The Iger sanction (business strategy at Disney)
The Iger sanction (business strategy at Disney)
Gunther M. Fortune, 2006, Vol. 153 No. 1, Start page: 32, No of pages: 3
Purpose – To analyze some of the strategic moves undertaken since Bob Iger took over as CEO of Walt Disney Co. Design/methodology/approach –Describes how and why Disney negotiated an agreement to let Apple sell ABC television shows over the internet. Explains the significance of digital distribution and its potential as a threat to traditional distribution channels. Observes that whilst digital distribution does not yet amount to an alternative business model, it creates uncertainty over how Disney will manage its television and radio stations, businesses that are currently “cash cows”,but may decline in value in the future. Notes the impact of this uncertainty on stock market sentiment, despite the corporation’s healthy net income in 2005 and projected double-digit earnings growth in fiscal 2006. Provides a brief outline of Iger’s background, interests and management approach and comments on his relationship with Steve Jobs of Apple and Pixar Animation Studios. Explains why Disney continues to invest in television production and gives selected examples of ways in which the corporation is experimenting with new technology. Originality/value – An insight into the effects of technological change at one large media corporation.|ISSN: 0738-5587Reference:35AE447
Keywords: Corporate strategy, Digital communication systems, Internet,Walt Disney Company
