Technology – and our ability to leverage it effectively – is the third critically important part of our long-term growth strategy. Video games, personal video players, broadband-based devices and other mobile content providers are having an increasing impact on our businesses. As technology rapidly evolves, a new generation of consumers is quickly embracing all it has to offer, and Disney will be there to provide original and compelling content to meet this growing demand.
At Disney, we recognize that the development of new technology provides us with the opportunity – and the challenge – to make it possible for more people to enjoy our content in more ways, at more times and in more places than ever before. We have to be willing to break with some traditional business models, in order to give consumers what they want – great entertainment at a fair price delivered in ways that are convenient and easy to access.
Our groundbreaking association with Apple to provide ABC and Disney Channel content on the Apple iPod demonstrates our commitment to reach and serve the consumer through the use of new technology. We saw this as a great opportunity to keep consumers connected with their favorite programs, such as Lost and Desperate Housewives. More than half of the one million videos sold in the first three weeks on iTunes were those shows, whose weekly television ratings held strong or actually improved.
As we navigate an increasingly complex environment, in which the first-mover advantage will be of more importance than ever, the Apple deal has served as a catalyst to help our team think increasingly outside the prevailing business models by taking intelligent risks to the benefit of our consumers as well as our shareholders.
We're moving forward to embrace technology across all of our business units, including the recent launch of the Mobile ESPN phone and Disney Mobile, which is coming in 2006. One will keep sports fans in touch with the latest sports news and the other will be a safe, fun-to-use product for families. Thanks to the strong affinity of consumers with the Disney brand, our consumer products operation is aggressively pursuing opportunities in the interactive video gaming arena, switching from a licensing model to creating and marketing games ourselves, such as The Chronicles of Narnia: The Lion, the Witch and the Wardrobe, which is experiencing very strong holiday sales after an initial shipment of two million units. We believe this new strategy can significantly increase our returns in this growing industry.
As technology expands the array of entertainment and consumption options, the value of familiar and trusted brands increases dramatically. Fortunately, we have some of the strongest brands in the entertainment industry, particularly Disney and ESPN. Millions of people look to the Disney brand for family entertainment, and sports fans know that ESPN is the ultimate destination for all things sports. Disney and ESPN have been able to reach beyond traditional entertainment platforms; for example, the number one children's Web site is Disney.com and the number one sports site is ESPN.com.
