Thursday, April 2, 2009

Disney Willing to Challenge Video Ecosystem

Walt Disney Co. CEO Robert Iger is not so sure it is wise to tie consumption of online content to the purchase of a multi-channel video (specifically cable TV) subscription, though cable operators tend, for obvious reasons, to favor the idea.

Cable operators obviously dislike the idea that the content they sell in subscription packages might be found online, at no incremental cost. They like better the idea of being able to charge a bit extra to their subscribers to enable online viewing. Disney doesn't agree.

"Preventing people from watching any shows online, unless they subscribe to some multi-channel service could be viewed as both anti-consumer, and anti-technology, and would be something we would find difficult to embrace," Iger says.

Of course, Disney also was early to move its content to iTunes and to stream content over the Internet, and is seen as "more open" to the idea of allowing its content to be viewed in new ways.

Nor does Iger share the view that people who stream video frequently are substituting that behavior for multi-channel video. They are more apt to watch television, buy HDTV sets and subscribe to digital and premium services, Iger maintains.

That doesn't mean Disney is casually willing to jeopardize its multi-channel video distributor partners. It does mean the company is more open to side-loading, downloading and streaming.

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