Disney to dramatically cut spending for traditional TV networks

By Lisa Richwine

May 15 (Reuters) - Walt Disney will cut its investment in programming for traditional television networks pretty dramatically as the company navigates the consumer shift to streaming, Chief Executive Bob Iger said on Wednesday.

Iger said linear channels such as ABC still serve as an important marketing tool and reach older viewers who are not watching series such as "Abbott Elementary" on Disney's streaming platforms.

Still, the goal is to "reduce pretty dramatically our investment in content specifically aimed at those traditional networks," Iger said at the MoffettNathanson’s 2024 Media, Internet and Communications Conference in New York.

On Disney's theme parks business, Iger said he expected continued growth but perhaps not at the same rate as in recent years.

"We've had double-digit revenue growth in that business for quite some time, and that's extraordinary," he said. "But I think we're being realistic, too, in that delivering double-digit revenue growth ... well into the future is not necessarily that achievable."

Disney shares were down 2.2% at $103.06 in afternoon trading on the New York Stock Exchange. (Reporting by Lisa Richwine; Editing by Michael Erman)