Disney CEO's Board Seat 'at Risk' With Apple Planning to Launch Video Service

Apple's upcoming video streaming service and its work on original TV content could spell trouble for Apple board member and Disney CEO Bob Iger, reports Bloomberg, citing the potential for competition between the two companies.

Iger is potentially at risk of losing his seat on Apple's board as Apple prepares to launch its streaming TV service. Apple already has more than two dozen original TV shows in the works and has purchased rights to several movies, with all of that content set to be offered via the upcoming service.

disneybobigerbloomberg

Image via Bloomberg

Apple's service, which it plans to introduce at a March 25 event but launch later in the year, will also incorporate add-on content from other providers like SHOWTIME.

Disney, like Apple, is working on its own streaming service, Disney+, and is potentially set to be one of Apple's competitors. Disney+ will offer Disney, Star Wars, and Marvel content (including content made just for Disney+), and like Apple's TV service, it will launch in 2019. Disney also recently acquired Fox's assets, giving it majority control over Hulu and other channels and film franchises.

Apple proxy filings that have detailed "arms-length commercial dealings" with Disney have specified that Iger does not have a "material direct or indirect interest" in the deals, but Bloomberg suggests that could change when both companies have launched their streaming services.

John Coffee, director of the Center on Corporate Governance at Columbia Law School told Bloomberg that Disney and Apple "might have to recognize that they will become active competitors in the near future." Both companies likely have legal advisers exploring whether Iger should continue to be on Apple's board, according to Coffee.

Iger, who was a good friend of Steve Jobs, has been on Apple's board since 2011, but there is precedent for a board member leaving due to increasing competition. Former Google CEO Eric Schmidt was previously on Apple's board, but resigned in 2009 after Google entered the smartphone market.

Tag: Disney

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Top Rated Comments

AngerDanger Avatar
83 months ago


Image via Bloomberg ('https://www.bloomberg.com/news/articles/2019-03-05/apple-s-video-plans-put-disney-chief-s-board-seat-at-risk')
Agh, it must suck when the only image people can find of you was taken moments before you blew up the Disney World Castle.


[I]Explosion courtesy of BlinkFarm ('//www.youtube.com/watch?v=HscGgC0MtZ0')[/I]
Score: 11 Votes (Like | Disagree)
Scottsoapbox Avatar
83 months ago
But how will Iger pay his rent without the $300K for four meetings a year?
Score: 9 Votes (Like | Disagree)
jdmachogg Avatar
83 months ago
Yes, because electrical engineers are the best corporate board members.
It can be very beneficial to have someone who actually understands how the products are made on the board.
Score: 6 Votes (Like | Disagree)
SigurTom Avatar
83 months ago
Board members are NEVER paid by the company. They don't even have logon accounts to any company a person serves on the board - except the CEO. If he's chairman of the board as well then that's a lucky payment.

Article I feel is mis titled. He's seat is not 'in danger' as apposed of, no longer required due to an upcoming conflict of interest.
That's not correct. Mr. Iger received $377,881 in 2018.

https://www.sec.gov/Archives/edgar/data/320193/000119312519004664/d667873ddef14a.htm#toc667873_18
Score: 6 Votes (Like | Disagree)
VanNess Avatar
83 months ago
Well if he leaves the board, maybe he can use that newfound extra time to figure out how to not butcher further Star Wars movies
Score: 5 Votes (Like | Disagree)
chatin Avatar
83 months ago
Iger is willing to sell Cook Star Wars as long as Luke doesn't have to use a rose gold light saber.
Score: 3 Votes (Like | Disagree)