• by Wayne Friedman , December 9, 2009

 

Potentially stronger competition from the new Comcast-NBC Universal joint venture -- where a major TV distributor is merging with a big TV/film producer -- is not a concern for one major content producer, Walt Disney Co.

On CNBC's "Mad Money" Tuesday, Jim Cramer posed a question to Bob Iger, president/CEO of The Walt Disney Company, about what Walt Disney would do if Comcast suddenly announced it wanted to restrict the number of ESPN channels on its cable systems. "The entity with the loudest voice is the consumer, and Comcast has to serve its customers," says Iger. "What the Walt Disney company offers Comcast and its customers is great content -- ABC, Disney Channel, ESPN, ABC Family. They can't live without it. If they stop making it available to its customers, they are going to lose customers."

Iger says Walt Disney had no regrets in terms of aligning itself with Comcast Corp., which five years ago made a hostile run at the company. "We are fundamentally a content company. We never felt we needed to own distribution. We find it affirming that a distribution company is so interested in content."

Noting that national TV advertising for its networks is surely stronger, Iger adds that the company is cautious, noting that overall dollar volume isn't that great. "We do see some improvement in advertising. It is a good sign -- maybe an early sign. And while we don't have all that much visibility, it gives us the feeling of optimism."

Questioned whether TV advertising has lesser value these days, Iger said: "There is [nothing] that is as unique, as impactful as national television. The 30-second spot still tells a pretty compelling story to people." He added that the company would like for those commercials to be more entertaining.

Iger has been pushing for more U.S. job creation, and has been involved in President Obama's job summit. He believes lowering the corporate tax rate will help.

For its part, Disney will be expanding its theme parks at its California and Orlando sites, building new entertainment production studios in Southern California, starting a resort in Hawaii and a possible new park in mainland China.

Disney's theme park business is still moving at a slow place. "We are doing OK," says Iger. "We tend to lag the economy."

While the digital business is still slow to make a profit, Iger said there are signs that some aspects can get into the black more quickly. A new mobile app, ESPN ScoreCenter, allows consumers to instantly access live scores from sporting contests/events from around the world. The app is free and already has 4 million downloads. The best part: there has been a rush of advertisers looking to sign on.

"It doesn't cost us much to make," he says. "We'll be able to make money there."