Dana Walden, co-chairman of Disney Entertainment, took a break from the bustling Disney upfronts in New York on Tuesday to discuss the promising growth of the company’s streaming operations and the resilience of its linear business with CNBC’s James Cramer.

“This is a growth business for our company,” Walden stated regarding Disney+ and the bundle that includes Disney+, Hulu, and ESPN+, which has steadily moved towards profitability in recent quarters. “We are aiming for those coveted double-digit margins” that Wall Street desires from Disney+ after five years and substantial investments.

Cramer praised Disney’s performance in the first quarter of the year, highlighting that its stock price has risen for the past eight trading sessions. He commended Disney CEO Bob Iger and Walden for effectively managing a division that had previously been incurring significant losses.

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“You have an incredible range of content and fantastic intellectual property, but the reality was that you were in a sector losing a billion dollars each quarter,” Cramer remarked. “We were all frustrated with Disney because of that, and now it’s the reason we admire Disney and why the stock continues to rise.”

Cramer pressed Walden on whether Wall Street is being overly pessimistic about the future of traditional linear TV operations in Hollywood. Walden elaborated on how the combination of linear and streaming can potentially provide Disney with a vast and largely unique audience.

“We view our core linear channels — FX, Disney Channel, Nat Geo, and ABC — as platforms to engage audiences still tuning in to linear TV, while that same content is also made available on streaming, where it can be accessed on demand by subscribers,” Walden explained. “This strategy allows us to reach a very broad audience. Fifty percent of our viewers engage with linear programming, while the other fifty percent prefer streaming. We’ve effectively integrated these two distribution methods.”

Walden also highlighted the morning’s news regarding the pricing and launch plans for the flagship ESPN, which will be available this fall as a standalone streaming channel or as part of the existing Disney+ bundle that currently includes Disney+, Hulu, and ESPN+. This fall, the ESPN+ tile will transition to the flagship ESPN, incorporating original content created for ESPN+ since its inception in 2018.

“Very soon, you’ll be able to bundle these three services together,” Walden noted. “With a user-friendly interface, all of that content will be accessible through one app, which is Disney+. Our bundling strategy is truly yielding results.”

Walden also pointed out how Disney’s powerful film studio contributes marquee titles to Disney+.

“The films are exceptional. Many of them have grossed over a billion dollars at the box office. They then transition to Disney+, where they drive subscriber acquisition and enhance engagement,” she stated.

Cramer continued to shower Walden with praise. “What’s also paying off is the attitude you bring. People want to collaborate with you. Stars want to work with you,” he enthused.

Meanwhile, Cramer challenged Walden on the noticeable valuation gap between Disney and Netflix. Netflix shares closed at $1,138.44, up 2.6% for the day, while Disney saw a 1% increase, closing at $111.38.

Walden is viewed as a leading internal candidate to succeed Iger as CEO next year. Tuesday’s conversation with CNBC’s often unpredictable host will only bolster that perception. In her response to Cramer, Walden skillfully navigated the Netflix vs. Disney debate, emphasizing the company’s confidence in the Disney+ bundle as its future growth engine.

“It’s important to remember that Disney+ is now five years old. It’s still a relatively young service, and we’re thrilled with the direction we’re heading. We’re seeing growth across all key metrics,” Walden remarked. “We’re progressing in the right direction and are not overly focused on the competition. We have a unique ecosystem. Disney+ serves as the gateway for Disney fandom worldwide, with our iconic stories and characters brought to life in our parks, on our cruise ships, and through consumer products. We have numerous avenues to optimize and monetize that content that others simply can’t replicate.”

(Pictured: James Cramer and Dana Walden)