Famous Businesses Often Come to Crossroads

In basic money game thinking, people will assume that "the one with the most toys wins" or if the bottom line is "profitable" then success has been achieved. This is not wrong, but I think it's far more important to look through the telescope at the big picture, rather than to stay focused on the microscopic picture of a business failure or financial loss. So many cliches have been coined for money affairs like "Time is Money" and "It takes money to make money" and "A fool and his money...." etcetera... These are no more helpful than the cliche "Don't look a gift horse in the mouth."

Let me get to the point of my editorial now; There are controversies and gossip communicated through the web, television, periodicals, and word-of-mouth about businesses that have been pillars of strength and reliability for a long enough time to cause some distress and even shock to loyal fans of those companies. I'm speaking specifically about entertainment companies like Disney and Netflix, but will go on further to include other businesses that have had to close permanently or change dramatically due to unbearable financial crisis. The buzz lately seems to be about gossiping or roasting a company so harshly, that the belief of the masses (or what I affectionately like to call "sheep") will create some kind of "truth" the way a riot causes chaos and destruction upon a peaceful domain. Panic is one of the ugliest faces of the public that people endure witnessing.

I just feel like putting my two cents in with a small hope that it might help the companies or the people to make better choices. I am not an expert on the Disney Channel or the theme parks, and I can not tell you the exact problems they are experiencing or give you an accurate financial report. So if you're an investor in their stocks, you might know those numbers better than I do. What I can tell you is from the perspective of a loyal fan who has seen many changes over five decades. I think Walt Disney, the creator of the company was a dreamer and a romantic and an educated man who was so committed to his dream and vision he was like Rockerfeller or Carnegie in "success". However, I've seen what the products have been in recent times and I'm aware of the costs of the "dream Disney vacation packages" and I don't think that this current climate of Disney marketing and entertainment viewing is even close to what Walt dreamed when the company became a success. It's not that complicated and the accounting reports simply won't acknowledge the differences. Just look at the difference between the original movie Pinocchio and the recent remake and you can see why Disney is suffering. It seems that the take-over of the business is into recycling the old Disney stuff instead of doing what Walt used to do, which was to take a charming fresh beloved story, and bring it to the screen for everyone to enjoy the beauty of. Their lazy attitude towards the creative process is why they are getting horrible reviews, and probably why they are suffering financial losses. Another reason is the theme park prices. Average Americans (or even foreigners here on vacation) do not want to spend $5000 to $10000 for one week in Orlando. It's insane and ridiculous to ask or expect that from people anymore because people are not that "stupid" anymore. You can justify those prices with a legitimate budget of cost and supply and demand, yet no amount of marketing or "dream spin" is going to squeeze that juice out of the new world of frugal, money conscious people. That "dream" is simply too expensive.

Regarding Netflix, they came to fame the same time as Redbox when all of the Blockbuster video stores closed down and people were looking for other ways to enjoy shows and movies with or without a giant cable bill. They have had a loyal following and have brought us some great shows and movies. Yet it seems the more popular or worthy they become, the more backlash they get from the public or other businesses that find them a competitive annoyance. It reminds me of the movie "Wall Street" where trade secrets are a weapon to use against the competition. Gossip (regardless where it occurs) can have a large impact on a company's success --- not because of reputation, but because of the believer's perception of what may or may not be occuring. The sad part is that a business owner may spend more time combatting the negative feedback with new and improved marketing strategies instead of keeping the focus on quality products and excellent customer service which is the meat and potatoes of fan loyalty. I don't really think Netflix is in trouble. They are not as famous as Disney and not as old. I think Disney has more headaches than Netflix.

So I will finish my editorial with a suggestion for the Disney company. Don't just hire people with talent. Hire people with fresh ideas. Walt Disney was a well-read man. There are tons of stories waiting to be told. New stories is where Disney's comeback lies. Not the retelling of the already loved and cherished stories. Also, if the Disney company wants to make the parks enjoyable and lucrative, my advice is to skip the entry fees. The park is loaded with other ways to bring in money and no one resents paying for food, beverage, or mementos. (The movie theaters should think about this tactic also.)

There are plenty of other companies I could talk about and offer suggestions to, but Disney and Netflix are two of my favorites and I will continue to be loyal to them through whatever hardships they come up against.