A reminder that digital reality isn't always what's envisioned from the heads of media empires.

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Handling convergence with less divergence
Robert Iger from Disney envisioned a "blend of models" as new distribution technology impacts conventional TV and theatrical systems.

"In an environment of more fragmentation, branding is more important than ever," Iger said. He envisioned that Disney will course through the "internet of the future," delivering music, games, community and photos as well as conventional video services.

Iger hinted that Disney's panoply of brands may be condensed, suggesting that its "Touchstone" production arm and "Buena Vista" distribution unit may be melded into the more familiar Disney name. Of course, his biggest immediate challenge is to integrate the newly acquired Pixar unit into the company while "preserving the culture" of that animation titan. He confessed that he is "not completely 100 percent sure" about the value of the ABC brand, but he offered no visions of how it will be revamped.

Iger offered new data about his company's pioneering attempts to recycle television shows onto the internet, iPods and other distribution quickly on the heels of broadcasts. He said that Disney's early studies into usage of "Lost," "Desperate Housewives" and other programs indicates that "more than 85 percent" of viewers remember the advertiser, "which is incredible" and "really dramatic."

The streaming video versions have only one advertiser per show, and the commercials are limited to one 30-second spot at a time, rather than the long clusters of the broadcasts. Viewers cannot fast-forward to skip through the commercials.

"When you're watching a streaming video on your computer and you know that it's only a 30-second break… you're not as compelled to skip anyway," he said. But Iger confessed that when using the service, he sometimes jumps away during commercials to look at Disney's stock price on his computer.

Iger also said that most people watching the show online are ones who missed the original broadcast, and so the online broadcasts are an important way to retain loyalty to shows. He also alluded to ways in which Disney is trying to assuage concerns of its array of partners. Iger cited ways in which local broadcast affiliates can sell links to the streaming video segments to further bolster their brand relationships.

However, Iger said streaming may be restrained in some categories.

"I don't see ESPN streaming 24 hour bypass" on the web, he said, because of the affiliate relationships with cable and satellite distributors. But he stressed ESPN's slicing and dicing of specific content for its extensive web presence.

Iger also refuted Bill Gates' claim that broadcast networks are dead.

"If you play a quality, branded content game,… the goal is to use multiple platforms," Iger repeated-- assuring that the "beauty of mass consumption [means] you can create a brand or a hit much faster than on the internet."

"We used to say that it took a decade to create brands, but you can kill them much faster," Iger added, admitting that the internet has "overturned" that timetable.

He expects that producers will create extra content, including extensions of stories and content, to fill the online appetite. Iger cited a "Desperate Housewives" videogame that uses content shots at the same time as the TV series, but is intended solely for interactive platforms.

Oh. Microsoft has a search engine?
D's final stanza offered two valuable glimpses into the market uncertainty. Hollywood producer/director Barry Sonnenfeld ("Men in Black," "Get Shorty" and the new less-revered "RV") summed up the media executives' comments as fueled by "fear." After listening to the studio executives' promises to experiment with multi-platform distribution (wireless, online, et cetera), Sonnenfeld said that they "are trying to get into a lot" of ideas, because they have no idea which ones will work.

He also predicted that digital cinema "will bring back serials," suggesting that producers could add material or change a movie four or five weeks into its theatrical run-- thus creating a reason for movie-goers to come back to the theater to see a significantly different version.

After all the boardroom rhetoric, the final D session brought the audience back to reality-- or what passes for reality when five teenagers describe their own expectations and experiences in the digital climate. The demographic cross-section (an attempt to offer gender and racial balance of the San Diego area) included some eye-popping remarks.

Barely 40 hours after Bill Gates had extolled the aggressive efforts of Microsoft to catch up in the search engine category, all of the teens were mum about their use of the Microsoft tool-- until one of them admitted not knowing that Microsoft even had a search engine.

All of the youths thought the web is too cluttered with advertising, and several indicated they were reducing their web reliance because of concerns about viruses. Focusing on the fickleness of young consumers, they all acknowledged their MySpace.com accounts, but indicated that they were ready to drift over to FaceBook or other social networks-- a snapshot that confirms other research data.

Their candor was a reminder that digital reality isn't always what's envisioned from the heads of media empires.

Gary Arlen has tracked the development of new media for more than 20 years from his research company in suburban Washington DC.