Top Story


Home >> International >> Article

International: Disney Relaunching<br>Expects Internet revenues to reach $700 million in '07

Font Size   16
International: Disney Relaunching<br>Expects Internet revenues to reach $700 million in '07

Disney's internet and download revenues could total approximately $700 million in fiscal year 2007, company execs said on their fourth-quarter and full fiscal-year earnings call.

CEO Bob Iger touted the successes so far. has serviced almost 19 million requests for the free broadcast episodes available for streaming in the first six weeks of the fall season. "The CPM rate, now admittedly it's early, is four to five times the CPM rate in delivery of adults 18 to 49 in prime time, which is a rather significant number and that comes because it's a rich, rich demographic associated with it, younger, higher income, but secondly the recall rates of advertising are tremendous," he said.

Tension with retailers

Approximately 12 million ABC TV programs have been purchased since October 2005 via iTunes downloads, and since movies were made available on iTunes in mid-September, almost half a million have been downloaded. The digital downloads, particularly movies, he admitted, "have created some tension [with retailers] over issues like pricing and windowing." But he said that should go away over time and that Disney has sizable licensing relationships with retailers.

Mr. Iger also described a "rather extensive project" to re-launch as a portal for shopping, TV, movies, travel, music, social networking and community and all things Disney. The project began mid-calendar year and will conclude after the first of the year, he said.

"It will be highly customizable, particularly for different demographic groups, extremely robust in terms of its ability to support new media, and basically state of the art in terms of general features and utilities, and I'm extremely excited about the progress. It's been a company-wide effort. All the business units are behind it," he said.

Income up

Disney's net income for fourth quarter was $782 million, or 36 cents per share, more than double the $379 million, or 19 cents per share, for fourth-quarter 2005. Media networks' operating income was up 18% on the quarter, 12% on the year. Disney's fiscal year runs October through September.

Tom Staggs, Disney's chief financial officer, spent time talking about ESPN. It delivered double-digit growth in both revenue and operating profit for the fourth quarter and for the year, he said, and in the fourth quarter had $87 million more in deferred affiliate revenue than the same period last year. It is also in the final stage of carriage negotiations with Comcast.

Scatter for ABC was described as "solid," with first-quarter scatter sales seeing prime-time pricing pacing ahead of 2006 upfront levels by low- to mid-single digits, which the company said was consistent with last year.

Source: Adage


Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

Ushering the launch with a campaign titled ‘The New Way to Get Rich’ showcasing how technology gets millennials closer to their financial dreams

Ogilvy and Love Matters conceptualised a campaign that aimed to change the conversation and imagery that is associated with the LGBTQ community and lesbians in particular