MarketingProfs

MediaBuyerPlanner: The soft ad market was to blame for Walt Disney Co.’s lack of growth from its media networks.
While Disney overall posted a 39 percent net-income improvement, its media networks operations sank 28 percent in the fiscal third quarter, and it doesn’t look as though fourth quarter earnings will be much better, according to MediaPost. Disney CEO Robert Iger said TV ad sales for the fourth quarter are flat so far, and ad sales at Disney’s radio group are down mid-single digits.
Weak ad sales aren’t the only culprit, however. Analysts have pointed to the fact that ABC spent more money than usual on pilots, commissioning 15 of them and gaining 10 new shows for the fall season (more than any of the other big four networks).
Disney has also seen the effects of its weak mobile business. In particular, its new Mobile ESPN has been slow to soar, and revenue from Disney’s cable networks, mainly ESPN, also came in lower than expected.
The happy results from the quarter are due mainly to box office revenues for Cars and the DVD sales of The Chronicles of Narnia, which helped to push the studio division revenue up 17 percent.