Disney ad sales: double digit increase in 2021-22 upfront thanks to sports
Disney’s ad sales group said it has closed its 2021-22 upfront, with double-digit increases in CPMs and revenue thanks to powerful interest in live sports, Disney’s CEO Bob Chapek stated during a virtual appearance at a Credit Suisse investor conference.
According to the company, more than 40% of total upfront dollars committed this year went to streaming and digital outlets, while the rate gains spanned all broadcast day parts, cable and all major sports, including college football, NFL and the NBA.
Overall revenue posted double-digit increases across broadcast, cable and all major sports. Disney said strong categories in the upfront included consumer packaged goods, financial services, media & entertainment, pharmaceutical, retail, technology and telecom, and travel & leisure. Bob Chapek, referring to the outlook for ESPN, which remains highly profitable but is in secular decline with its traditional pay-TV subscriber base, commented that Disney is “committed to sports because we value live sports, which drives viewers and interest like nothing else”.
After being hit hard by the coronavirus pandemic in 2020, Disney and other companies have seen a major revival in ad revenue. Streaming flagship Disney+ is an ad-free, consumer offering, Hulu and ESPN+ do have ads. Hulu’s ad revenue is forecast to reach $3 billion this year, which is in the same range as the company’s linear networks. CEO Bob Chapek has referred to Hulu advertising as a “secret weapon” for Disney.
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