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Disney’s Iger: iTunes Partnership a Great Success
Tuesday, March 11th, 2008 at 4:00 PM - by John Martellaro
Disneys CEO Robert Iger spoke to the success of his relationship with Apple and iTunes recently. His company was the first to make its content available on iTunes, and in the last 18 months, Disney has sold over 40 million TV shows and 4 million movies, according to Multichannel News on Wednesday.
"It�s about kids -- kids are using their broadband-enabled computers for entertainment much more than the generations before them," Mr. Iger said. "We believe the broadband-enabled computer is going to be a primary source of entertainment for kids in the years ahead. It�s just as important to them as the TV set."
Mr. Iger admitted that the Internet downloads have been only small fraction of their business. However he expects it to rise from US$750M in 2007 to US$1B this year. Disneys total revenues for 2007 were $15B.
Like most studio executives, Mr. Iger sees the Internet as an important component. "Over the long run there will be some shift, particularly in filmed entertainment," Mr. Iger said. "It won�t shift completely � you won�t see the DVD business go away -- it will stay vital for a long time. But electronic delivery will grow."
Thats the emerging consensus right now. Internet viewing is on the increase, but thanks to the constraints on broadband in the U.S., it will be some time before it overtakes other traditional methods. In the meantime, studios are being smart about the mix and giving everyone what they want in as many ways as possible.
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