Iger: Disney To See $1 Bil. In Digital Revs

Disney chief Bob Iger, who has made a zealous push into new technological turf a hallmark of his tenure, reaffirmed Wednesday his expectations that the company will bring in some $1 billion in digital revenue this year. While still only about 3% of Disney's $35 billion in revenues, the figure would mark a 33% increase over 2007.

The revenues come from advertising--notably during streamed episodes on ABC.com and via ESPN.com, as well as other subscription-based avenues, such as VOD. Global expansion of Disney.com with locally targeted content will also be a contributor. (The $1 billion does not include Web bookings for theme parks and related travel ventures.)

However, Iger did say during a New York industry event that some of the online revenues "will be cannibalistic of current businesses," but in the end "incremental" and a growth area. There is speculation that over time, younger people will increasingly consume content such as ABC prime-time series and ESPN NBA games via the Internet, leading to upheaval in ad sales.

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While some Disney officials have downplayed that and argued that online distribution only builds on-air viewership, Iger acknowledged the threat Wednesday. He said "broadband-enabled computers" are becoming primary for kids. "It's just as important to them as the TV set," he said.

But Iger stuck to his embrace of new platforms as opportunities to spread Disney content: "You have to look at technology as a friend, not foe."

Of course, that makes great sense with Apple chief Steve Jobs, the company's largest shareholder, who sits on the Disney board. Iger established the tenor of his tenure shortly after taking over via a landmark deal with Jobs to offer ABC TV shows on iTunes. So far, some 50 million episodes have been sold since late 2005, accounting for perhaps $1 billion in sales. That figure does not include the added dollars from the sales of films.

On the percolating subject of whether a Microsoft-Yahoo merger would impact Disney's business, Iger said no. A deal would essentially create a larger distribution avenue: "If someone's got a successful platform out there, they typically need our stuff," he said.

Regarding Google, he cited the benefits that come Disney's way simply through search engine optimization. The company's efforts to ensure its offerings--be it information about where films are shown, deals on cruise ships or new bells and whistles on Disney.com--top the search results lists and can be hugely beneficial.

Several years ago, Disney rebuffed Comcast's bid to meld its content with a potent distribution company via a merger. It's clear that Disney views itself largely as a unique content provider. More proof: Iger's swift response to whether the company would buy AOL: "Disney is not going to buy AOL."

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