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Nov14
Disneys' Iger says Web Payoff Years Away

Fresh off of their tremendous upswing in profits for the fourth quarter, based upon their successful movie offerings of "Pirates of the Caribbean: Dead Man's Chest," and Pixar's "Cars," Disney says through their CEO Bog Iger that payoff from their Web properties could take up to five years to make a signifcant impact on the bottom line of the company.

"In terms of the sheer bottom-line impact, it's still relatively small," Iger Disney Internet Strategy.jpgsaid in an interview after Disney reported that profit doubled last quarter. "Over the next three to five years we'll be able to monetize at a significant level."

With their net income doubling to $782 million, or 36 cents a share for their fiscal fourth-quarter, the company has created a lot of expectations among its shareholders.

This is a good move by Iger to make sure that investors understand that it's a long-term play in invigorating Disney's online strategy.

The good thing for Disney is that they didn't sit there waiting for everything to work out perfectly, but grabbed the initiative while their competitors debated among themselves and overly worried about the effects of piracy and disruption from the Internet. This has put Disney in the place of being a leader of the big media companies. They'll also be among the first to benefit from it, no longer how long it takes.


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