Disney CEO, Robert Iger has said concerning the Internet strategy of the company that it will probably not enter into “broad, sweeping partnerships” with internet portals such as Google (GOOG) or Yahoo (YHOO) as it builds its internet business, says the Financial Times.
Iger continued saying that the strong brand of the company and its strong marketing network shows that “Our opportunities are pretty significant without them.”
The major concern of Disney (DIS) is in reference to control over both advertising and the customer, which Disney isn't willing to give up. In that context, Disney may be willing to get involved with distribution agreements. The question then would be "Who would be willing to enter into that type of agreement?"
With the Disney company posting good third quarter profits, at a 39 percent increase, it evidently feels it can bargain from a position of strength, which these comments by Iger seem to suggest. At least they are attempting to project that image; probably for future negotiating purposes.
Everyone knows that Hollywood will have to embrace the Internet completely. It seems that Disney is trying to keep a strong hand and position itself so that it doesn't have to give away too much in its inevitable deals with online companies.
This isn't a bad strategy. They are probably hoping they can do what needs to be done before the whole industry begins to flock to the Online world and give away more than they want to. With their unique brand and new commitment to family offerings, they may be one of the few major media companies that are able to get away with it. Do you think they will get away with it?
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