On Disney’s earnings call, chief executive Robert Iger admitted that TV advertising is not as hot as it once was.
As a result, he wants Disney, which owns ABC and ESPN, to rely less on advertising in the future.
Iger said digital advertising is growing faster than traditional outlets, mainly TV, according to The Wall Street Journal which picked up on his comments.
He also noted that some of the ad money that previously went to TV networks had been shifted elsewhere because of this growth.
Iger’s comments point to a growing trend and speculation that TV advertising is “dying,” or steadily declining. Other forms of advertising, such as digital, continue to grow rapidly. Digital video advertising, for example, has been projected to grow at a rate of 19.5% through 2016.
Iger says advertising makes up “the low 20% range of our total revenue” for Disney, another contributing factor in Disney’s decision to focus less on advertising.
With the advertising cutbacks in effect, Iger says Disney plans to put more focus into a Star Wars presence in the Disney theme parks, the production of Star War 7, and the mobile app MyMagic+ program.
Disney isn’t alone in seeing a slow down in advertising. The Journal also points to an industry wide trend of slow growth for TV advertising, citing Viacom’s 1% domestic growth and Time Warner’s 1% global revenue increase as prime examples.
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