Disney CEO Bob Iger has expressed openness to selling the company’s linear TV assets as the media industry shifts towards streaming and digital offerings. In an interview with CNBC, Iger acknowledged the challenges faced by the company and highlighted the need to assess the traditional TV business. While Disney owns various TV networks, Iger stated that they may not be core to Disney’s operations. However, he emphasized the importance of the creativity that has emanated from these networks. Iger also mentioned that Disney is considering finding a strategic partner for cable-TV channel ESPN, either through a joint venture or offloading an ownership stake. The CEO admitted that he had been pessimistic about the future of traditional TV and that the situation is worse than he expected. Despite these challenges, Iger expressed satisfaction with the progress made since his return to the company and his dedication to addressing significant challenges.
In February, Disney announced a comprehensive restructuring plan that included significant cost reductions and realignment efforts. This move prevented a potential proxy fight with activist investor Nelson Peltz. The company reorganized into three segments: Disney Entertainment, ESPN, and a parks, experiences, and product unit. As part of the restructuring, Disney aimed to reduce costs by $5.5 billion and implemented 7,000 layoffs.
Amidst these changes, Iger has been tasked with bringing Disney’s streaming business to profitability. The company posted revenue and profit in line with Wall Street estimates, but experienced a loss of 4 million subscribers at Disney+. To counter this, Disney raised prices and announced the addition of Hulu content to Disney+ in an effort to attract more subscribers. Looking to the future, Disney is considering acquiring Comcast’s stake in Hulu.
Overall, Disney is navigating the evolving media landscape by exploring opportunities in streaming while evaluating traditional TV assets. Iger is focused on driving profitability for the streaming business and ensuring long-term success for the company. Disney’s fiscal third quarter earnings will be reported on August 9th.
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