Disney ponders online video subscription service
Quote:
LOS ANGELES, March 3 (Reuters) - Walt Disney Co 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.
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LOS ANGELES, March 3 (Reuters) - Walt Disney Co 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.
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