WHEN: Today, Wednesday, May 7th
WHERE: CNBC's "Squawk on the Street"
Following is the unofficial transcript of a CNBC EXCLUSIVE interview with Bob Iger, Disney Chairman & CEO on CNBC's "Squawk on the Street" today. Video from the interview is available at CNBC.com.
All references must be sourced to CNBC.
DAVID FABER: LET'S MOVE ON NOW TO DISNEY, SHARES OF WHICH ARE TRADING HIGHER THIS MORNING AFTER THE COMPANY BLEW AWAY WALL STREET ESTIMATES ON BOTH THE TOP AND BOTTOM LINE. IT WAS HELPED BY THE SUCCESS OF THE ANIMATED FRANCHISE NOW "FROZEN." JOINING ME NOW IN AN EXCLUSIVE INTERVIEW IS DISNEY'S CHAIRMAN AND CEO BOB IGER. BOB, GREAT TO HAVE YOU WITH US HERE ON "SQUAWK ON THE STREET" THIS MORNING. THANK YOU.
BOB IGER: THANK YOU, DAVID. GOOD MORNING.
FABER: ALL RIGHT. GIVEN THE WIDESPREAD PRAISE FOR THIS QUARTER, I AM JUST CURIOUS, ANY THOUGHTS ABOUT MOVING UP YOUR RETIREMENT DATE PERHAPS FROM JUNE 30th OF 2016?
IGER: NO. NO THOUGHTS AT ALL. ENJOYING THIS QUARTER AND STILL HAVE A LOT OF WORK TO DO WHILE I'M HERE.
FABER: ONE AREA THAT WAS AT LEAST I WOULDN'T EVEN SAY CAUSE FOR CONCERN, BUT CERTAINLY AT LEAST SOME QUESTIONS, IS ADVERTISING. I BROUGHT IT UP EARLIER ON OUR PROGRAM. THE CABLE NET REVENUE NUMBER TO SOME AT LEAST WAS A BIT WEAKER THAN PERHAPS HAD BEEN EXPECTED. AND SO GIVEN WHAT WE'VE SEEN FROM SOME OF YOUR COMPETITORS AS WELL, I ASK, IS ADVERTISING SLOWING?
IGER: WELL THE ENVIRONMENT FOR ADVERTISING ISN'T GREAT RIGHT NOW. IT'S NOT TERRIBLE, BUT IT'S NOT GREAT. I THINK EVERYBODY THAT IS SEEKING ADVERTISING DOLLARS PARTICULARLY ON THE TELEVISION SIDE IS CHALLENGED A BIT. THAT SAID, THE QUARTER THAT WE'RE CURRENTLY IN, SHOWING SIGNS OF JUST A SLIGHT REBOUND, CERTAINLY THE CASE FOR ESPN, SO I DON'T THINK THIS IS SOMETHING THAT WE'RE CONCERNED ABOUT LONG TERM. I'VE BEEN AROUND FOR A LONG TIME AND I'VE SEEN UPS AND DOWNS OVER THE YEARS. LOT OF CYCLES. AND I THINK WE'RE IN SOMEWHAT OF A SOFT CYCLE BUT I'M GETTING A SENSE THAT WE MAY BE JUST CRAWLING OUT OF IT.
FABER: ALRIGHT, SO YOU DON'T BELIEVE THIS IS SOMETHING THAT IS PERHAPS GOING TO BE EXTENDED THROUGHOUT THE REST OF THE YEAR THEN?
IGER: NOT NECESSARILY, NO. I DO THINK, THOUGH, WE'RE SEEING A TREND THAT IS CERTAINLY EVIDENT TO US THAT THERE IS GROWTH IN SPENDING AND DIGITAL ADVERTISING, MEANING AWAY FROM TELEVISION. I DON'T KNOW THAT WE'RE SEEING THE CURRENT MARKET PLACE AFFECTED BY THAT, BUT WE DEFINITELY BELIEVE THAT A GROWTH AREA FOR THE COMPANY IS DIGITAL MEDIA BECAUSE WE THINK ADVERTISING IS GOING TO GROW IN THAT SPACE.
FABER: OF COURSE.
IGER: AGAIN, I DON'T THINK THAT'S WHAT'S AFFECTING THE MARKET TODAY.
FABER: RIGHT. WHILE WE'RE ON THIS BROADER SUBJECT, THOUGH, I AM CURIOUS. YOU HAVE A PRETTY GOOD FEEL FOR THE PULSE OF THE AMERICAN ECONOMY GIVEN NOT JUST ADVERTISING BUT, OF COURSE, ATTENDANCE AT THEME PARKS, MOVIES, THE DESIRE TO BUY CONSUMER PRODUCTS. I MEAN HOW WOULD YOU SORT OF CHARACTERIZE WHAT YOU'RE SEEING ACROSS YOUR BUSINESSES WHEN IT COMES TO APPLYING PERHAPS A LABEL TO WHERE WE ARE IN THE U.S. ECONOMY?
IGER: WELL, I THINK IN THE UNITED STATES, THE CONSUMER SEEMS TO BE FEELING PRETTY GOOD. I DON'T THINK THERE'S MUCH VISIBILITY. AND I THINK THAT'S TRUE IN WAY FOR THE CONSUMER TOO. IF YOU ASK THE CONSUMER ABOUT WHAT THE ECONOMY IS GOING TO LOOK LIKE OR HOW THEY FEEL THEY'RE GOING TO FAIR OVER THE NEXT YEAR, YOU DON'T GET MUCH CONFIDENCE. ON THE OTHER HAND YOU DON'T SENSE FEAR EITHER. THAT'S I THINK A BIG CHANGE CERTAINLY FROM THE '08/ '09 PERIOD. BUT I THINK IT TOOK A LONG TIME FOR THE FEAR TO ESSENTIALLY EB. I THINK THAT'S A GOOD THING. SO WHAT WE'RE SEEING TODAY IS A CONSUMER THAT WHEN THEY SEE VALUE, WHEN THEY SEE QUALITY, THEY'RE SPENDING ON IT. NO QUESTION ABOUT IT. I THINK OUR RESULTS THIS PAST QUARTER CERTAINLY ILLUSTRATE THAT. SO AGAIN, NOT MUCH VISIBILITY. BUT NOT MUCH FEAR. AND I THINK THAT MEANS THAT THE CONSUMER IS WILLING TO SPEND ON PRODUCT THAT THEY EITHER FEEL THEY WANT OR PRODUCT THAT THEY NEED.
FABER: ALRIGHT. WELL OF COURSE YOU CITE THOSE NUMBERS, YOU KNOW, SEGMENT OPERATING INCOME UP 34%, REVENUES UP 10% AND FREE CASH FLOW, BOB, UP 15%. THAT IS AGAIN YEAR OVER YEAR FOR THE QUARTER. YOU'RE GENERATING SO MUCH CASH. YOUR INVESTOR BASE WOULD NOT HAVE ANY QUALMS WITH HOW YOU'RE ALLOCATING IT. BUT I DO WONDER, ARE YOU PERHAPS GETTING SOME PRESSURE OR FEELING IT TO INCREASE THE DIVIDEND OR INCREASE THE BUYBACK BEYOND WHAT HAS BEEN FAIRLY SIGNIFICANT AT THIS POINT, GIVEN YOU SEEM TO BE ALLOCATING CAPITAL TO ALL YOUR BUSINESSES APPROPRIATELY?
IGER: WE'VE HAD A DIVERSIFIED APPROACH TO ALLOCATING CAPITAL. YOU CITED MUCH OF IT. WE CERTAINLY HAVE INVESTED IN OUR BUSINESSES. THE MY MAGIC PLUS TECHNOLOGY IN ORLANDO IS A GREAT EXAMPLE OF THAT. WE'VE ALSO INVESTED OUR CAPITAL TO ACQUIRE PIXAR MARVEL, LUCAS FILM, JUST A FEW EXAMPLES OF THAT. MAKER STUDIOS MOST RECENTLY. WE'VE RAISED OUR DIVIDEND FAIRLY CONSISTENTLY. AND WE'RE BUYING BACK OUR STOCK AGGRESSIVELY, $6 TO $8 BILLION THIS YEAR. SO I THINK WE'LL PROBABLY CONTINUE TO ALLOCATE OUR CAPITAL IN MULTIPLE DIRECTIONS, ALTHOUGH I DON'T SEE A NEAR TERM LARGE ACQUISITION ON THE HORIZON. WHICH PROBABLY WILL MEAN WE'LL ACCUMULATE MORE FREE CASH FLOW AND HAVE SOME MORE DECISIONS TO MAKE IN TERMS OF HOW WE ALLOCATE THAT CAPITAL. BUT I DON'T SEE A BIG SHIFT. I THINK ACTUALLY WE'VE DONE A GOOD JOB IN TERMS OF HOW WE'VE INVESTED OUR CAPITAL. BOTH FOR THE SHAREHOLDERS AND FOR THE COMPANY. BECAUSE MOST OF OUR INVESTMENTS FROM THE CAPITAL EXPENDITURE PERSPECTIVE ARE AIMED AT CREATING LONG-TERM GROWTH. IT'S NOT A QUARTER TO QUARTER STRATEGY AS HOW DO WE SET THIS COMPANY UP FOR THE LONG HAUL AND I THINK WE'VE DONE A GREAT JOB OF THAT.
FABER: WELL, AGAIN, MOST OF YOUR INVESTORS WOULD AGREE. CERTAINLY MY MAGIC, FOR EXAMPLE, OR THE SHANGHAI PARK ARE TWO EXAMPLES OF THAT. WHEN IT COMES TO MY MAGIC, WHICH YOU JUST MENTIONED, ON THE CALL YOU WERE ASKED ABOUT THE EFFICIENCIES THAT ARE BEING CREATED, THE ABILITY TO ALLOW MORE PEOPLE ESSENTIALLY TO ATTEND AND HAVE A BETTER EXPERIENCE, CAN YOU GIVE US ANY SPECIFICS, THOUGH, IN TERMS OF A REVENUE LIFT THAT YOU ARE SEEING FROM THE INTRODUCTION OF THAT TECHNOLOGY WHICH I GUESS HAS BEEN IN PLACE NOW FOR A FEW QUARTERS?
IGER: WELL, IT'S A LITTLE TOO EARLY TO SAY EXACTLY WHAT THE IMPACT IS REVENUE-WISE. WHAT THIS WAS AIMED AT DOING IS ESSENTIALLY GIVING THE CONSUMER MORE TOOLS TO CUSTOMIZE THEIR OWN EXPERIENCE OR ALLOWING THE CONSUMER TO GIVE US MORE DATA SO WE COULD PERSONALIZE THEIR EXPERIENCE. ESSENTIALLY GIVES THE CONSUMER OR THE GUEST AS WE CALL THEM, A BETTER PARK EXPERIENCE BEFORE THEY GO AND WHEN THEY GET THERE. THAT'S A BIG DEAL IN TERMS OF THE BOTTOM LINE BECAUSE AS WE – AS GUEST SATISFACTION RISES THEN THE PROBABILITY OF THEM RETURNING RISES, THE PROBABILITY OF THEM TALKING ABOUT THEIR EXPERIENCE POSITIVELY TO OTHERS, THAT ALL HITS ULTIMATELY OUR BOTTOM LINE IN A VERY PROFOUND WAY. THIS IS ALSO AN INTERESTING TIME BECAUSE CONSUMERS ARE USING TECHNOLOGY IN, I THINK, VERY, VERY COMPELLING WAYS AND THEY EXPECT BECAUSE OF THE EXISTENCE OF MORE TECHNOLOGY, THEY EXPECT BETTER EXPERIENCES. THEY EXPECT MORE CONTROL. THEY EXPECT MORE ACCESS, MORE CONVENIENCE. IN OUR CASE THEY EXPECT TO HAVE A BETTER TIME. AND WHAT WE'RE SEEING WHICH I THINK IS REALLY INTERESTING BECAUSE IT'S EXACTLY WHAT THIS WAS DESIGNED FOR, IS A CONSUMER THAT IS PLANNING THEIR TRIP TO DISNEY WORLD IN ADVANCE, ROUGHLY THREE QUARTERS OF THOSE THAT VISIT ARE NOW BOOKING TIME ON THEIR FAVORITE ATTRACTIONS BEFORE THEY COME. WHEN THEY COME, THEY ARE IN EFFECT MORE ORGANIZED, MORE EFFICIENT, THEY MAKE BETTER USE OF THEIR TIME SO THEY CAN HAVE MORE FUN. THEY CAN EXPERIENCE MORE ATTRACTIONS.
FABER: RIGHT.
IGER: IT ALSO REDUCES CROWDING, YOU KNOW, WAIT TIME ON LINES. AND, OF COURSE, THE WRISTBAND IS NOT ONLY YOUR ROOM KEY BUT IT'S YOUR WALLET. SO IT'S A FRICTIONLESS EXPERIENCE FOR THE CONSUMER IN TERMS OF SPENDING. THAT'S A GOOD THING TOO. ALL POSITIVE.
FABER: I WOULD IMAGINE YOU'RE ALSO PICKING UP AN AWFUL LOT OF DATA ON YOUR CUSTOMERS AS WELL. I WANT TO TALK ABOUT THE "FROZEN" FRANCHISE. IT CAME UP A LOT IN LAST NIGHT'S CONFERENCE CALL, OBVIOUSLY CONTRIBUTED CERTAINLY IN THE -- ON THE FILM SIDE OF THINGS. CONSUMER PRODUCTS YOU MENTIONED NINE OF THE TOP SELLING ITEMS AT THE DISNEY STORE, WHAT ARE YOUR EXPECTATIONS FOR A FRANCHISE THAT YOU ALREADY SAID WILL POTENTIALLY BE IN THE TOP FIVE AMONGST THE DISNEY BRAND?
IGER: WELL, AS WE'VE SEEN AS A COMPANY FOR MANY, MANY YEARS, WHEN YOU SOMETHING THAT IS THAT ATTRACTIVE TO CONSUMERS, THE WORLD OVER, AND MULTIPLE GENERATIONS TOO, IT LASTS A LONG TIME. THIS IS A VERY, VERY HIGH QUALITY PRODUCT FIRST OF ALL. I HAVE TO OBVIOUSLY TIP MY HAT TO THE PEOPLE WHO CREATED IT WHO DID SUCH A GREAT JOB CREATING A BRILLIANT MOVIE. BUT WHEN YOU HAVE A STORY THAT IS MEMORABLE AND YOU HAVE THAT GREAT MUSIC AND YOU HAVE CHARACTERS THAT EVERYBODY LIKES, AND YOU HAVE A COMPANY LIKE DISNEY THAT CAN LEVERAGE ALL THAT IN SO MANY DIFFERENT WAYS OVER MULTIPLE YEARS AND MULTIPLE MARKETS, IT'S -- THIS IS SOMETHING THAT IS KIND OF FOREVER FOR THE COMPANY. LOOK AT LION KING WHICH WAS CREATED IN 1994 AND THE FACT THAT THE BROADWAY SHOW IS STILL AMONG THE MOST SUCCESSFUL ON BROADWAY.
FABER: BOB, FOREVER, REALLY? REALLY? I MEAN FOREVER IS A LONG TIME.
IGER: WELL, MICKEY MOUSE WAS CREATED IN 1928, AND HE'S STILL ONE OF OUR MOST POPULAR CHARACTERS. PEOPLE ARE DOWNLOADING MICKEY MOUSE SHORTS ON THE INTERNET FAIRLY REGULARLY. I THINK THAT'S AN INTERESTING EXAMPLE OF WHEN YOU HAVE A CHARACTER OR STORIES THAT PEOPLE LOVE, THERE'S NO REASON WHY IF WE DON'T CONTINUE TO SUPPORT THESE CHARACTERS AND THIS FRANCHISE, THERE IS NO REASON WHY IT CAN'T LAST A VERY, VERY LONG TIME. I THINK ABOUT IT IN A MORE MACRO SENSE WITH DISNEY – WITH DISNEY AND PIXAR AND MARVEL AND "STAR WARS" AS A, FOR INSTANCE. THESE ARE EVERGREEN PRODUCTS THAT ARE CREATING CHARACTERS AND STORIES THAT WE EXPECT WILL BE EVERGREEN TOO. I THINK WE NOW BELIEVE THAT WHEN YOU HAVE SOMETHING THAT IS AS GOOD AS "FROZEN" IN TODAY'S WORLD, AND YOU TREAT IT WELL, MEANING YOU CONTINUE TO SUPPORT IT AND FUEL IT WITH BASICALLY NEW CREATIVITY, THERE'S NO REASON WHY IT CAN'T KEEP GOING AT ALL. IT'S NOT A FAD.
FABER: WHEN ARE WE GOING TO SEE THE SEQUEL?
IGER: WE'VE SAID ABOUT SEQUELS AT THE COMPANY THAT WE WANT A GREAT STORY FIRST THEN WE'LL DECIDE TO MAKE A SEQUEL. IF WE JUST MANDATE A SEQUEL IN THE MARKETPLACE AND FORCE STORYTELLING THAT MAY NOT BE COMPLETELY RIGHT OR UP TO THE STANDARDS OF THE FIRST FILM, THAT'S NOT GOING TO DO THE FRANCHISE ANY GOOD. SO WHEN OUR CREATIVE TEAM IS READY, WHEN THEY HAVE A GOOD STORY, I'M SURE THAT WE'LL BE READY TO MAKE A SEQUEL. BUT IT'S SOMETHING THAT I THINK I'D LIKE TO -- WE WOULD LIKE IT TO HAPPEN MORE ORGANICALLY FROM A CREATIVE PERSPECTIVE THAN SOMETHING THAT IS FORCED BECAUSE WE'RE INTERESTED IN THE BOTTOM LINE.
FABER: WELL, SPEAKING OF SEQUELS, I KNOW THERE'S BEEN A GREAT DEAL OF ATTENTION PAID ALREADY AMONGST THOSE WHO LIKE THE "STAR WARS" FRANCHISE ON THE SEQUEL THERE. I THINK IT WOULD BE. BECAUSE IT'S NUMBER SEVEN. NOW I MEAN EVEN TODAY, FOR EXAMPLE, IS IT GOING TO BE CALLED "THE ANCIENT FEAR" AS MANY ON THE INTERNET ARE SPECULATING TODAY, BOB?
IGER: SO FAR WE'RE ONLY CALLING IT "STAR WARS 7." WHEN WE'RE READY, WE'LL TELL EVERYBODY WHAT THE NAME OF IT IS. WE OBVIOUSLY ARE WELL AWARE OF THE UNBELIEVABLE INTEREST IN THIS FRANCHISE. ACTUALLY, I MUST ADMIT, I'M SURPRISED BY IT. I KNEW THAT IT WAS GREAT, BUT I HAD NO IDEA IT WAS THIS GREAT. EVERY DAY I SEE MORE PROOF OF THAT. AND SO WE'LL IN TIME WE'LL GIVE THE "STAR WARS" FANS EVERYTHING THAT THEY WANT. BUT THE MOST IMPORTANT THING IS THAT WE GIVE THEM A GREAT MOVIE AND THAT'S WHAT EVERYONE HERE IS CONCENTRATING ON. PARTICULARLY THE DIRECTOR, J.J. ABRAMS.
FABER: RIGHT AND OF COURSE J.J. ABRAMS. ALTHOUGH YOU GAVE THEM A SELFIE THE OTHER DAY, WHAT WAS THAT ALL ABOUT? WHY WOULD YOU TAKE A PICTURE WITH CHEWBACCA?
IGER: HEY, CHEWY IS MY MAN. I WAS AT PINEWOOD STUDIOS OUTSIDE OF LONDON A COUPLE OF WEEKS AGO, WITH ALAN HORN THE HEAD OF OUR STUDIO AND TALKING WITH J.J. ABRAMS AND KATHY KENNEDY AND BASICALLY GOING THROUGH SOME OF THE DETAILS ABOUT THE SHOOT WHICH WAS JUST ABOUT TO START. THE CAST WAS JUST ASSEMBLING. WE WERE LOOKING AT COSTUMING AND THERE WAS CHEWY AND, OF COURSE, I HAD MY iPHONE IN MY HAND. SO WHAT DO YOU DO IN TODAY'S WORLD WHEN YOU SEE SOMEONE THAT YOU LIKE AND HAVE YOUR iPHONE AND YOU TAKE A SELFIE. AND SO THEN KATHY KENNEDY SUGGESTED WE POST IT ON STARWARS.COM, WHICH WE DID ON MAY THE 4th. MAY THE 4th BE WITH YOU BY THE WAY. THE NEXT THING I KNEW, I THINK IN AN HOUR I HAD ABOUT 35,000 HITS ON MY INSTAGRAM PAGE. AND I'M NOT THAT POPULAR.
FABER: WELL, APPARENTLY GROWING IN POPULARITY, YEAH, BOB. THAT IS A TESTIMONY TO THE STRENGTH OF THAT FRANCHISE, OF COURSE. I DO WANT TO COME BACK TO SOMETHING NOW APART FROM THIS, WHICH I'VE GOTTEN A LOT OF QUESTIONS ON OVER THE LAST FEW MONTHS. THIS IS THIS OVER THE TOP OFFERING THAT YOU AND DISH PUT TOGETHER AS PART OF A LARGER PACKAGE, OF COURSE, FOR THE RETRANS OF YOUR NETWORKS ON THE DISH NETWORK. WHAT IS THIS OFFERING GOING TO BE? AND I ASK THAT QUESTION IN THE SENSE OF YOU HAVE SAID IT'S COMPLIMENTARY TO CABLE BUT MANY SAY HEY, WAIT A SECOND. IT'S GOING TO PEOPLE WHO ARE ONLY BROADBAND OR WHO CONCEIVABLY COULD BE CORD CUTTERS. WHY ISN'T THAT THE CASE?
IGER: FIRST OF ALL, IT'S DISH'S PRODUCT SO DETAILS ABOUT THE PRODUCT REALLY I'LL LEAVE TO THEM. BUT I CAN TELL YOU THAT THE MOTIVATION BEHIND IT WAS IN EFFECT DESIGNED TO ATTRACT PEOPLE THAT MAY NOT BE SUBSCRIBING TO MULTICHANNEL TELEVISION TODAY OR MULTICHANNEL VIDEO. SO IT GIVES THEM A PRODUCT THAT HAS LIMITATIONS, AND AGAIN, I CAN'T GO INTO DETAILS, BUT IT'S NOT GOING TO BE AS ROBUST A PRODUCT AS A PRODUCT THAT MIGHT BE AVAILABLE IF YOU WERE TO SUBSCRIBE TO AN EXPANDED BASIC SERVICE, AS A FOR INSTANCE. BUT GIVE THEM A PRODUCT THAT'S KIND OF A STARTER KIT, BRING THEM IN, AND THEN USE THAT ESSENTIALLY TO UPSELL A LARGER VIDEO PRODUCT AND MAYBE OTHER PRODUCTS THAT DISH HAS. I KNOW THAT THERE ARE SOME THAT BELIEVE THAT IT GIVES PEOPLE AN OPPORTUNITY TO SCALE BACK OR --
FABER: YES. RIGHT.
IGER: CORD SHAVE AS THEY SAY. WE THOUGHT IT WAS, THOUGH, A REALLY WORTHY OPPORTUNITY OR WORTHY EXPERIMENT. I USE THE WORD EXPERIMENT CAREFULLY BECAUSE WE HAPPEN TO THINK THIS IS GOING TO WORK, BUT IF WE SEE SIGNS THAT IT'S NOT WORKING, THAT IT'S EITHER DAMAGING THE MOTHERSHIP SO TO SPEAK, THE EXPANDED BASIC SERVICE OR IF IT'S SOMETHING THAT THE CONSUMER DOESN'T LIKE, THEN THERE IS NO REASON WHY WE CAN'T RETRENCH OR PULL BACK FROM IT IN MY OPINION.
FABER: OKAY. WHEN WILL YOU KNOW THAT?
IGER: WELL, I DON'T THINK DISH HAS ANNOUNCED WHEN IT'S GOING TO LAUNCH, SO I THINK FIRST, THEY'VE GOT TO LAUNCH IT. THEY ALSO HAVE TO BRING IN SOME OTHER PROGRAMMERS AND THEN LAUNCH IT. I DON'T KNOW. I DON'T KNOW THE ANSWER TO THAT.
FABER: SOMETHING ELSE YOU MAY NOT KNOW THE ANSWER TO BUT I'M CURIOUS ABOUT, COMCAST AND TIME WARNER CABLE. IS DISNEY GOING TO OPPOSE THAT MERGER?
IGER: WELL, YOU'RE LOOKING AT A COMBINATION THAT IS, OBVIOUSLY, SIGNIFICANT IN TERMS OF SIZE. THE TWO LARGEST CABLE COMPANIES IN THE UNITED STATES. IN A BUSINESS THAT'S OBVIOUSLY VERY IMPORTANT TO US. SO FROM A DISNEY PERSPECTIVE, THE RESPONSIBLE THING FOR US TO DO IS TO LOOK AT IT VERY CAREFULLY AND TO STUDY ALL THE POTENTIAL RAMIFICATIONS OR IMPLICATIONS FOR THE WALT DISNEY COMPANY WHICH IS EXACTLY WHAT WE'RE DOING NOW. WE'VE HAD A GOOD RELATIONSHIP WITH COMCAST OVER THE YEARS AND WE THINK THAT THE PRODUCT THAT WE PROVIDE TO THEM IS PRODUCT THAT IS VITAL TO THEIR BUSINESS AND WHAT THEY PROVIDE TO US, DISTRIBUTION AND TECHNOLOGY, IS VITAL TO OUR BUSINESS. AND SO I'M HOPEFUL THAT AS WE LOOK AT THIS, YOU KNOW, WE'LL SEE OPPORTUNITY VERSUS THREAT. BUT THE RESPONSIBLE THING FOR US TO DO RIGHT NOW IS TO TAKE A CAREFUL LOOK AT IT.
FABER: AND FINALLY, BOB, THE ABC NETWORK, BARELY FIGURES INTO THE CONVERSATION ANY LONGER ALTHOUGH IT IS WHERE YOU BEGAN YOUR CAREER. WHY IS THAT EVEN A PART OF THE COMPANY ANYMORE? WHY IS THAT STILL AN IMPORTANT PERHAPS OR MAYBE IT'S NOT A PART OF DISNEY?
IGER: WELL IF YOU LOOK AT DISNEY, WHAT WE'RE ABOUT REALLY, IS CREATING ENTERTAINMENT AND EXPERIENCES OR INFORMATION FOR PEOPLE. IN EFFECT, INTELLECTUAL PROPERTY. WE BELIEVE THAT THE ABC PLATFORM AND THE STATIONS GIVES US AN OPPORTUNITY TO INVEST IN CONTENT, WHETHER IT IS NEWS CONTENT OR ENTERTAINMENT, SCRIPTED CONTENT, FOR INSTANCE. AND IN TODAY'S WORLD WHEN YOU CREATE CONTENT THAT IS HIGH QUALITY, THE OPPORTUNITY TO MONETIZE IT IS GREATER THAN IT'S EVER BEEN BECAUSE OWNING A TELEVISION SHOW, FOR INSTANCE, NOW HAS ALL SORTS OF OPPORTUNITIES IN TERMS OF MONETIZATION, BOTH NEW PLATFORMS IN THE UNITED STATES AND IN INTERNATIONAL MARKETS. SO WE LOOK AT IT AS A CONTENT PLAY MORE THAN A DISTRIBUTION PLAY. AND LIKE THE OTHER ASSETS OF DISNEY, A HIGH QUALITY BRANDED CONTENT BUSINESS WHICH WE BELIEVE IN A WORLD WHERE THERE'S CERTAINLY MORE CHOICE AND A LOT MORE COMPETITION, SERVES US AND OUR SHAREHOLDERS VERY WELL. THAT'S BASICALLY HOW WE LOOK AT ABC. IN THE SCHEME OF THINGS, IT'S NOT AS LARGE AS IT ONCE WAS IN THE COMPANY BECAUSE WE'VE GROWN SIGNIFICANTLY. BUT WE STILL VIEW IT AS AN ATTRACTIVE BUSINESS AND WE STILL VIEW IT AS AN IMPORTANT BUSINESS TO THE COMPANY.
FABER: BOB, WE'VE GOT IT LEAVE IT THERE. I WANT TO THANK YOU FOR JOINING US THIS MORNING.
IGER: THANKS, DAVID.
FABER: YOU'RE WELCOME. BOB IGER, THE CHAIRMAN AND CEO OF DISNEY.
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