Walt Disney CEO Robert Iger doesn't expect that its broadcasting business will suffer as a result of making several hit Tv shows available through iTunes in the US.
He believes the move will simply generate more "incremental revenue".
He discussed the move during the company's financial results announcement, reports TV Week.
"While the iPod is offering a wonderful experience, and the quality is sensational, people would not opt to watch a programme on an iPod and not on a large screen. We actually believe this is incremental consumption," he said.
"Advances in technology have changed how content is created, distributed and consumed. As a modern media company Disney is well positioned to take advantage of these changes by continuing to develop strong content and leverage that content across our businesses and new technologies," he added in a statement.
"Our agreement with Apple to make programming available on the iPod is a fitting example of our efforts in that regard. As the media landscape continues to change, our creative excellence and consumer focus will enable us to continue delivering benefits to shareholders."
Iger also suggested some openess toward other alternative distribution methods, if the price was right.
The Company generated $4.3 billion in cash flow from operations in fiscal 2005 compared to $4.4 billion in fiscal 2004. Free cash flow for fiscal 2005 totaled $2.4 billion compared to $2.9 billion in fiscal 2004.
The company's results for full-year and fourth-quarter 2005 took a hit from weak box ofice sales of its The Brothers Grimm and The Great Raid movies. Disney reported a 27 per cent drop in its fiscal fourth-quarter earnings.