Disney’s Online Sites Turn Profitable: A surprisingly good piece of news for Disney’s online unit, as the company other divisions languish. In its latest qurterly results, Disney reported that its Internet properties are profitable. Though no individual figure was given, but profits from individual sites, led by ESPN and Disney’s online store; from licensing content to other Internet sites; and from advertising and subscriptions, pushed online operations into the black.
“Disney’s Internet ventures contribute only about several hundred million dollars to the company’s $25 billion in annual revenue. Nonetheless, Disney can say it is profiting online while so many others are still struggling to make the Internet pay…In the last year, unfettered by [the doomed portal] Go.com, Disney has struck potentially lucrative Internet deals. ABC News now provides video on demand through Real Networks media player, and this month Disney and Microsoft launched a co-branded Internet service, Disney on MSN.”