Anne Sweeney, co-chair of Disney Media Networks and president of Disney/ABC Television Group, says SOAPnet, a cable network devoted to re-airing daytime operas, became obsolete because of the DVR. Viewers who worked all day simply DVR-ed their favorite soaps and watched them
in the evening. One doesn't need a network to do that.
CBS and other networks have already proclaimed their chief competition in the weekday 10 p.m. time slot isn't other networks --
it's viewers' DVR machine in full playback mode.
You can blame Disney Television for not thinking ahead and doing what all niche cable channels should be doing, creating their own
original programming. We are not talking about highlight shows, clip shows, or shows that review the week in soaps. We are talking about original ongoing series. Yes, they are expensive.
Kids shows aren't as costly -- especially for those aged 2-7 who have no problem looking at repeat shows. But doesn't the new channel, Disney Junior, provide the same problem with
the DVR again? Yes and no. This is about what Disney does best: heavy licensing and merchandising for ancillary income. That can make it a big revenue winner. Another side benefit: Disney Junior can
keep to The Disney Channel's business structure: no TV commercials and limited sponsorship. Disney will also get better subscriber fees from cable networks.
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In the past, shifting a
75-million-subscriber network from one focus to another could be a big headache. Cable operators' strict contracts specify the type of programming included. Adding another pre-school network might
give them pause, considering the existence of Nick Jr. and PBS Sprout, not to mention a broader-reaching new kids channel from Discovery Communications/Hasbro called The Hub.
There's a
strong likelihood Disney has already figured this part out. Even if all goes smoothly, it might be worth noting this bit of news the next time Disney heads into one of those highly public standoffs
where a big cable operator wants to throw off ABC, ESPN, ABC Family, or any other Disney cable network because the big, bad TV content owner wants to raise its wholesale price.