http://www.boston.com/business/ticker/2006/05/disney_chief_cr.html
Disney Chief Criticizes Music Industry
Walt Disney Co. chief executive Robert Iger ripped the recorded music industry today, saying it had lost billions in revenues by trying to fight portable music players and Internet music downloads, instead of embracing change. Iger told the Boston College Chief Executives Club that under his leadership, Disney won't make the same mistake. That's why the company has begun offering Internet downloads of its hit TV shows.
"The consumer is now king," said Iger, who took the helm at Disney last October. "Today, consumers have far more control over where, when and how they consume media." The major recording companies, taken aback by the popularity of digital music, have used lawsuits against consumers and technology companies to maintain control over their products. "By focusing on protective legislation rather than marketplace dynamics," said Iger, "the music industry lost billions during the period of 2002 to 2003." And these efforts haven't stopped people from swapping digital music, said Iger, because consumers want music whenever and wherever they choose, and will do what it takes to get it.
Iger said the music industry's blunder encouraged him to offer TV shows from Disney's ABC television network through Apple Computer Inc.'s iTunes Internet download service. Viewers can watch episodes of "Lost," "Desperate Housewives, "Alias" and "Commander in Chief" for no charge, in exchange for putting up with commercials embedded in the videos. Iger said the move has been a success so far. "We've actually had three million programs streamed in the last four weeks," he said. (By Hiawatha Bray, Globe staff)
Disney Chief Criticizes Music Industry
Walt Disney Co. chief executive Robert Iger ripped the recorded music industry today, saying it had lost billions in revenues by trying to fight portable music players and Internet music downloads, instead of embracing change. Iger told the Boston College Chief Executives Club that under his leadership, Disney won't make the same mistake. That's why the company has begun offering Internet downloads of its hit TV shows.
"The consumer is now king," said Iger, who took the helm at Disney last October. "Today, consumers have far more control over where, when and how they consume media." The major recording companies, taken aback by the popularity of digital music, have used lawsuits against consumers and technology companies to maintain control over their products. "By focusing on protective legislation rather than marketplace dynamics," said Iger, "the music industry lost billions during the period of 2002 to 2003." And these efforts haven't stopped people from swapping digital music, said Iger, because consumers want music whenever and wherever they choose, and will do what it takes to get it.
Iger said the music industry's blunder encouraged him to offer TV shows from Disney's ABC television network through Apple Computer Inc.'s iTunes Internet download service. Viewers can watch episodes of "Lost," "Desperate Housewives, "Alias" and "Commander in Chief" for no charge, in exchange for putting up with commercials embedded in the videos. Iger said the move has been a success so far. "We've actually had three million programs streamed in the last four weeks," he said. (By Hiawatha Bray, Globe staff)
