I am all settled in my Portland hotel ready for the 2014 Disney Shareholder Meeting. The company is doing very well so this is expected to be one of the least contentious shareholder meetings of recent memory. The only major challenge is a shareholder proposal which would allow major shareholders to nominate individuals to the Board of Directors, but that seems like a minor issue compared to years past (remember Philadelphia?).
With few fireworks expected, the most interesting part of the meeting should be the question and answer session. Now it is always fun to hear a young shareholder ask a question. But sometimes bigger shareholder seem to get in a rut. They ask the same questions year after year (Song of the South, Dreamfinder, questions about discounts) or they use the opportunity to treat Bob Iger like a Guest Relations host by airing out there personal gripes. So as a public service, I am going to share some questions that should be asked.
When will we know the impact of MyMagic+?
Whether you like or dislike the project, there are a lot of questions to ask regarding what impact the project has at Walt Disney World. Has the project contributed to the bottom line by encouraging visitation or through upselling? Has MyMagic+ measurably improved the guest experience? When will spending on the project tail off? I am not passing off a value judgment on the project itself, but as a shareholder we should know that it is either improving Disney’s bottom line or creating a better product for Disney’s consumers.
Will Disney consider launching an “Over the Top” network?
While the story that Disney may purchase the WWE may just be speculation, there is something that the WWE has done that should be noticed. They launched an ‘Over the Top” network, the WWE Network, that allows viewers to subscribe to the niche channel and view the network over the internet. This means the channel does not have to negotiate carriage deals with cable providers, allowing a network that may be more limited in scope. There has always been a hankering for a Vault Disney channel, but getting it on cable systems was never more than a pipe dream. If Disney went to direct to Disney fans and asked them to subscribe, it could be viable. Perhaps a network in the vein of the Disney Fandom trial that recently aired on Disney XD showcasing behind the scenes content for Disney fans.
What is the vision for Disney Interactive?
Disney finally has a hit with Disney Infinity, yet the rest of the division is struggling. Despite early successes, they are now struggling with mobile gaming and social gaming never really took off outside of the Avengers game. This has resulted in more layoffs, cuts in production, and shuttering down of sites. So the question is now, where do they go from here? How do they make Disney Interactive more than just Disney Infinity? Will Disney ever be able to lead in the interactive space or will they always be two steps behind? Disney has some of the most powerful brands in the world. There has to be a way to make this translate into success in the digital arena.
Will Lucasfilm be more than just Star Wars?
When Disney purchased Lucasfilm they valued the company on Star Wars alone. But Kathleen Kennedy is a talented film executive who can make more than Star Wars films. It has been announced that Disney has acquired the rights to make more Indiana Jones films, but will they consider making other films as well? What is the future of Lucasfilm Animation? Could they make a feature film giving Disney four animation studios? Will ILM and Skywalker sound remain a part of Disney? These questions about the future of Lucasfilm have been overshadowed by the development of new Star Wars films, but I am interested to see if there may be more value there then we originally thought. Of course, I would also take any news on the upcoming Star Wars flick.
What is the Board looking for in a CEO?
With Bob Iger scheduled to depart in 2016, the question remains who will take the reins of the company. While they will never reveal who they are considering, it would be interesting to find out what they are looking for. Are they looking for a leader like Bob who uses brands to gain attention in an ever fractured entertainment marketplace? Are they looking for someone that has more international or interactive experience? What role does the Disney culture have in picking a CEO? Bob Iger will be hard to replace. It will be interesting to see who they have try to fill his big shoes.
These are just some of the questions going through my mind. We shall see if any of these topics come up. In the end, you never know what to expect at a shareholder meeting. Sometimes nothing interesting comes out of it, but sometimes they drop a bombshell. By this time tomorrow, hopefully we will have something to talk about