Disney Entertainment co-chairman Dana Walden recently discussed the growth potential of Disney’s streaming operations and the resilience of its linear business with CNBC’s James Cramer during Disney’s upfront event in New York.
Walden emphasized the success of Disney+ and the bundle of Disney+, Hulu, and ESPN+, which have moved steadily into profitability in recent quarters. She mentioned that the company is aiming towards achieving double-digit margins with Disney+ after years of investment.
Cramer lauded Disney’s performance in the first quarter of the year and praised CEO Bob Iger and Walden for turning around a unit that had previously been posting significant losses. He noted that Disney’s stock price has been on the rise for the past eight trading sessions.
The conversation also touched on the prospects for Hollywood’s traditional linear TV operations. Walden explained how Disney is leveraging a combination of linear and streaming to reach a broad and diverse audience. She highlighted the strategy of programming content for both linear channels like FX, Disney Channel, Nat Geo, and ABC, as well as streaming services, to cater to different viewer preferences.
Walden also announced the launch plans for ESPN, which will be available for purchase as a standalone streaming channel or as part of the Disney+ bundle. She emphasized the success of Disney’s bundling strategy and the seamless integration of the three services under one app.
Furthermore, Walden discussed how Disney’s film studio contributes marquee titles to Disney+, driving subscriber acquisition and engagement. Cramer commended Walden for her leadership and ability to attract top talent to work with Disney.
The conversation also touched on the valuation gap between Disney and Netflix, with Walden reaffirming her confidence in Disney’s unique ecosystem and the potential of Disney+ as the company’s engine of the future. She highlighted Disney’s ability to monetize content across various platforms, including theme parks, cruise ships, and consumer products.
Overall, Walden’s comments underscored Disney’s strong position in the streaming market and its focus on leveraging its iconic characters and stories to drive growth and engagement. The company’s strategic approach to content distribution and audience targeting sets it apart in a competitive media landscape.
