Disney may limit online video to authenticated subscribers
Walt Disney Co. (NYSE: DIS) may strike deals with Netflix (Nasdaq: NFLX) and other online video providers that would allow subscribers to get faster access to content from networks like ESPN if they are pay TV customers.
Based on comments CEO Bob Iger made during Disney's fiscal third quarter earnings call Tuesday, it appears the media giant may follow a similar strategy to Fox, which recently said it would give pay TV subscribers early access to online versions of its hit TV series.
Iger said that Disney is talking to Netflix and other online video providers about distribution deals that would involve "some form of authentication." He said the agreements would "allow access to our programming faster or in a more aggressive window, if the customer is a multichannel subscriber."
Disney said revenue from its media networks increased by 5 percent to $4.9 billion during the second quarter, while operating income from its networks rose 11 percent to $2.1 billion.
For more:
- see Disney's earnings release
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