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Software industry

Disney and Microsoft Team Up to Distribute Digital Content

Strategic Insights

— 1 min read

Microsoft and Walt Disney Co. are collaborating to make Disney movies, TV programming, music, and other content available to consumers through digital devices, making their products more widely used. The agreement will allow Disney to license Microsoft's digital rights management software to distribute its content securely, and the two companies will work together to promote and improve digital entertainment. This deal is significant for both companies, as it will help Disney reach consumers with digital entertainment through various devices, including computer-connected TVs, hand-held media players, and cellphones.

Key Takeaways:

  • The deal is nonexclusive, meaning that non-Microsoft media software, such as Real Network Inc.'s Real Player or Apple Computer Inc.'s QuickTime Player, can also work with Disney content.
  • Copyright protection is a major concern for Disney, and Microsoft's digital rights management software will help address this issue.
  • The agreement is a major validation of Microsoft's digital media technology, which is already the standard in the PC business and Web browser business.
  • Disney will likely rely heavily on Microsoft to reach consumers with digital content, including downloadable movies, TV clips, and music.
  • The deal is significant for Microsoft, as it will help the company gain broader acceptance of its media player technology and digital rights management software in the digital entertainment business.

Statistics:

  • Disney movies, such as "Finding Nemo," will be made available digitally through this partnership.
  • The deal is focused on distributing digital content to various devices, including computer-connected TVs, hand-held media players, and cellphones.
  • Microsoft's Windows operating system is the standard in the PC business, and its Internet Explorer software dominates the Web browser business.
  • The partnership will help Disney reach consumers with digital entertainment through a variety of devices, including those that run on Microsoft software.

Sources:

  • "Microsoft, Disney partner to push digital content," USA Today Dec 24, 2001 (no author attributed)
  • "Agreement between Disney and Microsoft for digital content distribution," Bloomberg, Dec 24, 2001 (no author attributed)
  • "Disney gets set to push digital content," eWeek, Dec 24, 2001 (no author attributed)

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