Approximately two years back, Disney’s CEO, Bob Iger, raised a query during an interview on CNBC about whether Disney’s television networks such as ABC, the ABC affiliate stations, Disney Channel, National Geographic, and FX were no longer considered “essential” or “key” to Disney.
On “Squawk Box” on CNBC, Taylor (Disney’s CEO) returned for a conversation with David Faber on Tuesday. In this discussion, he emphasized that Disney’s collection of linear television networks gives them an edge over their competitors.
Iger’s remarks followed Warner Bros. Discovery’s decision, made yesterday, to divide their company into two sections: one focusing on their U.S. cable channels and the other encompassing their streaming and film production sectors. On a separate note, Comcast has revealed intentions to transfer NBCUniversal’s cable networks (excluding Bravo) into a fresh, publicly traded entity named Versant by 2024’s end. Notably, CNBC is among the networks earmarked for this new venture, Versant.
About WBD and Comcast/NBCU’s planned cable divestitures, Iger stated that it’s intriguing for us because as others depart from this business, it strengthens our position to stay in it. We are highly committed, and uniquely, we will possess a traditional TV business combined with a streaming one. So, when you consider it, these spun-off companies won’t have the streaming resources that we will have. Once more, I believe that gives us an edge.
In summary, Disney has experienced numerous layoffs within its television divisions. During an investment conference in May 2024, Iger announced plans to significantly decrease investments in content tailored for traditional networks. Upon his return as CEO in the fall of 2022, Iger found that Disney’s TV business was not a growth area but could be crucial for consumer engagement.
should we acquire Hulu, sell it, or keep our linear TV networks. After careful consideration, Disney decided to not only buy all of Hulu but also retain its linear TV networks and integrate them with our streaming service. This move has several benefits, such as consolidating revenue from subscriptions and advertising, managing everything under one organization, and combining audiences for marketing purposes. This strategy has helped Disney shift the streaming business from a loss to profitability and will allow it to boost margins in the coming years due to cost-sharing and audience aggregation.
In a recent CNBC interview, Iger discussed Disney’s recently concluded Hulu deal with Comcast. He mentioned that if the third-party appraiser in mediation had determined a figure more similar to what Comcast’s banker suggested, it could have resulted in an additional $5 billion expense for Disney. Instead, Disney will pay an extra $438.7 million (on top of the $8.61 billion it has already paid) for NBCU’s 33% share in Hulu.
As a passionate film enthusiast, I can’t hide my excitement about this achievement. However, our focus now shifts towards fulfilling our original vision once we have complete command over [Hulu]. The goal is to seamlessly integrate these platforms, offering consumers an effortless experience, from purchasing content to increased engagement and reduced churn. We aim to attract more subscribers, lower operational costs, and ultimately consolidate our position in the market. So, let’s celebrate this victory, but there’s still much work to be done!
Disney Closes Hulu Deal With Comcast, Paying Billions Less Than NBCU Was Seeking
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2025-06-10 18:46