How Disney’s Dana Walden pairs service bundling with linear TV

Dana Walden, co-chair of Disney Entertainment, laid out the media company’s business strategy in a Tuesday interview with CNBC’s Jim Cramer. She highlighted how Disney bundles streaming services in connection with leveraging its linear television arm.

“We look at our linear channels, our core linear channels — FX, Disney Channel, Nat Geo and ABC — and we look at it as an opportunity to program for audiences that are still watching on linear,” she said. “And then that same content is windowed onto streaming, where it’s on demand and available for subscribers whenever they want it, and that enables us to speak to a very broad audience.”

Disney posted earnings last week that beat expectations, and it recorded better-than-expected subscriber growth for its Disney+ streaming service. The company reported a 1.4 million increase in subscriptions to its flagship service, bringing its total base to 126 million. Investors anticipated Disney would report 123.35 million Disney+ subscribers, according to StreetAccount.

Walden countered skeptical sentiments about linear TV, saying Disney’s sports programming is growing on the platform. She also explained how linear bolsters streaming, claiming the company has “made good sense of these two forms of distribution.” When a long-running program airs a new season, she said, it “activates the entire library” for that show on the streaming platform.

Disney’s bundling strategy is also paying off, Walden continued. The company announced Tuesday it would offer a stand-alone ESPN streaming service for $29.99 per month. The new service is heavily discounted when bundled with Disney’s other streaming brands, Disney+ and Hulu. Subscribers can buy all three, with ads, for a total of $35.99 per month.

Walden said Disney has a “unique ecosystem” that sets it apart from the competition. She called Disney+ a “portal” for the Disney fandom and noted that the company’s iconic characters and stories are promoted in theme parks, cruises and consumer products.

“There are so many ways that we’re able to optimize and monetize that content that other companies are not able to do,” Walden said.