Walt Disney has announced a significant reduction in its investment for traditional television networks as the company shifts its focus towards the burgeoning streaming market. CEO Bob Iger shared this strategic pivot during his appearance at the 2024 MoffettNathanson Media, Internet, and Communications Conference in New York. He emphasized the need to adapt to changing consumer behaviors, even as he acknowledged that linear channels like ABC still have a role in reaching older audiences who may not yet be streaming series like “Abbott Elementary.”
The move marks a pivotal change for Disney, as it aims to keep pace with industry trends and maximize its growth in the rapidly evolving digital landscape. “We intend to cut our investment considerably in content tailored for traditional networks,” Iger noted, pointing to the necessity of streamlining resources while meeting the increasing demand for streaming services.
In addition to television, Iger provided insights into Disney’s theme park operations. While the parks have seen impressive double-digit revenue growth over the past years, Iger tempered expectations for continued exponential increases. “It’s been extraordinary, but we’re being realistic that sustaining double-digit revenue growth into the far future is challenging,” he remarked, hinting at a more moderate expansion pace moving forward.
Despite these strategic shifts, Disney saw a slight decrease in its share price, dropping by 2.2% to $103.06 on the New York Stock Exchange in the afternoon trading. The market reaction demonstrates the challenges and scrutiny companies face when undergoing major operational adjustments.
For the latest updates and detailed coverage of Disney’s new strategic direction, check out the full report from Reuters [here](https://www.reuters.com/business/media-telecom/disney-dramatically-cut-spending-traditional-tv-networks-2024-05-15/).
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