Disney Not Looking to Spin Off TV Channels (Yet), May Stop Reporting Streaming Subscriber Numbers
Although Comcast and Warner Bros. Discovery are in the process of dumping their underperforming cable channels to new spin-off companies, Disney CEO Bob Iger told CNBC today there’s no plan for that… yet.
Part of the issue is that Disney’s channels are closely aligned to its larger brand. It wouldn’t make sense to have a Disney Channel or Disney XD that shares content with Disney+ as part of a different organization. Disney also makes efficient use of its ABC properties to promote its theme parks and movies. Both ABC and FX are key suppliers of Hulu hits. ESPN is a beast unto itself. Iger also touted advertising capabilities with the combination of linear and streaming.
Still, it’s hard to ignore the erosion of linear TV audiences. ABC will only feature 5 hours of scripted TV each week this fall. Four nights won’t have any scripted shows.
Iger also told CNBC the company may stop reporting Disney+ subscriber numbers at some point. Netflix stock took a hit in April 2024 when it announced it wouldn’t stop sharing subscriber numbers, but the price is up more than 115% since then.
It’s a Small(er) World After All
Disney has been a brand in retreat the last few years. Iger retired at the end of 2021 only to come back as CEO less than a year later. Iger’s temporary successor, Bob Chapek, bungled his way through the job, refusing to back the LGBTQ community against a discriminatory Florida law, publicly feuding with Scarlett Johansson, and firing successful head of television Peter Rice.
The company has suffered through some disastrous box office performances. “Strange World” was a certified bomb with just $73 million worldwide. “Wish” limped to $254 million (with just $63 million domestic), and “Lightyear” earned $226 million.
Disney used to be able to count on Marvel to print money at the theater, but the franchise is starting to sag with four notable flops since COVID subsided:
- The Marvels (2023) – $199 million
- Ant-Man and the Wasp: Quantumania (2023) – $476 million
- Captain America: Brave New World (2025) – $413 million
- Thunderbolts* (2025) – $376 million
Then there’s the Mahershala Ali “Blade” reboot that was announced in 2019. We’re still waiting on that one.
The one-time imagination factory has gone stale with Disney leaning on sequels (“Toy Story 5,” “Moana 2,” “Frozen 3,” “Zootopia 2,” “Mufasa: The Lion King,” “Inside Out 2,” “Indiana Jones and the Dial of Destiny,” “Freakier Friday,” “Tron: Ares,” “Coco 2,” “Incredibles 3”) and horrific live-action reboots (“Pinocchio,” “Snow White,” “The Little Mermaid,” “Lilo & Stitch,” “Moana”). Don’t get me started on Star Wars.
One thing in Disney’s favor: it wrestled full control of Hulu from Comcast for just $438.7 million – far less than they could have been forced to pay.
Ultimately, the clock is ticking on Iger’s encore. Disney is supposed to name a permanent successor in early 2026. Whoever that is needs to contend with slowing streaming growth, a theme park empire facing hot competition from Universal, and the tension between never-ending sports rights increases with the unstoppable erosion of linear audiences.
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