Wall Street Firm Recommends Disney Transfer ABC Network Content to Hulu
Disney’s ABC Network has been making headlines lately, and not for the best reasons. Following the suspension of “Jimmy Kimmel Live!” due to insensitive comments made after the assassination of conservative activist Charlie Kirk, Wall Street firm Needham is suggesting that Disney should shut down the 82-year-old TV network. The backlash over Jimmy Kimmel’s suspension brought up discussions about freedom of speech, with many conservatives expressing their concerns and even canceling their subscriptions to Disney+ in protest.
ABC News faced another issue last year when they had to pay $15 million to settle a defamation lawsuit with President-elect Trump’s presidential library. The lawsuit was over claims made by anchor George Stephanopoulos about Trump being civilly liable for assaulting writer E. Jean Carroll. This incident highlighted some shortcomings within the network.
Needham believes that Disney should cut ties with ABC and move its content over to Hulu and the ABC app. These streaming services are not subject to the same regulatory oversight as traditional broadcast networks, which could help avoid future issues. Needham suggests that by taking a one-time $10 billion write-down of ABC, Disney could protect its shareholders from further financial losses.
The viewership of ABC has been on a decline, with only 0.5% of the U.S. population tuning in, according to a recent survey. The median age of an ABC viewer is 58, which impacts ad marketing revenue. In contrast, Hulu has a younger audience, with an average viewer age of 37. This age difference could make the content more valuable to Disney shareholders, according to Needham.
Moving ABC’s content to Hulu could reduce the risks associated with regulatory interventions and potentially increase viewership. By simulcasting ABC content on Hulu and making it available on-demand, Disney could mitigate the challenges facing traditional broadcast networks in today’s rapidly evolving media landscape.
