Disney CEO Bob Iger is up the creek without a paddle.
Reporting results after the bell Wednesday, Disney revealed that its streaming operation lost $512 million in the last quarter, lifting its total streaming losses to $11 billion. It also lost 11.7 million subscribers in the past three months, leaving its total subscriber number at 146.1 million.
All of the decline came in India, where Disney lost access to Indian Premier League cricket matches.
Disney is also considering what to do with ESPN, once the crown jewel of its cable empire.
Former Disney executives Kevin Mayer and Thomas O. Staggs have been engaged by Iger to contribute to ESPN's strategy discussions. Working alongside James Pitaro, the channel's president, they are also involved in structuring potential deals. Mayer and Staggs, who were once considered successors to Iger at Disney, eventually left the company after being overlooked for leadership roles. They went on to establish their own media enterprise, Candle Media, partnering with private equity firm Blackstone.
Iger's inclination to explore partnerships aligns with his pursuit of optimizing ESPN's position amidst a rapidly evolving media landscape. This move holds significance given Disney's historical reliance on its conventional broadcasting channels like ESPN for substantial profits. By seeking strategic alliances with established sports leagues, Disney aims to enhance distribution avenues and bolster its content offerings.
The potential partnership with major sports leagues reflects Disney's effort to adapt to changing consumer preferences, technological advancements, and market dynamics. This approach acknowledges the importance of collaboration and innovative strategies to maintain a competitive edge in the media industry. As the consultation with former executives Mayer and Staggs suggests, Disney is focused on navigating this transformation carefully, leveraging expertise and industry insights to ensure a successful and mutually beneficial outcome.
