Just ahead of the next quarterly financial results being announced on Wednesday, Disney has revealed details on its advertising revenue from its Upfront period, which sees Disney selling advertising to companies for its streaming services and linear networks.
The company has said that its “Overall revenue and volume commitments made in the Upfront are in line with the prior year”. In last year’s market, Disney was able to secure about $9 billion of advertising for the US.
This year’s advertising has shifted to its streaming and sports division, which lines up with previous comments by Bob Iger about the linear networks struggling. Disney didn’t mention any details for its linear networks, which include ABC, FX or Freeform.
Now “more than 40% of the total Upfront dollars committed this year are streaming and digital, led by Disney+, ESPN+, and Hulu.” It also said that there were single-digit increases in sports volume and pricing. Disney has also generated increased commitments supporting inclusive programming from many different types of advertisers including retail, tech, financial services, pharmaceutical, and telecommunications categories.
Rita Ferro, president of advertising at Disney said in a statement:
“Our investments in the most dynamic technology and streaming capabilities, coupled with the most enviable sports rights, powerful storytelling and impactful cultural moments, sets Disney apart. As we close the 2023-2024 Upfront, our insights led approach and deep understanding of consumers continues to deliver growth for our clients, while deepening their connection to the most engaged audiences at scale.”
Late last year, Disney+ added a new ad-supported tier and there are plans to roll that out internationally later this year, along with bringing Hulu content into Disney+ in the US to increase viewership, which will also bring in more advertising revenue.
With the advertising industry suffering due to the current economic climate, it’s not a huge surprise to see advertising for this next year to be around the same as last year, with no major bump in ad sales, since most other companies are saying advertising, in general, is down.