- Disney Buys LucasFilms for $4+ Billion
- Kodak's Future: Interview w/Ed Monahan
- SPECIAL REPORT:Cinema Exhibitors - Why They Need the 'WOW' Factor
GEORGE LUCAS GOES TO THE DARK SIDE ?
At 68, George Lucas is calling it quits and sold LucasFilms to Disney for $4.1 billion.It's a good move for Disney which purchased Marvel Comics and all of their rights in 2009 for $3.96 billion. Disney is clearly in the content purchase mode and Lucas's Star Wars franchise is an entertainment property of huge value.
Lucas will receive 40 million shares of Disney stock representing one-half the selling price and the remainder in cash. This will make him the second largest non-institutional shareholder right behind the Steve Jobs Trust (the Apple honcho was the largest single Disney shareholder before his recent death).
"For the past 35 years, one on my greatest pleasures has been to see Star Wars passed from one generation to the next. It's now time for me to pass Star Wars on to a new generation of filmmakers", said Lucas about his decision to sell LucasFilms. Included in the deal are well known special-effects house Industrial Light & Magic, Skywalker Sound, and video game company LucasArts.
Disney CEO, Bob Iger stated that, "It is just fantastic for us to have the opportunity to buy it, run it, and grow it. We intend to aggressively expand the Star Wars film schedule. Following the release of Episode VII in 2015, and Episodes VIII and IX will probably follow on a cadence of every other year and then go from there".
After hitting an incredibly long home run with Star Wars, Lucas found an exit strategy with Disney which would keep his legacy alive and well for the long term and not turn to the dark (forgotten) side.
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| Ed Monahan |
In an interview with Ed Monahan, Kodak's Head of Strategic Planning, CMG got some insight into Kodak's future.
CMG: Why did Kodak declare Barkruptcy in the first place?
EM: Kodak encountered the same difficulties a lot of other companies faced in the digital transformation. In our case, it really took its toll on our perennial cash cows, and while we have done a lot to migrate to a digital portfolio and new business models, in the end we needed to re-organize under Chapter 11 to resolve our financial situation and start anew.
CMG: What's in Kodak's future as it emerges from Chapter 11?
EM: There is a lot of good going on at Kodak to prepare to emerge from Chapter 11. We are preparing to sell the Personalized Imaging business which includes our traditional film and paper business and the retail kiosk/thermal business. The new Kodak that emerges will largely focus on the commercial printing business and the Personalized Imaging business will be sold to generate capital towards that emergence.
CMG: Is there much intrinsic value in these businesses ?
EM: In terms of the traditional film and paper business we solidly believe in them and are excited about the prospect of their sale. These are businesses which are part of a market structure that continues to generate sales and earnings, and will be attractive to prospective buyers.
CMG: When is the sale contemplated ?
EM: The selling of these businesses is viewed in a very positive light. We are hopeful to complete the sale by the middle of next year. Kodak will then be in a position to serve our markets with leading products and innovation and make further advances into the digital ecosystem. It is that digital ecosystem and digital lifestyle that will shape not only what Kodak does but what many companies do to win going forward.
CMG: Thanks Ed.
CINEMA EXHIBS: YOU NEED THE 'WOW' FACTOR
My mantra to cinema exhibitors (large and small) is that going forward your most significant, and relentless, competition will be the consumer's living room (aka media room, home theatre, family room, whatever). When I hear exhibs tell me they want to convert to Digital Cinema but only require the smallest (re: least expensive) projector and definitely no sound upgrade (even if they currently have mono sound in their theatre) my heart drops. Why? Because in the future their business, under this scenario, is terminal. That cinema simply will not be able to compete in terms of presentation quality (image and sound) with a dark on-screen image and sub-par sound. Exhibs, you need to have the 'WOW' factor in your presentation. It has to be better, significantly better, than what people are viewing in their homes!
To their credit, after some discussion, most exhibitors that Entertainment Equipment deals with (and most are long-term customers) trust our judgment and understand that since they are making a significant investment regardless, their best course is to invest a little extra and give their patrons a movie presentation the likes of which is beyond their wildest expectations and one that cannot be replicated in their home- media room!
Exhibitors, if an equipment provider isn't telling you that purchasing an undersized D-Cinema projection system is not the way to go - than BEWARE , because they don't have you best interests at heart.
So, you ask "Why do I think this way?"
Well, let's have a look. The new normal in Hi-Def TV purchases for home media is the 72" ( preferably called the 6 footer) screen - which is quickly becoming the 7 ft. (84") screen, These 7 footer will be on many a Christmas list this year, but it doesn't end there. Several trends are emerging in 'home entertainment' that we need to explore.
First, is the Multiple Screen trend. The use of dual and multiple screens is becoming more popular. This can mean two or more flat-panels on the same wall or screens on various walls in a room - which is a popular arrangement in rooms that function as party or entertainment spaces. Why, multiple screens? Because our video choices are now so vast that people often don't want to be restricted to just one screen in a room.
Needless to say, a cinema has one screen, so the presentation must be damn good!.
Second, the Media Room is transforming. What was once the '90s trend of a 'dedicated home theatre' with a 'cinema' look and fixed seating etc. has given way to
more comfort with sofas and chaise lounges. People want a home theatre experience but don't want to limit the room to just one use and making it a multipurpose room ensures the systems installed are used more frequently and by more family members.
Third, Social Networking. Multi-screen goes beyond traditional TV, Smartphones and tablets are not only being used as TV remote controllers but as second viewing screens as well, with social media driving this trend. Users are 'live' tweeting, posting, and texting while watching sporting events, movies, or TV shows.
Fourth, Networking Media. According to the Consumer Electronics Association, 25% of all U.S. homes now have an Internet connected Blu-Ray player and over 70% have a gaming console connected to there primary viewing screen. The internet will become 'the source' for accessing content in the home.
In summary, Cinemas must have that 'WOW factor' in all of their presentations. In-home entertainment isn't at the cinema level - yet, but cinemas have to do it right and when converting to Digital Cinema, well, that is the time to do it. Digital cinema is the great equalizer, because it allows a single screen theatre in a small town the opportunity to present a movie or other content that is equal in image and sound quality to the 'best' cinema.
Best
Jim Lavorato
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