Disney’s chief Bob Iger is talking about ways his media empire will try to bypass traditional cable networks and move into live streaming. This while Disney is blowing away the financial experts with its success.
This may seem strange since Disney owns a large number of cable networks itself such as The Disney Channel and ESPN as well as the broadcast network ABC. But it does not own any cable companies and must constantly negotiate terms with Comcast, Cablevision and the rest over the fees that it receives for its channels.
This is why everyone is switching to live streaming. That and because consumers are cutting the cord everywhere in favor of using their mobile devices instead of their stationary televisions. NBC just offered the Super Bowl for free on line and HBO is planning a live streaming service of its own.
On the matter of live streaming, the Jewish boy from Long Island who grew up to be a business king said that there is, “definitely an opportunity [to live stream Disney owned channels]. We think we have that opportunity with a Disney branded service. We may have an opportunity with a Marvel type product and possibly even Star Wars.”
On whether he would take advantage of his position to see the new Star Wars movies, Iger told Bloomberg, “I will see it before it comes out, probably a couple of times. I have that right.”
Meanwhile Disney stock is beating expectations. The company announced on Tuesday that it earned $1.27 per share in its fiscal first quarter on $13.4 billion in revenue where analysts only predicted $1.07 per share on revenue of $12.9 billion.
Iger, who took over the company 10 years ago, just saw its stock break the $100 mark where it was only worth $15 when he first took over. This has happened in spite of the great economic recession.
Jim Cramer, host of CNBC’s Mad Money show, is high on Disney. “Consider Disney a collectible; it’s not a trade it’s a keepsake, it’s a gift that keeps giving thanks to the hard work and insight of Bob Iger—one of the most remarkable and unpretentious executives of all time.” said Cramer