Disney's Iger Avoiding The Pitfalls Of The Music Business

Disney chief Robert Iger said Tuesday that the decision to explore new online avenues for distributing ABC and Disney Channel programs was influenced in large part by watching the mistakes made by the music industry in dealing with the Internet. Iger, speaking at the AG Edwards Media & Entertainment Conference in Los Angeles, suggested that the music industry's resistance to providing product online at a reasonable price led to the explosion of pirate websites. Members of the industry, he said, "were not in tune with what their customers wanted and what the world was demanding of them and I think it hurt them significantly." He added that Disney would not be cowed by the "perceived fear" of the Internet and that it intended to take "more aggressive approaches to new media in the future." On Monday, Disney announced that it would make several of its hit ABC and Disney Channel movies available for free on a revamped website. However, analysts observed, unlike the Disney programs available for downloading from Apple's iTunes music store for a small price, those on the free site will be streamed -- presenting quality problems that viewers typically find objectionable.



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