Disney’s CEO, Bob Iger, recently hinted at the possibility of spinning off the company’s linear TV networks in order to focus on its streaming business. During Disney’s quarterly earnings call, Iger revealed that the company is considering “a variety of strategic options” for its broadcast and cable outlets, which include ABC, Disney Channel, Freeform, FX, and Nat Geo.
While these networks are currently profitable, Iger acknowledged the undeniable impact of cord-cutting trends on the linear TV industry. He emphasized that Disney needs to adapt to these changing trends and explore its available options.
In a CNBC interview earlier this year, Iger suggested that the linear networks may not be core to Disney’s future. As the company continues to prioritize its streaming platforms, such as Disney+ and Hulu, the linear networks might not be essential to its overall strategy.
However, it’s worth noting that spinning off the traditional TV outlets would also affect Disney’s streaming business. Many of the shows from ABC, FX, and Freeform are available for next-day streaming on Hulu. FX even produces exclusive series solely for the streaming platform. Therefore, any decisions concerning the linear networks will be made with the growth of Disney’s streaming business in mind.
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Selling the linear networks would present some logistical challenges, but Iger expressed confidence that they could be overcome. The company is willing to tackle any issues that arise, given the potential benefits of reallocating resources and focusing on streaming.
ESPN, which is part of Disney’s linear TV portfolio, will be treated differently. Although Disney is exploring options for its TV sports business, the company intends to retain control of ESPN even if it brings on other partners. ESPN holds a significant position in the sports industry and is considered essential to Disney’s overall media empire.
Overall, these recent statements from Bob Iger indicate that Disney is seriously considering the possibility of spinning off its linear TV networks. The company recognizes the impact of cord-cutting and the shift towards streaming. While Disney’s traditional TV outlets remain profitable, the potential for growth lies in the streaming sector.
As Disney continues to innovate and adapt to changing consumer preferences, it will prioritize its direct-to-consumer businesses, streaming platforms, and content creation for these platforms. The future of Disney’s linear TV networks remains uncertain, but the company is committed to strategic decision-making that will drive its growth and success in the evolving media landscape.
