It should go without saying that Walt Disney Co. (NYSE: DIS) knows how to create magic... and its executives thankfully also know that technology holds the pixie dust to the company's future.
But will Disney's quest to find next-generation content-delivery systems for its empire of consumer products, movies, video games, television, and theme parks include the Internet?
Newly appointed chairman of Walt Disney Studios, Rich Ross, was quoted in The Los Angeles Times this week as saying the studio will "embrace new possibilities and opportunities and find innovative ways to provide quality entertainment that is readily available." The statements came as Disney CEO Bob Iger announced a restructuring of the company that includes developing new digital distribution platforms.
"Concerned about shifting consumer patterns in entertainment, Iger has championed a shake-up of traditional distribution strategies, including shortening the traditional three month-plus delay between the time a movie debuts in theaters and when it reaches DVD," the Times article said.
Part of Disney's distribution model is expected to include a content-delivery method called KeyChest, which lets you buy a movie once and then watch it on not only your TV, but your mobile phone, PC, and other devices.
Drastic changes in content delivery could help revive Disney's disappointing year on the big screen. Studio revenues for the year decreased 16 percent to $6.1 billion, and operating income decreased 84 percent to $175 million.
"As our numbers indicate, our studio had an extremely disappointing year in 2009," Iger said during the most recent quarterly earnings call. "This is primarily due to the performance of our live-action slate, but we also see challenges to the motion picture industry business model, and we are taking steps to address them."
Disney is no stranger to shaking up the technology markets. Since launching the company back in 1923, the movie studio and its conglomerate of properties have worked with partners to create advancements in filmmaking, animatronics, micro-payment systems (FastPass), and 3-D (Chicken Little). Disney's Research division is working on improving robotics, human-computer interaction, graphics, and sports visualization.
Disney also announced in October that the Disney Dream -- its newest ship in the Disney Cruise Line fleet -- will use multiple technologies when it sets sail in early 2011. A sophisticated lounge will display sunsets over the skyline of a different world-famous city each night; high-definition cameras placed on the exterior of the ship will feed live video to virtual portholes -- and 103-inch plasma screens where kids can chat, play, and joke in impromptu conversations with Disney characters.
Ross's task of finding better distribution models may also be bolstered by advancements in home-networking standards coming from the Digital Living Network Alliance (DLNA) as well as multimedia and Internet-friendly networking interfaces embedded in Microsoft Corp. (Nasdaq: MSFT) Windows 7.
Ross's partners in the search for the ultimate content delivery at Disney will be Home Entertainment president Bob Chapek, who championed Blu-ray for Disney, and chief technology officer Greg Brandeau, formerly with Pixar Animation. Both men are expected to help convert all Disney content to run on multiple devices.
What's clear is that Disney is not standing pat with current Internet technologies or distribution models. The company is certainly eager to establish a stronghold against other content-management systems. What remains to be seen is what kind of investments Disney will be making in the near term as it keeps its hand on the pulse of changes on the Internet.
And make no mistake -- all that's being steered and monitored from the executive suite. At Disney, the pressure's on to make technology deliver on strategic objectives.
— Michael Singer, Senior Editor, Internet Evolution. His focus includes executive issues... What's top of mind for CEOs, CIOs, and CTOs?
Digg
Del.icio.us
Reddit
Email This
TWEET THIS
