Disney embraces Pooh for animated feature

Walt Disney Studios has a new Winnie the Pooh hand-drawn animated theatrical release in the works, and it's also creating two primetime TV specials starring the main character of the animated series "Handy Manny."

The announcements are planned for Tuesday at the Licensing International Expo in Las Vegas, where executives also will discuss plans to pump more enthusiasm into the world's largest licensed character franchise: Mickey Mouse.

That effort, said consumer products chairman Andy Mooney, could include classic footage of an animated Mickey mashed up with contemporary Disney properties, with the resulting creations running on the Disney Channel.

"Through extensive research with kids, we found they actually love the original Mickey Mouse property," Mooney said.

As for Pooh, the movie's planned release for spring 2011 will follow by six years "Pooh's Heffalump Movie," which was panned by critics and earned just $18 million at the domestic box office.

On the "Handy Manny" front, one TV special is set for this year and another for next, and a new 20-episode short-form series called "Handy Manny's School for Tools" will debut next year as well.

Based on revenue, Disney's consumer products unit is its second smallest, after interactive media, but in the latest quarter it was the fastest growing, mostly because of the company's decision to take back ownership of Disney Stores North America.

Disney's licensing-show event also will feature chief creative officer John Lasseter discussing plans for the re-release of "Toy Story" and "Toy Story 2" in 3-D in October followed by "Toy Story 3" in summer 2010.

"Toy Story" merchandise in the works includes a Buzz Lightyear robot that responds to 25 voice commands and a line of LEGO products based on the film franchise.

http://www.reuters.com/article/entertainmentNews/idUSTRE5511F920090602

Disney's ESPN faces rising rights fees: report

Walt Disney Co's ESPN cable sports network, which has broadcasting deals for events ranging from the National Football League to Nascar, is facing higher costs while renewing some of the contracts amid falling advertising revenue, the Wall Street Journal said on Monday.

Since Disney acquired 80 percent of ESPN in 1995 the most-watched U.S. sports channel has become one of the company's most valuable properties, providing $4.1 billion in operating income in fiscal 2008 ending September 27, the newspaper said.

However, ESPN is feeling the impact of the recession and its advertising revenue is declining even as costs associated with many of its rights deals increase on schedule, the paper said.

ESPN's NFL payments nearly doubled from $600 million during the last round of negotiations, and each of its other major rights fees rose by at least 20 percent, a trend most industry people expect to continue, it said.

ESPN spends about $2.2 billion annually for the broadcast rights to major sports in the U.S. alone, the paper said.

Walt Disney could not immediately be reached by Reuters for comment.

http://www.reuters.com/news/entertainment