Saturday, December 2, 2017

Article: The Effects of a Disney Monopoly - Z Factor

The Effects of a Disney Monopoly
by Z Factor



Disney is something people have grown up with or have been surrounded by for decades, from Mickey Mouse in 1928 until today in 2017, nearly ninety years later. Their beloved movies are classics, quotable and memorable. Disney has impacted not only people and the culture, but also substantially in the entertainment industry and business. People love Disney, especially children. Disney knows this, which is why they have bought Pixar Animation, Marvel Studios and Lucasfilm. Yet, at what point will people ask: “Has Disney bought everything? Has Disney become a monopoly in the entertainment business? Should we be worried?” Disney is becoming a monopoly; the Mouse is buying everything out, ruining creative competition and indoctrinating national and global audiences with their agenda.


First Disney bought Pixar in 2006 for 7.5 billion dollars. Later in 2009, Disney bought Marvel Entertainment, which became Marvel Studios, for four billion dollars. Then in 2012 Disney bought Lucasfilm (in other words, the rights to Star Wars) for four billion dollars and gave George Lucas four million Disney shares. Disney surrounded itself with a variety of smaller companies within itself; Pixar delivers more children-oriented yet emotionally packed stories, Marvel produces action-packed superheroes for both the comic-book nerds and the average viewer, and Star Wars is for basically everyone. Not only does Disney have the combined forces of Pixar Animation, Marvel Studios, and Lucasfilm, but they also continue to produce films. These days its mostly live action remakes, sequels, and their own animation department which produced hits like Frozen (2013). Today in 2017, Disney is in talks to make yet another purchase, ironically the same studio which had once distributed Star Wars—Twentieth Century Fox. “The talks have taken place over the last few weeks and there is no certainty they will lead to a deal. The two sides are not currently talking at this very moment, but given the on again, off again nature of the talks, they could be revisited.” states a reporter from CNBC. Whether or not the deal goes through, this proves Disney's immense power in the business. The Mouse was once a childhood icon, now slowly turning into the Galactic Empire.



Being the Galactic Empire that the Mouse is slowly becoming, Disney has used its power quite abusively towards theaters, other companies, and media-news outlets. To start off, Disneyland has a close relationship with the city of Anaheim, funding certain politicians to get seats in the city council, as well as other things involving taxes. “Over the last two decades or so, as Disney's profit has soared, the company has secured subsides, incentives, rebates, and protections from future taxes that Anaheim that, in aggregate, would be worth more than one billion, according to public policy experts who have reviewed the deals between the company and city,” says a journalist from the L.A. Times in an article titled, “Is Disney Paying its Share in Anaheim?” The L.A. Times article exposed much of the ongoing situation between Disneyland and the city of Anaheim, and the new developments in their relationship.



Because of this article, Disney banned L.A. Times critics and press from screenings of Thor: Ragnarok. Following that event, an article from ARS Technica says, “Disney claimed that the stories showed a 'complete disregard for basic journalism standards' and were 'wholly driven by a political agenda'.” Word began to spread and leak, causing critics in The New York Times and The Washington Post's to make a statement of boycotting all future Disney films, including the upcoming Last Jedi. Of course, Disney changed their mind, backed down, and ended its blacklist of reviewers. The ongoing deals between Disneyland and Anaheim were not unknown, or at least not to the people within the area such as L.A.; it's Disney's fault for making political deals with Anaheim, not the newspaper journalist. Though Disney tried to pretend nothing happened and draw attention away from it, the damage was done—Disney had lashed out in wrath and vengeance, exposing its true nature publicly.

This isn't even the end of Disney's use of power as they're now beginning to bully theaters as well. With the upcoming December release of Star Wars Episode 8: The Last Jedi, Disney is now asking theaters to give 65% profit (instead of the normal 55%) or else Disney won't let them show the film, and the theater must keep the film screening for a certain period of time or unless they'll suffer more fees. Theaters are already in trouble. Disney knows their movies help keep them in business; they are using their power to abuse theaters, and this will really hurt smaller chains, who might not even be able to show the movie at all.

Lastly, another mark of Disney's monopoly nature is in its withdrawal from Netflix. Instead of continuing their partnership with Netflix, Disney is pulling completely out and will be setting up its own streaming service. Though this may seem like simply more competition between streaming platforms rather than a monopoly, it is a show of how Disney keeps all its products self contained. Disney has a vault in which all its classics are stored, not allowing people to rent them, only to buy when they come out every so often. Disney keeps all its products tight within itself, forcing people to go through Disney only. Though this is a good business strategy, it has also led to their growth and power, buying everything they can. There are few studios today that can go against Disney, and with the continued success in their model of supplying the public's demand of Marvel, Star Wars, emotional Pixar films and live-action remakes, it is not impossible they'll dominate the entertainment industry, if they haven't already. Especially with the purchase of Fox, it is unlikely there will be a studio left to stand up against them. Though Warner Brothers is a big studio, they are not nearly as enormous. In fact, they have been struggling to keep up, and this is the same with many studios which are facing great difficulties, like Sony and Paramount. Either studios need to become bigger in order to equally compete against the Mouse, or the Mouse needs to get smaller before it buys up everything. Any monopoly in business is bad, and the effects of such a power hungry Mouse would be catastrophic to the entertainment industry.

Though the Mouse is not technically a monopoly, it does have exuberant control over media enterprise and creates a majority of the films viewed by average people, because it owns the big names: Star Wars, Marvel and Pixar. Imagine how much more Disney would have if it bought Fox, not to mention the creative restrictions on most of Disney's products. Disney has restrictions to what it will or won't have in its content, with G, PG and PG-13 ratings exclusively, a family-friendly persona, pushes its own agenda, and runs all of its films through the magical Disney wringer, meaning most Disney films feel and look the same. This is not necessarily a bad thing. Disney does produce some great movies, and it's good to have a “family-friendly” studio; however, if as much as 90% of the films a person sees in the theaters are all Disney, it will eventually become boring. Also, with limited options for studios to back their projects, less unique, creative, experimental and risky films and projects will be made, especially when those studios have narrow restrictions and expectations. For example, Back to the Future was brought to Disney back in the 1980's, and Disney rejected the proposal because of the “Oedipus” complex with Marty McFly and his mother. Regardless of whether or not it was an actual issue, Disney found it wouldn't fit under their “family-friendly” umbrella. If there weren't other studios besides Disney, or substantially less of them, Back to the Future might have never been produced, and it is an indisputable classic.

The effects of Disney's expanding power over the entertainment industry impact not only the entertainment industry and business, but also everyone's lives. People who flock to Disney's “family-friendly” films will also be subsequent to whatever agenda or moral the Mouse deems fit to impose. Films are filled with stories, morality tales, and messages the filmmaker wants to make, sometimes consciously and sometimes subliminally. With such an outreach not only nationwide but global, the Mouse could say absolutely anything it wants and touch the lives of millions, persuading them to feel, think and believe the same thing. This is an incredibly huge responsibility, being able to influence people to such a degree. It also gives the Mouse the power to say anything it wants, sometimes even immoral messages. An effect which will undoubtedly arise with the increasing power of Disney will be how it uses this storytelling magic to influence children and audience members across to globe to the ungodly beliefs they uphold, not that any other big studio in Hollywood wouldn't do the same (just look at Game of Thrones on HBO).

Overall, Disney's increasing monopoly over the entertainment business is bad news; it will stifle creative ingenuity and uniqueness among films, making it difficult for both the producer and consumer, it will have dominance over theaters, critics, and even the regions and cities near Disney properties (like Disneyland or resorts), and it will have the power to impose immoral messages (subliminal or prominent) in their content. Unless other studios are able to rise up against Disney, or preferably though less likely, Disney becomes smaller and little studios gain more success, providing a more wide variety in entertainment, the effects are surely certain. One thing people can do is to defy the Mouse's Galactic Empire, but no one can truly be expected to boycott Disney. Yet, they can support the smaller movies and studios. Seeing a small independent film in a theater rather than something under the Disney banner could be a small thing that goes a long way in showing Disney that it's time they go back to their roots, and not by remaking every single classic in their vault.



References:
Faber, D. 21st Century Fox Has Been Holding Talks to Sell Most of the Company to Disney, CNBC November 6th, 2017,
Retrieved from https://www.cnbc.com/2017/11/06/21st-century-fox-has-been-holding-talks-to-sell-most-of-company-to-disney-sources.html
Miller, D. Is Disney Paying its Share in Anaheim? L.A. Times, September 24th 2017
Retrieved from http://www.latimes.com/projects/la-fi-disney-anaheim-deals/
Lee, T. Disney Forced to Backpedal After Banning L.A. Times from Thor Screenings, ARS Technica, November 7th, 2017

 Retrieved from https://arstechnica.com/gaming/2017/11/disney-abandons-la-times-blacklist-after-backlash-from-film-critics/

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