The chief executive of Walt Disney has called for a thorough reexamination of the business model for marketing and producing movies as DVD sales tumble and distribution costs rise.
“The business model that underpins the movie business is changing,” Bob Iger told the Financial Times in an interview published on Monday. “If we don't adapt to the change there won't be a business - that's my exhortation to my team.”
The newspaper said Iger advocated a fundamental rethink of the costs associated with movie production and marketing.
Disney's movies studios, which account for about 15% of the media conglomerate's revenue, suffered a 12% fall in sales in the quarter to June 27 and swung to an operating loss of $12 million. (Reuters)