Disney’s biggest business is cable TV, for now

Friday, July 7th, 2017

Disney’s biggest business is cable TV, and kids are tuning out:

The troubles are twofold: a lack of hits and the broader move by audiences away from traditional television to digital alternatives. The shift to streaming services such Netflix Inc. and web-based platforms like Google’s YouTube is particularly pronounced among younger viewers targeted by these Disney networks.

[...]

Disney Channel programming is focused on children, while Freeform, which changed its name from ABC Family in January of 2016, is aimed at teenagers and young adults.

Cable TV has long been Disney’s biggest business, accounting for 30% of its revenue and 43% of profits last fiscal year. About 26% of cable revenue and profits come from entertainment networks like Disney Channel and Freeform, Morgan Stanley estimates, while the rest is generated by ESPN. (Disney doesn’t disclose the breakdown).

[...]

Also at stake for Disney is the exposure its TV channels offer for toys, clothes and other products that the company relies on for hundreds of millions of dollars annually in revenue.

As consumers “cut the cord,” Disney’s once fast-growing cable business has slowed down. Cable revenue is flat and operating income down 6% in the first half of the current fiscal year, which has alarmed Wall Street.

Disney Chief Executive Robert Iger has said that strengthening online accessibility for television programs is a priority and that the company is preparing to offer its channels, in part or whole, directly to consumers online rather than just through costly cable packages.

[...]

For the first six months of this year, the commercial-free Disney Channel’s ratings among in its core 2-11 and 6-14 demographics fell 23% in prime time and 13% and 18%, respectively, during the full day, compared with the same period a year ago, according to Nielsen. Ratings are also down at the smaller Disney Jr. and Disney XD networks, which fall under Mr. Marsh’s Disney Channel umbrella.

Have parents caught on to how Disney’s “family friendly” programming consists largely of bullying followed by laughter?

Posted in Business, Media | 1 Comment »

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Jay William Dugger says:

July 7, 2017 at 2:42 pm

Yes, I’ve had multiple parents in the USA tell me they forbid their children to watch Disney’s live-action programs.

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Isegoria

Disney’s biggest business is cable TV, for now

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