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.

Sweeney's role in this groundbreaking agreement underscores how the 2005 Disney-Apple deal "tilted our media world on its axis," laying the foundation for the streaming revolution that would transform the industry in the years to come.