Disney CEO Bob Iger isn’t wasting any time after confirming that he will stay in his role until the end of 2026. With the Walt Disney Company in a period of uncertain decline, the iconic leader has already made some major shakeups within its business dealings. Amid massive company-wide layoffs, Iger is next considering axing entire subsidiaries he no longer deems core to Disney’s brand. Iger has been pessimistic about the future of television for years and is now discussing some bold decisions involving ABC, National Geographic, and ESPN.
Iger Says Traditional Television Has Bleak Future
While appearing in an interview with David Faber on CNBC’s Squawk Box, Bob Iger produced shocking revelations about Disney’s future in television. The CEO discussed reassessing the company’s TV assets, hinting at potential sales for media giant ABC and other networks. While Iger admits that the creativity of these subsidiaries has been core to Disney, the company strategy now revolves around a further commitment to streaming and quality theatrical offerings.
Iger did say that Disney has created some self-inflicted challenges, but the outlook for television has turned out to be well below even his bleak predictions. He stated that Disney will now consider offloading iconic networks such as ABC and National Geographic. The company has a huge list of TV subsidiaries, all of which could now be assessed as Disney considers its path forward.
A Different Fate for ESPN
However, Iger did stress that ESPN is an exception in this debate. Disney wants to transition the popular sports broadcasting network to a direct-to-consumer approach. This means that ESPN is shifting its business model to deliver its content directly to viewers without relying on traditional cable or satellite TV subscriptions. Instead of accessing ESPN through a cable or satellite provider, viewers can subscribe to ESPN’s streaming service or app to watch their content directly on various devices such as smartphones, tablets, smart TVs, or streaming media players. This approach allows ESPN to bypass traditional distribution channels and reach consumers directly, offering more flexibility and control over their content consumption.
To go along with this, Iger mentions finding a strategic partner to split the task. He doesn’t rule out giving the right associate a percentage of ownership. “This is the transformative work,” he told Faber. “It’s a decision that has to be very carefully timed, carefully made, and carefully considered. That’s why I’ve talked about a possible strategic partner.”
Bob Iger went on CNBC and floated balloons on restructuring Disney’s ENTIRE MEDIA BUSINESS, with a push to get everything closer to the end-consumer. 💥
• $DIS will buy Hulu from $CMCSA
• Will sell or exit linear networks like ABC
• ESPN is strategic, but $DIS is open to… pic.twitter.com/HIfDigTHPX— Compound248 💰 (@compound248) July 13, 2023
Iger’s Impact on Disney
Initially, in 2020, Bob Iger stepped down as CEO of the Walt Disney Company, with his retirement from the company happening in 2021. Having successfully guided the company through a period of remarkable growth for more than 15 years, Iger played a pivotal role in its prosperity.
However, following the removal of his appointed successor, Bob Chapek, from the position, Iger made a comeback to Disney in November 2022. Originally intending to remain with the company until 2024, he eventually extended his contract beyond the initial timeframe to 2026. He now claims to be working to find and mold a successor while he fulfills his duty to guide the company back on track.
Since his return, Iger has overseen some drastic changes to Disney. Over 3% of its employees (around 7,000 people) have been laid off across its various subsidiaries, including many high-profile individuals. Iger also restructured the company to put content production and streaming under one roof. The CEO has also already sold off several major assets.
Finding Success in Streaming
The Walt Disney Company now focuses on making its streaming endeavors profitable. Disney+ has been operating at a loss since its launch in 2019. It is estimated that the company took a hit of $1.4 billion between Disney+, Hulu, and ESPN+ in the recent fiscal year. Iger hopes to turn this around and start producing a profit in this market by the end of next year. He has already supervised adding ad-generated revenue for streaming, but these services still have massive competition from Netflix, Max, and Amazon Prime Video.
It is quite plain to see that Bob Iger has some tough decisions to make in his remaining three years as Disney CEO. These choices will likely affect a lot of people. In the meantime, he also has to deal with an ongoing legal feud with Florida Governor Ron DeSantis, who has made it a goal to destroy the company’s reputation. The idea of ABC and other iconic Disney television networks being on the chopping block is shocking but just another ripple in the bucket as the Walt Disney Company navigates this uncertain time.