Disney Is ‘Pretty Dramatically’ Reducing Spending on Traditional TV Content

[Bruce]

Disney CEO Bob Iger said that as the traditional pay-TV universe continues to shrink, the company is cutting its investment in programming for linear entertainment TV networks while amortizing overall content spending across streaming platforms.

The strategy is “to reduce pretty dramatically our investment in content specifically aimed at those traditional networks,” Iger said Wednesday at MoffettNathanson’s 2024 Media, Internet and Communications Conference in New York. The conclusion Iger reached after reviewing Disney’s TV business when he returned as CEO in the fall of 2022 was that “it’s not a growth business, but it could become an important component to our ability to basically engage with the consumer.”

As I said in other threads that this will be coming soon, other studios/broadcasters are doing the same, Paramount has drastically cut back on their cable channels, AMC Networks cut their production budget 20%, Warner cut a lot also, they announced months ago they will no longer be producing any new content for TBS and TNT, along with cutting back on HBO content.

This is the first step, cutting more each of the next two years, then the plan will be to put on content on the Cable/Broadcast Networks that were first shown on the streaming services.

Disney Is ‘Pretty Dramatically’ Reducing Spending on Traditional TV Content, CEO Iger Says

Disney CEO Bob Iger said that as traditional pay TV continues to shrink, the company is cutting its investment in content for linear TV networks.

variety.com

 

[dishdude]

Do they spend anything on it now?

 

[MikeD-C05]

I think the writing is on the wall. Streaming services will get first run shows and Cable/satellite will get reruns of first run shows after they are much older. There really isn't a reason to have live TV anymore with all those channels. I have to confess there is only a few cable like channels I watch. I watch a cable news channel and my wife watches HGTV and Magnolia and some weird crap TLC. I also watch some series off of Syfy, but its very few shows. I mostly watch ota networks because I grew up with them and they are free. I could get by with sling free view channels if I want to watch old reruns. Now streaming services are bundling together to give you a cheaper bundle price, but they are really reforming cable over the internet. That is why streaming looks like 90s cable these days. They want you to watch advertisements so they give you streaming with ads for a cheaper price. Which is like the old TV experience before DVRS. The more things change the more they look the same.

 

[telstar_1]

Except that with streaming, the content purveyors can essentially charge a "DVR" fee for no-ad shows in a way they couldn't with service provider DVR.

 

[Bruce]

Do they spend anything on it now?

Not just the Disney named channels ( which had all those kid sitcoms), but channels like FX and it’s sister channel.

Read that the FX remake of Shogun, it’s budget was $250 Million, with shows that costs that much, it cuts from other content.

ABC Fall Schedule is out, only 5.5 hours of the Primetime Schedule is scripted content, the rest is reality shows, news and old Disney Movies on Sunday Night.

 

[telstar_1]

There was a miniseries out recently on ID (crime channel) focusing on the rise of cable "tween" shows in the 90s (Nick & Disney) and how there were predators on sets of some of them.

 

[dishdude]

Not just the Disney named channels ( which had all those kid sitcoms), but channels like FX and it’s sister channel.

Read that the FX remake of Shogun, it’s budget was $250 Million, with shows that costs that much, it cuts from other content.

ABC Fall Schedule is out, only 5.5 hours of the Primetime Schedule is scripted content, the rest is reality shows, news and old Disney Movies on Sunday Night.

I have two services, Dish and YouTube Premium. I pay $80 for DIsh and $8 for the YT, guess which I watch more? There's just nothing left on traditional TV.

 

[Bruce]

I have two services, Dish and YouTube Premium. I pay $80 for DIsh and $8 for the YT, guess which I watch more? There's just nothing left on traditional TV.

Then why pay.

I get the majority of content from paid Live TV, all the streaming exclusives, Netflix, Apple TV+, MAX and Showtime, all in the highest tiers(except Peacock), no commercials and 4K.

All for under $75 a month.

And yes, I get Live News, CNN via MAX.

 

[telstar_1]

But linear's only going to get worse & worse

 

[Joe The Dragon]

But linear's only going to get worse & worse

Disney needs cut out of the basic package. And ISP caps needs to end!​

 

[savarese04]

Streaming services will get first run shows and Cable/satellite will get reruns of first run shows after they are much older. There really isn't a reason to have live TV anymore with all those channels.

I feel like we're so close to this already. Cable/sat are getting first run shows, but only so they can immediately be put on streaming 24 hours later. Almost everyone's in the DVR crowd now, so whereas you used to DVR something to watch on the weekends, it'll be on streaming pretty immediately and DVR is a waste of time.

Really, the only reason live TV is "first" is to appease the cable providers and remaining advertisers. For most viewers, the time delay doesn't even register.

 

[Scott Greczkowski]

This is now why I only subscribe to Disney Plus 2 months a year. Nothing new to watch, so I cancel and when they do add new stuff I can watch it the next time I subscribe. But nothing to keep me as a subscriber for day to day.

If they wanted to keep me, they should add the full disney cartoon library as well as a lot more episodes of the Mickey Mouse Club, and other things they had on the Disney Channel with it first launched, use to love their DTV show which was a much video show with Disney Music videos. But they dont have much disney nostalgia on Disney Plus and thats a shame.

 

[navychop]

a lot more episodes of the Mickey Mouse Club

Keeping a close eye on Annette bursting out?

 

[Scott Greczkowski]

Keeping a close eye on Annette bursting out?

Nah I liked the cartoons and the special guests on Tuesday's.

 

[Bruce]

This is now why I only subscribe to Disney Plus 2 months a year. Nothing new to watch, so I cancel and when they do add new stuff I can watch it the next time I subscribe. But nothing to keep me as a subscriber for day to day.

The story was not about content being cut for Plus, it was about cutting what is on Disney Owned Paid Live TV Channels, which includes the former Fox owned Channels.

Disney+ just had their first profitable quarter.

Other studios have also announced no more or reduced new scripted shows on their Channels-
Warner ( except for HBO/Max, which also had its budget cut).
Paramount ( except for Nick, but budget was cut also and Paramount Channel, which will only have the last part of Yellowstone, then it’s sequel , but that will air same day on Paramount+).
AMC-massive cutbacks

All the Broadcast Networks have announced reduced Episodes (for both returning series and new shows).

For example, the upcoming ABC Fall Schedule has only 5.5 hours of scripted content in a week, the rest is some sports, reality and Disney reruns on Sunday.

 

[thomasjk]

Keeping a close eye on Annette bursting out?

Yes I did. 😀

 

[savarese04]

This is now why I only subscribe to Disney Plus 2 months a year. Nothing new to watch, so I cancel and when they do add new stuff I can watch it the next time I subscribe. But nothing to keep me as a subscriber for day to day.

If they wanted to keep me, they should add the full disney cartoon library as well as a lot more episodes of the Mickey Mouse Club, and other things they had on the Disney Channel with it first launched, use to love their DTV show which was a much video show with Disney Music videos. But they dont have much disney nostalgia on Disney Plus and thats a shame.

I agree with this - they have so much legacy content that is NOT on the service that costs them zero dollars to provide, even taking into account residuals. It's all already digitized as it was released on various DVD formats back in the day, so it just feels overly lazy at this point.

 

[Teehar]

Typical,cut more,lower budgets,and raise prices.Better yet bundle,bundle,bundle.At some point the dam is going to burst.

 

[Bruce]

Typical,cut more,lower budgets,and raise prices.Better yet bundle,bundle,bundle.At some point the dam is going to burst.

The damn has burst, water flow is growing.

 

[TheKrell]

Keeping a close eye on Annette bursting out?

OK; I thought I watched enough Mickey Mouse Club episodes to understand this, but alas I do not. What "bursting out" did she do? Can you find a video because I sure can't.