Nearly two years after sparking speculation about the future of Disney’s linear networks, Bob Iger on Wednesday struck a far different tune.
“We actually are at a point where the linear networks at our company are not a burden at all, they’re actually an asset,” Iger said during a Wednesday earnings call. “We are programming them and we are funding them at levels that actually give us the ability to enhance our overall television business, that obviously includes and leans into streaming, which — let’s face it — is really the future of the television business.”
Iger would not rule out the possibility of some of Disney’s smaller networks being “configured differently” — including the possibility of different ownership — but said that the company feels “good about the hand that we have and the manner in which we’re managing both the linear and streaming businesses.”
Wednesday’s comments marked an about face for Iger, who in the summer of 2023 suggested Disney’s linear networks — ESPN excluded — were among its “no-growth businesses” and might not be “core” to the company. Reports surfaced soon after that Disney had held discussions with other companies about a potential sale of ABC, though those discussions went nowhere and Iger later said his comments were misconstrued.
He remained lukewarm about the linear business for months thereafter, saying in November 2023 that it was not doing “great” but had “seen some improvement.”
His changed tune is no surprise given the increasing importance of linear networks in attracting and retaining the content — live sports in particular — that sustains all of Disney’s media platforms. ABC has been key to Disney holding onto the NBA “A” package and acquiring the entirety of SEC football rights.
