Disney CEO Defends Keeping Linear Networks: A Winning Strategy?

Disney CEO Bob Iger Defends Decision to Keep Linear Networks, Calling it a 'Winning Combination' with Streaming In a recent CNBC interview, Disney CEO Bob Iger defended the company's decision to retain its traditional linear television networks, arguing that their integration with Disney's streaming services creates a powerful synergistic effect. This strategy, he explained, allows Disney to "aggregate revenue, both on the sub fee side and on the advertising side." The comments come amidst a period of significant change in the media landscape, with many companies divesting from linear television in favor of streaming-only models. "We program them seamlessly," Iger stated, referring to the combined linear and streaming operations. "We manage them in one organization. And so there's been great economies of scale in doing that." He further emphasized the importance of audience aggregation for marketing purposes, noting that this integrated approach is a key factor in Disney's ability to maintain profitability in the streaming sector. The interview also touched upon Disney's recent acquisition of Comcast's remaining stake in Hulu. This move, Iger explained, is another piece of the puzzle in Disney's broader strategy to maintain a strong presence in both the traditional and streaming markets. The interview concluded with Iger expressing his satisfaction with the direction Disney is heading, highlighting the company's ability to "turn the streaming business around from a huge loss to profitability."