Daily Marauder

DIGITAL HOLLYWOOD: THE IGER SPEAKS

Robert Iger (President & CEO of Disney), as interviewed by Business Week executive editor John Byrne, was asked if he had a Facebook profile. The answer: indeed he does. Of course, this prompted me to search for him on Facebook only to find a page dedicated to petitioning Iger as commencement speaker at USC. After reading the lengthy ,albeit articulate petition, I decided that whoever formed this page has got it all wrong.

USC Iger Petition in Facebook

Here’s one word to sum up Bob Iger as he articulated himself today: humble.

If I had to additionally capture how he communicated his thoughts on new media today:

Consumer Experience

• It’s important not only to focus on the product but how the consumer experiences that product. It seems a strategy he shares with business partner Steve Jobs.

Here’s some of the other highlights from today’s keynote.

Social Media

· Social media isn’t an engaging medium for solely generations X/Y. The audience extends out to include younger audiences as well. Disney believed in this value to the extent that they acquired Club Penguin, a virtual world for children to engage in.

· Other virtual communities to come include one to support the movie Cars called Radiator Springs

Technology’s Impact on Disney

• Most media companies look at technology as a challenge. Contrary to this strategy, Disney looks at technology as an enabler of content while still a challenge to figure out.

• When asked how Iger sees deals such as the Google/Doubleclick affecting his business, his answer was not much. Strengthening the platforms empowers the content provider and therefore is good for Disney.

The Blu-Ray Smackdown to HD DVD

• Sees the Blu-Ray win as good for DVD sales but says the real innovation will be the coming interactive features to be available on DVDs.

Global Success

• Because of cultural distinctions internationally, product cannot simply be exported for consumption abroad. The product must be created globally to bring these cultural differences to light.
• When designing the Disneyland experience in Hong Kong, the park was built to support the same amount of dining time typically demonstrated by American audiences: 20 minutes. After the Hong Kong park was opened, however, park go-ers were typically eating for 40 minutes on average. The accommodations that were allotted in the dining locations were found to be inadequate in this case and changes were quickly made to adjust to this.

Mobile

• Disney established two MVNO’s (Mobile Virtual Network Operators) for the Disney and ESPN brand. An MVNO is a company which provides mobile service by leasing spectrum from one of the major service providers such as Verizon, AT&T, etc. Both enterprises failed.
• Iger acknowledges that these models failed and says that he does not believe in the MVNO model going forward. ESPN created a licensing relationship with a 3^rd party and Disney plans to do the same. In essence, Disney will provide the content on mobile phones without acting like the mobile company part. I mean, who wants to run a billing department anyway?

New Media Cannibalizing Traditional Media

· Consumption of content on new platforms has been seen as incremental, not cannibalistic.

· Long term, film content will shift a bit in consumption on new platforms but the physical medium will never be eradicated completely.

Gaming

• Disney is self-publishing games at this point. The strategy will be to buy development talent rather than a publisher to succeed in the space.

Acqusitions

• Don’t feel the need to acquire companies to be successful. That said, free cash flow strong if a suitable partner comes along.

Iger seems to lead with a humility that is simply refreshing in a media CEO. I imagine the guy doing yoga in his office with a Jamba Juice ready to go post work-out.

Namaste Mr. Mouse. Namaste.