will be staged several times daily at Magic Kingdom.

From storybook-themed meals with characters such as Cinderella and Sleeping Beauty to Disney's Fairy Tale Weddings program, Walt Disney World Resort offers myriad ways for guests of all ages to indulge their inner princess. For more information, call 407/W-DISNEY or visit disneyworld.com.

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Happy ending for Pixar, Disney?

As The Incredibles opens Nov. 5, there's hope for a post-Eisner reconciliation.

In The Incredibles, next month's computer-animated offering from Pixar Animation Studios and Walt Disney Co., a bored superhero with a bulging waistline springs back from retirement to save the world.

For the two companies, rescuing a planet seems a snap compared with saving a relationship that began imploding in January when talks over renewing their partnership collapsed. But with that deal nearing doomsday, there are flickers of optimism that one of Hollywood's most successful collaborations may be salvaged.

Opening Nov. 5, The Incredibles marks the next-to-last film under the Pixar-Disney partnership that is set to end with the release of its next movie, Cars, in November 2005.

To date, the two companies have joined forces on five consecutive digitally animated hits: two Toy Story films, Monsters, Inc., A Bug's Life and Finding Nemo. Those movies are expected by analysts to ultimately generate more than $3 billion in total profit, split between the two sides.

Despite those successes, Pixar chief executive Steve Jobs walked away in frustration from negotiations that would have extended the 13-year relationship. The talks had dragged on for nearly a year as Disney CEO Michael Eisner refused to agree to some of Jobs' more aggressive demands -- notably that Pixar would retroactively own all the movies and control sequels, if they were made.

The personal animus between Jobs and Eisner is widely thought to have played a central role in the dissolution of the partnership.

However, the Disney chief has announced that he would leave the company when his contract expires in 2006.

Although many on Wall Street remain convinced that reconciliation is a lost cause, others close to both parties hold out a glimmer of hope now that Eisner is leaving. Disney's board is expected to identify a successor by June.

People close to Jobs say he would be open to resuming talks with Eisner's successor.

"It's fair to say that given the successful partnership, investors would be happy if these two companies came together," said Lowell Singer of SG Cowen & Co. "I think Eisner's impending departure keeps the door open for that possibility."

In an interview, Jobs would not answer questions about the Disney-Pixar disagreements. He said the companies were focused for now on making The Incredibles a success. He did, however, note that yet another Pixar hit would open up even more opportunities for the Emeryville, Calif.-based company.

"Pixar is lucky enough to be five-for-five," Jobs said. "If Incredibles makes that six-for-six . . . it gives us wonderful options to work with all sorts of people."

With $755 million in cash and no debt, Pixar is poised to finance its own movies and reap the profits, paying a studio a fee to distribute the movies in theaters and on DVD. Another hit would give Jobs even more leverage with Disney or any replacement studio.

At Disney, some executives aren't ready to concede defeat.

"I would love to think it's never over until it's over," Disney studio Chairman Dick Cook said.

Disney President Robert Iger, however, recently sounded resigned when asked about Disney's future with Pixar.

"It would be nice to continue that relationship into infinity, but . . . I think we outgrow one another in a sense," Iger said. "And while I'm not ruling out some continuation, it's unlikely that there will be one."

Iger suggested that Pixar had "weaned itself from its need for Disney."

But people close to the Disney president said he had privately expressed regret for coming across as too pessimistic. They said Jobs liked Iger and would be open to resuming talks if he replaced Eisner.

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Disney uses feng shui in Hong Kong

The Walt Disney Co. is taking a series of steps to address cultural sensitivities as it prepares to open Hong Kong Disneyland a little more than a year from now, the company's president said.

The new theme park, long controversial because of the Hong Kong government's lavish investment in it, will include local food and music and provide services not only in English but also in two Chinese languages, said Robert A. Iger, Disney's president and chief operating officer. He described these steps as part of a broad effort to recognize national differences.

"We know if we're too U.S.-centric, the products won't be too relevant to those markets," Iger said. "That's particularly true as it relates to Hong Kong Disneyland."

Esther Wong, a spokeswoman for Hong Kong Disneyland, said that the company had rotated the orientation of the entire park by several degrees in the early design phase after consulting a master of feng shui, a Chinese practice of seeking harmony with spiritual forces.

The park is scheduled to open sometime late next year or early 2006.

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Complete Episodes Of SOAPnet's New Reality Series 'I Wanna Be A Soap Star' To Be Seen On America Online

Through a unique promotional partnership with America Online, SOAPnet will make its new reality series, "I Wanna Be a Soap Star," available online and on demand to AOL members. The six-episode series will track 12 aspiring actors as they lie, cheat and learn how to make love for the cameras while vying for the ultimate prize -- a 13-week role on ABC's "General Hospital."

Beginning October 19, and every Tuesday through November 23, soap fans will be able to view a complete new episode of "I Wanna Be a Soap Star" at AOL Keyword: Daytime, three days after the episode's original network airing. The series premieres on SOAPnet on October 16 at 8:00 p.m. ET/PT. On Tuesday, November 30, AOL Television will premiere a five minute reel of video highlights showcasing the winner of the competition. The series can be optimally viewed online through AOL® for Broadband.

"By offering full episodes of 'I Wanna Be a Soap Star' online, we're continuing to break new ground in using the Internet as a tool to drive awareness and sampling for television shows," said Patricia Karpas, Vice President and General Manager, AOL Television. "We have a large and active community of television fans -- including a strong base of reality television fans -- so we know our members will be excited to experience this show online each week."

"We are thrilled to work with AOL to bring SOAPnet original programming to a whole new audience," said Deborah Blackwell, General Manager, SOAPnet. "We are always looking for new and innovative ways to drive awareness of SOAPnet and provide programming that loyal soap fans crave. This is an incredible opportunity for SOAPnet, viewers and AOL members."

Cameron Mathison, best known as Ryan Lavery from ABC's "All My Children," serves as host of the series, leading the wanna-be's through various challenges. The contestants' performances are evaluated by judges Michael Bruno, Talent Manager; Debbi Morgan, actress ("Port Charles," "General Hospital," "All My Children"); and Mark Teschner, "General Hospital" Casting Director.

Contestants are paired with each other and will delve into the unique style that makes daytime television continually sexy and fun. They will practice love scenes, crying on cue and slapping their partner. Each episode will include all the lying, cheating and backstabbing they will resort to in order to avoid being eliminated at the end of the day.

This exclusive partnership comes on the heels of AOL Television's groundbreaking promotional initiative surrounding The WB's critically acclaimed new series "Jack & Bobby." In a television first, AOL for Broadband members were given the unique opportunity watch the premiere episode online and on-demand prior to its network debut. Members viewed the episode nearly 700,000 times online.

AOL Television is a leading online destination for TV viewers who want to be informed, engaged and entertained, and provides the resources to help viewers make informed viewing decisions. Its signature feature, TV's Top 5, optimally experienced through AOL for Broadband, lets members relive, rate and talk about the top TV moments of the previous day. In addition, AOL Television also provides extensive, personalized listings; the ability for TiVo® home networking members to record programs directly to their TiVo units through AOL; sneak peeks and exclusive video from today's most popular shows; polls, message boards and chats where TV fans can voice their opinions; and AOL Alerts and Reminders to help ensure members don't miss their favorite programs.

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Tokyo Disney Resort Videos

Tokyo Disney Resort - Everything you've heard about these parks is absolutely true! They are amazing parks. Personally we liked Disneyland a bit better than DisneySea just because there is more to do there, but both of them are amazing. The level of detail and the efficiency of the staff is better than any park we've ever been to.

We were a bit nervous to visit the "busiest parks in the world" but we found them so well run that the longest line we ended up in was only about 30 minutes. And we rode everything at both parks multiple times!

I would say that TDL is my favorite of all the "Magic Kingdoms" because it's kind of a 'greatest hits' of all of them. It includes ride from Disneyland that aren't at WDW (Roger Rabit's Cartoon Spin, Pinocchio, etc) and rides that are at WDW, but not DL (Buzz Lightyear, etc) and then better versions of both (Pooh's Honey Hunt).

Japan was fairly easy to navigate, nowhere near as difficult or expensive as we were led to believe. Seriously an amazing place, I highly reccomend it.

Parque Espana - This is kind of a 'little known park'. I don't know anyone who has been there, and I've seen very few pictures and video of it. And I'm surprised because it ended up being a highlight on our trip! Not only did Pyranees exceed our expectations (you can tell it's old-school B&M) but the park was really nice!

Not quite on the Disney or Universal level, however, but it has some VERY nice themed rides. More on par with a Busch park or Parc Asterix, IMO.

Japan seems to have a thing about these 'covered main streets'. Disney has it, Universal has it, and even Parque Espana has it!

One of the two days we were at this park, we got hit by a Typhoon!  Which actually closed all of the outdoor rides. Imagine our dissapointment getting there to see Pyranees closed! But we went back and it was well worth it. If anything, the 'typhoon day' made for some very interesting footage! =)

Anyway, check out both videos here:
http://www.themeparkreview.com/videos/video.htm

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Haunted Mansion Residents Spotted Around Southern California

On October 14 & 15, Disneyland's famed Hitchhiking Ghosts traveled around Southern California as we enter the Halloween season. They were spotted on Rodeo Drive, at area campuses and at other famous landmarks.



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Euro Disney Pins Hope on Additions

 

A crane hangs low over the Walt Disney Studios park here, putting into place the latest addition to Euro Disney's 12-year-old, multibillion-dollar amusement complex east of Paris, billed as the most widely visited tourist attraction on this side of the Atlantic Ocean.

"It may sound corny, but Walt Disney once said that as long as there's imagination left in the world, the parks will never be finished," said the guest relations manager, Ian Benjafield, sitting in a faux Victorian parlor with a slightly embarrassed smile.

He wasn't allowed to say more about what was going up behind the white construction wall (rumors are that it will be a Tower of Terror ride culminating in a stomach-churning drop in a mock elevator). But it may take more than imagination to keep Euro Disney growing.

Declining ticket sales and towering debt have spooked the lenders who have kept the park afloat since it was opened in 1992. Last month, Euro Disney skirted bankruptcy when creditors agreed to changes in its loan obligations, canceling some, after a tense month of negotiations.

Euro Disney, 39 percent owned by The Walt Disney Company, has been weighed down by roughly $3 billion in debt, a legacy of the money borrowed to build the theme park, and by its requirement to pay royalties to its American parent.

Analysts have estimated that the park needs 17 million customers a year for a profit. But without new attractions, the park will have trouble increasing ticket sales or satisfying customers if they do. Already, with more than 12 million visitors a year, lines at the park can reach patience-testing lengths.

For seasoned Disney visitors, the appeal of the Pirates of the Caribbean or the Haunted House or even the newer Space Mountain roller coaster, introduced in 1995, is questionable against the park's $50 one-day entrance fee ($37.50 for children 3 to 11), at $1.25 to the euro.

The company opened Walt Disney Studios adjacent to the main Disneyland Park in March 2002, hoping to draw more visitors and boost revenues. But with only 10 attractions at the studios - which are mostly longer lasting, special effect shows - compared with 49 at the main park, and with a separate admission fee as expensive as the main park's, the studios drew only two million visitors last year, a third of the number expected.

A single ticket to both the main park and Disney Studios is now available at $61.25, nearly half what it was. But on a recent visit to the studio park, one of the attractions was closed for repairs, another was closed between shows and the lines for English- or French-speaking visitors at a third were prohibitively long (the lines for people speaking Italian or Dutch were much shorter).

Part of the problem is that Euro Disney was conceived on an American model, designed for families to spend several days in the complex that now includes a cluster of hotels and peripheral amusement centers, such as movie theaters and live-action shows, outside of the main Disneyland compound.

That model hasn't appealed to Europeans to the degree that the park's investors had hoped. Much of the entertainment, meanwhile, is in French, reducing the appeal for visitors who don't speak the language. And the multilingual demands of Europe add to the park's operating costs.

One result is that, while lines are long at the main Disney attractions, the rest of the complex - which Euro Disney officials say covers an area one-fifth the size of Paris - feels empty.

André Lacroix, Euro Disney's fifth chief executive in just over a decade, is trying to increase attendance by cutting ticket prices on so-called Magic Nights from 5 to 11 p.m., and by promotions for holidays including Halloween and Mardi Gras.

The real draw, though, will be dazzling new attractions - Disney won't say how many or when they will open -whose construction, at $100 million to $200 million each, depends not on tourists but on investors.

A study earlier this year by law professors at Stanford University, the University of Texas and the University of Cambridge found that certain directors do bad jobs, "sometimes spectacularly," but rarely face personal liability.

To be fair, directors have started to get roughed up a bit. Judges, in Delaware and elsewhere, have ruled against board members in a series of recent cases, including ones against directors of Oracle, (up $0.24 to $12.24) Martha Stewart Living Omnimedia (up $0.47 to $16.55), and eBay (down $1.71 to $93.76).

Though none of the cases so far have resulted in fines, the rising threat of monetary penalties is one reason insurance rates for company officials have skyrocketed.

"It's getting ridiculously expensive to insure directors and officers," said Charles King, who specializes in recruiting directors as head of global board services for Korn/Ferry International, the executive search firm.

The Disney-Ovitz dustup highlights, too, the mounting controversy over executive pay. Studies by compensation experts have shown that salaries for CEOs and other corporate execs have ballooned even as company performance has lagged.

Although the issue has come up in a number of cases -- including an ongoing bitter brawl between ex-NYSE Chairman Richard Grasso and New York Attorney General Eliot Spitzer over a $187 million pay package -- investors groups so far have fought a losing battle. 

There are no laws restricting CEO compensation. Instead, corporate watchdogs, including Disney shareholders, are calling for a bigger voice in appointing directors. They haven't had much success so far.

Shareholder activists also hope to rein in CEO pay by forcing public companies to count employee stock options -- huge drivers of executive comp in recent years -- against profits.

Those efforts suffered a setback Wednesday when the Financial Accounting Standards Board, which sets U.S. accounting rules, delayed enacting a stock option expense requirement until mid-2005.

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Vice president meets Walt Disney president 

Chinese Vice President Zeng Qinghong met with Walt Disney President and Chief Operating Officer Robert A. Iger in the Great Hall of the People here Saturday.

They discussed cultural and people-to-people exchanges between China and the United States in a friendly atmosphere. Enditem

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Disney faces uphill battle in TV race

Walt Disney, the second-largest United States media company, faces regulatory hurdles to starting a television channel in Guangdong, according to president Robert Iger.

"Stringent regulatory issues" may mean a Disney channel in China isn't imminent, he said. "We'd love a channel in China, but there are obviously a lot of hurdles."

Disney is vying with Viacom and News Corp to expand on the mainland.

China, which limits distribution of overseas-owned channels, eased some curbs this year on foreign investment in film and television.

The most open media market is Guangdong, which has a population of 86 million.

"Every major Western media firm is going to push as hard as they can to take a bite out of that apple," Straszheim Global Advisers chairman and chief executive Donald Straszheim said of China.

"It's a big market, a logical market, for Disney to be in."

Disney had proposed setting up a TV channel with Southern Media, an arm of the Guangdong Administration for Radio, Film and Television, the head of foreign affairs at the company, Hou Shengbao, said.

"We're not considering opening a TV channel with Disney because conditions aren't ripe," Hou said.

"We will first co-operate with Disney on TV programmes, and discussions are under way on that."

Warner Bros is setting up its first film production venture on the mainland with China Film Group and Hengdian Group.

The Beijing-based venture, the first of its kind to get central government approval, expects to start production early next year.

Viacom is likely to get approval next for ventures in Beijing and Shanghai.

Viacom in March became the first overseas investor to take a stake in a TV production company in China. Viacom, the third-largest US media company, plans a second venture after getting wider distribution for its MTV music channel and Nickelodeon cartoons.

Phoenix Satellite Television, 38 per cent owned by News Corp, broadcasts into China from the SAR.

Iger has said previously that Disney plans to expand its television presence in China, India and Europe as part of an effort to extend the Disney brand and drive growth in its movie, DVD, theme park and other businesses. The company will start a TV channel in India next year.

Iger said on Friday Disney is not lagging its rivals.

"We are the largest supplier of television programming into China of any of the Western media conglomerates and that's only going to grow," he said.

Government regulation in China makes US media companies cautious about investing there.

"There is still fairly tight control over content" in China, Straszheim said. "Everybody has to be careful in that part of the world, and that's not going to change any time soon. They're going toward a market economy, and eventually there will be a more free media."

Iger, who oversees the ABC television network and ESPN, is the only internal candidate being considered, along with outside contenders, to succeed Michael Eisner as Disney's chief executive. Eisner said last month that he plans to retire in September 2006.

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Disney's China Channel Push Faces Hurdles, Iger Says

Walt Disney Co. President Robert Iger, the only internal candidate to succeed Chief Executive Michael Eisner, said the company faces regulatory hurdles to starting a channel in China's southern province of Guangdong.

"Stringent regulatory issues" may mean a Disney channel in China isn't imminent, Iger said last night in Shanghai, where he was attending a National Basketball Association game sponsored by Burbank, California-based Disney. "We'd love a channel in China but there are obviously a lot of hurdles."

Disney, the second-largest U.S. media company, is vying with Viacom Inc. and News Corp. to expand in a country with more than 1 billion potential viewers. China, which restricts what news organizations can report, eased some curbs on overseas broadcasters this year, including dropping a ban on foreign investment in film and television.

"Every major Western media firm is going to push as hard as they can to take a bite out of that apple," Donald Straszheim, chairman and chief executive of Straszheim Global Advisors in Los Angeles, said of China. "It's a big market, a logical market, for Disney to be in."

Time Warner Inc.'s Warner Bros is setting up its first film production venture in China with China Film Group and Hengdian Group as partners, the South China Morning Post said today, citing Ellen Eliasoph, Warner Brothers Pictures International' managing director for China.

The Beijing-based venture, the first of its kind to get Chinese government approval, expects to start production early next year, the Post said. Viacom Inc. will probably get approval next for ventures in Beijing and Shanghai, it said.

TV Ventures

Viacom in March became the first overseas investor to take a stake in a TV production company in China. Viacom, the third- largest U.S. media company, plans a second venture after getting wider distribution for its MTV music channel and Nickelodeon cartoons, Chief Executive Sumner Redstone said Sept. 24.

Phoenix Satellite Television Ltd., 38 percent owned by Rupert Murdoch's News Corp., broadcasts channels into China from Hong Kong.

Iger said in London Sept. 29 that Disney plans to expand its television presence in China, India and Europe as part of an effort to extend the Disney brand and drive growth in its movie, DVD, theme park and other businesses. The company will start a TV channel in India next year, he said.

Iger in his interview yesterday said Disney isn't lagging behind rivals.

"We are the largest supplier of television programming into China of any of the Western media conglomerates and that's only going to grow," he said.

Theme Parks

Government regulation in China makes U.S. media companies cautious about investing there, Straszheim said.

"There is still fairly tight control over content" in China, said Straszheim, the former chief economist at Merrill Lynch & Co. "Everybody has to be careful in that part of the world, and that's not going to change any time soon. But they're going voluntarily toward a market economy, embracing it heartily, and eventually there will be a more free media."

Disney's $3.5 billion theme park under construction in Hong Kong is on schedule to be completed in about a year, Iger said. The U.S. company is also in talks to build a park in Shanghai, he said today. Disney has said it has ruled out building a theme park in mainland China for six years.

"We have been engaged in discussions with the Shanghai government about a theme park here for a significant period of time," Iger said. "It's premature to suggest whether and when we will conclude a deal but this is a great market."

Rising Income

A theme park in Shanghai, China's biggest commercial city, wouldn't take business from the Hong Kong Disneyland, which was mostly funded by the city's government, Iger said. China is a "huge market" that can support more than one park, he said.

Disney forecasts 40 percent of the Hong Kong park's visitors will come from the mainland, higher than its initial prediction of one-third, because the Chinese government has loosened travel restrictions and incomes are rising.

Per capita disposable incomes in China's towns and cities grew 12 percent to $583 in the first half compared with a year ago as the country's economy expanded 9.7 percent. That's the fastest rate among the world's 20 biggest economies.

Disney invested HK$2.45 billion ($314 million) for a 43 percent stake in Hong Kong International Theme Parks Ltd. The park, being built on a 126 hectare (311-acre) site near the city's airport, will include two hotels with 1,000 rooms and a retail, dining and entertainment complex.

ABC

Iger, who oversees the ABC television network and ESPN, is the only internal candidate being considered, along with outside contenders, to succeed Eisner as Disney's chief executive. Eisner said Sept. 9 that he plans to retire in September 2006, when his contract ends.

Former Disney directors Roy Disney and Stanley Gold said this month that Iger, 53, shouldn't be promoted to chief executive because he failed to fix the unprofitable ABC network and isn't responsible for the success of ESPN, the company's cable-TV sports unit.

Disney has set a target of returning ABC to break-even or profit this fiscal year, ending in September. The network has gained audience share against rival NBC since the U.S. television season began last month, helped by "Lost," a show about 48 people who crash land on an island, and "Desperate Housewives."

"So far, signs are good," Iger said. ABC's executives "are better positioned than they were a while back and probably better than they thought they would be."

The Shanghai game between the Houston Rockets and the Sacramento Kings, the first NBA match to be staged in China, was a sell-out. Yao Ming, the 7-foot-5 Rockets center, is China's most popular athlete. A second game will be held in Beijing on Saturday, with both televised by ESPN.

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Honeymooning Woods skipping Disney

The honeymoon is not quite over for Tiger Woods, who decided Friday to skip the Funai Classic at Disney for the first time since turning pro.

Disney officials said Woods did not meet the 5 p.m. deadline for entering the tournament. He has been roaming the Caribbean on his 155-foot yacht, ``Privacy,'' since getting married Oct. 5 in Barbados to Elin Nordegren.

Disney is the only PGA Tour event Woods has played every year since he turned pro in late 1996. He won that year to qualify for the Tour Championship in just seven starts as a 20-year-old, and he won again in 1999 when he closed out the season with four straight victories.

Woods tied for second last year, four shots behind Vijay Singh.

The U.S. Coast Guard briefly detained Woods, his wife and their crew when they failed to notify authorities of their arrival at port in San Juan, Puerto Rico. Their previous stop had been St. Kitts.

Woods already has played 18 times on the PGA Tour this year, the same number as the previous two years. His next appearance likely will be the Tour Championship in Atlanta, which starts Nov. 4 at East Lake.

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Disney revs for India, China may take time: Iger

Even as Walt Disney is working overtime to have everything in place for what now looks increasingly like a year-end coming out party for its three channels in India, the going is not quite so smooth in neighbouring China.

The timeline of the launch of Disney in India appears to have been advanced to the year-end (December-January) instead of the March-April timeline that was earlier being talked about.

Additionally, the three channels that will be launching are also now clear. The Disney Channel will be the flagship, Toon Disney (to directly take on Cartoon Network) and Playhouse Disney for pre-schoolers.

And what of the localised version of ABC, which German business daily Handelsblatt had quoted David Hulbert, president Walt Disney Television International, as saying would definitely happen within a year?

The thinking appears to be that with three well entrenched players in Star, Sony and Zee having pretty much carved out most of the ad pickings in the Hindi general entertainment space, that is an idea that can wait.

Meanwhile, regulatory hurdles to starting a television channel in Guangdong may mean a Disney channel in China isn't imminent, Disney president Robert Iger has been quoted in media reports as saying.

Guangdong is the most open media market in China and has a population of 86 million.

Rivals Viacom and Newscorp are ahead of Disney as far as China ventures are concerned. Viacom expects to launch ventures in Beijing and Shanghai in the near future while Phoenix Satellite Television, 38 per cent owned by News Corp, broadcasts into China from the SAR.

Iger has been quoted as saying in London on 29 September that Disney plans to expand its television presence in China, India and Europe as part of an effort to extend the Disney brand and drive growth in its movie, DVD, theme park and other businesses. The company will start a TV channel in India next year, Iger said.

DISTRIBUTION STILL THE BIG QUESTION

That Disney India has been on an aggressive recruitment drive to shore up its team ahead of the launch of its three channels is well known. But the ad that appeared in a leading pink paper on Tuesday certainly raises some queries.

While the ad Disney placed seeks suitable candidates for the full gamut of channel activities - distribution, ad sales, programming, S&P, legal and finance - the focus was clearly on distribution.

Disney is looking for an India distribution head as well as regional heads (east, west, south, north) who will report to the national head.

It may be just a coincidence, but the attention of indiantelevision.com had been drawn to this very fact earlier by the distribution head of a channel. According to him, this could well point to the possibility of Disney not hitching on to any platform but going it alone the way the just launched Times Group channel Zoom has chosen to do.

What did lend some substance to this thesis were of course the recent recommendations issued by broadcast regulator Trai suggesting that all new pay channels should not be packaged as part of an existing bouquet but should be priced separately.

If implemented, what this would do is remove any advantage that a strong platform will provide a new channel.

Of course, it could also be simply that Disney head Rajat Jain believes that whether on a platform or otherwise, a dedicated distribution team is essential to have a clear handle on the exact status of the channel/s on the distribution front. Having come from Sony, he would obviously be aware of the how NDTV's channels only picked up after a dedicated distribution team was set up by Dr Prannoy Roy's network to push the two channels.

For the record, though there is still no official word on the matter, the industry expectation still is that it will be the Star Network wagon that Disney hitches its distribution fortunes to.

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Is it a Carnival?

Disneyland Paris - What is happening to the Disney Village? On one side additions like the upcoming IMAX or the Rock'n'Roll America replacement King Ludwig's Castle are bringing in fresh concepts presented in (at least the case of King Ludwig's) lush atmospheric settings. On the other hand a carefully themed shop like Team Mickey with its race track floor and sport / stadium themed interior is "de-themed" to become a rather blund-outlet-mall regular type clothing store. Heck, we do not even mention all the cheap, tacky looking (but for guests with children expensive) up-charge traveling fun fair attractions that were cluttering the walkways this summer like bumper boats, mini-go-carts, mini-electric-carts or the trampoline (even so that one was at least not as expensive as the trampoline the Explorers' Club put up right in front of its hotel entrance). While certainly a lot of children had fun on these "attractions" not every parent was happy of having to walk past these contraptions with its children when not taking the shuttle bus to the parks. Now that these "attractions" are leaving for the winter with mainly the new, non-temporary up-charge carousel next to the Rainforest Cafe still in place the Village has found something else to import from traveling fun fairs and downtown areas: a kebab-sales kiosk!! Newly opened in one of the columns of the Disney Village it is offering this Turkey inspired fast food now to the guests of the Village.

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The Game of LIFE Pirates of the Caribbean

Aye matey…Journey through A Pirate's Life and do the things a Pirate does! Be one of the first to own this new action packed game exclusive to Walt Disney Parks and Resorts! This game will premiere at Once Upon a Toy at Downtown Disney® Marketplace on Saturday, October 16th. Meet the creative scallywags (Disney Design Group Artists) Quynh Kimball and Keri Murphy from 5:00 PM -7:00 PM and have your game tin signed. This Game of LIFE - A Pirate's LIFE, is geared for 2 to 6 Pirates, ages 9 and above and retails for $50.

If you are unable to attend and wish to purchase this new exciting game, please contact Walt Disney Event Services at 407-827-7600 before October 15th to place your order. (Normal shipping charges will apply) Orders placed before October 15th will be signed by the Disney Artists.

* Offer good while supplies last. Event and artist appearances are subject to change.

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Special Offers Announced for Disneyland Annual Passholders

The Annual Passholder section of Disneyland.com announces an offer for an AP only trick-or-treat bag featuring The Incredibles, a special offer on the 50th Anniversary Brick, and more. View the Annual Passholder holiday newsletter pdf.

http://disneyland.disney.go.com/dlr/annualPassholder/index?bhcp=1

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Mel Tries TV

EL Gibson will make a rare TV appearance, on his own show, when he plays a '70s-era cop on ABC's "Complete Savages."

Gibson, who executive-produces the sitcom, will appear in the Oct. 22 episode. In it, Gibson will play a cop in a "Blood on the Highway"-type auto safety video.

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Destino

October 1, 2004 - January 30th, 2005

In 1946, Walt Disney commissioned from Dalí an animated short based on the song Destino, by Mexican artist Armando Domínguez. The film was to combine ballet and animation, and was meant to form part of a feature length film of short stories. But in the end, the project failed. The hundred scenes, drawings and paintings made personally by Dalí have remained hidden over more than half a century.

Recently, Roy Disney, grandson of Walt Disney, and producer Baker Bloodworth produced the short film following the artists' instructions and preparatory sketches. The film received an Oscar nomination in the short animated film category. Mr. Disney enlisted the assistance of legendary animator John Hench (who died February 5, 2004), who collaborated with Dali on the original 1946 project. The pair worked so closely, Dalí often stated that he was unable to tell the difference between their work. 

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Ahoy Mickey! What We Like About Disney Cruises

So many folks love Disney, that great all-American symbol of wholesome family fun. Year after year millions and millions of people fork over big bucks to spend time with that famous mouse and his friends at Disney World or Disney Land.

It's the same story with Disney's pair of cruise ships (tel. 800/951-3532; http://www.disneycruise.com/). Built in the late 90s as elegant, understated tributes to Walt's legacy, the Disney Wonder and Magic consistently command higher rates than other family-friendly big ship peers and sail full week after week.

Talking real numbers, here's what Funk pulls up for comparable balcony cabins on a 7-night Caribbean cruise departing January 8, 2005 (all rates are for a family of four, including port charges and taxes):

• Disney Magic (category 5), $5,709
  
• Carnival Glory (category 8C), $3,190
  
• Royal Caribbean Mariner of the Seas (category D1), $3,823
  
• Princess Caribbean Princess (category AD), $3,890

So, just what exactly is so great and valuable about a Disney cruise?

"Our clients who have cruised both Disney and other lines suggest that the onboard service particularly sets Disney apart from the mass-market lines," Funk adds.

On a recent 3-night Disney Wonder cruise to the Bahamas with my toddler twin boys, I found it was more than good service that set the Wonder apart from the pack. Sure, crew was eager, professional and ready to please, especially in the dining venues -- no small feat considering the ships typically carry about 2,500 passengers. But there were a slew of other unique family-friendly features that also appealed to this peace-seeking mother of two.

Cabins

• Done in a pleasant Art Deco style, special touches include a framed 1930s black and white photograph of Mr. and Mrs. Walt Disney on the ocean liner Rex. But it's the amenities that really count.
  
• Standard outside cabins are large and measure 214 square feet and all but the standard inside cabins boast a bath and a half; a toilet and sink in one room and a bath/shower combo and a sink in second room. In comparison, standard outside cabins are 185 to 220 square feet on Carnival's Destiny, Spirit and Conquest class ships; and 170 to 180 square feet on Royal Caribbean's Radiance and Voyager class ships -- none of these ships offer as convenient a bathroom set up.
  
• All Disney cabins have a mini-fridge, bathtub and sitting area and sofa bed; many have balconies.

Child Care, Activities & Special Amenities

• All big-ship lines (Royal Caribbean, Carnival, NCL, Princess, Celebrity and Holland America) have supervised activities for kids and private and/or group babysitting, but the services are generally offered only for children ages two or three on up. None have wading pools for children still in diapers, pull-ups or swim diapers.
  
• The Flounder's Reef Nursery on the Wonder and Magic offer the most extensive baby care at sea, accommodating young children between ages three months and three years for three to six hours during the day plus 6pm to midnight daily @ $6 an hour, reservations are required (surprisingly, it's the QM2 that comes closest with supervised care for ages one and up, while Carnival offers group sitting for children as young as 4 months 10pm to 3am nightly, plus for few hours during port days).
  
• If accompanied by parents, toddlers under age 3 can play on the jumbo-sized pirate ship and other climb-on animals and toys in the Oceaneer Club (many lines do not permit the under 3 set to use the playrooms, even with parents).
  
• In Mickey's Kids' Pool area, both ships have a special shallow splash pool with circulating water for diaper-wearing babies and toddlers.
  
• The ships' offer the largest and best-stocked kids spaces at sea that operate till 12 or 1am daily, including the cavernous Oceaneer Club for the 3 to 7 set; sprawling Oceaneer Lab for 8 to 12s with computers, microscopes and tons of other stuff; and a two-room teen complex (called "Aloft" on the Wonder and "Stack" on the Magic) with video screens, private Internet center and a disco.
  
• While other lines attract plenty of characters, only Disney can claim life-sized versions of its famous cartoon crew, who make appearances throughout the day for photo ops, hugs and handshakes with guests of all ages.

Dining and Snacking

• Free unlimited fountain sodas from a poolside station 24-7 since June 2004.
  
• Poolside snack bars offer complimentary chicken tenders, fries, burgers, pizza and ice cream nearly all day long.
  
• Cookies and pizza are included on the 24-hour room service menu.
  
• Guests can rotate among three family-friendly restaurants for dinner, each with a theme, from a parrot jungle to an animator's palette.

Entertainment

• Adult entertainment area, including a piano bar, dance club and a comedy/sing along club, is sequestered in a child- and family-free part of the ship; typically adult lounges are mixed in with the rest of the public areas.
  
• Production shows are based on Disney films and characters and follow a story line, unlike other lines' production shows that are generally musical reviews.
  
• There is no casino; for some a big plus.

Private Island

• Other cruise lines have them too, but Disney's Castaway Cay in the Bahamas offers extras the others don't.
  
• Ships pull along side Disney's private Bahamian island, Castaway Cay, all other lines with private islands anchor off shore and tender passengers to the island, which is a time-consuming process.
  
• It's the only private-island with an adults-only beach, bar and lunch area, and only island offering bicycle rentals and a 2.5-mile trail to ride them on.

Service Perks

• The captain personally autographs guests' scrapbooks, photographs and mementos in a public area at least once per cruise.
  
• Officers often mingle with passengers in the atrium before dinner and participate in Disney traditions like the "pin-trading" sessions beloved by hardcore Disnophiles.
  
• Employees have incentive to work hard; Hotel Director Mike Mahendran reports that while performance expectations are high, crew members earn 10% to 30% more than the industry standard.

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Park May Have the Prize of a Lifetime for One Lucky Soul

Deep-pocketed hopefuls bid for charity and immortality in vying to be the 1,000th ghost at Disney's Haunted Mansion.

It's a tried-and-true fundraising gimmick: Write a check, and your name is etched in a brick pathway outside the Long Beach Aquarium, or on a wall at Dodger Stadium or the Los Angeles Philharmonic's Frank Gehry-designed concert hall.

Blending philanthropy and obsession, Disneyland took the concept to a new level Thursday.
Win a charity auction on EBay, and your name and epitaph will be carved on a tombstone in the Haunted Mansion, one of the park's signature attractions.

Your grave marker could sit right there next to Rolo Rumkin ("lived and died a friendly bumpkin") or Brother Claude ("planted here beneath this sod").

"I can think of cheesy things to say: People will be dying to get into the Haunted Mansion; they will be killing themselves," said Phil Sears, an online dealer specializing in theme park collectibles and items autographed by Walt Disney.

"But they will be," he said. "Truly, the sky's the limit. This is not an item that you can look up in any price guide."

Though Disneyland has offered pieces of old rides and after-hours glimpses of the park, it has never given the public the chance to be part of an attraction.

"This is absolutely unique," said Disneyland spokesman John McClintock.

Disney fans screamed into action. The seven-day auction opened at 3 p.m. Thursday with an opening bid of $750 and jumped to $4,600 in less than an hour. By about 8 p.m., it was fetching more than $16,000.

"Never underestimate rabid Disney fans," said Jeff Baham, founder of doombuggies.com, an unofficial Internet tribute to the Haunted Mansion.

"I don't know what it is. I just bought [a Sleeping Beauty] animation cel for $1,000, and to me that's as high as I'll ever go. But some people have the means, and it's a lifestyle."

Walt Disney World auctioned a Dumbo-ride vehicle for about $18,000. Actor John Stamos paid $30,700 for part of the original Disneyland marquee. And last summer, the bidding on a front monorail car — which originally sold for $20,000 — skyrocketed to $95,000 on EBay but did not reach the seller's reserve price, Sears said.

In those cases, the victor got to take their prizes home. But with this auction — benefiting the Boys and Girls Club of America and listed on EBay as the "Disneyland Haunted Mansion 1000th Ghost Experience" — the winning bidder and a guest will be flown to Disneyland for a midnight "wake" and "burial" on Oct. 28.

The tombstone will carry only the winner's first name and an epitaph written and personalized by Walt Disney Imagineers, inspired by the winner's interests and hobbies. The winner will also receive a replica of the tombstone.

Some Haunted Mansion purists are concerned, Baham noted, that the added tombstone could debunk the ride's mythology that it is home to 999 happy haunts with room for one more.

Disneyland officials appeared sensitive to the issue and have deemed that the high bidder will be only an "honorary" ghost.

Halloween Weekend at Downtown Disney

"HAPPY HAUNTING!!"

October 30-31 (5:00pm - 9:00 pm)

Trick Or Treat at the following locations:
Disney's Days of Christmas, World of Disney, Disney at Home, Pooh Corner, Disney's Pin Traders, Once Upon a Toy, Mickey's Groove, West Side Pin Cart, 1st Floor DisneyQuest, Mouse House, Team Mickey's and Hotel Plaza Resort Merchandise Locations.

Kids DJ Dance Party at the Dock Stage (Marketplace)

Two Kids' Costume Parades will be featured

Vote for your Favorite Jack O Lantern on October 30 , winner displayed on the 31st

Photo Opportunities throughout the Marketplace and the West Side

Ghosts and Goblins appearing throughout the Marketplace area

Skeleton Stilt Walkers appearing at 6:00, 7:00 and 8:00

Balloon Artists at 5:00, 6:00 and 7:00

Magician Performs at 6:30, 7:30, and 8:30

Juggling Duo Performs at 5:30, 6:30, and 7:30

This event may be cancelled in the event of heavy rain or inclement weather.

There is no admission required to enter the Downtown Disney Marketplace or West Side areas.

Disney "outperform," target price raised

 

Analyst David Mantell of Loop Capital Markets maintains his "outperform" rating on Disney (DIS). The 12-month target price has been raised from $26 to $27.

In a research note published this morning, the analyst mentions that the preliminary trends suggest considerable success for Disney's ABC television network in the ongoing fall TV season. Loop Capital Markets does not expect the operating performance of the company's Parks & Resorts division to have witnessed any significant adverse impact in 4Q FY04 of the recent string of hurricanes in the Florida region. The analyst expresses his optimism regarding the improved revenue and operating income growth momentum at Disney's Broadcasting and Cable Networks divisions, going forward.

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Halloween Hayrides at WDW Ft. Wilderness Cancelled 

This years Halloween hayrides, which recreate the legend of Sleepy Hallow, have been cancelled. No reason was given by Walt Disney Representatives but we suspect that due to the damage Ft Wilderness received during the Hurricanes. 

 
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Fictional Billionaires

 

Mickey Mouse may be 75, but age hasn't put a damper on his earning power. Last year Mickey and Disney pals Minnie, Donald, Daisy, Pluto and Goofy grossed $5.8 billion from toys, movies and the like. That's 23% more than the year before, when Disney's Winnie the Pooh topped the list. Why the mouse's rebound? Credit hoopla and new products--including adult apparel--tied to Mickey's milestone birthday last year. For more details, stories and methodology.

 

#1 Mickey Mouse & friends $5.8 billion

 

#2 Winnie the Pooh & friends $5.6 billion

 
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From 'Sex' to Disney   

 

After a six-year run on Sex and the City, Kristin Davis is in talks to star in Disney's remake of The Shaggy Dog, The Hollywood Reporter said Friday.

Davis -- who earned an Emmy nomination this year for her performance as Charlotte York on Sex and the City -- would play Tim Allen's wife in the updated take on Disney's 1959 comedy about a boy who occasionally changes into a sheep dog. In the new version, it will be Allen's character who crosses the species boundary.