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05.14.2007
Originally featured on BroadcastEngineering.com
Disney sells 24 million TV shows through iTunes

The Walt Disney Company revealed last week that its Internet delivery strategy is working well as it continues to experience strong sales of television programs and feature films through Apple’s iTunes online store.

Disney CEO Robert Iger said the company has now sold 23.7 million episodes of its television shows and an additional 2 million feature films through Apple’s media service.

In November 2006, Iger reported that Disney had sold 500,000 films and 12 million television show episodes through iTunes. Disney reached 1.3 million in February. Periodic reports show that Disney’s iTunes movie sales have been consistent, averaging about 250,000 movie downloads per month, or 62,500 movies each week. The best-selling film titles include “Cars” and “Pirates of the Caribbean.”

“We continue to view the broadband-enabled Internet as an important entertainment medium, and our creative and technological investments in Disney, ESPN and ABC.com are designed with that premise in mind,” Iger said in a conference call to reporters.

Unlike other content owners, Iger said Disney is satisfied with iTunes prices. In fact, he said, Disney makes as much income from an online sale as it does from a physical one.

“There are cost of goods that are factored out of the iTunes sale, which allows them to sell at a lower price. That’s their decision and it allows us to take revenue out that is equal to, in terms of a per-click sale, store sales. So, yes, we’re quite comfortable with iTunes,” Iger said in a report by “Macworld.”

Ars Technica, the technology Web site, reported that Disney’s online strategy is doing well since the company redesigned its Web site and overhauled its Web strategy. More than 100 million Disney videos are streamed each week to 6 million unique broadband visitors per month, it reported, and page views are up 10 percent since the redesign.



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