Blogs were abuzz last week after it was revealed that Disney CEO Bob Iger took home $30.6 million in salary and bonuses in 2008. So what exactly has Iger done since taking over the company in 2005? Fortune magazine recently published an article “Bob Iger rocks Disney” that talks about his accomplishments during the past few years.

While the studio has been financially successful with many of its projects—Hannah Montana, High School Musical, Jonas Brothers, Cars, “Princesses” and “Fairies” franchises—it could also be argued that most of these are short-sighted projects designed to cash in on popular trends. With the exception of some of John Lasseter’s initiatives, there appears to be little vision within the company for creating quality work that has long-term and multi-generational value. Is it any surprise that three of Disney’s four highest-grossing movies of the 2000s have been based on Pirates of the Caribbean, a theme park ride that opened over forty years ago at Disneyland.

Here are some noteworthy facts and figures I ran across in the Fortune piece:

* Iger’s two biggest strategic changes since taking over: One was his subtle but seismic decision to refocus the company and most of its more than 150,000 employees around its roster of ‘franchises,’ like the Jonas Brothers—Iger defines a franchise as ’something that creates value across multiple businesses and across multiple territories over a long period of time.’ The second change was unsubtle: Just days into Iger’s new job, Disney acquired Pixar, bringing Apple’s Steve Jobs onto the company’s board in the process.

* Cars is an example of a Disney franchise that is successful on many levels: Three years after the movie came out, sales of [Cars] licensed merchandise are running at more than $2 billion annually. [The film only grossed $462 million worldwide.] A Cars sequel is in production. Disney will soon launch an elaborate Cars virtual world. But the biggest bet on Cars is Cars Land, a 12-acre stretch of Disney’s California Adventure theme park set to open in 2012.

* Iger has been getting rid of some middle-management: Internally, in a move treated like D-day, Iger dismantled a corporate strategic-planning department that had to clear most of the company’s major decisions. “When he took that job, Disney was really messed up,” recalls Jobs. “Bob looked at the guys running the divisions and said, ‘You’re in charge of your businesses now.’”

* Disney makes a lot of money from sports: Sports juggenaut ESPN—80% owned by Disney—is estimated by Doug Mitchelson of Deutsche Bank to have generated around one-third of the company’s $8.4 billion in 2008 operating income.

* Their classic franchises are not as big a part of the company as they once were: A decade ago the Mickey Mouse and Winnie-the-Pooh franchises accounted for 80% of the company’s consumer products business; today it’s closer to 50%.

* Disney is currently the most valuable media company in the world: Under Iger Disney has become the world’s largest media conglomerate by market value, worth around $40 billion.

* Steve Jobs, who is Disney’s largest individual shareholder with a 7% stake, likes Iger: “I consider Bob Iger a friend,” says Jobs. “I don’t have a lot of friends. I just really like him, and he’s a really solid guy.”

Last week’s post about Frank Zappa, Tex Avery and the place of executives generated a lot of feedback, including this email from Bruno Afonso in France:

Recently, you posted a great video with Frank Zappa, about how the old-school executives were way more hands-off than now. It reminded me of something I had seen in a BBC programm called “Comedy Connections” about the creation of the Monty Python. It was more or less the same thing. When they made their first TV series, the BBC executives just told them “Well, you’ve got an order for thirteen episodes, go and make them, you’re on the air in September” and that was it! I found the clip on YouTube where the Montys explain it. They say it in the first minute. I, for one, think it’s quite interesting that all of these geniuses (Tex Avery, Frank Zappa, Monty Python) made their best work when left alone.

For the sake of posterity, here are the comments from the castmembers. John Cleese said:

“I was incredibly impressed with the risks they’d take. We went in to see Michael Mills and we explained extremely inadequately what we had in mind. There were huge gaps absolutely everywhere and at the end of a thoroughly unsatisfactory meeting, from Michael’s point of view, he said just go away and make thirteen.”

And from Eric Idle:

“Well, the BBC was a much more laid back place. It was a bit more like a retirement from the RAF filled with people who were having offices and going off smoking their pipes and having beer. So they were very laid back about it. They said, “Well look, here we are, we’ve got thirteen of them, you’re on the air in September and see you then,” and they sort of left. They didn’t really care. It was fabulous. It was the golden age of executives. There weren’t any.”

Personally, I find the contemporary balance of power between executives and artists very curious. Why do non-creative people exercise so much control over artists in the creation of animated projects? Does it make the finished product any better? Is there a precedent showing that quality work was previously created in this manner? The answer to that latter question is clear at least; if one looks back at the history of how classic works of animation (and other media) have been produced, in every instance it was different from the way animation is produced nowadays. How much of that is the fault of the artists themselves? If somebody accepts the input of a creatively inferior person and gives equal weight to that person’s opinions, doesn’t that eventually legitimize that person? In other words, could it be that industry artists have weakened their own standing throughout the years by consistently collaborating with creatively inferior people?

Want to understand why entertaining cartoons are all but impossible to produce nowadays? You can have the answer in just two short minutes by watching the first part of this interview with Frank Zappa. Though Zappa is explaining the decline of the music business, everything he says is applicable to the animation world as well.

His words were important enough that I made a transcript for my own reference. Here is what Frank says:

“One thing that did happen during the Sixties was some music of an unusual or experimental nature did get recorded or did get released. Now look at who the executives were in those companies at those times. Not hip young guys. These were cigar-chomping old guys who looked at the product that came and said, ‘I don’t know. Who knows what it is. Record it. Stick it out. If it sells, alright.’ We were better off with those guys than we are now with the supposedly hip young executives who are making the decisions of what people should see and hear in the marketplace. The young guys are more conservative and more dangerous to the art form than the old guys with the cigars ever were. …Next thing you know [the hip young executive has] got his feet on the desk and he’s saying, ‘Well we can’t take a chance on this because that’s not what the kids really want and I know.’ And they got that attitude. And the day you get rid of that attitude and get back to ‘Who knows. Take a chance.’ That entrepreneurial spirit where even if you don’t like or understand what the record is that’s coming in the door, the person who is in the executive chair may not be the final arbiter of taste of the entire population.”

His ideas about how old-school execs were better for the music industry than younger “hip” execs directly mirror my own beliefs about why the animation industry’s output nowadays is so creatively spineless and lacking in point of view. Back in 2005, I wrote a piece called “Animation’s Greatest Executives” in which I sung the praises of the Golden Age animation execs like Leon Schlesinger, Eddie Selzer and Fred Quimby. These guys don’t receive much praise in history books, but it’s no accident that the most entertaining industry cartoons were produced under their watch.

In that earlier post, I offered this quote from Tex Avery discussing his relationship with the exec Leon Schlesinger at Warners:

“We worked every night — [Chuck] Jones, [Bob] Clampett, and I were all young and full of ambition. My gosh, nothing stopped us! We encouraged each other, and we really had a good ball rolling. I guess Schlesinger saw the light; he said, ‘Well, I’ll take you boys away from the main plant.’ He put us in our own little shack over on the [Warner Bros.] Sunset lot, completely separated from the Schlesinger studio, in some old dressing room or toilet or something, a little cottage sort of thing. We called it Termite Terrace. And he was smart; he didn’t disturb us. We were all alone out there, and he knew nothing of what went on.”

It should come as little surprise that Avery’s endorsement of Schlesinger so closely mirrors Zappa’s praise for the “cigar-chomping old” music execs. Leaving great artists alone to create great work is common sense. Execs in animation’s earlier days understood their roles. They were the money men and that’s all. It was their job to create an environment where cartoons could be created most efficiently, not to dictate the content of the animation. Today, execs want to noodle with every part of the process, even those aspects about which they are clueless like entertainment and humor. They have gone so far as to give themselves oxymoronic job titles like “creative exec” and “development exec” to justify their interference in the creative process. There are those rare exceptions when something good makes it to air, but look at the history of those projects and in every instance it is in spite of the current system, not because of it.

The secret to creating memorable cartoon characters and successful series is not so much a secret as it is common sense. If any studio ever figures it out, they’ll be laughing all the way to the bank.

Director Tex Avery and exec Fred Quimby at MGM

(Thanks, Seamus Walsh, for the Zappa link)

The Mass Animation project headed by former Sony Pictures Animation exec Yair Landau continues to receive press, most recently in an editorial that ran in yesterday’s LA Times. To summarize the project via the Times:

Through Facebook, Mass Animation invited the public to create scenes for its first short video, “Live Music.” The company supplied the animation software, the story, backgrounds, characters and audio. Animators whose work is chosen will receive $500 per scene. All told, the project will cost about $1 million and take six months to complete, a fraction of the money and time required for a comparable Hollywood project.

The unsigned Times editorial believes that this is “an early sign of things that are certain to come” as “a new class of creators and entrepreneurs is coming to vie for its share of the global entertainment dollar.” We’ve written about the Mass Animation project before on Cartoon Brew here and here. As I argued in one of those posts, unlike previous technologies, the Internet empowers artists so that they no longer have to settle for exploitative compensation models handed down from above.

The LA Times gets it right in predicting that the days of corporate-driven entertainment are drawing to a close, but it won’t be because of shady production models conceived by the likes of Landau. It’ll be due to the burgeoning generation of savvy entrepreneurial artists who understand that the road to creative success and financial security doesn’t run through Hollywood any more. Execs like Landau are dinosaurs within this new digital/online paradigm, and they’re grasping at straws trying to find “innovative” ways of paying artists cheaply on the Internet. Their attempts at doing this will become increasingly desperate and outlandish as more and more artists recognize the uselessness of such people in an entertainment landscape where the means of production, distribution and promotion are accessible to all. That is the true definition of mass animation.

For an even less-flattering perspective on the Mass Animation project, see yesterday’s post by Steve Hulett on the Animation Guild blog.

Viacom is asking Time Warner Cable for a raise - and if they don’t get it they will pull their channels off the cable service AT MIDNIGHT TONIGHT!

Oh, by the way, Happy New Year.

If Time Warner Cable and Viacom can’t reach a deal, the channel blackout would occur after midnight in each time zone. The affected channels would be: Comedy Central, Logo, Palladia, MTV, MTV 2, MTV Hits, MTV Jams, MTV Tr3s, Nickelodeon, Noggin, Nick 2, Nicktoons, Spike, The N, TV Land, VH1, VH1 Classic, VH1 Soul and CMT: Pure Country.

At of the time of this posting, no deal has been reached between Viacom and TWC. I find it interesting that in their hour of need, Viacom reaches for it’s biggest cartoon stars - Spongebob, Dora and Cartman - to appeal to cable customers for help, in newspaper ads (above) and TV spots (below). Cartoons (and their animators) don’t usually rate the respect of live action fare in Hollywood - but when it comes to the financial bottom line, stunts like this really illustrate how powerful animation is to the major corporations.

Actually, there could be a silver lining in all this for classic cartoon fans. It could be a godsend to Cartoon Network who are running a marathon of Looney Tunes all New Year’s Day. The spill-over of kids looking for Nicktoons could end up on CN, potentially giving a huge rating for the Warner Bros. cartoons, which could encourage CN (or another network) to license the Looney Tunes full time. If I were Time Warner, I’d call Viacom’s bluff.

UPDATE: At the last minute, a deal between TWC and Viacom was reached. Nick, MTV and Comedy Central are all there where they should be.

The Animation Guild blog linked to this Variety article about the financial woes of animation outfit Imagi Int’l, which has studios in both Hong Kong and Los Angeles. The studio, which last year worked on Teenage Mutant Ninja Turtles and is responsible for the forthcoming Astro Boy, also has three other features in the pipeline: Gatchaman, Tusker and Cat Tale. According to the article, Imagi will be able to complete Astro Boy but auditors say that “it is uncertain whether the Group will have the necessary financial resources to complete these animated pictures,” in reference to the following three films. All the sticky financial details are in the Variety piece. According to the Animation Guild, the studio is employing 66 artists in LA as of early-December. This is what the Guild’s business rep Steve Hulett writes about the situation on their blog:

“A short while ago, we received a communication from the company that there could be a short hiccup in cash flow, but not to worry. There were plenty of bucks overall and everything would be ducky in due course. Based on this, maybe things are a tad more serious than that. The company has several animated features in various stages of production, and a lot of money invested in them. It’s going to be grim for the sizable staff working in Sherman Oaks (not to mention Hong Kong) if everything comes to a grinding halt.”

The big animation layoff news of the past week came out of Oregon-based Laika. The Oregonian reported that the studio laid off 65 people and cancelled their post-Coraline followup, Jack and Ben’s Animated Adventure. The CG film had a troubled production history and had been in development at Laika since 2005. Last year, the film’s original writer and director, Jorgen Klubien, left the project over “creative differences.” Mulan director Barry Cook was the new director when the studio pulled the plug. According to a Laika spokeswoman, the studio will make announcements about new projects early next year. My only observation is that if a film still has the words “Animated Adventure” in its title after four years of development, then it’s probably a wise bet to can the idea. Seriously, who’d ever go watch a film titled The Dark Knight: Live-Action Adventure.

(via Mark Mayerson)

The official Rankin/Bass website has a disturbing front page story that alleges Warner Bros. is witholding millions of dollars owed to Arthur Rankin and Jules Bass, creators of classic holiday specials like Rudolph the Red-Nosed Reindeer and Frosty the Snowman. More details about the situation can be found in this article printed in Rankin’s hometown Bermuda paper The Mid-Ocean News. According to that piece:

The dispute arose when popular 1980s cartoon ThunderCats was re-released recently as a DVD box set by Warner Bros, which owns the distribution rights to that and 21 other Rankin/Bass titles. The box set went on to sell over a million copies, prompting Mr. Rankin to wonder about profits owed to him and his colleagues. “Sales were jumping off the charts,” said Mr. Rankin in an exclusive interview with the Mid-Ocean News.”But Warner Bros said they didn’t have any accounting on it except that they’d sold a million copies. My legal team started investigating and found out that for the last 20 years they’ve been deducting handling fees of $200,000 annually.”

Mr. Rankin explained that while Warner Bros readily admits an accounting error resulting in $2.6 million of improper deductions, they claim he caught the mistake too late. “They knew it was wrong, but said that because it has been so long, the statute of limitations has kicked in. You would imagine that Warner Bros, which makes an awful lot of money with our productions would say, ‘We’re sorry about our mistake. Here’s what we owe you’.”

(Thanks, James Hutson)