Disney CEO's Board Seat 'at Risk' With Apple Planning to Launch Video Service

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Apple's upcoming video streaming service and its work on original TV content could spell trouble for Apple board member and Disney CEO Bob Iger, reports Bloomberg, citing the potential for competition between the two companies.

Iger is potentially at risk of losing his seat on Apple's board as Apple prepares to launch its streaming TV service. Apple already has more than two dozen original TV shows in the works and has purchased rights to several movies, with all of that content set to be offered via the upcoming service.

Image via Bloomberg

Apple's service, which it plans to introduce at a March 25 event but launch later in the year, will also incorporate add-on content from other providers like SHOWTIME.

Disney, like Apple, is working on its own streaming service, Disney+, and is potentially set to be one of Apple's competitors. Disney+ will offer Disney, Star Wars, and Marvel content (including content made just for Disney+), and like Apple's TV service, it will launch in 2019. Disney also recently acquired Fox's assets, giving it majority control over Hulu and other channels and film franchises.

Apple proxy filings that have detailed "arms-length commercial dealings" with Disney have specified that Iger does not have a "material direct or indirect interest" in the deals, but Bloomberg suggests that could change when both companies have launched their streaming services.

John Coffee, director of the Center on Corporate Governance at Columbia Law School told Bloomberg that Disney and Apple "might have to recognize that they will become active competitors in the near future." Both companies likely have legal advisers exploring whether Iger should continue to be on Apple's board, according to Coffee.

Iger, who was a good friend of Steve Jobs, has been on Apple's board since 2011, but there is precedent for a board member leaving due to increasing competition. Former Google CEO Eric Schmidt was previously on Apple's board, but resigned in 2009 after Google entered the smartphone market.

Article Link: Disney CEO's Board Seat 'at Risk' With Apple Planning to Launch Video Service
 

JetTester

macrumors 6502
Feb 12, 2014
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Clearly a conflict of interest. Of course, if Apple continues to expand into other industries, there may be a time when nobody can be a board member without a conflict, except for Apple employees.
 

FontGeek

macrumors newbie
Sep 15, 2018
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But is a streaming service really worth leaving over? Compared to the plethora of ways that both Apple and Disney make their money, this seems kind of small.
 
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Cosmosent

macrumors 6502a
Apr 20, 2016
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Good !

Replace him with an EE or Software Developer !

---

RE: "Iger, who was a good friend of Steve Jobs, has been on Apple's board since 2011,..."

That section of Walter Isaacson's Steve Jobs is a INSIGHTFUL read ... Jobs picked & setup a Hands-OFF Board, that remains to this Day !

Few who invest in AAPL know this ... & it's right there in the Book, fully detailed !
 
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psylence2k

macrumors 6502
Nov 16, 2012
407
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But is a streaming service really worth leaving over? Compared to the plethora of ways that both Apple and Disney make their money, this seems kind of small.
I feel like both companies are banking on their streaming services to eventually become huge parts of their business in one way or another. Otherwise why would they be doing it ? The trend seems to be hardware revenue decreasing and investment in "Services" increasing.

With so many players fighting for space in the streaming wars in the coming years knowing a competitors strategy, future plans, ideas, business dealings, partners, etc could potentially be very beneficial to the other company.
 
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4jasontv

macrumors 68000
Jul 31, 2011
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Content distributers shouldn't be content creators. I don't want to see Apple do it, and I want to see Comcast and Disney broken up. Exclusives of digital content exists to artificially inflate prices.
 

DeepIn2U

macrumors 603
May 30, 2002
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But how will Iger pay his rent without the $300K for four meetings a year?
Board members are NEVER paid by the company. They don't even have logon accounts to any company a person serves on the board - except the CEO. If he's chairman of the board as well then that's a lucky payment.

Article I feel is mis titled. He's seat is not 'in danger' as apposed of, no longer required due to an upcoming conflict of interest.
 

SigurTom

macrumors member
Sep 23, 2015
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Board members are NEVER paid by the company. They don't even have logon accounts to any company a person serves on the board - except the CEO. If he's chairman of the board as well then that's a lucky payment.

Article I feel is mis titled. He's seat is not 'in danger' as apposed of, no longer required due to an upcoming conflict of interest.
That's not correct. Mr. Iger received $377,881 in 2018.

https://www.sec.gov/Archives/edgar/data/320193/000119312519004664/d667873ddef14a.htm#toc667873_18
 

niji

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Feb 9, 2003
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this reminded me of google's schmidt sitting on apple's board.

this was quoted in the public announcement (from Jobs) at the time (2009):

“Unfortunately, as Google enters more of Apple’s core businesses … Eric’s effectiveness as an Apple board member will be significantly diminished, since he will have to recuse himself from even larger portions of our meetings due to potential conflicts of interest. Therefore, we have mutually decided that now is the right time for Eric to resign his position on Apple’s board.”

my personal opinion on a disney/apple shared board member is:
i would love for these 2 great companies to go forward together even more and a develop an interlocking board structure.
don't forget, apple is the junior developing player in content creation (and, as long as Edie is in charge apple will never make it). apple will gain from such an arrangement.
apple and disney think alike. and this is good. it takes a lot to survive these days, and an even closer, official arrangement between the two would benefit both.
 
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cmaier

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Jul 25, 2007
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Board members are NEVER paid by the company. They don't even have logon accounts to any company a person serves on the board - except the CEO. If he's chairman of the board as well then that's a lucky payment.

Article I feel is mis titled. He's seat is not 'in danger' as apposed of, no longer required due to an upcoming conflict of interest.
Board members are almost always paid.
 
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yanksrock100

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Oct 30, 2010
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It definitely seems like it could be like a conflict of interest considering Apple is going "all in" on streaming.

I know it has been said before, but I am not a fan of all these competing streaming services. It kind of seems like network TV all over again - to get content, now we have to pay for Netflix, Hulu, Disney+, Apple, CBS, HBO...
 

Jon Rowlison

macrumors newbie
Aug 25, 2014
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Bob or Tim... I own stock in both companies. I would gladly accept a seat on either board. You have my phone number and address... msg me.
 

sully54

macrumors regular
Sep 15, 2012
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Content distributers shouldn't be content creators. I don't want to see Apple do it, and I want to see Comcast and Disney broken up. Exclusives of digital content exists to artificially inflate prices.
Agreed. Imagine if each record label launched their own streaming service?

On that note, what makes the music and movie/tv industry different that they both have completely different systems of distribution?
 

Tapiture

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Oct 1, 2016
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I thought he should stay until I remembered I owned stock in Disney. Disney doesn’t really need Apple, at this point I fail to see where the relationship is beneficial for them. I can see how it could be beneficial for Apple, though. Iger is a very smart guy, I’m sure he’ll make the best decision based on his plans at Disney.
 

4jasontv

macrumors 68000
Jul 31, 2011
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Agreed. Imagine if each record label launched their own streaming service?

On that note, what makes the music and movie/tv industry different that they both have completely different systems of distribution?
I don't really understand your question. I feel like it's a good comment, but I am tired and I am missing something. What are you asking?
 

Baymowe335

macrumors 603
Oct 6, 2017
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Iger has turned once great Disney Parks into an IP bonanza. Can't say I blame him, but I wish there were a different CEO at Disney.
 

SigurTom

macrumors member
Sep 23, 2015
71
136
Disney paid him $65.7 million. For him $377,881 is the same as $287 to someone who makes $50,000; it's about 11 to 12 hours of work. You are right, he did get paid but I doubt he does it for the money.
Right, but context. I was responding to someone who said "Board members are NEVER paid by the company. "