Apple and Disney strike a digital distribution deal

• Apple logoWalt Disney and Apple Computer are to sell episodes of Desperate Housewives and other television shows over an iPod device capable of playing video.
• The agreement marks a potential milestone in the migration of traditional media to digital distribution devices such as the iPod.
• It is a development that could further challenge the traditional model of broadcast television and allow consumers to view television, films and other content when and where they choose.
• It also represents the first bold move by Robert Iger since he took over as chief executive of Disney on October 1, and demonstrates his vision of using technology to increase sales of the company's prized television and film content.
• "For the first time ever, prime-time shows can be purchased online the day after they appear on TV," he said.
• Apple Strong sales of the iPod portable digital music player and "staggering" demand for the new Nano player helped Apple Computer report surging fourth quarter sales and profits.
• However, shares fell as revenues fell short of expectations.
• Go there Media companies have envisaged a shift towards selling movies, television and other content online in the same way they sell music through iTunes and other digital stores.
• However, they have trodden cautiously because of concerns about piracy and cannibalising revenue from other streams, such as DVDs or the television syndication market.
• For Apple the launch of the video iPods is expected to give iPod sales a further fillip and consolidate Apple's position as the leader in the market for portable digital content players.
• Apple has sold more than 28m iPods since their introduction in October 2001 and now has about 75 per cent of the market for digital music players.