Disney Channel goes free in Spain
Posted
May 28 2008, 01:53 PM
by
Kim Peterson
Add this to the fascinating cable pricing discussion taking place in the comments (click here to read): Disney is relaunching its Disney Channel in Spain as a channel on the free digital terrestrial TV service, calling the move a "global first." The company expects to triple the number of homes it reaches as a free channel.
The channel will be funded entirely by advertising. The idea is to use free Disney as a marketing tool for other Disney products in Spain. Disney shares are up slightly more than 1% today to $34.06.
This is a test run, and the company isn't announcing plans to do this in any other European markets. It's an interesting experiment: How does a television channel perform as an advertising/branding/marketing platform? Imagine the reach of a free Disney channel in the U.S., and what it would do for sales of Disney DVDs and other products.