Bob Iger Says Disney Unlikely to Follow Comcast and Warner Bros. Discovery In Exiting the TV Channel Business

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Is there a chance that Disney might separate the majority of its television properties from its streaming service, similar to Warner Bros. Discovery and Comcast? It seems unlikely.

On Tuesday morning, CEO Bob Iger made an appearance on CNBC for an interview with David Faber, discussing the completion of their company’s purchase of Comcast’s stake in Hulu, a deal that was officially sealed the previous day.

However, Faber took this moment to inquire if, during his CNBC interview two years prior where he initially proposed the concept of separating linear TV and streaming, Iger might be reconsidering Disney’s choice to maintain their business as a single entity.

As a devoted fan, I’m thrilled to share that Warner Bros. Discovery announced on Monday their intention to divide the company into two separate entities! One part will encompass the studios and HBO Max streaming service, while the other will house the global TV networks. This decision mirrors Comcast’s strategy, who are spinning off most of their cable channels into Versant this year, but retaining NBC, Bravo, Peacock, and their theme parks for self-possession.

Following my return to Disney, I opened up discussions with the team about some major decisions regarding Hulu, whether to acquire it, sell it, or keep our linear television networks. After a thorough internal evaluation and careful consideration of each option’s long-term impact on us, we decided that the optimal strategy was not only to purchase Hulu entirely, but also to retain our linear television networks and integrate them effectively with our streaming service. This move has allowed us to combine revenue sources, both from subscriptions and advertising. Despite the decline in traditional TV subscribers, there remains a substantial number who generate considerable revenue through advertising and subscription fees. By programming and managing these channels under one roof, we’ve achieved significant cost savings.

One key factor that has helped us transition our streaming service from being in the red to making a profit is this capability. In the future, it will allow us to expand profit margins substantially within the streaming sector due to the option to spread out production costs and the ability to combine audiences for revenue purposes. Additionally, as other companies withdraw from this business, it gives us a more advantageous position to remain in it. Our primary focus is on this area, and uniquely, we’ll have both linear television and streaming businesses under one roof. This means that competing spin-off companies won’t possess the assets from a streaming perspective that we will have.

And having a broadcast network like ABC is a big part of that.

Bob Iger believes there’s greater worth in a broadcast network when it’s skillfully combined with a streaming service. For instance, our main networks such as ESPN and Disney Channel are already integrated with their digital counterparts. Channels like FX and ABC have effectively supplied content to Hulu. Adding our other networks like Nat Geo to this mix, all of which operate across both linear and streaming platforms, gives us a chance not only to expand, but also to improve profit margins. In short, we’re pleased with our strategy and the competitive advantage it provides in a market that’s increasingly splintered.

Iger hinted that Disney+ might adopt a similar strategy to Netflix, who now cease to reveal their subscriber counts every three months.

Iger replied, when asked by Faber about the company’s plans, ‘It’s likely,’ he said. ‘We’re concentrating on improving EBITDA, cash flow, and expanding margins, which is exactly what we’re doing now. I believe in time, we’ll mainly discuss the net profit.’

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2025-06-10 18:24