Disney Headlines for February 5th, 2024
In a random happenstance, Apple just revealed the future of Disney content consumption.
We’ll discuss what it means and also touch on Disney’s recent court loss in the latest batch of Disney Headlines.
Disney Content on a Headset
I’m not telling early adopters anything they don’t already know, but the Apple Vision Pro is now available.
For a low, low price of $3,499 plus tax, you can use something akin to an iPhone for your face.
Gamers would recognize this device as a Meta Quest VR headset competitor, but Apple refuses to play that game.
Instead, the tech giant has marketed its product as the start of the “era of spatial computing.” That sounds more ostentatious.
Early reviews of the tech are all over tech sites. Here’s the always reliable Marques Brownlee describing his first impressions:
Perhaps the most important part of this conversation isn’t anything Brownlee says, although I highly recommend him for his analysis.
Instead, let’s talk about the viewer totals. More than 20 million people have watched this video after just five days.
Clearly, casual fans have at least some interest in the idea of an augmented reality headset aka “spatial computing.”
I’m not saying we’re ready for Ready Player One yet, but the interest is there.
Disney had anticipated this interest level, which plays directly into the company’s future plans.
As I discussed eight months ago, Bob Iger envisions the “Internet 3.0” as providing new opportunities. Here’s the quote:
“I think that Internet 3.0, which will definitely be a more compelling experience, certainly more immersive and dimensional.
“You may have an avatar, but you can go all over the place, and I think that it is likely to develop into something real as an experience.”
With the advent of the Apple Vision Pro, we’re starting to realize what this future could entail.
Here’s a YouTube video that aligns with part of what I said in my piece last year:
What’s Disney Offering Now?
On Disney’s official website, the company posted a press release hyping this new device and its limitless possibilities.
One of the most intriguing features is the ability to stream entire Disney movies in 3D. Here’s the list of qualifying titles:
Since you’re standing in a virtual realm within your headset, you don’t face the real-world constraints of two-dimensional broadcasts.
Instead, this device can show a film as a story appears in real life.
That’s a bigger deal than you might realize, albeit one with drawbacks.
One of my happiest memories of owning a 3D television was showing my entire family The Lion King.
A group of eight of us packed together on the couch and floor, put on our 3D glasses, and experienced the film like we were in the theater.
While that night was magical and everyone adored it, the reality is that 3D televisions aren’t being manufactured today.
Companies like Samsung and LG stopped because they weren’t selling well.
That’s the struggle Apple faces with its new device, which is probably at least three years ahead of the curve.
Apple has chosen to use its marketing might to accelerate the speed with which people accept “spatial computing” as a thing.
This industry should eventually be worth billions, if not trillions, of dollars. Getting from here to there is gonna take time, though.
Disney is betting big on Apple’s ability to increase demand exponentially for such products.
When that happens, Disney can use its ESPN sports licenses to show every fan courtside views of every game.
Similarly, people will always have the best possible home theater sitting beside them on the nightstand.
All you need is to wear the Apple Vision Pro. Suddenly, you’re in Africa, watching Simba grow into The Lion King.
Alternatively, you’re standing on the battlefield of Wakanda, watching the Avengers stop Thanos.
Perhaps most impressively, you’re in a galaxy far, far away, watching a Mandalorian become the father of a baby Yoda.
Then, we have the ultimate Disney dream. It’s the ability to visit Main Street, U.S.A. from anywhere on the planet.
Suddenly, the number of Disney park guests swells from hundreds of thousands to millions daily.
Disney holds great expectations for what comes next. But for the time being, its offerings are relatively modest.
You can watch various Disney+ titles while sitting in a 3D backdrop akin to a drive-in theater on Tatooine or an Avengers Tower setting.
The Scare Floor from Monsters, Inc. and a Disney+ theater akin to the one at Disney’s Hollywood Studios are other options.
In short, Disney has created stylish spatial backdrops that are little more than digital wallpaper gifs for the time being.
So, there’s a hedging of bets here while everyone waits for Apple to will spatial computing into being a thing.
When that happens, Disney will experience explosive revenue growth with its digital marketing and sales.
I presume this growth will fall into the Direct-to-Consumer bucket, but that’s a TBD.
For now, Disney and Disney+ content enriches the Apple Vision Pro.
I wouldn’t say that Disney has gone all-in on the product yet, though.
That probably won’t happen until Apple has achieved at least 20 million units sold.
Thus far, the unit has managed 180,000 in unit pre-sales, indicating that there is some demand.
Once other companies start mass-marketing similar devices, Disney’s path is clear.
The Federal Court Fallout
Last June, I discussed how Disney lost its federal judge in the Central Florida Tourism Oversight District (CFTOD) lawsuit.
At the time, I stated, “Having any judge other than Walker oversee the case dramatically increases the governor’s odds of getting an early victory.”
So, yeah. That’s what has happened.
The federal judge who replaced Walker, Allen Winsor, a Donald Trump appointee, sided with the CFTOD.
I won’t lie to you. When the decision came down, I felt a little sick to my stomach.
After all, in a recent court case, a federal judge slammed Florida Governor Ron DeSantis based on a First Amendment ruling.
While the Governor lost that one, he scored the win he desperately needed against Disney three weeks later.
In both instances, Florida took an interesting legal approach.
While facing arguments of infringing on First Amendment rights, Florida countered, “Yes, we did, and…?”
This daring bit of bravado failed against attorney/judge Andrew Warren, but it worked against Mickey Mouse.
In the hours that followed Disney’s ruling, I spoke to several attorney friends.
While they’re all extraordinarily smart, successful people, I’ll refer you to what a former trial lawyer said.
Trial lawyers are basically the gunslingers of modern law. They know how to win in court.
He was always more pessimistic than my other contacts. Here were his thoughts:
“I do think the judge was a bit strident in granting the motion to dismiss.
“That means he found no basis and no provable set of facts as pled could prevail.
“That is rare…especially when you have expensive lawyers.
“How can a company operating one way and then another way not be able to demonstrate harm.
“Standing is a cop out on this. (The judge) should have let the case proceed to summary judgment.”
What Happens Next?
For what it’s worth, that opinion was fairer to the judge than the others I received.
The term “clown” came up a disproportionate amount, a strong indicator of what the legal community thinks of the ruling.
None of that helps Disney, though. As I mentioned in the judge-shopping piece, the first ruling matters a disproportionate amount.
The same attorneys who loved Disney’s side of the case previously now envision a challenging road ahead.
Should Disney win an appeal – and the odds are low – the same judge would likely handle the ruling.
Since the judge threw out the case “without prejudice,” Disney can re-file at any point.
That strategy appears more likely to succeed, as this judge has already demonstrated antipathy toward them.
Disney should consider doing its own judge-shopping for the next round, as federal court remains its better bet.
As a reminder, this ruling doesn’t apply to Disney’s attempt to regain control of the former Reedy Creek, though.
That’s the real ballgame here.
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Main Photo: Apple