Disney CEO Bob Iger could make the decision to sale the company’s TV assets. The crucial step was taken as the business combating by the time of the media industry’s transformation to stream and digital offerings.
Iger appeared recently on CNBC, the moment after the company revealed that it would go to stretch its contract by two years. The conclusion was made after Disney’s board ousted Bob Chapek with a two-year contract through 2024 respectively and alongside strategizing to find a next successor.
Bob Iger Interview
In an interview, Iger had with David Faber at Allen & Co.’s annual conference in Sun Valley that after its resume, he met with several challenges in Sun Valley. As he substantially got succeeded in numerous challenges while there’s more needs to be done.
As per him, Disney owns a portfolio of TV networks from broadcast station ABC to cable TV channels such as ESPN. On the other hand, the company thinks to grow with its traditional TV business and to sell its networks. Also, as per Iger, they may not be core to Disney.
Moving ahead, being aware of the matter, recently ABC President Kim Godwin shows its support for Iger’s contract extension. Whereas, reciprocal to this, an ABC News spokesperson refused to comment on this.
On the other hand, the cable TV channel ESPN is in a different zone. Whereby, on the same, Iger stated that Disney is open to seeking a strategic partner in the form of a joint venture.
In addition, he said that when he left the company he had forecasted that the future of traditional TV had been very downbeat. And by the time of his comeback, he collectively found that he was right. Since the same was found to be worse than expected.
“We’ve gotten a lot done very quickly, significant cost reductions and significant realignment of the company,” Iger said. “But dealing head-on with some of our biggest challenges.”
Cost cutting was the first step after the Iger’s comeback
The most crucial action performed after his return was that it would cut $5.5 billion in costs. The same comprises of $3 billion from content, and the remaining amount from non-content costs. As a part of this, the company designates 7,000 layoffs.
In order to look for its next successor, Iger has been stepping towards the task of bringing Disney’s streaming business to profitability. Notably, media executives from different companies have tended to focus on making streaming profitable. This is especially after giant Netflix lost its subscriber base early last year.
The subscriber losses result in price hikes. Iger further indicates the space for further increment when it comes to streaming. Also, simultaneously pushing customers towards the ad-supported tier, with the intention to achieve profitability.
In the efforts of strengthening Disney+ and attracting more subscribers to its cheaper, ad-supported tier. Also, the company disclosed last quarter it would substantially sum up Hulu content to Disney+.