Disney Chief Iger Quits Apple's Board -- WSJ
September 14 2019 - 3:02AM
Dow Jones News
By Tripp Mickle and Ethan Smith
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (September 14, 2019).
Walt Disney Co.'s Chief Executive Robert Iger resigned from
Apple Inc.'s board of directors, the tech giant said on Friday,
severing a yearslong connection between the two companies as they
prepare to launch competing video-streaming services.
He resigned on Tuesday, Apple said in a one-sentence filing to
securities regulators.
Mr. Iger, who has led Disney as CEO since 2005, joined Apple's
board in 2012 and was serving as the nominating-committee chair and
on the compensation committee. He had a close relationship with
Apple co-founder Steve Jobs, born out of the 2006 sale of Pixar
Animation Studios to Disney. Mr. Jobs was Pixar's chairman.
The resignation came on the day Apple Chief Executive Tim Cook
announced a $4.99 monthly price for its streaming service, Apple
TV+, and said it would become available on Nov. 1. The price
undercut Disney's plan to charge $6.99 for its Disney+ service,
also coming in November.
Apple's filing gave no reason for Mr. Iger's departure. In a
statement, the company called him "a dedicated, visionary CEO and a
role model for an entire generation of business leaders."
"While we will greatly miss his contributions as a board member,
we respect his decision, and we have every expectation that our
relationship with Bob and Disney will continue far into the
future," Apple's statement said.
Mr. Iger said in a statement that his time on the Apple board
was an "extraordinary privilege." He added: "I have the utmost
respect for Tim Cook, his team at Apple, and for my fellow board
members." He didn't specify why he resigned.
Apple's price for TV+ was widely seen as an attempt to catch up
with established media competitors, including Disney and Netflix
Inc., in the intensifying streaming wars and compensate for its
smaller programming library. Apple plans to launch TV+ with a
handful of original shows, including "The Morning Show," a drama
about a morning TV news show that stars Reese Witherspoon and
Jennifer Aniston. The tech giant also will try to leverage its huge
existing customer base, with more than 1.4 billion devices in use
world-wide.
The two companies' plans to launch competing subscription-video
services made it difficult for Mr. Iger to remain on the Apple
board, according to a person familiar with Mr. Iger's thinking.
"Apple's got a broader role in the media landscape," this person
said. "He's reached the conclusion that there are a growing number
of issues that will come up before the board that will limit his
ability to fully engage and participate as a board member."
Apple TV+ is a much smaller part of the tech giant's overall
portfolio. But remaining on the Apple board could have created at
least the perception of a conflict of interest, regardless of how
much or little board time was dedicated to the subject.
Mr. Iger told Bloomberg Television in April that he was in a
"constant dialogue about making sure I'm not doing anything" that
would conflict with "what an Apple board member would do." He added
the Apple streaming business was "nascent" and "relatively small,"
so it wasn't discussed much at that time.
Mr. Iger has repeatedly described Disney+ as central to his
company's future, as consumers give up cable-television packages in
favor of streaming-service bundles of their own creation. The
company's $71.3 billion acquisition of 21st Century Fox's
entertainment assets was largely a bid to amass content to make
Disney+ a viable competitor to Netflix and Amazon.com Inc.'s Prime
video service.
Disney's $6.99 month price for its streaming service is itself
significantly less than Netflix, which costs $12.99 a month for its
standard option. Disney plans to offer Star Wars, Pixar and Marvel
movie titles on the service, as well as a slew of original series
and "The Simpsons" along with other shows and movies which it
acquired in the Fox deal earlier this year.
Write to Tripp Mickle at Tripp.Mickle@wsj.com and Ethan Smith at
ethan.smith@wsj.com
(END) Dow Jones Newswires
September 14, 2019 02:47 ET (06:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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