Disney CEO Bob Iger has enlisted the help of former top studio executives Kevin Mayer and Tom Staggs to advise on a possible sale of linear TV assets beyond ESPN. This move comes as Disney navigates the challenges of the rapidly changing streaming landscape and evaluates the future of its legacy TV business.
Mayer and Staggs, who founded Candle Media in 2021, have been tapped to work alongside Iger, ESPN chief Jimmy Pitaro, and other Disney TV executives. They will be tasked with figuring out the best course of action for Disney’s linear TV networks, including the ABC broadcast network and the FX cable channel, as they face headwinds from a soft advertising market and the shifting preferences of consumers towards online streaming platforms.
During a recent CNBC interview, Iger hinted at the possibility of selling off the company’s linear TV assets, stating that they may not be core to Disney’s future. This statement sparked speculation about potential asset sales, particularly in relation to the ABC network and its local TV stations, as well as the FX cable channel.
Iger acknowledged that the traditional distribution and business models of linear TV are broken and that changes need to be made. He also revealed that he has been in discussions with potential strategic partners for ESPN, exploring ways to transition the sports giant to a direct-to-consumer model that would align with Disney’s overall streaming strategy.
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Mayer’s expertise in streaming makes him a valuable asset in these discussions. As the former head of Disney+, he played a key role in launching the company’s flagship streaming service. Although he was passed over for the CEO position when Iger stepped down, Mayer’s knowledge of the streaming industry and his experience at Disney make him a trusted consultant for Iger in evaluating Disney’s linear TV business.
In addition to his work with Disney, Mayer has also consulted for Warner Bros. Discovery, the result of a merger between WarnerMedia and Discovery. Warner Bros. Discovery, much like Disney, is undergoing a transition from linear TV to the online video space, and Mayer’s input has been valuable in shaping their streaming strategy.
Staggs, another former top Disney executive, has also been brought on board as a consultant. Together with Mayer, he will contribute his expertise and insights to help Disney make informed decisions about its linear TV assets.
The challenges facing Disney’s linear TV business are not unique to the company. Legacy TV networks across the industry are grappling with the rise of streaming platforms and the decline of traditional cable TV packages. As more consumers cut the cord and opt for online alternatives, linear TV networks must adapt to stay relevant and profitable.
While the exact plans for Disney’s linear TV assets have yet to be determined, Iger’s decision to bring in Mayer and Staggs as advisors demonstrates his commitment to exploring all options and making strategic decisions in the best interest of the company. As the streaming landscape continues to evolve, Disney will need to leverage its strengths and adapt its business models to thrive in the digital era.
In conclusion, Disney CEO Bob Iger has enlisted the expertise of former top studio executives Kevin Mayer and Tom Staggs to help advise on a possible sale of Disney’s linear TV assets beyond ESPN. These assets, including the ABC broadcast network and the FX cable channel, face challenges in an increasingly streaming-centric industry. Mayer and Staggs will work alongside Iger and other Disney TV executives to evaluate the future of the company’s legacy TV business and make informed decisions about its direction. As the streaming landscape evolves, Disney must adapt its business models to stay competitive and continue to deliver content to its audience.
