Disney & iTunes

In October 2005 Disney became the first content provider for the new Video iPod, making several of its hit ABC shows such as Lost and Desperate Housewives available to download through Apple’s iTunes software for $1.99 per episode. Commenting on the deal in Monday’s Wall Street Journal, new Disney CEO Robert Iger said, “…we'll learn more about consumer behavior and using new technology in a new window with different pricing.” Disney floated the Trial Balloon to gauge the reaction of consumers, advertisers, and content providers to this new channel for content delivery. But, the play had an additional effect: motivating the Disney employees, who see the move as a sign that Disney is unafraid to explore new ways of delivering entertainment to consumers. Said Iger, “…the troops love the fact that we were first. It had a great impact on the company’s spirit. The feeling is tangible…”

However, Disney may not enjoy the first-mover advantage for long. Yesterday, NBC announced that it will Crowd the market and offer its programming through iTunes as well.