Bob Iger Says Disney Is Hanging On To Its Linear Television Networks
Fresh from the news that Disney had finalized its acquisition of Hulu for billions less than Comcast wanted, Disney CEO Bob Iger sat down with CNBC for a wide-ranging interview this morning, giving insight into the company’s future.
With the Hulu question now settled, Disney’s path forward in streaming looks clear. The company will continue to operate Disney+, Hulu, and the upcoming ESPN app while interconnecting the streamers to improve customer experience.
Image Credit: Disney
Disney’s future in linear television, however, is less certain.
The Infamous 2023 CNBC Interview
In an ever-changing media environment, the future of traditional linear television has been a hot-button issue for Disney for years.
In a 2023 interview with CNBC’s David Farber, Iger shocked the industry by revealing that he had been “very pessimistic” about the future of linear television when he left Disney in 2019. However, when he returned, the CEO continued, things were worse than he expected.
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“We are going to be expansive… We are just getting at that work. But we have to be open-minded and objective about the future of those businesses,” Iger said.
When asked if his statement meant that Disney’s stable of television stations may not be essential to the company’s business, Iger bluntly answered in the affirmative.
“They may not be core to Disney. The creativity and content they create are core to Disney, but the distribution model, the business model that forms the underpinning of that business and that has delivered great profits over the years, is definitely broken. And we have to call it like it is.”
Photo: ABC
Iger’s comments led to widespread speculation that Disney could sell off ABC, spin off ESPN, and perhaps rid itself of Freeform. It was an astounding moment.
While Iger would later walk back those comments, telling Kelly Ripa last year that they were “a mistake,” the future of Disney’s linear business has remained at the forefront of any discussion surrounding the company.
Singing a Different Tune
In today’s CNBC interview, Iger was once again asked about Disney’s linear plans. This time, the Disney CEO bluntly stated that the company was keeping its networks.
“We like the fact that we’re holding on to our linear assets,” Iger said. “It makes us more competitive.”
(Charley Gallay / Getty Images for Disney)
Iger’s answer was especially pertinent as Warner Bros. Discovery announced earlier this week that it was splitting into two companies, one focused on legacy media and a second on streaming.
According to Iger, Disney has no plans to follow suit. “The combination of both is a winning combination for us,” Iger said. “It’s one of the things that has allowed us to turn the streaming operation around and will allow us to grow margins on the streaming side.”
As the CEO notes, Disney has found success in using linear television and streaming as complementary avenues to distribute content. While their competitors have largely viewed the distribution methods as adversarial, Disney has continued to blur the lines between streaming and linear, intending to reach as many customers as possible.
Photo: English Jargon
Based on Iger’s comments today, that strategy is not only here to stay but something that Disney will further develop.
