Streaming ‘is a Growth Business’ for Disney

Dana Walden Talks Disney’s Streaming Growth Potential and Resilient Linear Business

Dana Walden, co-chairman of Disney Entertainment, recently sat down with CNBC’s James Cramer during Disney’s upfront event in New York to discuss the company’s streaming operations and the strength of its linear business. Walden emphasized the growth potential of Disney’s streaming services, particularly Disney+, which has been steadily moving towards profitability in recent quarters. She expressed confidence in reaching double-digit profit margins in the near future, a goal that Wall Street has been eagerly awaiting after years of substantial investments in Disney+.

Cramer commended Disney’s performance in the first quarter of the year and highlighted the stock’s upward trend over the past eight trading sessions. He credited Disney CEO Bob Iger and Walden for their effective leadership in turning around a unit that was previously facing significant losses.

Walden addressed the perception of Hollywood’s traditional linear TV operations on Wall Street, emphasizing how Disney’s strategy of combining linear and streaming content has allowed the company to reach a diverse and extensive audience. By programming for both linear channels like FX, Disney Channel, Nat Geo, and ABC, as well as streaming platforms, Disney has successfully engaged a broad range of viewers.

The conversation also touched upon the announcement of ESPN’s pricing and launch plans, with the flagship channel set to be available for purchase as a standalone streaming service or as part of the existing Disney+ bundle. Walden highlighted the success of Disney’s bundling strategy, which has proven to be a lucrative approach for the company.

Walden praised Disney’s film studio for producing blockbuster titles that not only perform well at the box office but also drive engagement on Disney+. She emphasized the synergy between Disney’s film releases and its streaming platform, noting how these high-profile films attract new subscribers and keep existing ones engaged.

Cramer lauded Walden for her leadership and the positive impact she has had on Disney’s operations, highlighting the company’s ability to attract top talent and create compelling content. He also questioned the valuation gap between Disney and Netflix, with Walden confidently steering the conversation towards Disney’s unique ecosystem and the growth potential of Disney+.

As a key contender to succeed Bob Iger as CEO next year, Walden’s insights and strategic vision for Disney’s streaming and linear businesses have solidified her position within the company. Her focus on Disney’s unique content offerings and multi-platform approach positions Disney for continued success in the ever-evolving media landscape.

Disney’s commitment to innovation and audience engagement through its streaming services and linear channels underscores the company’s dedication to delivering quality content to a global audience. With Disney+ at the forefront of its digital strategy, Disney remains a powerhouse in the entertainment industry, poised for continued growth and success in the years to come.