In Hollywood, directors yell "action" then "cut," so it's only natural to see life imitating art at Disney
Jobs will be cut too, though I'm obviously not talking about Steve Jobs here. The Apple Computer
The report comes at an odd time. Disney's Pirates of the Caribbean: Dead Man's Chest set a new opening day weekend record by producing $136 million in ticket sales last week. However, with the Weinstein brothers taking their art-house success elsewhere and Disney stumbling badly in films that don't include pinup swashbucklers, taking a step back isn't outlandish.
Thanks to Disney's $7.4 billion Pixar buyout, the company's theatrical animation division is poised for a bright future. With Pixar's brains and Disney's merchandising brawn, it won't be long before filmgoers can trust the Disney brand in all of its animated fare. Live action is a different story altogether. There, Disney is often too stingy to follow rivals like Sony
Disney isn't cheap all of the time. When it believes in a property like Narnia or Pirates of the Caribbean, it will spend the dough necessary to lock in the blockbuster. A lighter slate will give Disney the luxury to spend more on fewer flicks, but that also exposes Disney to more risk if it puts out too many flops in a row.
Disney is doing so well in its bread-and-butter broadcasting networks and theme parks that it can afford to take a chance by scaling back its celluloid production. We will have to wait to see whether Disney makes this reported move official to fully weigh its implications, but it can't be an easy one with so many of Disney's hires toiling away on its live action revival.
Quiet on the set.
Disney and Time Warner are active recommendations for Motley Fool Stock Advisor newsletter service subscribers.
Longtime Fool contributor Rick Munarriz is still a kid at heart, smitten over the right kind of animation. He owns shares in Disney. The Fool has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.