Diigo Links

Tuesday, August 17, 2004

The Domino Effect

Rumor has it that Michael Eisner (the happy face of capitalism) is aledgedly spreading rumors of cleaning house at Miramax. He's implied that it's time for Miramax to get back to it's low-budget independent roots. I suppose this is to minimize Disney's capitol exposure in big budget investments. The idea is that several low-budget films will have roughly as good a chance of making money as several big-budget films. So, the business model is to support Miramax in developing talents that can provide a big return on a small investment. I wonder if the remaining staff (after the forecasted Eisner layoff) will be confused by this business model in light of Eisner's refusal to distribute Michael Moore's film Fahrenheit 9/11. I'm not savvy to the numbers ($6million to make? I think...), but it's obvious it cost far less to make than it's made at the box office - it's made $quillions. That's money that Miramax basically had to give up. That's money that Disney/Miramax shareholders aren't seeing. I wonder if any of them are angry. If Bush (and we need to be considering not only George, but also Jeb in this equation - a la Disney World, FL) gets re-elected I guess Eisner can expect a return on his generous investment ( the $quillions he's forfeited by not distributing the film). But what's the economic rationalism backing this decision if Bush does not get re-elected. If Bush falls, I wonder if he'll take Eisner with him.

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