Disney Challenges Big Tech: Revamping App Store Deals Ahead!
Staff Editor
2 min read
Disney CEO Bob Iger is not one to shy away from speaking his mind, especially when it comes to his company’s bottom line. In a recent investor conference, Iger made it clear that he’s not thrilled about the deals Disney has with tech giants like Apple and Google for distributing its streaming services. While Netflix has the luxury of distributing its content independently, Disney relies heavily on third-party app stores like Apple’s App Store and Google Play to reach its audience. However, this convenience comes at a cost, with these platforms taking a significant chunk of revenue for themselves.
The disparity in deals is quite evident when comparing Apple’s 15% cut of revenue from signups within its apps to Roku’s fee structure for video companies. While these deals may benefit the tech companies, Disney is starting to question whether the trade-off is worth it. With the rise of streaming services and the increasing competition in the market, every dollar counts, and Iger is determined to see Disney get a fairer share of the pie.
Despite the challenges posed by the current distribution landscape, Disney may not have to sever ties with third-party app stores altogether. Apple, in particular, is facing scrutiny over its App Store policies, with regulators pushing for changes that could potentially benefit companies like Disney. As tech giants face increasing pressure to level the playing field and address antitrust concerns, there may be room for negotiation that could lead to more favorable terms for content providers.
It’s not just Disney that’s pushing back against the tech behemoths – Business Insider’s parent company, Axel Springer, recently joined a coalition of media groups in filing a $2.3 billion lawsuit against Google over alleged losses from the company’s advertising practices. The battle for fair treatment and compensation in the digital realm is heating up, with companies across industries taking a stand against perceived injustices.
As the digital landscape continues to evolve, the dynamics between content creators and tech platforms are likely to undergo significant changes. Disney’s stance on renegotiating its deals with Apple, Google, and others sets a precedent for other companies to reevaluate their own relationships with distribution channels. In an industry where every percentage point of revenue matters, standing up for a fair deal is not just about the bottom line – it’s about ensuring a level playing field for all players involved.
