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Disney Eyes Subscription Model for TV Shows, Movies

Disney plans to sell online subscriptions to a broad array of its content, including TV shows, movies and games, possibly at a single Web site, says CEO Robert Iger. "The notion of going online at some point as a subscribe-to, robust entertainment experience is pretty attractive to us," Iger says. "We are developing such an experience."

Disney already is a content provider and equity partner in Hulu, which sells advertising. Disney also sells content on iTunes and charges a subscription fee for its Club Penguin site. But Iger says much more money can be extracted from Web surfers seeking quality content.

Consumers spend $5 an hour at movie theaters, 75 cents an hour to read books, newspapers and magazines and 50 cents an hour to watch cable and satellite TV, but only 25 cents an hour to surf the Internet, Iger says. "There's plenty of room for people to spend more money on things that they're doing online."

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Read the whole story at The Hollywood Reporter »

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