🐂Disney @ 100

Markets

Amidst the summer heat, the Nasdaq is experiencing a decline, marking its second consecutive weekly decrease, a unique occurrence this year. The index's dip can be attributed to a slump in semiconductor stocks. However, investor concerns were further heightened by an inflation report revealing that producer prices exceeded expectations in the previous month.

Politics

SBF goes to jail

A federal judge has revoked the bail of Sam Bankman-Fried, the founder of FTX, and ordered his incarceration on Friday. This decision marks the conclusion of a prolonged dispute between the Justice Department and the former cryptocurrency entrepreneur, centered around his conduct while awaiting trial for fraud allegations.

U.S. District Judge Lewis Kaplan, presiding over a hearing in New York, noted that Bankman-Fried had repeatedly pushed the boundaries of his bail conditions and potentially engaged in a federal offense. Judge Kaplan stated, "There is reasonable cause to believe that the defendant attempted to interfere with witnesses on at least two occasions."

Bankman-Fried's legal representative indicated the intention to appeal the court's order. Following the hearing's conclusion, Bankman-Fried handed over his blazer, tie, and shoelaces to his attorneys before being handcuffed by U.S. Marshals. His mother displayed visible distress, occasionally crying during the proceedings. She attempted to approach her son in the courtroom, but her efforts were halted by Marshals.

Until this point, Bankman-Fried had been under house detention at his parents' residence in California. The Manhattan U.S. attorney's office had charged him with embezzling billions of dollars from customers of his cryptocurrency exchange, alongside allegations of deceiving lenders and investors. His trial, involving seven criminal counts related to the collapse of the crypto exchange, is scheduled to commence on October 2.

Bankman-Fried has pleaded not guilty to the charges, admitting to errors but denying any fraudulent activities. The location of his detention until the trial has not been confirmed.

Business

What Disney wishes on its 100th birthday

Reaching the milestone of 100 years old brings with it the wisdom to navigate through challenging times. The Walt Disney Company is currently facing one of these challenges as significant technological shifts and changing media consumption habits compel the company to make some of its most significant strategic changes in decades.

In the past, a reliable source of income, ESPN's future now stands in uncertainty due to the trend of people abandoning cable TV in favor of streaming options. CEO Bob Iger acknowledged this shift during an earnings call, stating, "While traditional television remains profitable for Disney currently, the unmistakable trend of cord-cutting is undeniable."

Speaking of streaming services, Disney, along with other new players in the industry, has yet to fully figure out the financial dynamics. To increase revenue, the company recently announced price hikes of up to 27% for Disney+. However, it does not anticipate its streaming business to turn profitable until next year at the earliest.

Undoubtedly, every entertainment company is grappling with the need to reshape their business models as tech giants encroach on their territory, and user-generated content grabs attention on social media platforms like TikTok. Additionally, the entertainment industry is facing challenges from both Hollywood writers and actors, which has led to a halt in new content production.

Nonetheless, Disney is confronting a distinct set of challenges that it hopes to resolve as it celebrates its 100th anniversary. These include a strained relationship with Florida Governor Ron DeSantis following disagreements over a controversial law, issues with CEO succession, and concerns about franchise fatigue.

In terms of succession, CEO Bob Iger's track record in selecting a successor has been less than ideal. Despite numerous announcements of stepping down for fresh leadership since taking the helm in 2005, Iger eventually chose Bob Chapek in 2020, only to resume his role two years later and extend his tenure until 2026.

The exhaustion of popular franchises, like Marvel and Star Wars, has also become apparent, leading Disney to reconsider its content production strategy. While it plans to reduce new releases from these franchises, the challenge lies in finding equally successful replacements in theaters, with Pixar currently not filling that void.

Looking ahead, despite the current challenges, Disney has overcome more severe crises throughout its century-long history, and the company may find itself in a stronger position in the near future.

Addressing the persistent question of whether Disney will be acquired by Apple, recent speculation has resurfaced following indications from Iger that certain TV assets, such as ABC, could be up for sale. However, Iger remains non-committal, stating that such considerations are not an obsession for the company.

Entertainment

What happens when Disney loses its exclusive rights to characters

Disney is renowned for upholding its pristine image, akin to Cinderella's stepmother meticulously maintaining her floors, resulting in a reputation for vigorously defending its likeness through legal channels.

Nevertheless, in the United States, copyright protection lasts for a period of 95 years for creations from bygone eras. Beyond this timeframe, the material, or intellectual property, transitions into the public domain, granting unrestricted usage rights to anyone. This transition is the reason why we have begun witnessing unconventional and explicit portrayals of classic Disney characters, particularly as the company approaches its 100th anniversary this October.

A notable case in point is the emergence of works like "Winnie the Pooh: Blood and Honey," a graphic slasher film that debuted in February. This production became possible once the characters from Winnie the Pooh and their original narratives became free for unrestricted usage.

An even more significant opportunity to subvert Disney's conventional image looms on the horizon. "Steamboat Willie," the short film from 1928 featuring the earliest iteration of Mickey Mouse (as well as Minnie Mouse), is set to enter the public domain on January 1, 2024. This impending shift opens the door for creative reinterpretations and potentially transformative adaptations of this iconic work.

History

Throwback to when Disney did war propoganda

Amidst the global turmoil of World War II, Donald Duck found himself drafted into service, while Mickey Mouse took to the skies, searching for enemy aircraft. This seemingly surreal scenario isn't a product of a militaristic delusion, but rather a typical example of content produced by Disney during that era.

During the course of this worldwide conflict, Disney harnessed its creative energies to craft propaganda endorsed by Uncle Sam, aimed at supporting the nation's fight against Nazism. By securing government contracts, the entertainment powerhouse managed to stay financially afloat during a challenging period for its business. Leveraging its beloved animated characters, the studio effectively encouraged the American public to invest in war bonds, fulfill tax obligations, and actively engage in the war effort.

The outcome was a blend of practicality and genuine enjoyment: The wartime cartoons and printed materials seamlessly integrated patriotic public service announcements with the brand's characteristic comedic charm, resulting in a unique form of propaganda-entertainment. Ultimately, these efforts not only helped safeguard the company from financial ruin but also lifted the spirits of audiences during one of the darkest chapters in history.