What was the 2005 Disney-Apple deal?

The 2005 deal between Disney and Apple made Disney's top TV shows like "Desperate Housewives" and "Lost" available for digital purchase on the first video-enabled iPod for $1.99 per episode.

Who negotiated the Disney-Apple deal?

The deal was negotiated by former Disney Media Networks co-chair Anne Sweeney, who had to navigate challenges from industry players like local TV stations and pay-TV providers.

How did the Disney-Apple deal impact the media industry?

The 2005 agreement "tilted our media world on its axis," laying the groundwork for the streaming revolution that would transform the industry in the years to come.

Home / Business and Economy / Former Disney Exec Reveals Secrets of Pioneering 2005 Streaming Deal with Apple

Former Disney Exec Reveals Secrets of Pioneering 2005 Streaming Deal with Apple

10 Oct

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Summary

2005 deal made Disney TV shows available on iPod for $1.99 per episode
Negotiated by Disney's Anne Sweeney, deal "tilted our media world on its axis"
Sweeney had to defend the deal against pushback from TV stations and pay-TV providers

Former Disney Exec Reveals Secrets of Pioneering 2005 Streaming Deal with Apple

In October 2005, Disney and Apple announced a landmark deal that would make Disney's top TV shows available for digital purchase on the first video-enabled iPod. This agreement, negotiated by former Disney Media Networks co-chair Anne Sweeney, would have a seismic impact on the media industry.

Sweeney recounts the extensive secret negotiations with Apple CEO Steve Jobs that resulted in hit shows like "Desperate Housewives" and "Lost" being sold for $1.99 per episode the night after they aired on ABC. This arrangement essentially blazed a trail towards the streaming future that was yet to unfold, as Netflix at the time was still focused on shipping movie DVDs by mail.

However, crafting this unprecedented contract with Apple was just the beginning of the challenges Sweeney faced. Local TV stations, pay-TV distributors, and other industry players were left with tough legal questions about this new alliance that Sweeney had to defend. Dealing directly with the demanding Jobs also proved rewarding but difficult, as he initially rejected a key deal point before they found a new way to work together.