When a company pushes out a movie, video game, etc that is either a direct sequel, remake, reboot, or an amazing brand new fully restored with 1,000 hours of extra bonus features platinum diamond edition of an older title; with the primary purpose of earning that much more cash, instead of letting it be or making another installment only because you actually have a good story worth telling.
commonly happens when another company takes over a popular franchise after it has run its course, and often times involves recasting roles instead of using the tried and true original cast, further reducing any credibility.
Most Disney sequels, The Force Unleashed 2, Evan Almighty, and recent installments from the Medal of Honor and Call of Duty series plus many more suffer from the Disney effect.
The new Red Dawn and upcoming Halo sequels will most likely suffer the same tragic fate.
The act of making a bad/horrendous/cop-out-of-a-sequel or prequel to an originally good movie.
Dave: Dude, I heard they were making a sequel to Boondock Saints.
Steve: I hope they don't apply the Disney effect to it.
When a former Disney star (usually female) becomes a slut and/or frequent drug user.
Person 1: Damn, did you see miley Cyrus's salvia pics?
Person 2: yeah, that's the Disney effect.