Disney CEO Bob Iger - "the business that we are used to may be over" - AVS Forum
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post #1 of 9 Old 03-04-2009, 02:56 PM - Thread Starter
 
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Disney CEO Robert Iger discusses the decline of physical media and Disney plans to expand online distribution presence:

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Walt Disney Co (DIS.N) was considering moves like creating a subscription-based online video club to capture online consumers as well as revenue that is being lost to piracy, Chief Executive Robert Iger said on Tuesday.

Iger told analysts at a Deutsche Bank conference that media companies are under pressure to find ways to compete in a Web-based entertainment arena that is changing their business, possibly for good.

"We've also seen a pretty dramatic shift in how people consume entertainment" with computers and mobile devices becoming more important to most viewers than television, Iger said.

"The computer is a very important place to entertain people, and if we don't occupy space on those devices, others will," he said.

To that end, Disney was considering options that might include a subscription-based online rental club, in which users could access content from Disney's massive film and TV library by mail or online delivery, Iger said.

While moves to put more content online have been criticized as margin destroying, Iger said critics "aren't realizing is the business that we are used to may be over."

"When it comes to piracy, are we better off moving content faster and cheaper than if they steal it and we get nothing?" he said.

The comments come about a month after Disney reported double-digit drops in profit, and Iger warned investors of "secular changes" in DVD and advertising sales.



http://www.reuters.com/article/marke...0090304?rpc=44
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post #2 of 9 Old 03-04-2009, 04:15 PM
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Originally Posted by PSound View Post

Disney was considering options that might include a subscription-based online rental club, in which users could access content from Disney's massive film and TV library by mail or online delivery, Iger said.

I'm confused, I can already get their movies through Netflix (which would be the "mail") portion of that.

Are they thinking about starting their own version of this stuff...like a "Disney only" subscription for streaming and mail delivery?

Good luck with that...
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post #3 of 9 Old 03-04-2009, 04:37 PM
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Originally Posted by mproper View Post

I'm confused, I can already get their movies through Netflix (which would be the "mail") portion of that.

Are they thinking about starting their own version of this stuff...like a "Disney only" subscription for streaming and mail delivery?

Good luck with that...

"When it comes to piracy, are we better off moving content faster and cheaper than if they steal it and we get nothing?" he said.

Still confused?
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post #4 of 9 Old 03-04-2009, 04:46 PM
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Originally Posted by fpconvert View Post

"When it comes to piracy, are we better off moving content faster and cheaper than if they steal it and we get nothing?" he said.

Still confused?

Yes, since I have no idea what that has to do with what I was asking:
Quote:


Disney was considering options that might include a subscription-based online rental club, in which users could access content from Disney's massive film and TV library by mail or online delivery, Iger said.

I read that as they may start their own version of Netflix or something. Wouldn't it be better for them to offer their stuff to AppleTV, Vudu, Netflix streaming, etc, then go off and start there own version just for Disney content?

At least that's how I read that quote.
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post #5 of 9 Old 03-04-2009, 05:06 PM
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Ok...the pirate steals the content and sells it for a dollar or gives it away, Disney makes what?....... Yes, zero.
Disney goes through apple and apple sells content for 75 cents but wants a thirty cent cut...Disney makes 45 cents.
Disney sells it on their own for 50 to 75 cents through a subscription basis and keeps all...much better, no?
They have a lot of content to sell.
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post #6 of 9 Old 03-04-2009, 06:33 PM
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Originally Posted by fpconvert View Post

Ok...the pirate steals the content and sells it for a dollar or gives it away, Disney makes what?....... Yes, zero.
Disney goes through apple and apple sells content for 75 cents but wants a thirty cent cut...Disney makes 45 cents.
Disney sells it on their own for 50 to 75 cents through a subscription basis and keeps all...much better, no?
They have a lot of content to sell.

Ok, I see where you're coming from. I was just assumed making 45 cents from tens of millions of Netflix subscribers would be better than making 75 cents from a few hundred thousand "New Disney Service To Be Named Later" (IMO). Not that I know how Netflix licensing works, but it must work out ok for studios.

What I mean is, would you really sign up for a subscription for something that just offered Disney content? How much would you pay for that? And if by some chance it was successful (doubt it), would you want to see other studios doing the same? Like having to pay for Disney, and then pay for MGM, and then having to pay for Universal, and then having to pay for Sony...Or would you rather just pay (for example) a small fee to one place, like Netflix, for content from all those studios?

I assume the Netflix model is better, which is why we don't see all these studios offering their own independent services (like how I interpret what Disney is contemplating) and instead they license the content to other established services, like Netflix/Vudu/XBOX Marketplace/PSN, etc.

Or maybe I'm just reading it wrong. Maybe they are looking at building another Netflix and offering content from all studios. If that's the case, then I'm still not sure there's room for yet another Netflix/BBO, but I've been wrong before.

Regardless, I'm anxious to hear more about what they are thinking/planning.
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post #7 of 9 Old 03-04-2009, 09:45 PM
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Wow, what a dumbass. Considering cinema has never been bigger and I think this January was the biggest gross revenue on record, I think it's safe to say the multiplex isn't a dinosaur just yet.

Fine, start your own subscription service and pull all your movies from Netflix. Good luck.
BTW, good luck getting all those "pirates" to download a proprietary media player swimming with DRM onto their computers.

Your margins are going down because that is what happens when things like DVD become a commodity. It's not that hard to figure out the solution.

But this guy is so clueless he'll probably just decide to open the "Disney vault" and release a BD of Lady and the Tramp and say that, at the end of the day, there was nothing he could do.

It isn't the size of the disk that counts, but how you use it.

Panasonic 46pz85u

4K cinema at 60mbps, coming soon to a kiosk near you.
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post #8 of 9 Old 03-09-2009, 08:12 PM
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Well there are some disney titles I would love to have, a real US release of TSOTS on DVD and HD Fantasia are high on my list.

Sailn...
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post #9 of 9 Old 03-16-2009, 12:58 PM
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Quote:
Originally Posted by fpconvert View Post

Ok...the pirate steals the content and sells it for a dollar or gives it away, Disney makes what?....... Yes, zero.
Disney goes through apple and apple sells content for 75 cents but wants a thirty cent cut...Disney makes 45 cents.
Disney sells it on their own for 50 to 75 cents through a subscription basis and keeps all...much better, no?
They have a lot of content to sell.

Disney is probably the only studio that can pull this off. Disney Channel including Disney OnDemand available on Cable/Sat, Internet and via media extender boxes (ala Netflix). They could also have an iphone app and such to sell their content. FWIW, Steve Jobs has more at stake in Disney than Apple. If I recall correctly 3/4 of his net worth is in Disney and so he'll probably support a subscription based Disney Channel/OnDemand model on the Apple platform. After all, it was Disney that helped him launch the whole itunes movie business.
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