Disney CEO Bob Iger Announces Plan to Reduce Investments in Linear Television

Disney CEO Bob Iger announced plans to significantly reduce investments in linear television in order to prioritize the company’s streaming unit for consistent profitability. Last summer, Iger hinted at potential strategic options for traditional TV assets, but ultimately decided that linear TV is not a growth business.

Iger has tasked executives Dana Walden and Jimmy Pitaro with managing the transition, aiming to reduce traditional network investments while seamlessly integrating streaming businesses. One example of this strategy is the quick placement of ABC shows like “Grey’s Anatomy” and “Abbott Elementary” on Hulu to reach different audiences and maximize cost efficiency.

Despite the expected decline in linear TV subscribers, Disney remains confident in the profitability of the segment due to effective cost management. The company’s focus on streaming has already shown positive results, with the direct-to-consumer segment posting operating income growth.

While traditional TV revenue has declined, Disney anticipates full streaming profitability by the fourth quarter of this year. The shift away from linear television reflects the broader trend in the industry as companies adapt to changing consumer preferences and the rise of digital streaming platforms.