Bob Iger wasn’t on stage for the iPad launch last month, but the Disney CEO just gave a demo spiel Steve Jobs, the company’s largest shareholder, would applaud about a “really compelling” device that could be a game changer. Volunteering and replying to analyst questions about how Disney plans to use the new Apple (NSDQ: AAPL) tablet, Iger reeled off a series of iPad uses that are either likely or already in progress: a companion to ABC’s Lost, an ABC News app, a digital books app for Disney, an enhanced version of the popular ESPN Sports Center app, and apps for Marvel (NYSE: DIS).
Some might be adapted for iPad, some created. Iger said the iPad platform will “enable us to really start distributing product that is different than the product you typically see.” For instance, Disney was working on a version of its still-nascent Disney Digital Books for iTunes and iTouch. “Suddenly this device comes along,” offering an “even more robust platform” for possibilities like read-a-longs, simple animation, music come to life.
“We think it could be a game changer in terms of enabling us to create essentially new forms of content. And obviously it will be a great device to play games on and to watch videos, because of the quality of the screen, but the interactivity that it will allow on a portable device with such a high-quality screen is going to enable us to really start developing product that is different than the product that you typically see on an internet-connected computer or on a television set.” Disney’s decentralized philosophy when it comes to apps — each unit handles its own — should give that creativity some room.
Even if it takes off like a Buzz Lightyear rocket, the iPad would still be a very small part of Disney’s digital revenue. Iger noted during the call that Disney exceeded “nicely” about $2 billion in digital revenues across the company in 2009. (That works out to about 5.8 percent of Disney’s $36 billion 2009 revenue.) That’s all in — commerce, games, video, everything — with theme parks alone making up about half. But, he reminded later, “We think digital media, while clearly it’s significant, it’s still evolving. I’m fond of saying it’s still the beginning of the beginning and that’s how we look at it.”
Changing game theory: Disney’s overall gaming strategy also is evolving. Instead of creating video game titles to span devices and consoles, the company has learned that some programming does best on the more common devices and is adjusting accordingly. Disney-branded games do better on the Nintendo Wii and DS, not on high-end consoles, Iger explained. The higher-end games are more expensive to make and face Disney faces more competition then when it started its original game development.
Explained Iger, “While we’re going to continue to make games for the high end, we’ll be very, very judicious in how many and which ones we choose.” The ratio will continue to run about 80 percent Disney branded. But Disney may also have some more opportunities; Iger sees recently acquired Marvel as “a brand that we think would do extremely well on the higher-end consoles.” At the same time, Disney is stepping up casual gaming.
Why is it that critics of iPad are supposed to be soothsayers and prophets and people that see iPad for what it is, a great product are Kool aid drinkers? You are a flaming idiot probably on real drugs.
Why do you assume drinking the Kool-Aid is always negative? Iger’s excitement and his reasons for it come though pretty clearly in the article.
Can you explain what he means that half the digital revenue comes from theme parks? Theme parks seem pretty physical not digital…
Why should any of this be any surprise? Jobs is Disney’s largest shareholder. He’s helping them redesign their stores. And then there’s this too:
Disney + Apple + RFID = BIG!
http://ebooktest.wordpress.com/2010/01/17/disney-apple-rfid-big/
The money comes in through digital means — online ticket sales, etc.
It could also mean advertising on sites related to the theme parks and their new-ish app for Verizon customers. http://disneyparks.disney.go.com/blog/2009/11/mobile-magic-%E2%80%93-first-disney-parks-mobile-app-now-available/
IMO, i think the games would be very fun to play on the big touchscreen and with tilt, etc.
I need someone to clarify for me why the iPad is “game-changing” and what exactly Iger means by “essentially new forms of content.” I hear plenty of fluff language like this and no actual substance.
I tried to get into that in the post — the iPad platform literally advances
the potential for creation/development because of the video, the size of the
screen, the response times, etc. That’s why Iger is excited.
It’s ‘game changing’ because apple expects users to pay for widgetized content. Content on the internet is hard to monetize.
We’ve had touch screen devices for years that have been capable of video, multimedia, responsive interfaces, and really anything the iPad is capable of. Yes, the iPad has sleek design, it’s lightweight, and it’s got newer, high-end processing hardware. No, it is not unique in any way, except for its unique branding and marketing, and the aspect that hotrod3322 has pointed out above- proprietary software control.
This is a step backwards from general-purpose touch-screen laptops. There is certainly a market for sandboxed computer “appliances” like this, but Microsoft spent the 1990s trying to pigeonhole people in exactly the same ways that Apple is trying to now (albeit with different products). In the long-run, this is commercial suicide. They will ultimately out lose to Google, HP, Microsoft, Adobe, et al, if they refuse to accept that not all technology in the world wants to be licensed from for by Apple.