With Warner Bros. Discovery and Comcast deciding to ditch most of their TV assets from their streaming businesses, many have wondered whether or not Disney might do the same, but speaking on CNBC this morning, Disney chief Bob Iger made very clear that the way forward – in his eyes – includes every aspect of the current Disney portfolio.
“Soon after I returned to Disney, I put everything on the table and asked the team to evaluate whether we should buy Hulu or whether we should sell Hulu, whether we should sell our linear television networks or whether we should hold on to them, and after a pretty lengthy process internally, and really taking a long look at what these properties could mean to us, long term, we decided that the best course for us to take was to not only buy [Hulu] in its entirety, but also to hold on to the linear television networks and to integrate them seamlessly with our streaming business,” Iger said. “What that has enabled us to do is aggregate revenue, both on the sub fee side and on the advertising side. There is still enough linear television subscribers to generate a significant amount of revenue in advertising and in subscription fees. We program them seamlessly, we manage them in one organization. And so there’s been great economies of scale in doing that.”
“It’s one of the things that’s enabled us to turn the streaming business around from a huge loss to profitability, and over the next several years, it will enable us to grow margins significantly on the streaming side, because of the ability to amortize program costs and the ability to essentially aggregate audiences in revenue,” he added. “It’s also interesting to us that as many others exit that business, I think it gives us a stronger hand to stay in that business. We’re very focused. We will have, interestingly enough, a linear television business that’s paired with a streaming business. So when you think about it, these spin off companies won’t have the assets from a streaming perspective that we will have.”
That’s definitely a statement of intent from Iger, who continues to make changes and cuts as he shapes the future of the company.
