Disney SVP and CFO Tom Staggs (isn’t it time to just call him COO) told UBS investors to remember that iTunes and other new distribution methods are not expected to materially impact financial performance for a few years. From UBS analyst Aryeh Bourkoff’s note on the call:
– Staggs talked about $500 million in internet revenue this year, with growth from advertising, subscription and e-commerce sources.
–Despite the possibility of collaboration beyond the current Disney/iTunes content arrangement, Staggs said that he expects Disney and Apple to remain separate and distinct companies.
– The ABC Radio sale was driven by the view that it’s more valuable as part of a larger radio company than as part of Disney.
– Bourkoff says the key for new distribution “is that in this context, new technology appears to be driving expansion rather than cannibalization. As such, fear about the potential negative impact of evolving technology on companies viewed as ‘traditional media’ may be overblown.”
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