In a statement made on Thursday, July 13, Disney CEO Bob Iger suggested that the company might consider selling its linear TV assets. As per a CNBC report, Iger said they recognized the challenges that the traditional media industry is facing due to the increasing prominence of streaming and digital platforms.
The announcement has sparked speculation regarding the future of Disney-owned Star India, now rebranded as Disney Star, and its potential implications for the Indian television industry.
Earlier this week, a WSJ report mentioned how Disney is exploring strategic options for its business in India, reflecting the shift in Star India’s fortunes following Disney’s acquisition of Fox’s entertainment assets. As per a Wall Street Journal report, options could involve a joint venture or even a sale. Disney has already engaged in discussions with at least one bank, said the report.
“The challenges we faced were greater than I anticipated. We had to confront the disruption of our linear businesses, which was more severe than I was aware of. We had to ensure that our cost structure reflect the economic realities of our industry. The most transformative work we did was dealing with no-growth businesses, particularly linear businesses,” Iger told CNBC.
Disney’s TV business goes beyond its operations in India. The company possesses a collection of TV networks, such as ABC and ESPN, which have been instrumental in Disney’s accomplishments throughout the years. Nevertheless, Iger acknowledged that the traditional TV landscape is undergoing significant disruption and may no longer be viewed as a central aspect of Disney’s future endeavors. Consequently, the possibility of selling these networks remains open for consideration.
Amidst the uncertainty surrounding Disney’s TV assets, Iger emphasized the company’s dedication to maintaining a presence in the sports business.
He said that Disney is receptive to exploring strategic partnerships for ESPN and willing to pursue strategic alliances that can boost ESPN’s direct-to-consumer initiatives and support its future endeavors.
“I don’t know when, but it will happen: we will offer ESPN directly to consumers,” he said.
Disney’s third-quarter earnings report, set to be released on August 9th, is now highly anticipated. The report is expected to provide insights into the company’s financial performance that would impact its future strategies.