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Analysts Chime in on Disney Digital Service

27 Feb, 2014 By: Erik Gruenwedel



The launch of the Disney Movies Anywhere service and its exclusive access agreement with iTunes has caused much speculation about what it means to the future of digital delivery. But assessing the merits of Disney and Apple’s union in the cloud depends on who you ask.

Wedbush Securities analyst Michael Pachter said Disney’s refusal to join UltraViolet undermines the platform and the industry’s attempt at conformity — the latter key to wider consumer adoption of cloud-based storage of entertainment.

“It’s silly. People don't want several cloud-based storage lockers segmented by the provider of content; that’s like having one refrigerator for Coke and another for beer,” Pachter said.

Dan Cryan, analyst with IHS, argues that Apple, Amazon, Microsoft and Google already have the upper hand surrounding brand recognition of cloud-based storage. Cryan said Target’s recent cyber security PR snafu when it revealed that security involving millions of consumer credit card transactions over the winter holiday period had been compromised doesn’t help Target Ticket’s association with UltraViolet.

“Of all things Target and Walmart are known for, custodians of the things consumers own in the cloud is not one of them,” he said.

Russ Crupnick, senior media analyst with The NPD Group, said Disney’s digital service could help both electronic sellthrough and UltraViolet as consumers accept digital purchases and storage.

“The more consumers are exposed to digital ownership and device interoperability the better, and the Disney brand carries the clout to build awareness and usage — regardless of the platform,” Crupnick said.

 


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