Disney has firmly dismissed the notion of selling or spinning off its linear television networks, according to a statement made by CFO Hugh Johnston during a recent earnings call. Johnston characterised such a move as “highly complex” and stated that it would likely fail to deliver value for shareholders, particularly in the current marketplace where linear networks are not highly valued.
This announcement comes amid significant developments in the media industry, including NBCUniversal’s network spinoff and Warner Bros. Discovery’s previous plans for a similar move before its acquisition by Paramount Skydance. Despite these market shifts, Johnston expressed confidence in Disney’s existing network content, which plays a crucial role in driving subscriptions on platforms like Disney+ and Hulu.
Johnston highlighted the importance of original programming, such as “High Potential” and “Shogun,” as key offerings that enhance the value of Disney’s streaming services. Additionally, he pointed to the substantial impact of ESPN’s sports programming on minimising subscriber churn, underscoring the relevance of linear television in an evolving media landscape.
The CFO’s remarks were part of a revamped earnings presentation that included pre-screened analyst questions and the release of a detailed 3,000-word letter to shareholders. Disney’s steadfast commitment to its linear networks indicates a strategic focus amid industry transformations, as the company seeks to leverage its rich content library and sports offerings to maintain a competitive edge in the streaming market while continuing to deliver shareholder value.
