1. Disney CEO Bob Iger wants a better deal from tech companies distributing his company’s streaming services like Hulu and Disney+.
2. Iger mentioned the disadvantage of distributing through third-party app stores like Apple, where a fee of up to 30% of revenue generated from signups may be charged.
3. Iger referenced Netflix’s decision to stop allowing signups through third-party distributors in 2018, signaling a possible change in strategy for Disney.
Disney CEO Bob Iger is seeking a better deal from tech companies like Apple and Google that distribute Disney-owned streaming services, such as Hulu and Disney+. He believes that the current arrangements result in Disney giving up too much money to these Big Tech app stores. Unlike Netflix, Disney distributes its services largely through third-party app stores, which comes with advantages but also costs. Iger is evaluating these distribution methods and looking for ways to optimize them.
Iger mentioned Netflix, which stopped allowing signups through third-party distributors like Apple in 2018, indicating that the change had positive effects on the company’s growth and margins. Disney is now exploring similar strategies to potentially improve its financial outlook. App stores play a significant role in tech companies’ business models, with Apple’s App Store taking a percentage of revenue from in-app purchases and signups.
While Disney may not necessarily need to leave third-party app stores to cut costs, there is a possibility for renegotiation given the scrutiny that companies like Apple are facing from regulators. Apple has been pressured to adjust its policies, and this could potentially lead to changes that benefit companies like Disney in terms of the fees they pay to app stores. In the evolving landscape of digital content distribution, Disney is exploring all options to enhance its profitability.