• by Wayne Friedman , November 9, 2007

Unlike News Corp.'s comments the day before, Walt Disney chief executive Bob Iger said that if the writers' strike were to last longer than about four weeks, it would have a negative impact on ABC.

"We're fine through the November sweeps," Iger said. But after that, he noted, the network would have to come up with a plan if the strike goes long-term.

Peter Chernin, president/COO of News Corp., said the Fox network would be in good shape if the strike were to go well into next year--with the next having virtually some original prime-time programming on every night of the week. Chernin said the strike would have a financially positive impact on the company.

Iger's comments were made as Disney announced third-quarter financial results. The Burbank, Calif.-based media company grabbed a healthy 12% rise in quarterly profit to $822 million in the third quarter, mostly the result of strong results from ESPN.

ESPN grabbed some healthy advertising sales, helping to boost all Disney's cable network revenues 24% to $2.8 billion and operating income by 30% to $1.1 billion.

Walt Disney's broadcasting unit, ABC network, had different results. Revenues declined 5% to $1.2 billion--down from $1.3 billion. Still, ABC had higher prime-time advertising revenue, as well as selling out higher levels of its commercial inventory.

For Disney's theme parks, revenues climbed 10% to $2.8 billion and operating income improved 9% to $430 million. All its older parks help deflect lower financial results from its Hong Kong Disneyland Resort.

Studio Entertainment decreased 21% to $170 million, mostly from its theatrical films and DVD sales, and revenues were 24% lower to $1.5 billion. Titles such as Disney/Pixar's "Cars," "Pirates of the Caribbean: Dead Man's Chest," and "The Little Mermaid" Platinum Release didn't do as well as "The Chronicles of Narnia: The Lion, The Witch and The Wardrobe" and the "Cinderella" Platinum Release in the prior year.

For consumer products, Disney saw a 5% increase in revenues to $590 million, and operating income climb 10% higher to $153 million. Growth in merchandise licensing came from many product categories, led by "High School Musical" and "Cars" merchandise.