Disney On Future Of Content Business

Many Service Providers are offering sVoD services of their own as a reaction to the success Netflix and Amazon Instant are having. Disney is looking to license  content to those services for an extra fee, of course. That would allow pay TV service customers to “binge watch” tv shows when they get published on demand, instead of DVR-ing every single episode. It would also allow providers to monetize content with ads that can’t be skipped.
On the other hand CEO Bob Iger is preparing distributors for higher content costs:

“Iger said the multiplatform apps Disney has created such as WatchESPN and Watch Disney Channel allow the company to demand “incremental amounts” from multichannel video programming distributors since the apps increase the value of their subscription bundles. “They’re selling their customers capabilities that they haven’t had before. That’s an added value to the distributor and an added value to the customer,” he added.” (more at fiercecable)

Iger also acknowledged the virtual cable service that Intel, among others, is developing and said that Disney is always quick to adapt to new distribution forms.
Disney has disclosed that its revenue from the broadcast business (ABC) dropped by 32% in 2013. All the more reason to look into new revenue channels.

Read more here.

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