Media Analyst Explains How Disney Can Ease Investor Concerns

Walt Disney Co (NYSE: DIS) is suffering from a secular change in its television business, but the company has plenty of tools at its disposal, Barton Crockett of FBR Capital Markets said during CNBC's "Squawk Box" segment on Friday.

The problem for Disney is, at its core, the company is a television network company and isn't immune from the overall trend of consumers preferring streaming and on-demand content instead of expensive cable bundles, Crockett said. To address this concern, the company needs to develop an over-the-top strategy to navigate the trend and meet consumers where they want to be.

Disney has an advantage in the fact that it can leverage its many brands in an over-the-top offering, and if successful, it will ease investor fears that Disney is "tied to this sinking ship of the traditional bundle." Also, the company doesn't have to duplicate its movie franchise strategy of acquiring notable and valuable properties to see success.

On the other hand, Disney can seek M&A opportunities in its TV segment that are merely "big enough to matter," such as its $1 billion investment for 33 percent of BAMTech.

Meanwhile, Disney can make up for some of its losses in the TV segment in its other units. For example, Disney's theme parks will see new attractions including "Star Wars Land," "Toy Story Land" and the possibility of duplicating its "Tron Coaster" in U.S. parks. Also, Disney has many movies in its pipeline, including a new "Star Wars" installment.

"Certainly, it speaks to Disney's strong points which is movies, theme parks, merchandise — not ESPN, not the stuff Wall Street is worried about but all the stuff people are happy about," the analyst emphasized.

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