Disney’s stock is up 17 percent since downloads through iTunes began but not everyone is impressed with Disney CEO Bob Iger’s recent moves. BW’s Ronald Grover places himself firmly in the skeptics’ camp, not neccessarily because he disagrees with moves like changing distribution windows or buying Pixar: “This recent flurry of deals certainly attests to the seriousness of Disney’s intent. But the real question is, can Iger pull off his ambitious digital strategy? Like a lot of folks out there, I’m not yet certain he — or, for that matter, anyone in the media business besides Rupert Murdoch — can. To be blunt, it wasn’t as if Iger had much choice in embracing the digital strategy. … Of the larger media companies, Disney actually controls the fewest TV stations. If anyone needs a path to America’s homes, it’s Walt Disney.”
Grover calls MovieBeam a “Hail Mary” pass but notes the potential 70-30 rev share is more than Disney makes from video rentals. “The numbers make sense, even if Iger has to scramble a few eggs to make his digital omelet.” And he hedges his bets by acknowledging “Disney’s willingness to venture into the new world of digital will likely pay off in the long run.”
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