• by Wayne Friedman , September 15, 2009

Walt Disney Co. sees some hopeful indications -- but not clear-cut signs -- that the TV advertising market is improving.

"We have seen some encouraging signs of initial improvement," says Tom Staggs, senior executive vice president and CFO of Walt Disney Co., speaking at the Goldman Sachs Communacopia XVII Conference in New York. "But there is the not an 'all-clear' [signal]."

Early in the day, News Corp.'s chairman Rupert Murdoch noted there were some positive ad signals at its Fox Broadcasting. The network was sold out for the rest of the year at around flat pricing versus previous comparable periods.

"Everything is relative," says Staggs. "This is a very tough market, and continues to be a tough market." For instance, where the national TV platforms seem to be stabilizing, he says, it is still less positive on the local side. Recent estimates say TV stations are on pace to sink 20% in advertising for the entire year in 2009 versus 2008.

Staggs believes Disney's cable networks will continue to improve in the long term -- especially on the international front. That includes its big ESPN cable network. "We believe they have the right collection of sports rights," says Staggs. "You have not seen the end of the growth at ESPN."

ESPN executives have made it be known they would like to go after the next round of Olympics: the 2014 winter and the 2016 summer games. "It is a unique property it terms of the type of audience appeal. [But] it is also limited in the time [of year] it takes place," says Staggs.

As a whole, Staggs says the company is more diversified than it was in 2002. That's good news. Staggs notes, for example, whereas 60% of its licensing revenue came from its core Mickey Mouse property line seven years ago, that number is now 40%. He also said its theme parks are more diversified in terms of content than they had been several years ago.

A lot of this will change again with Disney's recent agreement to buy Marvel Entertainment for $4.0 billion. Marvel will bring in more male teens and adult characters, which Disney can integrate in its content, film and licensing businesses.