Advertisers On Board For Disney+ Ad Tier

The Walt Disney Co. wrapped up its fiscal fourth quarter (ended Oct. 1) with total revenues up 9%, led by the rebounding theme parks. CEO Bob Chapek applauded the addition of 12 million Disney+ streaming subscribers as he expressed confidence in the December 8 launch of a new tier with advertising.

“Advertiser interest has been strong,” he said

“Disney+ has secured more than 100 advertisers for our domestic launch window, spanning a wide range of categories, and our company has over 8,000 existing relationships with advertisers who will have the opportunity to advertise on Disney+. Strong base pricing reflects the value advertisers put on our audience, our brand-safe environment for their messages, and our sales experience,” Chapek told Wall Street analysts on Tuesday.

For the linear networks segment of Disney Media and Entertainment Distribution, revenues declined 3% to $6.3 billion, while operating income rose 6% to $1.7 billion. Domestic Channels saw revenues decline 2% to $5.3 billion, while operating income rose 6% to $1.6 billion. The company said the improvement in operating income was due mostly to cable, but with broadcast also up.

“Broadcasting grew modestly compared to the prior-year quarter as growth at the owned television stations from higher advertising and affiliate revenue was partially offset by lower results at ABC. The decrease at ABC was due to higher programming and production costs, partially offset by growth in affiliate and, to a lesser extent, advertising revenue,” Disney said in its quarterly release.

“The advertising landscape remains fluid,” Disney CFO Christine McCarthy said in the conference call.

“The sports marketplace in particular is delivering strong audiences across our platforms, with marketers looking to take advantage of live events. And several categories, including political, pharma, insurance and restaurants, have continued to show relatively stable demand, while others remain cautious in anticipation of potential economic softness,” McCarthy noted.