TV

Posted: Fri., Jul. 9, 1999

Disney: integrate expectations

Mouse merges TV prod'n arm with primetime ABC

Four years after Disney stunned showbizzers with its stealth acquisition of ABC, the Mouse House has taken its boldest leap yet toward true vertical integration with the consolidation of Disney's TV production arm and ABC's primetime division into a single entity dubbed the ABC Entertainment Television Group.

The division will be headed by co-chairmen Stu Bloomberg and Lloyd Braun, formerly chairman of ABC Entertainment and chairman of Buena Vista TV Prods., respectively. Braun and Bloomberg will report to Patricia Fili-Krushel, prexy of the ABC network (Daily Variety , July 8).

Braun, the former prexy of Brillstein-Grey Entertainment who signed on as Disney's TV production topper in March 1998, had reported to Walt Disney Studios chairman Joe Roth. Bloomberg, a 21-year ABC vet, has reported to Fili-Krushel since she was elevated to prexy of ABC last summer. While the production entity aims to supply some shows to ABC's rivals, Braun acknowledged Thursday that the scope of Disney's development will be scaled down to focus on the needs at ABC.

"I don't think we have the expectation that we're going to continue to supply product (to other webs) at the level we have been," Braun said. But in fact, Disney's TV division has been lagging in recent years, with most of its new product going to the WB and UPN weblets.

Streamlining

Over the long term, the streamlining will save Disney mega-coin as it eliminates redundancies at the network and studio, particularly in administrative and support areas like accounting and research. But it's still unclear just how development and current programming execs at the studio and network will mesh.

"It's a work in progress," said Braun.

Fili-Krushel concurred, but would not speculate on how many positions will be eliminated with the consolidation.

ABC Entertainment prexy Jamie Tarses will continue to oversee day-to-day operations of ABC Entertainment, and she'll play a larger role in development under the streamlined management structure. She'll now report to Braun as well as Bloomberg.

Cleaning the Mouse House

Mouse House insiders say the changes at ABC and Buena Vista TV -- coming on the heels of a reorganization of Disney's international operations -- foreshadow wholesale restructurings of other Disney divisions to be unveiled over the next few months.

"This organizational move is a further step in recognizing the changing television landscape and completes our integration of ABC's primetime division and Buena Vista Television Prods.," Disney chairman Michael Eisner said in a statement. "All of our organizational moves both domestically and internationally prepare the Walt Disney Co. for the beginning of the next century."

Sources close to the situation said the realignment was undertaken not only to cut costs but also to eliminate the inherent turf wars and internal competish between the studio and the network. A big problem for both sides, one observer noted, was that the studio execs become "emotionally attached" to projects they develop, while their network counterparts feel the same way about the projects they shepherd.

Mixed reaction

For sure, Hollywood TV circles were abuzz Thursday with decidedly mixed reactions to Disney's experiment in fostering true collaboration.

Some observers predicted there would be "massive confusion" over who was calling which shots. Others suggested a "nasty power struggle" would ensue now that ABC is so top heavy with senior execs.

Bloomberg flatly denied rumors that Braun had fought the merger or had sought a different reporting structure, adding that he and Braun had a "learning curve" to overcome regarding studio and network operations, respectively.

"We have enormous respect for each other's strengths," Bloomberg said.

Creatives may steer clear

Some Mouse House watchers also noted that ABC could lose out on signing big-ticket producers and other creative talent who would want the freedom to field projects among all webs.

"I'm flabbergasted at (Disney's) shortsightedness," said one industry veteran, who believes the move will prevent ABC from tapping a huge pool of talent at other studios, weakening the net.

"Why would an outside supplier now want to bring a project to ABC?" the source asked, arguing that other studios will be afraid to develop with the Alphabet web since inhouse projects will have such an enormous edge when it comes to securing a spot on the ABC primetime sked.

At the same time, other interested parties with ties to Disney and ABC endorsed the blending of the studio and network creative functions.

"It's a recognition of reality," said a top TV production exec. "People at ABC and Disney will work together much more effectively when they're not in that buyer/seller mode. ... All of us are facing this whole new world of vertical integration."


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