That's what happens when you wholesale copy a post from another site, mistakes and all. They've already corrected their post. Engadget is probably just waiting to copy the correction.
And another thing, I don't find this news to be small potatoes, considereing the limited places most people have to view these videos (small iPod screens, computer monitors, even fewer AppleTVs). An iPod touch (or even a nano) wouldn't be the first gift I would think to buy a child in Disney's target market. I bought my first iPod last month and am still exploring it.
Of course most people buy hard copies of music and movies, and rightfully so, considering the costs involved in buying a computer and a DAP even before you download your first overpriced DRMed track, which is why most digital content on peoples PMPs is stolen, not purchased. This post sucks.
Not only is it just above 10% for digital sales, its more when you consider the lower estimates for 2006 and 2007 and that the $123M is above what it would have made without the iTS and is more profitable per sale than manufacturing, distributing and selling DVDs to brick and mortar retail outlets. 2008 will prove to be even more financially beneficial to Disney's bottom line.
$123m is about 10% of FY07 total annual cashflow $1,259b, about 18% of FY06 total annual cashflow $688m, and much more than the negative cashflow of the most recent quarter Dec07 -$256m. I don't know what $123m means to you, but it sure means a lot to Disney's bottom line.
Remember that iTunes revenue for Disney is almost pure profit. Disney already paid the production costs previously. Apple is picking up the cost of running the digital store, so all the money that Apple hands Disney falls almost entirely to the bottom line. That kind of revenue helps any company, even a large company like Disney.
Don't be distracted by the revenue numbers. For example if a hit movie makes $123m gross revenue for Disney, but production and marketing costs reach $95m that only leaves $28m left in gross profit, which doesn't all fall to the bottom line because Disney has other investment and financing expenses.
So in light of the reality that is Disney today, that $123m in extra free cash is quite nice indeed.
Reader Comments (Page 1 of 1)
EMB @ Mar 13th 2008 10:41AM
hey mathwiz.
It's just above 10% not less.
superfresh @ Mar 13th 2008 11:07AM
That's what happens when you wholesale copy a post from another site, mistakes and all. They've already corrected their post. Engadget is probably just waiting to copy the correction.
And another thing, I don't find this news to be small potatoes, considereing the limited places most people have to view these videos (small iPod screens, computer monitors, even fewer AppleTVs). An iPod touch (or even a nano) wouldn't be the first gift I would think to buy a child in Disney's target market. I bought my first iPod last month and am still exploring it.
Of course most people buy hard copies of music and movies, and rightfully so, considering the costs involved in buying a computer and a DAP even before you download your first overpriced DRMed track, which is why most digital content on peoples PMPs is stolen, not purchased. This post sucks.
Bender Bending Rodriguez @ Mar 13th 2008 11:46AM
Not only is it just above 10% for digital sales, its more when you consider the lower estimates for 2006 and 2007 and that the $123M is above what it would have made without the iTS and is more profitable per sale than manufacturing, distributing and selling DVDs to brick and mortar retail outlets. 2008 will prove to be even more financially beneficial to Disney's bottom line.
Realtosh @ Mar 13th 2008 4:03PM
$123m is about 10% of FY07 total annual cashflow $1,259b, about 18% of FY06 total annual cashflow $688m, and much more than the negative cashflow of the most recent quarter Dec07 -$256m. I don't know what $123m means to you, but it sure means a lot to Disney's bottom line.
Remember that iTunes revenue for Disney is almost pure profit. Disney already paid the production costs previously. Apple is picking up the cost of running the digital store, so all the money that Apple hands Disney falls almost entirely to the bottom line. That kind of revenue helps any company, even a large company like Disney.
Don't be distracted by the revenue numbers. For example if a hit movie makes $123m gross revenue for Disney, but production and marketing costs reach $95m that only leaves $28m left in gross profit, which doesn't all fall to the bottom line because Disney has other investment and financing expenses.
So in light of the reality that is Disney today, that $123m in extra free cash is quite nice indeed.