Disney to Reduce Movie-Making Budget

Walt Disney Co. plans to spend less on movie production, Chief Executive Michael Eisner said. Expensive flops such as "The Alamo" have cut profit at Disney's studios.

President Robert Iger said the plan to spend less making live-action films was at the heart of a disagreement between Disney and brothers Harvey and Bob Weinstein, who run the company's Miramax division.

"It's a relationship that's resulted in a lot of fine films," Iger said in a Webcast question-and-answer session with a Deutsche Bank Securities analyst. "But the desire of the company is to invest less in live-action films. There's got to be some give here."