Disney Entertainment Co-Chair Dana Walden recently sat down with CNBC’s Jim Cramer on “Mad Money” in a revealing discussion that highlights Disney’s impressive turnaround in streaming, strategic growth across its entertainment verticals, and the evolving media landscape. The conversation underscores Disney’s multifaceted approach to content, distribution, and advertising, painting a clear picture of why Disney’s stock has rallied strongly amid market skepticism about streaming profitability.

A Dramatic Turnaround in Streaming

Walden, who oversees Disney’s global television business along with Disney+ and Hulu, described the transformation Disney has managed in its streaming division. Just a few years ago, Disney’s streaming segment was a major loss leader, hemorrhaging close to a billion dollars quarterly. That narrative has shifted dramatically with a recent “blowout quarter” that helped propel Disney’s stock up more than 20% over six sessions.

The core of this success lies in Disney’s unique storytelling capabilities and prized intellectual property (IP). Disney’s studios have been the box office leader for eight of the past ten years, delivering billion-dollar-plus hits that seamlessly feed Disney+ subscriber acquisition while sustaining engagement. This virtuous cycle of theatrical success fueling streaming appeal sets Disney apart from competitors. Walden noted that alongside blockbuster films, Disney’s general entertainment content also thrives, citing last year’s haul of 60 Primetime Emmy Awards, more than any other company.

Integrating Linear and Streaming Content

Despite common narratives suggesting the death of linear television, Walden argued it remains vital, especially for sports and key Disney channels like Disney Channel, National Geographic, and ABC. Approximately half of Disney’s audience still consumes content via traditional linear TV, with the remainder on streaming platforms. Disney’s strategy embeds linear programming within a broader streaming approach, “windowing” content to streaming platforms after linear premieres, thereby broadening audience reach and keeping legacy viewing habits relevant.

This hybrid model has helped Disney maintain a large, loyal audience while growing streaming subscriptions. Walden stressed this is not mutually exclusive; rather, it’s complementary, allowing Disney to serve diverse consumer preferences effectively.

Advertising and Partnerships: Evolving with Technology

Disney’s upfronts event showcased its continued commitment to advertisers amid economic uncertainty. Walden emphasized the importance of premium, trusted programming in attracting advertisers willing to invest in quality content that yields reliable returns. Disney’s advertising sales teams nurture long-standing, dependable partnerships critical to sustained revenue.

Technological innovation also features prominently. Disney is leveraging AI, programmatic buying tools, and integrated ad platforms, particularly with ESPN’s new streaming app that bundles all ESPN content and ad formats into a single consumer-facing interface. This integrated approach aims to simplify subscriber experience and boost monetization.

Walden highlighted Disney’s robust partnerships with digital platforms like YouTube, where Disney produces special trailers and short-form content that help funnel audiences back to Disney+ and Hulu, dispelling misperceptions about the company’s digital strategy visibility.

ESPN and the Future of Sports Streaming

ESPN, long a cornerstone of Disney’s linear portfolio, is undergoing a technological and product evolution. The new ESPN streaming service melds traditional sports broadcasting with personalized features such as daily fantasy integration and studio programming tailored to viewer preferences. This personalization and innovation in sports content delivery reflect Disney’s broader vision of creating immersive, personalized experiences that keep fans engaged for longer durations.

Disney’s Unique Position Versus Competitors

When asked about comparisons with Netflix, Walden underscored Disney’s distinctive ecosystem. Unlike pure streaming players, Disney’s IP extends beyond screens to theme parks, cruise ships, and consumer products, creating multiple revenue streams with synergistic potential. While Disney+ is still relatively young at five years old, it is demonstrating strong momentum with growth in subscribers, revenue, and approaching double-digit margins, vindicating the company’s long-term strategy.

Shaping the Future of Media

Dana Walden’s insights reveal a company executing a sophisticated, multi-pronged strategy. Disney is blending legacy strengths with innovative streaming approaches, integrating linear and digital content, and harnessing technology and partnerships to drive growth. The recent surge in Disney’s stock price reflects Wall Street’s recognition of these sustained improvements. As Disney continues to refine its ecosystem and leverage its iconic IP, it stands poised to maintain a leading role in the rapidly evolving entertainment landscape.

This interview and analysis based on the CNBC conversation and Disney’s recent upfronts event provide a deep dive into how Disney Entertainment is navigating and shaping the future of media.