Entertainment

Some Pricing Power At Disney

Posted by Rick Stine on February 08, 2011
Earnings, Economy, Entertainment / Comments Off

Here’s yet another sign that the economy is showing some strength: In it’s first quarter earnings report released a short while ago, Walt Disney Co. showed a couple of examples of being able to raise prices, something that has been nearly unheard of for the past couple of years in just about any business.

In its cable networks division, sales were higher in part on stronger advertising growth. The drivers? More ads but also, higher rates. Again, in the ad-challenged media business, the idea of raising rates over the past few years was certainly unheard of.

And in the parks and resorts division, sales were higher because attendance levels were up. But also because the company raised ticket prices.

Continue reading…

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Once Again, It’s Not The Act But the Cover Up

Posted by Neal Lipschutz on August 19, 2010
Entertainment, Ethics & Morality, Government, Law, Sports / 1 Comment

It’s not an economic story, except in the broadest sense that sports and entertainment are big parts of the U.S. economy.

Stilll, the potential lesson in the case of Roger Clemens, the former top-notch major legue baseball pitcher, resonates throughout the business and financial worlds.

That lesson is (assuming the perjury charges filed against Clemens hold up) that the questionable act is usually not what gets people in the biggest trouble, it’s the attempt to cover up that act.

 Clemens was indicted today, charged with making false statements to Congress when he declared under oath he never used performance-enhancing drugs.

“Prosecutors and the FBI have been gathering evidence in the steroids probe since Mr. Clemens testified before a House committee in 2008,” The Wall Street Journal reported. The Journal also reported Clemens’s lawyer wasn’t immediately available to comment.

It wasn’ t a legal matter like this, but allegations of a certain type of cover up are what reportedly prompted the Hewlett-Packard board just recently to push out Chief Executive Mark Hurd. There was the Martha Stewart case, and on and on.

But no one seems to get the message.

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Disney Net Up But Parks Biz Lags

Posted by Rick Stine on August 10, 2010
Earnings, Entertainment, Travel / Comments Off

It sounds like there are far fewer people visiting places like Cinderella’s Castle.

Walt Disney Co. this afternoon reported strong third-quarter earnings, with a profit increase of 40%. But one part of the business that continued to show weakness was in the parks and resorts segments. Disney in part blamed the calendar – it noted that Easter was April 4, which would have pushed some of that business into the earlier quarter. But it is also worth noting that the Parks and Resorts business in the 2Q saw a 12% year-over-year decline, so, clearly it has more to do with fewer families travelling. Probably post-recession hangover.

The company did note that those who are travelling to the parks seem to be spending more money.

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Scrabble Fights To Stay Cool, With Help From Jay-Z and New Boyz

Scrabble may be a simple game to learn to play, but it sure gets complicated as a business. For a start, Hasbro owns the rights in the USA and Canada and its arch-rival Mattel owns them for the rest of the world.
Now, adding further to the confusion are reports (for example here) that the rules are being changed to allow proper nouns. If you’re stuck with hard-to-play tiles you’ve now got Jay-Z, New Boyz and Nhojj to help you out.
The change, as many commentators have pointed out, is proof that the world is becoming a dumber place, where youngsters know the names of soul singers instead of words such as hajj or calx (the residue from burning a metal), which previous generations used to great effect to clear troublesome tiles out of the racks.
Except that it’s not true. The rules of Scrabble aren’t being changed.
What’s happening instead is a smart piece of brand extension by Mattel. Scrabble may be a great and loved brand, but the core game hasn’t changed for decades so most people who want to play have a set.
Mattel UK spokesman Philip Nelkon told Randomly Noted that Mattel in the UK is planning to launch Scrabble Trickster, a souped up version of Scrabble in which players in some circumstances will be able to play proper nouns, steal tiles from rivals and even spell words backwards.
Standard Scrabble will continue to be sold, Nelkon says. “The rules of that are sacrosanct,” he stated.
Over recent years the Scrabble brand has been stretched and applied to games that aren’t standard Scrabble or even anything like it. Going by amazon.com sales rankings, the best-selling Scrabble game in the U.S. at present is Scrabble Slam, a $5.99 card game with no plastic tiles, no double word scores and indeed no board. However the Scrabble brand name gives it instant shelf space in retailers and credibility with buyers. The original board game doesn’t feature in the top 100. However neither Hasbro or Mattel will be pleased to see that Bananagram, a UK-designed wordmaking game that uses tiles but no gameboard, is selling far faster than any Scrabble spin-off. Word games may have been around a long time but Scrabble can’t rest just on its brand.
Based on this writer’s own recent visit to Toys R Us, brand extension in board games is a craft Hasbro has turned into a fine art with Monopoly. Our local toy superstore on the last visit had seven varieties of Monopoly, including Simpsons and Star Wars themes, upmarket versions with lots of electronics, a version where property values have been adjusted for inflation so you’re trying to keep track of huge-denomination bills, and another one with different rules where you don’t need to own all of a color set to start building. Yet Hasbro still make the traditional version available, although they’ve included an optional twist in the rules using an extra die that can make the game quicker to play.
Of course the real money in all these classic games is going electronic. The success of Lexulous online shows that Scrabble has a real edge over many other games in that it’s easy to dip in and out of playing, making it ideal for mobile phones or playing in a 10-minute coffee break in the office. One question yet to be answered is whether spin-offs and electronic versions can survive if the original is deemed to have lost relevance or be played only by the non-digital generation. Mattel is obviously not keen to find out.

Scrabble may be a simple game to learn to play, but it sure gets complicated as a business. For a start, Hasbro owns the rights in the USA and Canada and its arch-rival Mattel owns them for the rest of the world.

Now, adding further to the confusion are reports (for example here and here) that the rules are being changed to allow proper nouns. If you’re stuck with hard-to-play tiles you’ve now got Jay-Z and New Boyz to help you out.

The change, as many commentators have pointed out, is proof that the world is becoming a dumber place, where youngsters know the names of rappers instead of words such as adze (a woodworking tool)  or calx (the residue from burning a metal), which previous generations used to great effect to clear troublesome tiles out of the racks or get a high-scoring tile onto a triple-scoring space on the board.

Except that it’s not true. The rules of Scrabble aren’t being changed.

What’s happening instead is a smart piece of brand extension by Mattel. Scrabble may be a great and loved brand, but the core game hasn’t changed for decades so most people who want to play have a set.

So Mattel UK spokesman Philip Nelkon told Randomly Noted that Mattel in the UK is planning to launch Scrabble Trickster, a souped up version of Scrabble in which players in some circumstances will be able to play proper nouns, steal tiles from rivals and even spell words backwards.

Standard Scrabble will continue to be sold, Nelkon says. “The rules of that are sacrosanct,” he stated. Scrabble Trickster is aimed at a new audience.

It’s not a new idea. Over recent years the Scrabble brand has been stretched and applied to games that aren’t standard Scrabble or even anything like it. Going by amazon.com sales rankings, the best-selling Scrabble game in the U.S. at present is Scrabble Slam, a $5.99 card game with no plastic tiles, no double word scores and indeed no board. However the Scrabble brand name gives it instant shelf space in retailers and credibility with buyers. The original Scrabble board game doesn’t feature in amazon.com’s top 100 games. However neither Hasbro or Mattel will be pleased to see that Bananagram, a US-designed wordmaking game that uses tiles but no gameboard, is selling far faster than any Scrabble spin-off. It shows that word games may have been around a long time but Scrabble can’t rest just on its brand.

Based on this writer’s own recent visits to Toys R Us, to see brand extension turned into a fine art it’s necessary to find the shelves selling Hasboro’s Monopoly. Our local toy superstore on the last visit had seven varieties of Monopoly, including Simpsons and Star Wars themes, upmarket versions with lots of electronics, a version where property values have been adjusted for inflation so you’re trying to keep track of huge-denomination bills, and another one with different rules where you don’t need to own all of a color set to start building. Yet Hasbro still makes the traditional version available – although they’ve included an optional twist in the rules using an extra die that can make the game quicker to play.

Of course the real money in all these classic games is going electronic. The success of Scrabble-alike Lexulous online shows that Scrabble has a real edge over many other games in that it’s easy to dip in and out of playing, making it ideal for mobile phones or playing in a 10-minute coffee break in the office. One question yet to be answered is whether spin-offs and electronic versions can survive if the original is deemed to have lost relevance or be played only by the non-digital generation. Mattel is obviously not keen to find out.

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Tough Times All Around

Posted by Neal Lipschutz on March 26, 2010
Business Of Leisure/Life, California, Entertainment, United States / 1 Comment

It seems difficult economic times have left no industry untouched.

Consider karaoke. The Los Angeles Times reports the business is in a bad way in the U.S.. The slowing economy and some industry specific issues seem to be the culprits.

The LA Times reported that in 2002 annual sales of karaoke machines and software totaled $200 million. It ‘s now about $40 million.

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Some Truly Random Thoughts

Posted by Gabriella Stern on March 09, 2010
Entertainment, Ethics & Morality, Europe / Comments Off

After a work-induced (too much of it!) hiatus, I’m back blogging and want to re-launch myself by pointing out a memorable piece by WSJ editorialist Daniel Schwammenthal, that has nothing to do with the world of finance. It’s about the plight of the tiny Jewish community of Malmo, Sweden, in an increasingly intolerant Europe. Have a look. Also, randomly, I met an opera singer at a Maplewood, N.J., sandwich shop over the weekend. A fellow with startlingly blue eyes was poring over a thick musical score while my husband and I ate lunch at a nearby table.  Bursting with curiosity, I asked what he was up to. Mark Showalter introduced himself and explained he was prepping to understudy a role in an upcoming Metropolitan Opera production of Mozart’s “Magic Flute.” Enjoy this gallery of costumed opera stars, including Showalter himself.

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Do You Watch “The Office”?

Posted by Gabriella Stern on January 21, 2010
Entertainment, Television / Comments Off

Very good show. Especially now that its ties to the wealth management industry have been exposed by our colleagues at the WSJ’s Speakeasy blog

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“People Of Earth…”

Posted by Rick Stine on January 12, 2010
Entertainment / Comments Off

conanThat’s how a statement from late-night host Conan O’Brien begins that was released a few moments ago. Perhaps a little tongue-in-check by Conan – implying there is global if not inter-galactic interest in this very public spat over which late-night hosts get which time slots. But he made it very clear in his statement: He can’t accept NBC’s decision to move him and his Tonight Show from 11:30 p.m.  to 12:05 a.m. to accommodate moving Jay Leno from a early, less successful time slot. And bumping him would bump back further Jimmy Fallon, who followed O’Brien as host of the Late Night show.

O’Brien says he’s hopeful there can be a resolution. But he clearly just drew a big, fat line in the sand.   NBC handled this one miserably – it became way too public before it understood the ramifications of any proposed moves. Unless you combine O’Brien and Leno into one program, it’s hard to see how this one gets resolved with everyone still working for NBC.

Oh, and O’Brien ends the note in the same irreverent way he begins it: “Have a great day and, for the record, I am truly sorry about my hair; it’s always been that way.”

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A New Distraction That Drivers Don’t Need

Posted by Chaz Repak on January 07, 2010
Auto Industry, Consumer electronics, Entertainment, Internet / Comments Off

(This is a guest post from Michelle LaRoche, Americas recruiting and training editor of Dow Jones Newswires, and the concerned mother of a 15-year-old son.)

Today I’m awfully glad that I commute by train.  At this week’s Consumer Electronics Show in Las Vegas, auto and tech companies have teamed up to bring the Internet and other flashy devices to the front seat.  

Preparing to sit behind the wheel is a generation of kids who can’t spend five minutes without an iPod, iPhone, Wii, backseat video player, computer or TV – my 15-year-old son included.  

Continue reading…

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Why Content Really Is King

Posted by Gabriella Stern on January 05, 2010
Entertainment, Internet, Media / Comments Off

DJN colleague Nat Worden’s story about the media industry’s renewed affection for content is worth a look. The piece, “Big Media Renew Love For Content,” notes that “the industry’s titans are coalescing around a risky gamble on the old adage, ‘content is king.’” He notes News Corp., our parent company, along with Time Warner and Walt Disney share a strategy “to produce premium media content in a bet that consumers are ready to pay for it online.” It’s risky, sure, but it’s the only way forward for content producers – and, frankly, for readers who cherish the type of news and non-news content which costs money to produce. I also think it’s not as risky as some may think. As the economy recovers, and as CEOs such as Rupert Murdoch speak out publicly and often about the perils of giving away valuable content, customers will increasingly accept that it comes with a price.

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