Disney takes heat over Miramax film; how long will it stay cool?

When the Catholic League for Religious and Civil Rights took issue with the upcoming movie "Priest," it chose not to attack the film's U.S. distributor, Miramax Films.

Instead, the New York-based religious group took aim at a bigger - and more vulnerable - target, Miramax's parent company, Burbank-based Walt Disney Co.

Thus Disney, which built a reputation on conservative family entertainment, now faces a much-publicized nationwide boycott by several religious groups over a movie with, at best, limited earning potential.

Disney officials maintain that, as they promised when they acquired Miramax two years ago, Miramax will continue to make its own decisions regarding the films it intends to distribute.

While it is too early to gauge how damaging the boycott will be to Disney's finances, industry insiders wonder just how hands-off Disney can be if Miramax's actions continue to damage its core products and sterling image.

'Definitely a nightmare'

"It's definitely a nightmare for Disney," said Christopher Borde, associate analyst with the Los Angeles office of Paul Kagan Associates, an entertainment research firm. "For them, the couple of films that Miramax comes out with each year can end up impacting Disney's theme parks."

Critics warmly received "Priest," the story of a homosexual Catholic priest, as it opened on several screens in New York and Los Angeles. But the Catholic League and several other religious groups have criticized the film as inflammatory and anti-religion.

"We are calling for a boycott of Disney products, a boycott of vacations to Disney World and Disneyland and a boycott of the Disney cable television channel," said Catholic League President William A. Donohue. "This is not something that might happen. Rather, it is something that is already under way."

Thus far, Disney has disassociated itself from the Miramax film, and maintained thai Miramax will continue to make its own business decisions.

A Miramax statement also noted that, "By charter, Miramax is an autonomous division of Disney, and will continue release films possessing the stands of quality that are the hallmark of our company."

Added Harvey and Bob Weinstein, co-chairmen of Miramax, "We could not be happier with the strategic alliance between our two companies, which has showed no signs of strain after more than two years of success and prosperity."

The bottom line

But some in the entertainment industry noted that "prosperity" may be the ultimate judgment of how much leeway Miramax is given.

Academy award winner and Miramax release "Pulp Fiction" made some at Disney nervous over its violent content, said Mike Adler, an entertainment attorney with Mitchell, Silberberg & Knupp in Century City. But that film also made Disney a !or of money - almost $100 million box office gross in the United States alone.

"They've done everything humanly possible to make Miramax look like it's not Disney," said Adler. "But if Disney feels that a Miramax film will have a greater negative impact on its core businesses (than it bring in at the box office), then Disney will try to rein Miramax in.

"Ideally, you would like to be able to say the issue is about the First Amendment," Adler continued, "but it's about money."

Disney bought Miramax during a period when several major Hollywood studios began to diversify into specialty and art films. Sony Pictures Entertainment, for example, launched its Sony Classics division.

But such films are often steeped in shock and controversy - two qualities that Miramax has used in the past to help market its films.

Vulnerable on parks front

And unlike Sony, a company like Disney with theme parks and a lot of consumer products oriented toward children and families is wide open to just the type of protests that the Catholic League has launched.

"Disney floes not need this grief," noted one industry observer. who asked not to be identified. "Miramax seems to be pushing the envelope a little bit."

And Disney's resolve to let Miramax go its own way will be tested again shortly, as the controversial film "Kids," a rough-cut of winch was shown at the Sundance Film Festival, is also expected to draw criticism from conservative groups over its sexual content.

Still, Adler warned, this is Hollywood. and one needs to put all the controversy into perspective to get a clearer view of the situation.

"After all," he said, "no one at Miramax is getting death threats," like executives at Universal Pictures did when that company released "The Last Temptation of Christ."