Wednesday, March 12,2008 @ 7:05pm
iTunes 10% of Disney digital revenue plan
Disney, as the launch partner for the iTunes video store, has seen approximately $123 million from the venture since its inception, which is a drop in the bucket when compared to the company's $35 billion in revenue last year, but is not without its upsides. Money made from the iTunes video store requires very little maintenance and planning, since companies don't have to market the product, while extraneous costs such as boxing, shipping, and other elements in distribution are not present.
The Silicon Alley Insider reports that Disney sold 4 million movies and 40 to 50 million videos through the iTunes store since its launch. Based on research by Pali Research, Disney is said to make approximately $14.50 per movie sale, and an estimated $1.44 off each video. Disney's goal for digital revenue is $1 billion for the year.