“Microsoft and the Walt Disney Co. have struck an alliance that will see the two companies working closely together to develop digital media content and delivery systems, the companies said Monday,” John Borland reports for CNET News.com. “While containing little in the way of specifics, the deal does solidify one of the software giant’s key Hollywood relationships, which it views as critical to the future of its audio and video software platform. A Microsoft executive said the two companies would be working increasingly close together on topics ranging from high-definition film to digital rights management.”
“‘This is really designed so that we will cooperate on digital media initiatives and accelerate the flow of digital content to consumers,’ said Dave Fester, general manager of Microsoft’s Digital Media division. ‘It builds a great bridge between the technology companies and Hollywood,'” Borland reports. “Under the announced terms of the alliance, Disney will take a non-exclusive license to use Microsoft’s Windows Media digital rights management software. The companies did not say exactly where Disney might use the technology, or how soon any such use might develop.”
“The companies said they would also work together to develop and deliver secure content, and help develop technology that lets different devices throughout the home access secure digital entertainment files,” Borland reports. “News of the alliance comes just a few days after one of Microsoft’s biggest rivals in the technology world, Apple Computer and Pixar Chief Executive Officer Steve Jobs, openly broke with Disney after months of contract negations. Jobs said that Pixar would seek a new distribution partner for its animated films, declaring on a conference call with investors that ‘Not even Disney’s marketing and brand could turn Disney’s last two animated films into successes. Both bombed at the box office.'”
Full article here.
MacDailyNews Take: Does Disney really want to shackle itself to Microsoft or does Eisner want to somehow get back at Steve Jobs for taking Pixar off Disney’s plate?
Related MacDailyNews articles:
Steve Jobs blasts Disney during Pixar conference call – February 04, 2004
Film Exec: if Eisner’s out ‘Steve Jobs could now be a candidate to run Disney’ – January 30, 2004
Pixar shares rise, Disney falls after film distribution deal breakup – January 30, 2004
Studios suitors ‘falling all over themselves’ to woo Steve Jobs’ Pixar – January 30, 2004
Pixar dumps Disney; Steve Jobs: ‘we’re moving on’ – January 29, 2004
Disney who? Steve Jobs rides a rocket named Pixar – August 08, 2003
Steve Jobs’ Pixar about to put the hurt on Disney – February 04, 2003
The kings of mediocracy form a strategic alliance.
To partner on any kind of media you need a little something called content. That’s something Disney is sorely lacking these days…
If Steve-o were to take over Disney, whole departments would be axed, starting with the lackeys who made this license agreement.
Steve blew it. He may have been dumping hundreds of unearned Pixar dollars into Disney, but he had the mouse by the tail. Now he’s given MSFT DRM it’s first seriously tangible and highly public entrenchment.
Boo, Steve, boo!
I kind of agree with Mikky. This looks to be a whole Steve’s hot temper messing something up, and Microsoft coming in to take advantage. Disney is huge and that is a big ally to have when you trying to form a new digital distribution chain.
It would be nice to see Apple change to meet this new demand at some point. Maybe becoming Apple Inc. instead of Apple Computer Inc. With Pixar and whoever they partner with and Apple tech we still might have a chance at a Microsoft free future in this industry. But it is looking less and less likely.
I’m sad.
Rob is right. I think the most interesting sentence above is: “The companies did not say exactly where Disney might use the technology, or how soon any such use might develop.”
Look, the above article says nothing about distribution. Movies-by-internet isn’t going to supplant the DVD, and the Windows Media Center has been a complete failure so far. This is a FUD gain for Microsoft, nothing more.
And if Eisner does get ousted, the new CEO will get vengeance, thanks to Roy Disney and his new bestest buddy, Steve Jobs.
The timing of this announcement really does sound like sour grapes to me. Pixar dumps Disney so Disney announces it is to use M$ DRM. So what, let them use it – it wont make their films any better nor improve their bottom line.
What gets me these company’s don’t know what they can do with each other. I find it funny … hey we always knew Windows was a Mickey Mouse operating system and it’s just been confirmed.
deals like this do not spring up overnight. Disney would have told steve of the ongoing microsoft negotiations, and steve went no way
Who did you expect them to partner with, RealNetworks?
I can see it right now, Disney World will become a Microsoft Media Showcase. Nobody will be able to use the rides as the controlling software keeps crashing and falling prey to Virus Attack.
Funny. Looks like Disney is sticking its tongue out at Steve. But I think Steve’s middle finger has more weight right about now.
Even though I don’t encourage “the finger,” JadisOne has an excellent point. Steve sees where Disney is going so he got out before the crap hit the fan. With Pixar having a hit after hit pictures, Steve is saying, “that’s nice but I have the golden goose.”
Eisner is so gone…
Eisner is poisoning the water so Steve will not want to have anything to do with Disney. He’s just protecting himself, not Disney.
Steve, on the other hand, does a good job (no pun intended) of keeping the needs of both company’s separate. When he’s wearing his Pixar CEO hat, he’s not thinking how it will benefit Apple. That’s as it should be.
Time to take my kids to visit Yesterday Land.
This is just a logical progression for Disney. They have been moving over to Windows in most of their products for ages. Their DVDs have Windows-only extras, ToonTown is Windows-only, even a large chunk of their websites don’t display properly unless you use IE on Windows. All this just backs up the blatently obvious about the company. The creative people are no longer in charge. The accountants make all the decisions.
Maybe this is a real reason for Steve breaking away. Imagine if Disney had told him to expect Nemo (etc) delivered on Windows only?
Microsoft called the alliance with Disney “a significant cooperative effort to help guide the industry,”
LOL, how cute. Help guide == lock everyone into WMA and proprietary DRM so no one could escape.
Sadly, 20B, since Disney have the right to do whatever they like with Nemo anyway, they’ll be WMV versions of Finding Nemo, Finding Nemo II, Finding Nemo 1 1/2 (released as Finding Nemo 3 in the UK) etc. etc. etc.
Makes you want to scream, doesn’t it?
yup they have tons of content, everything in the past…
What luck will Disney have at drawing back the actors whose voices brought the animation to life? Can anyone besides Ellen Degeneres do the voice of Dori? A sequel by Disney with other voices will flop.
I guess they used that format because it’s the most restrictive. I suppose Disney thought “how much can we lock down our mediocre product” and came up with the best answer.
Perhaps M$ will also partner in Disney’s next animated feature… it will feature a not-too-bright cow as its main character and showcase the cow’s sorry attempt to copy the competition. It should be out next year… err, make that 2006… well, maybe 2010…
To those who said Jobs botched the negotiation, do you really think that MS-Disney negotiation is done overnight? It is quite possible that Disney and MS negotiated behind Pixar’s back. After all, of all movie studios, Disney was the most likely candidate to use draconian DRM measures. They didn’t lobby for copyright extension for nothing.
What’s really funny is that Monster Inc. is one of the clips shown. That man has no shame… he so wants to be Steve Jobs. Well, when you have no talent, you license it.
” width=”19″ height=”19″ alt=”wink” style=”border:0;” />
rogozhin…priceless…by then Pixar will have enough money to licence the word “cow” and every refference made to “L*nghorn” or “c*w” will cost Disneysoft $10,000.
Even if Pixar profits – Apple will suffer. Mac users suffer when the Finding Nemo 2 website is WinXP/Explorer-only, the Toy Story 1+1/2 CD-ROM is WinXP-only… you get the idea. It’s better to have them as our ally.