Disney has already gone through three significant layoffs this year, and recent reports suggest that more cuts are on the horizon.
Interesting, huh?
According to sources, Disney is set to restructure its television division, which could lead to hundreds of job losses and a merging of different departments. The aim of this reorganization is to align the business model more effectively with the needs of streaming audiences, rather than focusing solely on traditional broadcast and cable television.
On the traditional broadcasting front…
Disney fully owns ABC Television, along with eight affiliated stations.
Additionally, Disney controls seven cable networks, including Disney Channel, Disney Junior, Disney XD, Freeform, FX, FXX, and FXM (The Fox Movie Channel).
In terms of stakes, Disney holds about 75 percent in three National Geographic channels, along with approximately 80 percent of five ESPN networks and three more sports channels.
Disney also shares ownership in A&E, History, Lifetime, and LMN.
So, why am I going into all these details? To hit my word count? Maybe. To demonstrate my understanding? Sure, but mostly to illustrate something important…
Disney possesses or partially holds around 25 traditional TV channels, yet only four streaming services (Disney+, Hulu, ESPN Select, and ESPN Unlimited). So what’s the focus here? Streaming. It seems pretty clear at this point.
But why is that?
Take a look at the average prime-time viewership numbers for various Disney networks over the course of 2025:
- ABC 4,040,000
- ESPN 1,970,000
- ESPN2 300,000
- FX 280,000
- Freeform 220,000
- National Geographic 180,000
- FXX 120,000
- Disney Channel 110,000
- Nat Geo Wild 80,000
- Disney Junior 70,000
- FXM 50,000
- ESPNU 40,000
- ESPN Deportes 30,000
- Disney XD 20,000
Honestly, the numbers aren’t great.
For instance, the Disney Channel averages just 110,000 viewers!
How can a network thrive with fewer than 100,000 viewers normally tuning in? Six of these channels are experiencing much of the same issue.
This harkens back to my observations over the past 15 years about how cable and satellite TV often overcharge consumers by making them pay for channels they don’t watch. Many people continue forking out $150 a month for TV because they are bundled into pricey channel packages that they didn’t choose, forcing them to pay for networks they never watch. This is known as a carriage fee. Whether viewers like it or not, these channels (often with left-leaning content) keep bringing in revenue thanks to expensive cable packages.
Another point I’ve raised repeatedly is that as streaming options become more popular, traditional cable TV and its associated networks will struggle to survive. They cannot cling to profitability through audience-driven revenue since most viewers are abandoning cable subscriptions for streaming. This means reduced carriage fees and an even tougher environment for low-rated networks to survive.
The cable model is crumbling. Traditional Disney networks are failing to deliver, relying more on outdated revenue streams. Consequently, streaming looks like the way forward.
But hold on, maybe that’s not clear-cut for Disney…
The future may lie in user-generated content. As AI technology evolves and becomes more accessible, the entertainment landscape could shift significantly. It feels like the industry is more focused on controversy and critique rather than genuinely inspiring or entertaining audiences. We can already see these trends emerging…
Disney+ and Hulu boast 196 million subscribers combined globally, while YouTube has a whopping 2.7 billion active monthly users.
YouTube leads in viewership, capturing about 14.2 percent of TV watching time (and that doesn’t even count mobile or desktop usage). In contrast, Disney is estimated to hold a mere five percent share.
As AI tools enable everyday individuals to create high-quality content, perhaps we’ll witness major changes in the entertainment sphere.
