It looks like, once again, every one is overracting to this news, which based on the initial report, seems to be based on a few odd sentances made in a speech by Eisner.
No official, in depth comment has (as far as I can see) been made.
Logically, looking at Disney's (the Disney brand that is alone) live action films for the past few years, very few of the live action films have been high-budget - I can only really think of PotC. Can anyone else think of any? So cutting back on 'big' Disney live-action films and being more selective over choosing which to lavish a big budget on isn't really going to have much of an effect at all is it?
So, most likely Eisner was talking about Touchstone and Hollywood Pictures movies, and not Walt Disney movies. Looking at the Touchstone movies from the past five years, it's clear that the most expensive films have not necessarily been providing the highest returns: The Alamo, Pearl Harbor, or Reign of Fire. I don't think King Arthur looks set to burn up Box Office receipts either.
Then look at some of the Touchstone films that have performed well: Bringing Down The House, Open Range, Shanghi Noon/Knights and Sweet Home Alabama.
Of course there's exceptions - The Ladykillers, for example, didn't live up to expectations, but being a mid-budget film, damage was minimalised. It even looks set to earn a profit when international box office takings are taken into account. Not every low to mid-level movie performed well, and not every high-level movie performed badly - Signs for example did well. Based on Eisner's "more selective" comment, Signs would be a movie they would still fund and make now, based on the past success of M. Night Shyamalan's movies. But failures on mid-level films firstly don't impact on the balance sheet as much and secondly can normally turn a profit when additional revenue streams, such as home video, are included.
See Under A Tuscan Sun was labeled a flop at the box office, but considering it's $18m budget, it was a bigger success then most films as it took $48m at the US Box Office! Not every film has to be big, or set the box office on fire to be a success!
While Signs my have made a decent box office total, percentage wise (ie return for investment) Bringing Down The House did more, for half the risk (plus it was almost guarenteed to break even or post a profit due to the lower budget). Now I'm not saying Disney/Touchstone should abandon expensive, live action films, and neither is Eisner. He's just saying they need to be more selective in choosing which ones to make.
But all Eisner is saying about the movie industry is common sense. Now you people are knocking the guy for talking common sense, for something that doesn't really affect Disney branded films at all. What do you want from the guy? If only all Studios could talk such common sense.
Not every films needs expensive digital effects forced on the viewer every 30 seconds to be a good movie!
"We found there is no direct correlation between spending more and making more in terms of our returns," Chief Operating Officer Bob Iger said.
Exactly!
Figures from IMDB.COM (of course all Box Office figures are a guide only, and US only, you can't do a international box office as most countries are missing from their figures)
The Alamo ($95m budget, $22m US Box Office (to date))
Pearl Harbor ($135m budget, $198m US Box Office)
Reign of Fire ($95m budget, $43m US Box Office)
Bringing Down The House ($35m budget, $132m US Box Office)
Open Range ($26m budget, $58m US Box Office)
Shanghi Noon ($55m budget, $57m US Box Office)
Shanghi Knights ($50m budget, $60m US Box Office)
Sweet Home Alabama ($38m budget, $127 US Box Office)
The Ladykillers ($35m budget, $39m US Box Office (to date))
Under A Tuscan Sun ($18m budget, $43m US Box Office)
Signs ($72m budget, $228m US Box Office)