Disney Is ‘Pretty Dramatically’ Reducing Spending on Traditional TV Content, CEO Iger Says
15.05.2024 - 15:55
/ variety.com
Todd Spangler NY Digital Editor Disney CEO Bob Iger said that as the traditional pay-TV universe continues to shrink, the company is cutting its investment in content for linear TV networks while also amortizing that expenditure across streaming platforms. The strategy is “to reduce pretty dramatically our investment in content specifically aimed in those traditional networks,” Iger said Wednesday at MoffettNathanson’s 2024 Media, Internet and Communications Conference in New York.
Iger gave credit to Dana Walden, co-chair of Disney Entertainment, who oversees the portfolio of linear networks, for the transition. Disney will invest in some traditional TV areas, Iger said, but it is managing traditional networks and the streaming platforms under the leadership of one executive — Walden — whose goal is “basically to drive bottom-line growth.” For example, when ABC airs a new episode of “Grey’s Anatomy” or “Abbott Elementary,” it goes on Hulu “pretty quickly” and “what we’re getting is unduplicated audiences.
We’re basically aggregating greater audience and we’re amortizing costs,” Iger said. Disney is “doing that across the board,” at ABC, Disney Channel, National Geographic and other networks, and “it’s working,” Iger added.
“We’re going to continue to see erosion in terms of subs for those businesses, but we’re going to actually continue to drive profitability because we’re managing our costs so effectively,” Iger said. “We feel comfortable with our hand right now, because we’re using those networks efficiently and effectively.” During the session, Iger said when the company first launched into the streaming business in 2019 with Disney+, “we were neophytes” — and overinvested in content, which produced volume but not
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