In a rapidly shifting media landscape, Disney is charting a different course from competitors like Warner Bros. Discovery and Comcast, opting to keep its linear television networks tightly integrated with its streaming business. CEO Bob Iger, speaking on CNBC’s CNBC Morning with David Faber on Tuesday, March 4, 2025, emphasized the strategic advantages of this approach, finalized shortly after Disney’s acquisition of Comcast’s 35% stake in Hulu, cementing full ownership of the streaming platform.
The interview came on the heels of Warner Bros. Discovery’s announcement on Monday to split into two entities: one housing its studios and HBO Max streaming service, and another managing its global TV networks. Comcast, similarly, is spinning off most of its cable channels into a new entity, Versant, later this year, while retaining NBC, Bravo, Peacock, and its theme parks. Faber pressed Iger on whether Disney, which Iger himself had suggested two years ago when saying the company might consider separating its linear TV and streaming operations, was reevaluating its unified structure.
Iger was unequivocal, “Two years ago, soon after I returned to Disney, I put everything on the table and asked the team to evaluate, one, whether we should buy Hulu or whether we should sell Hulu, whether we should sell our linear television networks or whether we should hold on to them. And after a pretty lengthy process internally and really taking a long look at what these properties could mean to us long term, we decided that the best course for us to take was to not only hold on to Hulu and buy it in its entirety but also to hold on to the linear television networks and to integrate them seamlessly with our streaming business because what that has enabled us to do is, one, aggregate revenue, both on the sub-fee side and on the advertising side.”
This integration, Iger argued, drives significant economies of scale. By combining linear TV networks like ABC, ESPN, Disney Channel, FX, and National Geographic with streaming platforms Disney+, Hulu, and ESPN’s digital offerings, Disney aggregates revenue from both subscription fees and advertising. “There is still enough linear television subscribers to generate a significant amount of revenue in advertising and in subscription fees. We program them seamlessly, we manage them in one organization. And so there’s been great economies of scale in doing that.” Bob Iger said.
Disney’s approach contrasts sharply with the industry’s trend toward fragmentation. Iger suggested that spun-off entities from competitors may lack the robust streaming assets Disney commands. “We’re one of the few doing this, and it sets us up to be more competitive,” he said.
In another nod to industry trends, Iger hinted Disney+ might follow Netflix’s lead in de-emphasizing quarterly subscriber numbers. “Probably,” he responded when Faber asked about adopting this strategy.
As Disney doubles down on its integrated model, Iger’s vision is clear: a cohesive ecosystem of linear and streaming assets offers resilience and growth potential in a dynamic media environment. With full control of Hulu and a diversified portfolio, Disney is betting on synergy over separation.