Disney’s proposal to purchase Fox would have been unthinkable back in the glory days of Hollywood. However, both company’s fates would be determined by their founders, though they might not have fully anticipated.
Whereas Louis B. Mayer’s reluctance to adapt his system or to embrace television ended up sinking the company’s future, Walt Disney’s decision to enter television, then diversify his company’s holdings by building DISNEYLAND, set the stage for his company to grow into the entertainment behemoth it is today. Mr. Disney also anticipated the future value of his film catalog; while other studios such as MGM and Paramount sold their back catalogs for relative pittances, Disney held onto his and the company was able to take full advantage of this once videocassettes were made available.
Daryl Zanuck’s decision to finance Cleopatra weakened his company, forcing it to enter television. Television ultimately allowed it to emerge from the brink of bankruptcy, though it was severely weakened. Thus the company ended up in the hands of Rupert Murdoch, who ironically focused the company on its television holdings which had been looked down on by the Zanucks. The company’s fate was sealed when it neglected to expand enough, however.
The future of the entertainment industry seems uncertain due to technological breakthroughs that its founders couldn’t have possibly imagined. The companies that are open to change should find themselves in an enviable position. Those that aren’t willing to change might find themselves ending up like RKO.
