Walt Disney has cut its investment in programming for traditional television networks pretty dramatically as part of its strategy to maximize audiences and profit in the streaming TV era, Chief Executive Bob Iger said on Wednesday.
Iger said he looked expansively at traditional media when he came out of retirement to return to Disney as CEO in November 2022.
He concluded that traditional channels such as ABC still serve as an important marketing tool and help reach older viewers who are not watching series such as “Abbott Elementary” on Disney’s streaming platforms.
Still, the company has reduced “pretty dramatically our investment in content specifically aimed at those traditional networks,” Iger said at the MoffettNathanson’s 2024 Media, Internet and Communications Conference in New York.
“We feel comfortable with our hand right now, because we’re using those networks efficiently and effectively,” he said.
Shows such as “Abbott” or “Grey’s Anatomy” move quickly to Disney’s Hulu streaming service, where they attract a younger audience, Iger said.
The strategy allows Disney to amortize costs across platforms, the CEO added. One executive, Dana Walden, oversees the traditional entertainment networks and streaming.
The CEO’s announcement regarding Disney TV Spending underscores the company’s commitment to innovation and efficiency. By embracing digital advertising channels, Disney aims to maximize reach and engagement while optimizing marketing investments. This strategic pivot reflects Disney’s proactive approach to staying competitive in the rapidly evolving media landscape.
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