I’m sorry - I said I wouldn’t post that much more about the Writers Strike but, frankly, it stirs me up no end. So read it, don’t read it. I don’t care - it’s on the internet so it’s only for promotional purposes anyway.
The title of this post covers pretty much how Michael Eisner sees the current state of affairs regarding the availability of movies and TV shows over the internet. In an interview with that well known bastion of journalistic integrity and impartiality, Fox News, Eisner, former CEO of Disney, called the current Writers Strike “a stupid strike” claiming that the profit from digital content is “a piece of a nonexistent flow, which won’t be nonexistent, but it will be nonexistent for the next three years.”
Now, Eisner was CEO of Disney up until September 2005. A year later, Disney started selling movies through iTunes. You know, that popular application which lets you buy music, movies and TV Shows over the internet. In November 2006, a little under 2 months after beginning internet downloads, nearly half a million Disney movies had been sold - approximately $4 million worth. After 3 months, the number of downloads had skyrocketed to 1.3 million. In May of this year, current Disney CEO Robert Iger claimed that movie downloads had been surpassed by downloads of Disney TV shows which had reached a figure of 23 million since they had been added to iTunes. Even Disney’s own website now streams 100 million videos per week to over 6 million unique users (and you can make the most of this target audience by buying advertising space on the website).
Eisner suggested that the Writers should be striking outside Steve Jobs house as Apple are obviously screwing the studios out of a fair share of the pie. Perhaps he should have had a quick chat with Robert Iger because, according to Ars Technica,
Disney CEO Robert Iger said that this was because Mickey and Company were quite pleased with Apple’s movie pricing and the margins they were seeing. Although the pricing of a movie on the iTunes store is lower that that of a physical DVD, Disney is making about the same amount of money on each movie it sells there.
The internet - too new to be profitable.