IGER WON’T DELAY DISNEY DVD DISCS TO REDBOX, NETFLIX

Disney CEO Robert Iger has revealed that competing studios were able to persuade Redbox and Netflix to delay renting DVDs of their movies for 28 days after they were released by offering them huge discounts on the discs. Speaking at a Goldman Sachs investors conference in New York, Iger says that Disney focuses on making movies that people will like to own. “When we analyzed the cost of creating that [28-day] window in Redbox, which would have entailed us selling them videos at substantially reduced prices … at 50 percent reduction in cost … [that] was not an equation that made sense to us.”