Disney wants to keep its traditional TV networks

Disney (DIS+3.72%) has no plans to sell its traditional broadcast and cable networks, setting itself apart from competitors who are actively considering shedding their linear TV assets.

Disney CFO Hugh Johnston told CNBC on Thursday that the company has looked at the math and believes a sale of its linear TV assets would be too operationally complex to justify the expected benefits.

“You can do spreadsheet math to justify just about anything, but when you look at operationally what it takes to do that, we came to the conclusion pretty quickly: This is actually a good integrated portfolio, and the cost of doing it is probably more than the benefit,” Johnston said.

The comments come as Disney—along with other major media companies including Warner Bros. Discovery (WBD-6.54%) (parent of HBO and Max), Comcast (CMCSA-1.72%) (owner of NBC), and Paramount (PARA-4.43%) (parent of CBS)—are all grappling with a shifting media landscape where streaming is rapidly eclipsing traditional television.

In 2023, Disney CEO Bob Iger hinted at the possibility of shedding the company’s linear TV networks, saying they “may not be core to Disney” anymore.

Meanwhile, both Comcast and Warner Bros. Discovery are reportedly considering the idea of separating their streaming and studio assets from their struggling TV network businesses.

The House of Mouse on Thursday released mixed fourth-quarter results, with growth driven primarily by its streaming business, while the company’s traditional TV division continued to struggle.

Disney said its streaming platforms’ operating income rose to $321 million in the three months ending Sept. 30, compared with a loss of $387 million during same period in 2023.

It took Disney five years since the launch of Disney+ to finally turn a profit from its streaming business. Last quarter, Disney reported that its streaming services, which also include Hulu and ESPN+, turned a profit for the first time, and earlier than anticipated. The company had previously expected its streaming services to first turn a profit in the fourth quarter.

Disney continues to face challenges with its traditional television assets, including the ABC broadcast network and cable channels like the Disney Channel, National Geographic, and FX. In its fourth fiscal quarter, the company reported a 38% drop in operating income from its linear networks, falling to $498 million from $805 million in the same period of 2023.