Disney CEO Bob Iger seems to want a better deal for Apple, Google, and all the other tech companies that distribute their streaming services.
At least that seems to be what Iger wants them to do. Iger said at an investor conference this week that the company is giving too much money to the big tech app stores that distribute Disney-owned streamers like Hulu and Disney+.
“We need to rethink how we distribute it,” Iger told analyst Michael Nathanson at a conference hosted by Moffett Nathanson. “Unlike Netflix, we primarily distribute through third-party app stores, which obviously has some benefits, but it also comes with a cost, and we are considering that. Masu.”
Iger is referring to deals between Disney and technology platforms that allow users to sign up and pay for the company's streaming services. These deals vary by platform. For example, Apple has agreements with video companies such as his Disney to charge him 15% of the revenue for sign-ups made within apps distributed by Apple. Connected TV company Roku could charge video companies a fee to sign up customers on its devices, and could also claim a cut of their ad inventory for its services.
This may speak to Iger's reference to Netflix. Netflix previously allowed consumers to sign up for its service through third-party distribution companies such as Apple, but stopped doing so in 2018. This move doesn't seem to have affected Netflix's growth and is clearly benefiting it. The company's profit margin.
I have reached out to Disney and Apple for comment.
App stores and app distribution are an important part of many technology companies' business plans. Apple, which can make up to 30% of its revenue from in-app purchases and sign-ups, has told investors that the growth of its “services” businesses like the App Store are particularly important to its future. .
It's also possible that Disney won't have to, or threaten to, exit third-party app stores to save money. Apple's App Store policies in particular have come under pressure from regulators around the world, and Apple has reluctantly made some changes.
Perhaps that includes a way to get a little less money from one of the world's largest video companies.
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