Disney Explores Strategic Shift Away from Traditional TV to Focus on Streaming: CEO Bob Iger

Walt Disney Co DIS is exploring options for its portfolio of TV networks marking its focus on film studios, theme parks, and streaming.

CEO Bob Iger mentioned that the company is considering strategic partnerships for ESPN, with the likelihood that its premium sports programming will eventually shift entirely to streaming, the Financial Times reports.

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Iger was obvious that the linear TV assets are for sale, said Rich Greenfield, an analyst at LightShed Partners. 

Iger's statement follows a recent interview with CNBC, where he mentioned that linear TV might no longer be a core aspect of Disney's focus.

While Disney's streaming services showed reduced losses of over $500 million in the quarter, its traditional TV networks experienced declining sales and profits due to cord-cutting and a challenging advertising market.

Despite missing revenue forecasts of $22.4 billion in Q3, diluted earnings of $1.03 a share exceeded expectations of 96 cents, causing a more than 4% rise in after-hours trading.

Iger aims to achieve profitability for Disney's streaming business by the autumn of 2024.

The number of Disney+ subscribers fell to 146.1 million, attributed to the Indian business losing streaming rights to Indian Premier League cricket matches.

Disney's theme parks saw a 13% rise in revenue to $8.3 billion, with Shanghai Disney leading growth after Covid-19 closures.

Operating income decreased at U.S. parks due to declines at Disney World in Florida.

Iger expressed commitment to resolving the issues that have led to strikes among Hollywood actors and writers, aiming to maintain strong relationships with the creative community.

Price Actions: DIS shares traded higher by 1.38% at $88.70 premarket on the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.