Disney Appoints Co-Presidents to Run Interactive Media
Disney may have made the decision to change leadership at its online operations too late. The company had a profit of $1.3 billion on $10 billion in revenue last quarter. Its 10-Q shows that its interactive business is tiny. It has revenue of $197 million for the quarter and an operating loss of $65 million. That makes it much smaller than the interactive operations at other large media companies like News Corp (NWS) and CBS (CBS). The Disney operation is also dwarfed by the sales of online portals like Yahoo.
Disney is not without assets that could have large presences online. It owns ABC and ESPN and has its own Disney.com portal. But it has failed to make headway as its competition has prospered in relative terms. It may be too hard to catch up now.