Tuesday, March 11, 2008

Disney Is Rollin' In Online Dough

And you thought putting Neyer, Law, and Gammons behind the Insider wall was a bad move:

The Walt Disney Co. expects to collect $1 billion in revenue from online content this fiscal year, a significant rise from estimates for fiscal 2007, CEO Robert Iger said Monday.

Iger told analysts the company has been "fairly aggressive" in expanding onto the Internet to extend consumer contact with its most popular franchises and create new revenue streams.

2 comments:

Chris H. said...

Well it may have seemed like a bad idea because none of us wanted to pay, but I subscribed just because of Neyer and klaw, so clearly they've figured something out.

Pete Toms said...

C, hadn't seen this, thanks.

I'm a subcriber as well, I'm not an "internet should be free" purist.

Yes we all agree that the web is the present and the future but the same article tells us, "Online sources account for less than 3 percent of company revenue. Disney posted total net income of $4.7 billion on $35.5 billion in revenue last year."

Keep in mind also that ESPN is not solely responsible for the aforementioned 3 percent. ESPN is huge for Disney though. I can't recall the numbers but it is worth a sizable chunk of Disney now. Given the problems with the movie and TV industries, I suspect ESPN will become only more valuable to Disney.