Disney CEO Bob Iger said his company will be "expansive" in its thinking about the future of its linear TV networks, acknowledging that a sale remains an option.
In CNBC interview Thursday, Iger said that Disney has to be "open minded and objective about the future of the business," adding that networks like these "may not be core to Disney." Disney owns several linear TV channels, including ABC, FX, National Geographic and Freeform.
Programming produced by those networks might be core to Disney, but the distribution model is "definitely broken," Iger said.
"The disruptive forces that have been preying on that business are greater than I thought," Iger said. "We have to come to grips with that."
Linear business is in a decline as more people cut the cord and watching programming on streaming platforms.
Disney also owns ESPN, but Iger said that he's "bullish" on sports and wants to stay in the sports business. He added that Disney looking for strategic partners that could help the company with distribution and content, including assistance in purchasing increasingly expensive licensing deals for live sports, including the NFL and NBA.
Contract extension
On Wednesday, Disney's board unanimously voted to extend Iger's contract for another two years — through the end of 2026. He joked to CNBC that he liked retirement and that it was a "good 11 months." Iger rejoined Disney in November 2022, replacing Bob Chapek, who had a choppy run at the helm.
He said he wanted to stay on at Disney for longer than anticipated because he has a "deep passion" for the company, but needs more time because "In some ways the challenges are greater than I anticipated."
Actors strike
Remarking on a looming actor's strike and the ongoing writers strike, Iger said he found the labor action "very disturbing" because of the growing challenges the media industry faces.
"This is the worst time in the world to add to that disruption," he said, noting the entertainment industry faces economic challenges and is still battling back from audience deterioration during the pandemic.
"And they are adding to a set of challenges to -- that this business is already facing that is frankly quite disruptive and dangerous," Iger added.
Iger said he was pleased that Hollywood was able to reach a deal with the Directors Guild and wants to make a similar deal with both the writers and actors. But he said the groups' expectation are "just not realistic."
"You have to be realistic about this business environment," Iger said. "It's a shame. It's really a shame."
A union representing about 160,000 Hollywood actors is poised to go on strike after talks with major studios and streaming services have failed. The actors are demanding increased pay, as well as progress on residuals, particularly on streaming services. There are also concerns about the emergence of artificial intelligence.
