• Member Since 10th Jul, 2013
  • offline last seen 13 hours ago

Wave Blaster


I like writing. It's the thing that drives me. My goal is to reach others through my work and have a nice talk.

More Blog Posts397

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Aug
26th
2019

Sony/Disney: Battle for The Spider - An Expert's Opinion · 9:36pm Aug 26th, 2019

So, from my last post, the amazing Joelle Pellegrino-Arche gave a perspective from her own profesional experience. While I don't like to present arguments as absolutes, and this is no exception, I do plead for the following extract to be taken with some more attention than the usual ramblings, as it's both coherent and it does drive its point.

Here is my take on this situation from a business person's viewpoint. Financially, Sony, even with Playstation, has not been doing that well for a while as seen in sales and stock. Sony really has only 2 things that are holding it together - The Spider Man franchise and Playstation; subtract those two and Sony is dead in the water.

Disney is a monster conglomerate who wants - just like Google, to be a part of every part of your life and who shrewdly keeps themselves just under the anti-trust radar by divesting just enough of who they eat (that word choice is intentional) - Fox, ESPN, Marvel, LucasFilm, Hulu, Pixar, ABC . . . And I make no illusions, they are a business that is interested in one thing - raw profit. To achieve this, they have built themselves into something that artificially transcends the company itself. To the majority of the world, if you say Disney, people cannot - or will not believe anything negative said about them; its Disney, all praise the golden rat. Its their PR machine that is heart of this monster. But, they do live up to their name on what they deliver, so long as you have the $$$.

So here comes the end of the Disney/Sony agreement and time to re-negotiate. The original deal that Disney had with Sony for being able to add Spider Man back to the MCU was a 90 (Sony)-10 (Disney) profit split on the Spider Man solo movie revenue while Disney was given 100% marketing rights (and oh what a killing this was). So here comes the Golden Rat - we want to re-negotiate the deal to an even 50-50 split and we still keep 100% marketing rights. Of course Sony is going to say no given their financial condition, so Disney says okay, we take back Feige and Spider Man is no longer part of the MCU; cut and dry - right? Remember what I said about Disney wanting to be part of every aspect of your life?

Disney has expressed for a while an interest in a field of entertainment that they do not have a stranglehold on - video games. Besides wanting control of Spider-Man - the most beloved member of the Marvel Universe - back under their absolute control - what else does Sony have that could interest The Rat? Oh right, Playstation. So look at what has happened since the "amicable" breakdown of negotiation (at least from Disney's retelling). 10's of thousands of social media messages parroting #savespidermanfromsony, major celebrities calling for Sony to capitulate and Sony stock going down; my gosh evil Sony is trying to steal Spider Man from Marvel and fans everywhere. . . And the public, for the largest part is gobbling it up like its their last meal. Of course there is some who say otherwise and point out its Disney's actions, not Sony that has created this issue - but the masses are being lead willingly by the nose.

Here is my shot - this was in the works for a while at Disney and barring a total PR failure, they've engineered a win-win for themselves. Worst case assuming the public does not catch on - Sony takes so much Social Pressure and public hate, they buckle and give into the 50-50 split demanded by Marvel or perhaps a modified 70-30 or the such. Disney gets more money, more control over Spider-Man and the Golden Rat glows in the public eye for saving Tom Holland's Spider Man who is so beloved. Best case scenario for Disney - Sony does not cave in and re-negotiate in Disney's favor. Disney sits back, the public rages at Sony for "stealing" Spider Man from the MCU. Spider Man 3 releases without any tie to the MCU - and it bombs - horribly. Sony's stock plummets along with its public view. Disney, the beneficial family company it is, steps in. Guess what Sony, we're going to buy you and save you; and to be fair, we only want Sony Pictures (including rights to Spider Man) and Playstation. Once again, Disney stays under the DOJ's radar, money gets stuffed in the right pockets and the Golden Rat just gets bigger.

Dirty game? Hell yes. Smart and Calculated? I would expect nothing less from the Rat.

I hope now it makes sense the post also has a comic-like tittle. Besides the obvious, Disney itself is acting up the villain part by the letter.

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Comments ( 5 )

From all of this, the one thing I want to research the most is if Disney can actually acquire Sony. I mean, I've been very staunch on saying that it won't happen but, so far, I haven't found anything that can back me up so, I would like to know, can Disney actually buy Sony, if not today, in the long run?

Again, I have my doubts but, so far, Sony Animations Studios has been making profit with their movies, and the company, as a whole, isn't doing so bad financially speaking.

Sony's movie division is the only thing that is profitable currently along with Playstation, and not by much from stockholder's viewpoints. "Overall profits at Sony Corp. fell 33 percent to $1.38 billion. Sony Pictures posted a profit of $3.7 million for the fiscal first quarter, which ran April to June, compared to a $68 million loss in the same period last year (data July 2019)." So yes, Spider Man did prevent a loss this quarter, but for companies this size, $3.7m is chump change. The company IS strictly making a profit, but its shrinking significantly every year/quarter for the last several years which scares investors.
If Sony is smart, they will push the success that animated Spiderverse movie showed; but they will have to overcome the American mindset of animation being a children's venue and validate it as a proper adult entertainment forum.
Disney has the luxury of being patient here and can pick away at Sony's reputation via social media until the damage reaches a critical point. Sony like any publicly held company can post declining profits for so long before investors start calling for change.

5112144
Dude, no. Besides what Joelle says in the following comment, Sony's electronics division is also taking. Just as an example, the telecommunications division closed shop here in Latinoamérica just a few months ago. Also, because of the decrease in smartphone sales and wearables worldwide, the half of Sony's electronics that isn't about the PS is tanking too. And the PS is constantly in a limbo of earning just enough to stay rentable and justify continuing operations.

And Disney is Disney. Unless Sony can retain their moneymakers exactly where they are (including Spider-Man), they're pretty much meat for the mouse in the foreseeable future.

5112497
That too.

5113771

I understand, thank you for the info.

A update if anyone is watching the situation. As of this week, Sony advised Disney that there will be no attempt to get Spider-Man back in the MCU and that they now intend to reboot the Spider-Man franchise in order to remove all references to the MCU. So Sony is taking the gamble and see if they can pull off the miracle. Sony has three potential breakthru assets at their disposal that can be a make-or-break factor for them beating Disney here: 1) Spider-Man including the Spiderverse, 2) The Final Fantasy 7 Remake & 3) Death Stranding. Any one of these has the opportunity to boost Sony significantly or if poorly handled over the next few year, play right into the fail scenario that Disney is now hoping for.

Not to say that Disney is not looking at some similar situations such as public trepidation going into Phase 4 for the MCU (Given that Sony has pulled all the rights for Spider-Man, I will love to see how they will write him out of the entire universe), the Upcoming launch of the Disney+ service and now add in the announcement this week by the Rat that "They will be taking Avatar, Predator and Aliens in a completely new direction" Star Wars disaster part 2 anyone?

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