Disney’s Advertising President Says the Company Knows the Importance of Linear TV
Bob Iger shocked the entertainment industry last June when he publically admitted that ABC and Disney’s linear television stations “may not be core” to the company going forward.
For a company that has dominated linear television for decades, Iger’s admission that Disney may look to jump ship on linear television was a bombshell moment.
Since that time, however, Disney has seemingly changed course, at least slightly.
A sale of ABC no longer seems inevitable, and the company’s Q4 earnings showed that the death of linear television may have been overstated.
Linear is Not Going Away
The backbone of Disney’s linear television strategy, and cable television in general, is ESPN and live sports rights.
Even as the company looks to launch a direct-to-consumer version of ESPN by 2025. Disney Advertising president Rita Ferro clarified that linear is here to say.
“I don’t think linear becomes irrelevant. There is still a business for linear,” Ferro said. “We know the importance of linear as part of our overall ecosystem.”
While Ferro concedes that linear TV subscriber rates are declining, not all channels are declining equally. In fact, Disney’s linear portfolio has done well in recent carriage negotiations.
“Linear is declining, not all linear’s declining equally,’ she said.
A Record-Breaking Year For Live Sports
This past season, Disney chose to air Monday Night Football on ABC and ESPN simultaneously. The new strategy, in many ways necessitated by the Hollywood strikes, led to record-breaking ratings for ESPN’s flagship NFL broadcast.
“Sports, in particular, drives simultaneous watching of content,” Ferro said. “When we have concurrent viewership, it creates more of a cultural moment. …Sports is really one of those great opportunities.”
While a transition to streaming for ESPN is an inevitability, the future of the network may be more of a blend between direct-to-consumer and linear than many have expected. In the end, however, Disney believes that the quality of products will win out, no matter how consumers choose to consume content.
“ESPN is the preeminent digital sports platform, unmatched in size and scale. We’re the only platform with live events and content from all the major leagues, and a big part of ESPN’s success comes from our relentless commitment to innovate the fan experience,” notes ESPN executive Chara-Lynn Aguiar.
If Disney can balance linear and direct-to-consumer, the company will be able to set itself up for years to come. As things stand, however, Bob Iger has his work cut out for him.
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