Disney CEO Bob Iger Embraces Streaming Future, Says ESPN Still Key

Possibly no network has benefited more from the traditional pay-TV bundle than Disney’s ESPN, which has by far the highest carriage fees of any channel at more than $7 per person. But as Americans have moved away from their fat cable bills and toward streaming services with skinnier offerings, ESPN has disproportionately suffered, shedding about 12 million subscribers since 2011 and weighing down Disney’s stock even as its studio continues its record run.

But even the mighty Mouse House has to adapt to the changing times, as Disney Chairman and CEO Bob Iger said on the company’s second-quarter earnings call Tuesday afternoon. Last week, ESPN laid off 100 on-air personalities and reporters in an attempt to get certain costs under control as the fees it pays for sports rights continue to escalate.

“We’ve been candid about the trends were seeing, which has been a key topic of discussion on these calls since 2015,” Iger said on the call.

Also Read: Disney Roars Past Q2 Earnings Expectations But Misses on Revenue

Iger said the strength of ESPN’s brand and content has led to it being included on pretty much every major new live TV streaming service, including Dish Network’s Sling TV, Google’s YouTube TV, Hulu’s recently-announced live service and AT&T’s DirecTV Now.

“Consumer response to these offerings is very encouraging,” Iger said, predicting they would continue to make up a bigger part of the pay-TV universe.

And importantly for Disney’s shareholders, Iger said customers moving to those cable replacements which contain ESPN don’t degrade its profitability.

Also Read: Here's Everyone Laid Off at ESPN, From Mark May to Britt McHenry (Updating List)

“From a per-sub[scriber] pricing standpoint, these new services are just as valuable to us as existing platforms,” Iger said.

Iger also said that ESPN is an essential ingredient for any new streaming TV service if it wants to get to a critical mass.

“They’ve concluded that launching new platforms without ESPN is very challenged,” Iger said. “Launching with ESPN enables them to penetrate the marketplace in ways they wouldn’t have been able to without it.”

Also Read: ESPN Bloodbath: 11 Reasons Why the Network Axed 100 People

Iger said growth in those streaming services haven’t made up for the losses from the traditional bundle, but he expects that with their combination of low price, user-friendliness and better interface, they will continue to attract demographics that have become cord-cutters and cord-nevers — particularly younger viewers.

“Live sports works on those platforms and young consumers love live sports,” Iger said. “And we’ve got the best array of them.”

Disney is also planning a standalone ESPN-branded streaming service, but Iger insisted it won’t just be the TV version available online — at least not yet.

“Will that eventually happen, I think probably, but there are no plans to currently do that,” Iger said.

16 Disney Live-Action Remakes of Animated Hits in the Works (Photos)

Disney will be pumping out live-action versions of their animated classics for a long time time to come. Here's a list of titles in the works, including the release date of the original.
"Jungle Cruise"

Okay, okay, "Jungle Cruise" might not count as live-action film based on a previously animated classic, but it is based on a ride at Disneyland, so we're going to include it. Plus, we'll take any chance to talk about Dwayne Johnson and Emily Blunt in the same sentence. It will hit theaters July 24, 2020.
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"The Little Mermaid"
So now we're getting into films that are in some stage of development but haven't necessarily been slated for release. After all, Disney has so many untitled films slated, it's hard to count. But a live-action version of "The Little Mermaid" has been long discussed, as it is arguably one of the most popular and profitable movies in Disney's vault. Rob Marshall is on board direct, with Halle Bailey set to star as Ariel and Melissa McCarthy as Ursula.
Disney
"Pinocchio"

"Pinocchio" is also in the works, with Tom Hanks playing Geppetto.
Getty Images/Disney
"Snow White"
Forget her sister -- the original baddest chick in the Disney animated kingdom is coming back for her own standalone film. It was announced at the end of October 2016.
Disney
"The Jungle Book 2"
This is a no-brainer follow-up to Favreau's hit from spring 2016, based on the animated classic released in 1967.
Disney
"Snow White"
Forget her sister -- the original baddest chick in the Disney animated kingdom is coming back for her own standalone film. It was announced at the end of October 2016.
Disney
"Aladdin"
"Hercules"
Disney
"Peter Pan"
Neverland will get a practical set if Disney has its way updating the 1953 animated film.
Disney
"James and the Giant Peach"
In one of the more interesting adaptations, this beloved Roald Dahl book became a quirky claymation hit for Disney in 1996 with director Henry Selick. Heavy dramatist director Sam Mendes was attached to take a stab at it, but he has since dropped out.
YouTube
"Hunchback"

In early 2019, a live-action film based on 1996's "The Hunchback of Notre Dame" was announced. Tony-winning playwright David Henry Hwang was tapped to pen the script, with Alan Menken and Stephen Schwartz handling the music.
Disney
"Tinker Bell"

This movie has also been in the works for quite some time, with Reese Witherspoon attached as the cute little fairy from "Peter Pan."
Disney
"Bambi"

In January 2020, Disney hired Geneva Robertson-Dworet (“Captain Marvel") and Lindsey Beer (“Sierra Burgess Is a Loser”) to write the script for the live-action remake of the 1942 animated classic.
"Oliver Twist"
While Disney never formally made a direct animated take on Charles Dickens' beloved orphan, the studio did release the adorable 1988 "Oliver and Company," inspired by Dickens' tale but told with animals. The studio also made a small-screen live-action version in 1997 with Richard Dreyfuss.
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"Lilo & Stitch"

This project was announced in October 2018 with Mike Van Waes attached to pen the script. Dan Lin and Jonathan Eirich of Rideback are producing. In November of last year, it was announced that Jon M. Chu was in early talks to direct.
Disney
"The Lion King" Sequel

In September, it was announced that Barry Jenkins would direct the follow-up to Jon Favreau's 2019 hit. The logline is being kept under wraps, but Deadline reported that the film will explore the mythology of the other characters in Pride Rock, including Mufasa’s origin story.

No release date for the next film has been set, and it’s unclear when production would begin. No cast has been set either.

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The studio is raiding its vault to remake classics including ”The Little Mermaid“

Disney will be pumping out live-action versions of their animated classics for a long time time to come. Here's a list of titles in the works, including the release date of the original.

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16 Disney Live-Action Remakes of Animated Hits in the Works (Photos)

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