Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Apple and Disney Make Nice

The once-chilly relationship between Apple Computer (Nasdaq: AAPL  ) and Disney (NYSE: DIS  ) continues to heat up. Disney announced that it would be selling even more video downloads through Apple's iTunes storefront than the parties had agreed to back in October. At the time, Disney helped give Apple's new video-enabled iPod immediate credibility by making its hit ABC shows Lost and Desperate Housewives available as commercial-free downloads.

Yesterday, Disney backed up the content truck all the way to Cupertino. Video iPod owners will now be able to purchase a wider spectrum of content from ABC, ESPN, Disney Channel, and SOAPnet. From condensed college football bowl games that were broadcast on ABC this week to classic animated shorts from Disney's thick vault, Disney isn't holding back.

Yes, Disney's first offerings have been selling briskly on Apple, but that will be tested as more content fills the virtual iTunes shelves. The bigger reason this may be happening is because Disney CEO Bob Iger is bending over backwards to make sure he's in Steve Jobs' good graces. Why, you ask? Well, it could have something to do with the fact that Jobs also happens to own a majority stake in Pixar (Nasdaq: PIXR  ) .

Pixar and Disney have had a lucrative partnership that's scheduled to come to an end after the release of Cars come May. At one time, the icy relationship between Jobs and former CEO Michael Eisner made it highly unlikely that the companies would keep working together in one form or another. Eisner was publicly incensed over Apple's "Rip, Mix, Burn" marketing campaign and had even downplayed Finding Nemo, a film that wound up being Pixar's highest-grossing release.

Iger has gone to great lengths to rebuild the bridge that Eisner burned down. Helping Apple to Disney's valuable content library is a good move for both companies, but it may help Disney's future content library if it means that Jobs and Iger are warming up to the point where they can continue their productive relationship in one form or another.

Even though Disney did have a respectable animated hit in Chicken Little, it has been no match for what Pixar and DreamWorks Animation (NYSE: DWA  ) have been generating at the box office.

It should come as little surprise to find that DreamWorks Animation and Pixar have both been Motley Fool Stock Advisor recommendations. The wider availability of titles on Apple's iTunes store should also benefit Rule Breakers pick Akamai (Nasdaq: AKAM  ) as a partner with Apple in transmitting downloads more quickly and reliably.

Yes, it's becoming one big lovefest between Disney and Apple these days. And to think, it was an apple that was the poisoned fruit of choice in Disney's first full-length feature film, Snow White.

Yep. Everyone is Happy these days.

We're down to the wire with our annual Foolanthropy drive. From now through Jan. 6, please open your hearts and wallets to help our five Foolish charities.

Longtime Fool contributor Rick Munarriz thinks that an Apple a day will help keep the short sellers away. He does own shares in Pixar and Disney.The Fool has a disclosure policy. Rick is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 534606, ~/Articles/ArticleHandler.aspx, 10/21/2016 10:16:21 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 hour ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
AAPL $116.60 Down -0.46 -0.39%
Apple CAPS Rating: ****
AKAM $57.67 Up +0.94 +1.66%
Akamai Technologie… CAPS Rating: ****
DIS $93.03 Up +1.00 +1.09%
Walt Disney CAPS Rating: *****
DWA $40.97 Down +0.00 +0.00%
DreamWorks Animati… CAPS Rating: ***