Disney: Market changing too fast for long-term content deals
August 10, 2011
The Walt Disney Company posted third-quarter sales and profit that beat analysts’ estimates. Net income rose 11 per cent to $1.48 billion from $1.33 billion, a year ago Disney said. Cable-network profit rose 10 per cent, with ESPN enjoying gains in fees from pay TV systems.
ABC’s profit rose 20 per cent to $250 million, benefiting from lower production costs and higher network advertising. Total revenue from broadcasting decreased 1 per cent to $1.43 billion, reflecting lower ad sales at local television stations, Disney said.
Meanwhile, Disney CEO Bob Iger has said that any digital distribution deals it cuts for its content will be short-term because the market is evolving too quickly. Asked about cutting deals with sites like Hulu and efforts like TV Everywhere Iger said Disney wasn’t going to enter multi-year content deals. “I don’t think we will make long-term deals for the content because I think the world is changing too much.”