News, Analysis and Reviews of the Disney Entertainment Business
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Brought to fans, investors, entrepreneurs, executives, teachers, professors, and students by columnist, economist, novelist, reviewer, podcaster, business reporter and speaker Ray Keating
A couple of unfortunate, regular occurrences seem to be emerging from Disney when it comes to their major franchises. One has been that budgets for movies and shows are running wildly out of control. Second, the quality of the final product has been, to be generous, under-whelming, with excellence (or at least being pretty good) too often now ranking as the exception.
Of course, a key question is: How do those calling the shots react?
Let’s look at the latest controversy emerging in the Star Wars universe.
The Acolyte eight-episode Star Wars show premieres on June 4 on Disney+. The trailer wasn’t exactly gripping, which is problematic as trailers should be the best foot forward. But as a fan, I always try to hope for the best. We’ll see.
But in terms of the budget, The Acolyte follows on recent Disney efforts, as this eight-episode series cost a whopping $180 million. Yikes.
Second, the person heading up Lucasfilm, Kathleen Kennedy, has served up self-indulgent comments in the face of criticisms. The latest such case comes courtesy of a New York Times report. Kennedy was interviewed, and declared, “Operating within these giant franchises now, with social media and the level of expectation — it’s terrifying… I think a lot of the women who step into ‘Star Wars’ struggle with this a bit more. Because of the fan base being so male dominated, they sometimes get attacked in ways that can be quite personal.”
Hmmm. Is it the best strategy for a studio head to effectively attack its fanbase? Seems like a bad idea. Also, while there always are plenty of idiots spouting off on social media, given that there are widely beloved female characters in Star Wars, such as Princess Leia and Ahsoka Tano, are all failures in Star Wars now about a toxic fanbase? Shouldn’t the head of Lucasfilm be taking a closer look at how to produce big-budget entertainment with wide appeal?
The idea of “blaming the audience” is appealing – and it might help the individual creator to cope on occasion, and it might even be correct at times – but it isn’t a luxury afforded to a person leading a studio. Disney needs to take a hard, close look at what’s going on at Lucasfilm.
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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.
The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?
The Disney Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement and fun for Disney fans, including those who love Mickey, Marvel, Star Wars, Indiana Jones, Pixar, princesses and more.
Never miss any new book by Ray Keating by joining the Pastor Stephen Grant Fellowship with Ray Keating at
• Cathedral: An Alliance of Saint Michael Novel is at Amazon.
• Order The Weekly Economist III:Another 52 Quick Reads to Help You Think Like an Economist, The Weekly Economist II:52 More Quick Reads to Help You Think Like an Economist, and The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist at Amazon.com.
Guess what movie was Number 2 at the domestic box office this past weekend (May 3-5)? It was the special re-release of a 25-year-old Star Wars movie.
That’s right, Star Wars: Episode I – The Phantom Menace took in $8.7 million, according to BoxOfficeMojo.com, and that was second behind The Fall Guy ($27.7 million).
Hmmm. I’m not sure if that says more about the current state of movies in theaters or the lasting effects of Star Wars. Probably both are at work here.
By the way, when released originally in 1999, the film cost $115 million to make, and it pulled in more than $924 million in gross box office revenues. That’s a major box office success.
And as for those who still diss the Star Wars prequels, while each film had its problems, they actually have improved with age, like a fine wine. Star Wars creator George Lucas directed The Phantom Menace, and there’s much to appreciate.
My favorite moment is the final light saber battle where Qui-Gon Jinn and Obi-Wan Kenobi take on Darth Maul. Lucas excels with these kinds of operatic scenes. But there’s a great deal more than action here to appreciate. Watch how each character acts or reacts when the fighting is paused periodically due to the forcefields engaging. Darth Maul paces like a caged animal. Qui-Gon kneels and meditates. And the young Obi-Wan bounces, wanting to get back in the action.
Great stuff.
I’m glad I journeyed to the theater this past weekend to catch The Phantom Menace on the big screen – apparently with a good number of other people.
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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.
The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?
The Disney Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement and fun for Disney fans, including those who love Mickey, Marvel, Star Wars, Indiana Jones, Pixar, princesses and more.
Never miss any new book by Ray Keating by joining the Pastor Stephen Grant Fellowship with Ray Keating at
• Cathedral: An Alliance of Saint Michael Novel is at Amazon.
• Order The Weekly Economist III:Another 52 Quick Reads to Help You Think Like an Economist, The Weekly Economist II:52 More Quick Reads to Help You Think Like an Economist, and The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist at Amazon.com.
Bright suns, friends! Hope you are reveling in your Star Wars fandom today, or for those of you talking a walk on the Dark Side, enjoy your “Revenge of the Fifth” celebrations tomorrow.
Several years ago, my son gifted me the Star Wars Galaxy’s Edge: The Official Black Spire Outpost Cookbook for Christmas, and each year, we break it out for May the Fourth and choose a different recipe to try for Star Wars Day. Some of the recipes are more involved than others, while some require more readily available ingredients and less skill to assemble.
If you aren’t familiar with theStar Wars: Galaxy's Edge: The Official Black Spire Outpost Cookbook, it is a fun read. The book is told in the voice of Chef Strono Tuggs, known as “Cookie,” the head chef at Maz Kanata’s castle. Cookie quotes in the book, “Food is art,” and the Star Wars Galaxy’s Edge cookbookis truly art. Even if you have no intention of actually whipping up the recipes in the book, the photography and illustrations in the book are beautiful to flip through, even for non-cooks. The backstories Cookie shares in his discussion of each recipe contribute a whole lot of depth to the Star Wars universe, and hardcore fans will find a lot to enjoy just in the narration in Cookie’s manuscript. (The book is brought to you, in the real world, by authors Chelsea Monroe-Cassel and Marc Sumerak, who have a number of genre cookbooks to their credit, and photographer Ted Thomas.)
Now, on to the recipe we selected for this year’s feast and movie marathon. Chef Cookie explains that this particular dish is from the planet Naboo, where herds of shaak roam the grasslands. He assures us that this recipe is so delicious that it is “sold out as soon as I open the pot.”
We agree. Not only was this a pretty easy dinner to whip up, but it was one of the meals we’ve enjoyed the most from the Galaxy’s Edge cookbook (which, admittedly, sometimes has some very strange recipes!)
If you want to join in the Star Wars fun this year, here's the recipe we used from the Black Spire cookbook. (Side note: DisneyBizJournal does not receive any compensation from the sale of the book – we just like it!)
Ingredients:
2 or 3 pounds pot roast (beef round roast) 1/4 cup soy sauce, or more to taste 3 cloves garlic Water as needed 8 ounces Cavatelli or Orecchiette pasta 6 Tablespoons olive oil 1 ½ cups whole pearl onions, peeled 2 cups mushrooms, sliced 1 heaping cup kale, torn into small pieces ½ cup rainbow carrots, peeled and shredded 1-2 Tablespoons seasoned panko bread crumbs Salt & pepper
Directions:
1. Place the beef in a medium saucepan along with the soy sauce and garlic. Fill with just enough water to cover the beef, then set over medium heat, cover and cook for about 2 hours, until the meat has started to soften and is cooked through.
2. Using a pair of forks, divide the beef into smaller pieces, and allow to cook about 1 hour more, until the beef is very tender. Remove to a separate plate and keep warm.
3. Once the beef is cooked, bring a large pot of salted water to a boil for the pasta. Add the pasta and cook according to package instructions, until soft, but still a little al dente. Drain the pasta and keep warm.
5. Remove from the heat, and stir in the kale until it is wilted. Add about 1/2 cup of the beef liquid to each serving bowl, then divide the pasta between them. Stir the mushroom, onion, and kale mix in with the cooked pasta and keep warm.
6. Place the cooked beef on top of the pasta, then follow with the carrots and a pinch of the seasoned bread crumbs. Season to taste with salt and pepper.
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Beth Keating is a theme parks, restaurant and entertainment reporter for DisneyBizJournal.
Get The Disney Planner: The TO DO List Solution by Ray Keating. More information at
Star Wars fans, mark your calendars! Starting April 5, 2024, “Star Tours – The Adventures Continue” will be adding new scenes to your flights to hyperspace. The Star Tours 3-D flight simulators at Hollywood Studios at Disney World, Disneyland California, and Disneyland Paris will all be adding the new scenes, bringing the possible story combinations to more than 250.
The new scenes will feature characters and locations from the Disney+ series Ahsoka, Andor, and The Mandalorian.
If you’ve never had the opportunity to board a Starspeeder 1000, you’ll grab your 3-D glasses, and settle in for your flight. Protocol droid C-3PO takes the controls, but then things go terribly awry. You are intercepted by Imperial or First Order forces, who are searching for the Rebel spy. Is it you? C-3PO will help you try to escape, but the trip is going to be a bumpy one.
The plot twists to the ride are randomly generated, so you never know what planet you’ll be heading to, or what Star Wars saga characters you may encounter along the way. You just might run into Princess Leia, Darth Vader, Kylo Ren, Master Yoda, Boba Fett, or Poe Dameron on your daring journey.
According to Scott Trowbridge of Walt Disney Imagineering, “Urgent transmissions from Ahsoka Tano, Cassian Andor, Din Djarin and Grogu may soon be part of your next Starspeeder flight.”
The ride has a height requirement of 40 inches.
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Beth Keating is a theme parks, restaurant and entertainment reporter for DisneyBizJournal.
Get The Disney Planner: The TO DO List Solution by Ray Keating. More information at
Disney surprised the markets with a strong earnings report today, along with a boatload of announcements. Indeed, the first quarter 2024 earnings report was one to be appreciated by stockholders.
Let’s get to what I see as the key takeaways, and there are a good many.
First, diluted earnings per share (EPS) excluding certain items jumped by 23 percent versus the same period last year – from $0.99 to a $1.22. For good measure, Disney offered some rare earnings guidance, projecting that full year fiscal 2024 EPS excluding certain items would increase by at least 20 percent versus 2023, to approximately $4.60.
Second, the company announced a 50 percent increase in its semi-annual dividend to $0.45 per share, which will be distributed in July.
Third, Disney also announced a stock buyback of $3 billion during the current fiscal year, with further buybacks seemingly slated for the future.
Fourth, the company was bullish on its cost savings and efficiency undertakings, noting that it would hit or exceed the previously announced $7.5 billion cost savings for the year.
Fifth, the company confirmed, once more, that it was on track to arrive at streaming profitability by the end of the current fiscal year. CFO Hugh Johnston pointed out that the objective on the streaming front is to achieve double-digit margins. According to Johnston, the path to such levels of profitability lies with growing subscriptions via paid sharing (which got a good deal of attention), lower churn, and international growth, as well as pricing and assorted efficiencies. Iger noted that the company is “working toward” what Netflix has achieved.
In terms of streaming subscriptions, Hulu saw subscribers increase by 1.2 million in the quarter. Meanwhile, as largely expected, Disney+ subscriptions decreased by 1.3 million, but Disney also projected Disney+ core subscribers to increase by 5.5 million to 6 million in the second quarter.
Sixth, Disney announced that it entered into a partnership with Epic Games, with a $1.5 billion equity investment in the gaming enterprise. This partnership will result in the creation of a Disney Universe existing alongside and interconnected with Epic’s Fortnite. Disney CEO Bob Iger noted the need for the company to tap into demographic trends regarding gaming, and the opportunity to leverage the company’s intellectual property (IP) accordingly. He also highlighted the opportunity in this Disney digital world to purchase digital goods and perhaps in the future physical goods.
Seventh, since Taylor Swift seems to be everywhere, Disney announced that her “Eras Tour” concert film will come exclusively to Disney+ on March 15, with additional content not in the original release.
Eighth, it was noted that 70 percent of the announced plan to invest $60 billion on parks over the coming decade will go to increased capacity, with every park location and the high seas being affected. Annual announcements are expected to come from the company each year starting in 2025.
Ninth, a full-slate ESPN standalone streaming option will be launched in August 2025 or the fall of that year. This ESPN streaming option will include all ESPN programming, and will integrate betting, e-commerce, stats and personalization. In addition, the previously announced streaming sports joint venture with Fox and Warner Bros. Discovery is scheduled to launch this fall.
Tenth, all parks were profitable in the quarter, with growth in international parks particularly strong. And it was repeated that the company is expecting to “turbocharge growth” in the parks. The cruise line got notable attention in terms of expanding opportunities. It was noted in the earnings report: “At Experiences, we generated all-time records in revenue, operating income, and operating margin in the first quarter…” As for key sources of profitability on the Experiences front for the quarter, four were highlighted: Shanghai Disneyland, Hong Kong Disneyland, the Disney cruise line, and the latest Spider-Man video game.
Eleventh, on the movies and franchise fronts, it was announced that the planned Moana television show was being transformed into a theatrically released movie, set for November of this year. Meanwhile, it’s hard to say if something should or should not be read into the fact that the only Star Wars movie specifically mentioned by Iger was the one featuring The Mandalorian and Grogu. For good measure, Iger noted the slowdown in production on the Marvel front, declaring that there would a “focus on stronger franchises” going forward. In addition, the forthcoming Kingdom of the Planet of the Apes movie received a fair amount of attention. It has a release date of May 10, 2024.
Iger’s assessment was summed up in a statement in the earnings report: “Just one year ago, we outlined an ambitious plan to return The Walt Disney Company to a period of sustained growth and shareholder value creation. Our strong performance this past quarter demonstrates we have turned the corner and entered a new era for our company, focused on fortifying ESPN for the future, building streaming into a profitable growth business, reinvigorating our film studios, and turbocharging growth in our parks and experiences… Looking at the renewed strength of all of our businesses this quarter – from Sports, to Entertainment, to Experiences – we believe the stage is now set for significant growth and success, including ample opportunity to increase shareholder returns as our earnings and free cash flow continue to grow.”
Finally, regarding the activist investor challenges facing the company with the upcoming April 3 shareholder meeting, when asked about it on CNBC, Iger declared that those individuals didn’t understand the Disney business, nor the Disney brand. He also spoke of the company “acting with a sense of urgency,” and that “all of us are optimistic.” When it came to streaming, Johnston also used the word “urgency,” that is, there is an “urgency to get to a good sustainable business.”
Why all the “urgency” talk? That’s what happens when activist investors lurk heading into a shareholder meeting, and people have been focusing on the under-performance of your stock.
In after-hours trading, at the time of this writing, Disney’s stock price was up by more than six percent.
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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.
The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?
Support the Daily Dose of Disney with Ray Keating Podcast at https://www.buzzsprout.com/1724143. Subscribe at the $8 or $10 level, and get The Disney Planner: The TO DO List Solution by Ray Keating. Remain a supporter and you'll get a FREE BOOK by Ray Keating every six months going forward. Thanks!
The Disney Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement and fun for Disney fans, including those who love Mickey, Marvel, Star Wars, Indiana Jones, Pixar, princesses and more.
• The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist. Signed paperbacks at RayKeatingOnline.com or paperbacks, hardcovers and Kindle editions at Amazon.com.
• Cathedral: An Alliance of Saint Michael Novel is at Amazon.
• The Lutheran Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement, inspiration and consolation from the Christian faith.
Well, there certainly has been a good deal of news flowing around Star Wars in recent days – both good news and bad news.
Since I’m a glass-half-full kind of guy, let’s start with the good news.
Disney announced today that the Mandalorian and Grogu will be featured in a movie to be directed by Jon Favreau. The Mandalorian & Grogu will go into production this year. Favreau was quoted: “I have loved telling stories set in the rich world that George Lucas created. The prospect of bringing the Mandalorian and his apprentice Grogu to the big screen is extremely exciting.”
Favreau. Star Wars. The big screen. That’s good news.
Unfortunately, one does have to wonder about the timing of this announcement given the firestorm Disney has faced with revelations about the views of Sharmeen Obaid-Chinoy, who is slated to direct the next Star Wars movie focused on the Rey character.
Chinoy is a Pakistani-Canadian journalist and two-time Oscar-winning documentarian. And from what I can tell, she has confronted how women are mistreated in various Muslim nations. Good for her. She also directed a couple of episodes of the lightly-watched Disney+ Ms. Marvel series. That’s not so good. Without rehashing the full controversy here, comments that Chinoy made at a conference several years ago and recently on CNN (get more information here) point to her to being long on feminist ideology and activism, and rather short on discernment and balance. Her resume also appears quite brief and peculiar to be handed a major sci-fi/fantasy film in the massive and troubled Star Wars franchise. Unfortunately for her and for Disney, it’s hard to not see her Star Wars hiring as being based on ideology and/or a quota, as opposed to a track record that indicated she would be ideal for a Star Wars movie. As this controversy emerged, questions come to mind about Disney perhaps not doing their homework on this hire. Naturally, leftist commentators are trying to paint criticisms of Chinoy as being misogynistic, but these responses seem to amount to little more than ad hominem attacks.
Listen, I get it. These debates tend to degrade into ugliness, and often-questionable motivations are at work. But from a straight business standpoint, does it make sense to hand a major Star Wars film to a director who lacks experience, and seems to have a tough time keeping her views in check? It’s safe to say that I probably disagree with 90 percent of the political views espoused in Hollywood, but that doesn’t stop me from recognizing and appreciating good storytelling from people with whom I disagree. And if the Chinoy Star Wars film goes forward, I hope she makes a film that can be enjoyed by all. Unfortunately, many of her statements make me wonder if she can overcome her politics in order to make such a movie.
As a fan, I recognize that much of Star Wars is about hope. So, here’s hoping for the best. As a stockholder, however, I would appreciate serious decision-making about storytelling and customers that provide a more solid foundation for such hope.
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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.
The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?
Support the Daily Dose of Disney with Ray Keating Podcast at https://www.buzzsprout.com/1724143. Subscribe at the $8 or $10 level, and get The Disney Planner: The TO DO List Solution by Ray Keating. Remain a supporter and you'll get a FREE BOOK by Ray Keating every six months going forward. Thanks!
The Disney Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement and fun for Disney fans, including those who love Mickey, Marvel, Star Wars, Indiana Jones, Pixar, princesses and more.
• Order The Weekly Economist II: 52 More Quick Reads to Help You Think Like an Economist. Kindle editions and paperbacks via Amazon here and signed books here. And don’t forget the first book in this growing series, i.e., The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist at Amazon.com.
• Cathedral: An Alliance of Saint Michael Novel is at Amazon.
• The Lutheran Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement, inspiration and consolation from the Christian faith.
Star Wars fans haven’t exactly been pleased with the results since Disney bought Lucasfilm in 2012. Is that about to change?
The three sequel films – Star Wars: The Force Awakens (2015), Star Wars: The Last Jedi (2017), and Star Wars: The Rise of Skywalker (2019) – were particularly bad for so many reasons. And then there was the incredibly disappointing Disney+ live-action series Obi-Wan Kenobi (2022), along with the muddled The Book of Boba Fett (2021).
There, of course, have been middling-to-pretty-good efforts, such as Solo: A Star Wars Story (2018) and Rogue One: A Star Wars Story (2016) in theaters – although I’ll get some debate on those points in Star Wars circles.
And on Disney+, The Mandalorian (2019), Andor (2022), and Ahsoka (2023) have been excellent.
Overall, Disney’s Star Wars record has been terribly disappointing. But now comes news via Vanity Fair that Dave Filoni has been promoted.
According to the report, Filoni said, “Now I’m what’s called chief creative officer of Lucasfilm.” This “places him into the development process much earlier and in a much more expansive capacity than his previous advisory duties. ‘In the past, in a lot of projects I would be brought into it, I would see it after it had already developed a good ways.’ Filoni will now work more directly with Lucasfilm president Kathleen Kennedy and alongside Carrie Beck, a veteran producer turned head of development, to originate and shepherd the next generation of Star Wars shows and movies.”
Vanity Fair also reported: “‘I’m not telling people what to do,’ Filoni says. ‘But I do feel I’m trying to help them tell the best story that they want to tell. I need to be a help across the galaxy here, like a part of a Jedi Council almost.’ He described his responsibilities as understanding the intent of the filmmakers and being a resource to them, based on his mentorship under Lucas himself, and his years spent steering The Clone Wars, Rebels, and Ahsoka.” And later: “Filoni will continue developing his film, as well as exploring a possible second season of Ahsoka, while serving in his new position.”
It also was noted: “As president of Lucasfilm, Kennedy will continue leading the overall company, and Beck’s role will involve recruiting other storytellers into the Star Wars fold, while Filoni weighs in on a narrative level.”
The inevitable question that arises from Filoni’s promotion is this: Will Filoni eventually succeed Kennedy to helm all of Lucasfilm, or perhaps co-run the Disney-owned studio with someone else more plugged in to the business side of things? That would be the answer to Star Wars fans' prayers. After all, Kennedy has taken the brunt of the criticism for the under-performance of Star Wars, and she hasn’t helped her own case over the years with some comments that were out of touch with Star Wars material and fans, along with the greenlighting of an assortment of Star Wars movies that then quietly disappeared.
In the end, at the very least, Filoni’s promotion is good news for those who seek storytelling that makes more sense in terms of the characters and overall Star Wars universe and themes.
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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.
The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?
Support the Daily Dose of Disney with Ray Keating Podcast at https://www.buzzsprout.com/1724143. Subscribe at the $8 or $10 level, and get The Disney Planner: The TO DO List Solution by Ray Keating. Remain a supporter and you'll get a FREE BOOK by Ray Keating every six months going forward. Thanks!
• Order The Weekly Economist II: 52 More Quick Reads to Help You Think Like an Economist. Kindle editions and paperbacks via Amazon here and signed books here. And don’t forget the first book in this growing series, i.e., The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist at Amazon.com.
• Cathedral: An Alliance of Saint Michael Novel is at Amazon.
• The Lutheran Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement, inspiration and consolation from the Christian faith.
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