Overview
- Disney told investors Wednesday on its earnings call it will not spin off or sell its remaining U.S. TV channels, including ABC, FX, Disney Channel and Freeform.
- Chief financial officer Hugh Johnston said the networks function as brands with studios that make shows like The Bear and Shogun, with Disney monetizing them across TV and streaming.
- Johnston said streaming now brings in more than double the revenue of linear inside Disney Entertainment in the latest quarter.
- He called ESPN a key sports brand for the company and said ABC connects to that role, noting that sports rights are costly and Disney relies on its U.S. scale to make the math work as viewing shifts online.
- Disney acknowledged linear revenues are declining but said the Entertainment division is growing as more viewing and dollars move to Disney+ and Hulu.