Disney looks at online subs
March 5, 2009
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.
Iger told analysts at the Deutsche Bank conference “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. 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. 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.