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Apple's Streaming Ambition Could Result In Disney CEO Iger Resigning From iPhone Maker's Board

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Apple's Streaming Ambition Could Result In Disney CEO Iger Resigning From iPhone Maker's Board

As Apple Inc. (NASDAQ: AAPL) continues to push its streaming video business, the company may be forced to part ways with board member and Walt Disney Co (NYSE: DIS) CEO Bob Iger.

What Happened

Apple continues to look at ways to expand its business amid slower iPhone sales by scooping up shows and movies at festivals as well as creating its own video content, Bloomberg reported.

If the company were to make an aggressive push into streaming video, it could pose a conflict of interest with Iger, whose Disney is months away from launching its own potential rival platform.

Both Apple and Disney are likely actively examining the legal ramifications of their close relationship, John Coffee, director of the Center on Corporate Governance at Columbia Law School, told Bloomberg.

Apple said in a recent regulatory filing it has "arms-length commercial dealings" with Disney, but as of now Iger doesn't have a "material direct or indirect interest" in the dealings.

Why It's Important

Apple co-founder Steve Jobs was Disney's largest individual shareholder and sat on its board after selling Pixar. Iger has been a member of Apple's board since 2011, and the two companies routinely "scratched each other's backs" through marketing initiatives and other collaborations, AppleInsider said.

It's unclear how the dynamics between the two companies will play out should Iger resign from Apple's board.

What's Next

Video and entertainment content is Iger's "bread and butter," but Apple's true ambitions remain "complex," Bloomberg's Mark Gurman said on "Bloomberg Technology."

Cupertino may offer clarity ahead of a planned presentation on March 25 that will likely focus less on hardware devices and more on three initiatives in the services business:

  • Streaming video.
  • A premium magazine subscription service.
  • A new credit card tied to Apple Pay.

Related Links:

Disney Reports Big Q1 Earnings Beat, Gets Boost From TV Networks

JPMorgan Says Apple Should Go After Netflix, Sonos Or Activision

Photo by Daniel L. Lu/Wikimedia

Posted-In: AppleInsider Bloomberg Bob Iger streaming videoNews Media Best of Benzinga

 

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