Disney Closes Upfront Ad Business, Up 5% in Volume

Walt Disney closed its upfront advertising for all its TV and digital advertising brands -- ABC, Disney Channels Worldwide, ESPN, Freeform, FX Networks and National Geographic Networks -- with a 5% gain in dollar volume, according to executives.

Disney closed its deal to buy half of 21st Century Fox Corp.’s TV-movie assets in March of this year -- which included FX Networks, National Geographic Networks, and other properties.

For the year ended September 2018, Disney’s total advertising revenue for its media networks was $7.76 billion. It was $8.13 billion in the previous year.

Typically, around 60% to 70% of a traditional TV broadcast and cable network’s inventory is sold in the upfront sales period that occurs before the new TV season, beginning in September.

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Disney advertising sales completed upfront deals across all linear broadcast and cable networks with the cost per thousand viewer (CPMs) prices growing, on average, by 12% to 15% across all dayparts, according to media executives.

Year-ago upfront estimates for ABC broadcast prime-time programming were between $1.90 billion and $2.25 billion.

ABC’s “The Oscars” inked more than 50% of its inventory to marketers as part of their upfront deals. 

Disney cable networks -- ESPN and Freeform -- took in low double-digit percentage hikes in CPMs. Bigger dollar volume gains were seen at ESPN for its “Monday Night Football” series, up 20% versus the upfront a year ago. College football programming rose 7% in dollar volume.

For its NBA programming, ABC and ESPN witnessed 10% improvements in the cost per thousand viewers. ABC’s news programming posted high single-digit percentage upfront CPM gains versus a year ago.

Disney’s overall digital advertising upfront revenue posted 50% volume gains.

Another 50% improvement was witnessed for Disney’s addressable ad deals versus a year ago.

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