The Walt Disney Company’s (NYSE:DIS) CEO, Bob Iger, stated at MoffettNathanson’s 2024 Media, Internet, and Communications Conference that the company has slashed its investment in programming for traditional TV to focus on streaming for audience and profit growth. This is a major shift in Disney’s strategy since Iger returned as CEO in November 2022.
ABC Remains an Important Marketing Channel for Disney
However, Iger stated that traditional TV channels like ABC are still important marketing tools for Disney, enabling them to reach older viewers who may not watch shows on streaming platforms. Traditional television channels are facing flagging viewership as a younger audience increasingly opts to cut the cord from traditional television in favor of streaming shows on mobile phones and other devices.
Elaborating further, Iger pointed out that shows like Abbott or Grey’s Anatomy quickly transition from ABC to its Hulu streaming service, where they attract a younger audience.
This strategy has resulted in the company reducing its costs across platforms and at the same time “aggregating a greater audience.”
Is Disney a Buy, Sell, or Hold?
Analysts remain bullish about DIS stock, with a Strong Buy consensus rating based on 22 Buys and three Holds. Over the past year, DIS has increased by more than 10%, and the average DIS price target of $132.13 implies an upside potential of 28.6% from current levels.
