Disney is seeing “significant growth” in the number of subscribers to streaming services and other platforms that provide alternatives to traditional paid TV, the longtime CEO said. However, “so far, it’s not enough to make up for some of the losses on traditional [TV platforms],” he said.
In a call with analysts on Tuesday, Iger reiterated Disney’s bullish outlook on streaming services.
“Right now, they are a small part of the pay TV universe, but we believe they’ll be a much bigger part of the business going forward. And from a per sub pricing standpoint, these new services are just as valuable to us as traditional platforms,” he said.
Iger remained optimistic, saying that these alternative services are still relatively brand new. The Disney CEO said he believes subscribers to these platforms will eventually balance out the cord-cutting behavior.
The cable segment has typically brought in about 30 percent of Disney’s total revenue. In late April, ESPN said it would lay off 100 people as the sports network cuts costs and adapts itself to digital distribution.