Disney CEO Bob Iger tells the audience at the Digital Hollywood Media Summit that he’s sold 4 million movies and “40 to 50” million videos through iTunes since he launched the service in 2006. What does that mean in terms of dollars? Not much.
- Pali Research’s Rich Greenfield estimates that Disney (DIS) is getting about $14.50 for each movie sold through Apple (AAPL). 4 million x $14.50 = $58 million.
- We estimate that Disney gets about $1.44 for each video it sells. 45 million x $1.44 = $64.8 million
- Grand total: $122.8 million: In other words, a little less more than 10% of the $1 billion digital revenue goal Iger has laid out for his company this year — and a rounding error for a company that generated $35 billion in sales last year.
The upside for Disney is that this is all incremental revenue, with zero marketing costs. So they’d rather have it than not. But another reminder that digital sales aren’t going to do much for Disney or any other the other large media congolomerates’ top and bottom lines for quite some time.