Michael Eisner: No Wonder He Got Canned
Posted 11/07/2007 at 5:53pm
| by Roberto Baldwin
Ousted Disney head-honcho and general Steve Jobs-hater Michael Eisner said that Apple was "taking the studios to the cleaners" in a Keynote speech at the Media and Money conference. He also stated that writers are striking for digital distribution profits that simply aren't there.
According to a January 2006, Hollywood Reporter article, broadcast networks, NBC, ABC, FOX, get 70 percent ($1.44 of a $1.99 iTunes download) of a show's download price. A lower figure proposed by a Forrester Research Analyst determined a popular series, like "Desperate Housewives," could generate $1.20 in gross revenue per episode for ABC when downloaded as opposed to the $.45 per episode when viewed on broadcast TV. Either way, the studio comes out ahead of Apple.
Also in January 2006, NBC credited iTunes for giving "The Office" a 30 percent ratings boost. Frederick Huntsberry, president of NBCU Television Distribution, said iTunes had brought new audiences to the show that would not otherwise have watched. ABC also saw a rise in "Lost" and "Desperate Housewives" ratings after being added to the iTunes store.
So Apple is making 30 percent of television downloads and has helped grow the ratings of broadcast versions of shows available in the iTunes Store.
Yep, Steve is totally ripping off those poor innocent studios. Good thing the man who helmed Disney when they released such classics as Cinderella III, The Lion King 1 1/2 and The Little Mermaid 2 and lost Disney the distribution rights to the money-making animation studio Pixar gave us all the heads up.
Eisner was ousted from Disney for his inability to play well with others. After his departure, Pixar renegotiated with Disney and the two companies eventually merged. The odd thing is, Einser's private investment firm , The Tornante Company, launched an online video studio called Vuguru.
Maybe he's smoking the same stuff as NBC CEO Jeff Zucker.