Disney's "Wonderful World of Disney" in Jeopardy: A Casualty of Walt Disney Co.'s Cost-Cutting and Personnel Changes?

Strategic Insights -

The Walt Disney Co.'s cost-cutting measures and personnel changes have led to speculation that the weekly "Wonderful World of Disney" might be axed from ABC's Sunday night lineup. Despite an ABC spokesman's denial of any plans to cancel the program, the prospect of losing "Wonderful World of Disney" highlights the failures of Disney's strategy to exploit ABC as a venue for its family-themed programming. Ratings for ABC have dropped, and studio officials have clashed with network counterparts, leading to the consolidation of Disney's TV production arm and ABC management. This move has resulted in the departure of ABC Entertainment President Jamie Tarses and has left "Wonderful World of Disney" in a precarious position.

Key Takeaways:

  • Disney's strategy to exploit ABC as a venue for family-themed programming has not panned out as intended, with ABC's ratings dropping.
  • The consolidation of Disney's TV production arm and ABC management has led to the departure of ABC Entertainment President Jamie Tarses in August.
  • "Wonderful World of Disney" may be kept alive as periodic specials, similar to CBS's "Hallmark Hall of Fame."
  • The program is seen as a key showcase for the studio and was introduced by Walt Disney Co. Chairman Michael Eisner.
  • The Disney program was revived as a series of family movies in September 1997.
  • Disney announced its intention to revive "Wonderful World of Disney" back when stockholders approved its $19-billion acquisition of ABC in January 1996.
  • The network's original productions for this season include two big-budget musicals: "Annie" and "Geppetto."
  • Such projects tend to be considerably more expensive than the average TV movie.

Statistics:

  • Ratings for ABC have dropped.
  • Disney passed the $19-billion acquisition of ABC in January 1996.
  • "Wonderful World of Disney" was revived as a series of family movies in September 1997.
  • The Disney program was introduced each week by Walt Disney Co. Chairman Michael Eisner in a throwback to the spokesman role Walt Disney filled in earlier incarnations, which began with "Disneyland" in 1954.
  • Big-budget musicals like "Annie" and "Geppetto" are significantly more expensive than the average TV movie.

Sources:

  • Los Angeles Times
  • Walt Disney Co.
  • ABC
  • January 1996: Walt Disney Co. stockholders approve $19-billion acquisition of ABC
  • September 1997: "Wonderful World of Disney" revived as a series of family movies
  • August 2000: ABC Entertainment President Jamie Tarses departs