Saturday, September 14, 2019 3:36:47 PM
Iger joined the Apple board almost immediately after Steve Jobs died and had a prominent position. He was chair of the Apple board’s nominating committee, which picks new board members, and he was a member of the compensation committee, which sets the pay for Apple’s senior management. Iger made $377,000 as Apple board member last year, a modest sum for a man worth tens of millions of dollars. He also owns just over 50,000 Apple shares. The stock currently trades above $218 a share.
Apple and Disney each believe that they need to be major players in a crowded market dominated by Netflix Inc. (NYSE: NFLX) and Amazon.com Inc. (NASDAQ: AMZN). Netflix has over 150 million subscribers worldwide, while Amazon has over 100 million via its Prime membership program. Netflix has a base monthly price of $12.99 for its “standard” plan. The base monthly rate for Amazon Prime is $12.99, but that includes free shipping and special offers on some Amazon.com products.
The competition is fierce and also includes products from WarnerMedia and CBS. The largest independent company in the business is Hulu. Apple and Disney will go head to head in a market in which both believe they need to become a dominant force.
Disney+ launches on November 11, and Iger repeatedly has made it clear the service is critical to Disney’s future. Its library of videos is substantial. It includes Disney films and exclusive access to Pixar, Marvel, Star Wars and National Geographic, all brands Disney owns. The Marvel and Star Wars libraries contain some of the most successful movies in history, based on box office ticket sales. At a monthly price of $6.99, the service is priced well below Netflix and Amazon.
Apple released final details on Apple TV+ this week as it launched new versions of its iPhone, Apple Watch and tablets as well. It has set a price of $4.99 a month, starting with a seven-day free trial, which puts it well below all its major competitors. It will launch on November 1. Apple does not have a library nearly as extensive as Disney’s. It will, however, have original programming, which includes content from a partnership with Oprah Winfrey.
Apple’s original content is a significant part of its ability to enter the competitive battlefield. Netflix and Amazon spend hundreds of millions of dollars a year to produce their own programming. The strategy is meant to get new subscribers and keep them because they can watch programs that are not available anywhere else. The plan is so crucial that Netflix has borrowed billions of dollars to underwrite its productions.
Industry experts believe that most people who stream content will subscribe to just one or two services, but few will subscribe to three, four or more. NPR editors recently wrote about the explosion of video-streaming services, “It can be frustrating when viewers try to figure out which service has what they want to watch — Netflix, Prime, Hulu? It’s about to get worse, as more streaming services launch this year.”
Because Disney and Apple are so late to the video-streaming game, they will need to dig for subscribers who probably have one or more services already. Each needs to compete based on its low price point, programs and whatever original content it can produce. That makes Apple and Disney mortal enemies in a business sense. Iger, under the circumstances, could not stay on Apple’s board.
This is 24/7 Wall St.’s analysis of all the existing and new streaming services.
Recent DIS News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/09/2024 11:06:57 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/09/2024 09:21:30 PM
- Bain Capital in Talks to Acquire PowerSchool; Blackstone Emerges Victorious in Hipgnosis Bidding War, and More News • IH Market News • 05/09/2024 11:53:19 AM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 05/08/2024 08:31:40 PM
- Bob Iger, CEO of The Walt Disney Company, to Participate in MoffettNathanson’s Media, Internet & Communications Conference • Business Wire • 05/08/2024 05:00:00 PM
- Lingering Interest Rate Uncertainty May Weigh on Wall Street • IH Market News • 05/08/2024 01:06:05 PM
- U.S. Futures Slightly Dip Amid Corporate Earnings and Quiet Economic Calendar, Oil Prices Fall • IH Market News • 05/08/2024 12:29:17 PM
- U.S. Stocks Close Little Changed But Dow Extends Winning Streak • IH Market News • 05/07/2024 08:44:00 PM
- Futures Pointing To Roughly Flat Open On Wall Street • IH Market News • 05/07/2024 01:09:12 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/07/2024 01:01:19 PM
- U.S. Index Futures Mixed in Pre-Market Tuesday, Oil Dip • IH Market News • 05/07/2024 11:47:40 AM
- Disney Slashes Streaming Losses, UBS shoots up 9% as profit triples expectations, and More in Earnings • IH Market News • 05/07/2024 11:46:44 AM
- Tesla’s April Sales Down 18% in China, Amazon’s Multi-Billion Dollar Cloud Expansion in Singapore, and More News • IH Market News • 05/07/2024 11:44:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/07/2024 10:33:09 AM
- The Walt Disney Company Reports Second Quarter and Six Months Earnings for Fiscal 2024 • Business Wire • 05/07/2024 10:30:00 AM
- Philips Stocks Soar 47% Following US Deal, Tesla Bolsters Presence in China, and More News • IH Market News • 04/29/2024 11:11:24 AM
- Apple Loses Market Share in China, GM Surges in Pre-Market Following Upward Revisions for 2024 Projections, and More News • IH Market News • 04/23/2024 11:25:34 AM
- Apple to Invest $250 Million in Singapore Expansion, Oracle Commits $8 Billion to Japan Infrastructure, and More News • IH Market News • 04/18/2024 11:11:52 AM
- The Walt Disney Company Executives to Discuss Fiscal Second Quarter 2024 Financial Results via Webcast • Business Wire • 04/09/2024 05:15:00 PM
- Apple Terminates 614 Employees, Disney Unveils June Crackdown on Password Sharing, and More Updates • IH Market News • 04/05/2024 11:38:57 AM
- Exxon Mobil Forecasts Earnings Decline, Twilio Seeks Board Tenure Changes, and More News • IH Market News • 04/04/2024 11:30:20 AM
- Trian Comments on Preliminary Results of Disney Annual Meeting • GlobeNewswire Inc. • 04/03/2024 05:25:04 PM
- Shareholders Vote to Elect Disney’s Full Slate of 12 Directors • Business Wire • 04/03/2024 05:24:00 PM
- Cal-Maine Surges on Strong Quarterly Performance, Taiwan Earthquake Disrupts Tech Supply Chain, and More • IH Market News • 04/03/2024 11:12:20 AM
- Institutional Investors Express Support For Trian’s Candidates at Disney • GlobeNewswire Inc. • 04/01/2024 11:00:00 AM
Avant Technologies Equipping AI-Managed Data Center with High Performance Computing Systems • AVAI • May 10, 2024 8:00 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement • ELEM • May 8, 2024 9:05 AM
Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM