Disney-ABC Television Group is looking to reduce costs by 10 percent by the end of the fiscal year, The Hollywood Reporter has confirmed, from a story originally reported in the Wall Street Journal.
The cutbacks could mean staff reductions and restructuring. However, a source tells THR there is no specific headcount as plans for the possible cutbacks are still in the early planning stages. The group includes broadcast network ABC, as well as cable channels ESPN, Freeform, Disney Channel and Disney XD.
The news comes weeks after ABC Studios lost one of its most important pieces of talent: prolific showrunner Shonda Rhimes, who left her home of 15 years for a lucrative overall deal with Netflix. However, since then, the studio has signed other key pieces of talent, such as Lost co-showrunner Carlton Cuse and Ryan Seacrest.
It’s interesting news considering the upcoming American Idol reboot has just splashed out $25 million to sit on the judges panel. Seacrest is being about about $12 million to return as host Plus, the rest of the judges panel has not been announced yet.
This past broadcast season, notes THR, ABC fell 11 percent in the adults 18-49 demo and dipped nine percent in total viewers.
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One bit of good news for Disney’s cable channel, Freeform: The network’s new show, The Bold Type, starring American Idol 9 alum Katie Stevens “has found success” along with critical acclaim.
