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The Walt Disney Company’s Outlook: To 2018 and Beyond

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Part 7
The Walt Disney Company’s Outlook: To 2018 and Beyond PART 7 OF 10

The Outlook for Disney’s Advertising Business

College football propels ABC to the top of the broadcast ratings

According to a September 6 report, citing Nielsen data, The Walt Disney Company’s (DIS) ABC ranked first in the broadcast networks’ primetime ratings in the week from August 27 to September 3. According to the Associated Press report, ABC won that week’s primetime ratings race due to its coverage of college football games.

The report added that Disney’s ABC Network had 4.6 million viewers in the week from August 27 to September 3. During this timeframe, Comcast’s (CMCSA) NBC also had a viewership of 4.6 million, and CBS (CBS) had a viewership of 3.9 million.

The Outlook for Disney’s Advertising Business

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On August 8, Disney (DIS) noted during its fiscal 3Q171 earnings call that while its scatter advertising market remains strong, its television networks are battling declining ratings. Disney added that while its programming has been popular among viewers in the C3 and C7 advertising windows, it has failed to monetize on this popularity.

C3 is an advertising metric that measures advertising that is viewed live and up to three days later on DVR playback. C7 is a similar advertising metric that measures advertising that is viewed live and up seven days later on DVR playback.

Disney believes that the traditional pay-TV ecosystem puts it at an advertising disadvantage due to lack of access to viewership data.

Targeted advertising the way to go for Disney

Earlier in this series, we noted that Disney expects ESPN’s direct-to-consumer service, which uses BAMTech’s technology platform, to help it gain an edge in targeted advertising. Disney stated during its fiscal 3Q17 earnings call that it had reasonable success when it comes to monetizing its advertising through its WatchESPN app.

In August 2017, Disney’s ABC Network entered into an agreement with Nielsen (NLSN) that would provide ABC’s television network with out-of-home viewing data. This agreement is expected to enhance Disney’s targeted advertising capability for the ABC Network.

  1. fiscal 3Q17 ended July 1, 2017
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