Will Disney+ Add ABC, FX? Iger Does Turnaround From Calling Channels ‘Not Core’ Last Year
Comments from Disney CEO Bob Iger following its most recent earnings report could be interpreted as a sign that Disney wants to bring linear and digital entertainment closer.
The Disney Bundle is resembling the old cable bundle more and more every day. Viewers can already access entertainment from both Disney+ and Hulu within the Disney+ app, and company CEO Bob Iger promised on Tuesday that select sports content from ESPN will arrive on the streamer before the end of 2024, ahead of a wider sports integration next year. Speaking with Wall Street analysts as part of Disney’s quarterly earnings report, Iger touted the flexibility of his platforms and pointed to shows like “Shōgun” as proof that his linear channels are working well in concert with his streamers. That’s a far cry from the tone Iger took regarding networks like ABC in summer of 2023, and the shift could signal that Disney wants to further integrate linear and streaming by adding livestreams of its cable and broadcast networks to Disney+.
Key Details:
- In Disney’s second fiscal quarter of 2024, 17 of the 20 most-viewed series on its streaming platforms originated on its linear networks.
- Iger said that Disney’s linear channels are “deeply embedded” in its direct-to-consumer strategy.
- Disney+ is reportedly already planning to add free streaming channels stocked with episodes of streaming originals.
Disney+ would hardly be the first on-demand streaming service to add a livestream of a linear channel. Paramount+ with SHOWTIME offers a livestream of local CBS stations for all subscribers, and Peacock similarly houses a stream of in-market NBC stations on its Premium Plus tier. Peacock also allows viewers to stream the Hallmark Channel and REELZ as part of their subscription.
Disney has resisted offering full livestreams of its channels on streamers until now; ESPN+ drew the ire of many customers when it first launched, as it did not provide all of the live sports options and other programming of the traditional ESPN channel. But that’s starting to shift; ESPN content is coming to Disney+ by the end of 2024, and the app will begin offering the full selection of programming available on the ESPN family of networks by 2025.
When speaking with analysts after the release of Disney’s second fiscal quarterly earnings, Iger was singing the praises of his linear networks and their ability to coexist with the company’s streamers.
“Our linear channels are deeply embedded in our direct-to-consumer strategy as they continue to deliver high-quality content that reaches demographics not captured on streaming alone,” he said,” allowing us to broaden our audiences and leverage our unmatched content engine across an expansive base.”
How Has Iger Changed His Tune on Linear Channels Recently?
Iger pointed out that 17 of the 20 most-watched shows on Disney streamers in the quarter originated on one of the company’s linear channels. He cited “Shōgun” as an example, saying that it was the most-watched FX show ever on a Disney streaming platform and it drove the second-largest number of signups to Disney streamers since 2022’s “Black Panther: Wakanda Forever.”
The CEO’s glowing sentiments about his linear networks represent a complete turnaround in rhetoric from the summer of 2023. At that time, Iger called linear television a “no-growth” business, and said that Disney’s channels weren’t necessarily “core” parts of the company. He even held preliminary discussions to sell ABC and other channels, but eventually backed off that idea.
If Disney’s linear networks are delivering as much viewership for its streaming services as Iger says, it would not be a surprise for the company to consider placing streams of FX, ABC, and other channels within Disney+. Iger himself cheered the ability of Disney to “[reach] wider audiences with our combined linear and streaming ecosystem” this week. Offering linear channels within the Disney+ app would combine them even further, and allow viewers to enjoy even more types of content without having to leave the app.
Indeed, Disney is reportedly already planning to add linear channels to Disney+. In mid-April, word began to circulate that Disney was planning to put free, live channels stocked with streaming original shows from the Marvel and Star Wars franchises, among other selections, on Disney+ to give viewers having a hard time deciding on a new title something to watch. These channels could provide a meaningful boost in engagement for the streamer, and adding livestreams of broadcast and cable channels could take that boost to another level.
Bringing livestreams of Disney’s linear channels to its streamers could also provide the company with an opportunity to boost its streaming revenue. It’s possible that they would be housed in a paid add-on to Disney+ as ESPN content eventually will be, or a higher subscription tier. This would allow Disney to draw new customers to its streamers as well as potentially further monetize existing customers. Max is planning to do something similar by making the Bleacher Report Sports Add-On a paid feature at some point this summer.
Disney’s number crunchers may well decide that adding streams of linear channels to Disney+ isn’t worth its time or money. But there could be a chance to meaningfully increase the value of the service by placing the channels on its flagship streamer, and if that’s the case it would be wise to look into rolling out full streams of entertainment and news networks like ABC, FX and others on Disney+.
Disney+
Disney+ is a video streaming service with over 13,000 series and films from Disney, Pixar, Marvel, Star Wars, National Geographic, The Muppets, and more. It is available in 61 countries and 21 languages. It is notable for its popular original series like “The Mandalorian,” “Ms. Marvel,” “Loki,” “Obi-Wan Kenobi,” and “Andor.”