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Eisner: Apple hogs digital profits

updated 02:45 pm EST, Wed November 7, 2007

Disney says: blame Apple

Former Disney CEO Michael Eisner this morning said digital media distribution is currently at best a break-even business, and that Apple gobbles up most of what little money is made, according to a report from News.com. "[The studios] make deals with Steve Jobs, who takes them to the cleaners," Disney's chief explained. "They make all these kinds of things, and who's making money? Apple! They should get a piece of Apple. If I was a union, I'd be striking up wherever he is," Eisner remarked, presumably referring to Apple CEO Steve Jobs.

The executive went so far as to dub the ongoing Writer's Guild of America strike "stupid," saying that digital distribution will not become profitable for three more years and that the guild's request for a slice of the digital distribution pie just doesn't exist.

Eisner says in three years the business will start to turn profits, but for now the studios are likely only on board to avoid being left behind.

"The studios are there because they don't want to be in the transportation business and telling everybody that they're in the train business," he said. "They want to be in the entertainment business, and god forbid they should forget yet another distribution track."




by MacNN Staff

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Comments

  1. njfuzzy

    Joined: Dec 1969

    0

    Wow

    So, first of all, he's badmouthing the largest single stockholder in his company. Very smooth move, pal.

    Second, he is saying that it's not fair that writers are asking for a percentage of digital revenue, because there isn't any. Correct me if I'm wrong, but isn't 1% of $0.00 = $0.00? So what's the problem, then, Mike?

  1. Peter Bonte

    Joined: Dec 1969

    0

    Eisner

    Is he still CEO for Disney?

    How can they only break-even when there is no extra cost other than digitizing the media to the iTunes format?

  1. anartguy

    Joined: Dec 1969

    0

    He's NO LONGER the CEO!!

    Eisner hasn't been the CEO of Disney for several years now. So his comments as a "former" executive mean little to nothing. Just another media bigwig no longer in the spotlight - trying to grab a little attention, which is why Apple is mentioned! (they seem to be the object of everybody's rants and raves - "boo hoo Apple's making money and we aren't") Puhleaasee!

  1. WiseWeasel

    Joined: Dec 1969

    -1

    'former' Disney CEO...

    He is the former CEO of Disney, not the current one. Sounds like the jab at Jobs is a bit of sour grapes from being ousted from Disney, a move which was influenced in no small part by Jobs himself. I wouldn't take these tongue lashes seriously...

  1. Peter Bonte

    Joined: Dec 1969

    0

    ex CEO

    http://en.wikipedia.org/wiki/Michael_Eisner

    "On March 13, 2005, Eisner announced that he would step down as CEO one year before his contract expired."

  1. jtk

    Joined: Dec 1969

    0

    Former Disney CEO

    Eisner is former Disney CEO, not the current CEO, of Disney on whose Board Jobs sits. Eisner is thre reason that Pixar ended its relationship with Disney briefly. Once he stepped down, Pixar agreed to be acquired by Disney.

  1. tritian

    Joined: Dec 1969

    0

    LOL @ eisner

    Wow taking jabs at the company that forced him out. Who would have though that would happen. That guy is as big an idiot as he was when he ran Disney.

  1. jarod

    Joined: Dec 1969

    0

    Loser!

    Eisner is simply a miserable loser that can't get over the fact that he was kicked out and replaced by someone that actually acomplished something. Go play elsewhere dishrag; leave the digital business to those that have a clue. Eisner is an embarrassment to the Jewish community!

  1. eldarkus

    Joined: Dec 1969

    0

    BS

    Break even?? Studios make this content anyways (Movies, TV, etc), Apple does all the work (ie: encoding the files) and the studios gets money from sales...

    so with ZERO investment from the studios and getting something back.. how in the h*** can you claim "breaking even" ? What is their cost for posting content to iTunes to begin with??

  1. testudo

    Joined: Dec 1969

    0

    cost

    How can they only break-even when there is no extra cost other than digitizing the media to the iTunes format?

    Um, that's not the only cost. Maybe you forgot, but there's royalties to pay, overhead charges (you think all those accountants who keep track of every penny and know who gets what percentage all work for free?), etc.

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