• Loading stock data...
Wednesday, October 8, 2025

Disney’s Bumpy Streaming Shift: ESPN+ Subscribers Drop Again

  • ESPN+ shows a third retreat in subscribers in the last four quarters and posts a $65 million operating loss.
  • Iger says he is ‘confident’ of completing a long-term NBA rights renewal.
Ron Chenoy-USA TODAY Sports

Disney CEO Bob Iger said Tuesday with the release of the company’s latest earnings report that the company’s conversion to a streaming-based media business wasn’t going to be a “linear” path. He definitely wasn’t kidding.

The company’s results for its fiscal second quarter of 2024 showed just how mixed—and sometimes messy—of a situation that large-scale transition still is. Disney said that it posted a first-time quarterly profit for its direct-to-consumer operations, with the exception of ESPN, moving the company closer to its prior projection of full DTC profitability by the end of the fiscal year. But subscriptions for ESPN+ retreated for the second straight quarter and third time in four quarters, and now stand at 24.8 million—the level it was at early last year. ESPN+ also posted a $65 million operating loss for the quarter, more than overtaking the $47 million gain for the rest of Disney’s DTC businesses.

Disney sought to tag the ESPN+ subscriber decline to normal seasonality, particularly with the latest quarter following the conclusion of the 2023 college and pro football seasons. But before last summer, ESPN+ showed more than five years of uninterrupted subscriber growth. 

Amid that choppiness, Disney shares fell 10% in early Tuesday trading, rolling back a chunk of a broader gain of more than 28% so far this year. That retreat happened despite a 1% growth in revenues and a 30% jump in diluted earnings per share that beat analyst projections, as well as a recent win in a shareholder proxy battle. 

There was some other upside in the streaming results, however, as Disney said its average revenue per user for ESPN+ rose 3% from the first quarter to $6.30. 

In other developments from the Disney earnings release and call with financial analysts:

  • Iger said he was “confident” of completing a long-term rights renewal with the NBA, essentially confirming recent reports that ESPN was advancing significantly on a new deal. He also lauded the league’s long-term trajectory, saying “this is a sports product with growth ahead of it, with great demographics. We feel really good about the potential package that we will end up with, basically enabling ESPN to continue to shine in the television sports business.”
  • The CEO also touted the continued value of ESPN in a rapidly changing media landscape, and in particular lauded the power of the live programming it offers. “There’s nothing like ESPN in the sports world and their hand is solid for the next decade,” Iger said. 
  • ESPN will be featured by the end of the year on a tile within Disney+, with it providing access to select live games and studio programming to U.S. subscribers. That presence with Disney+ also represents something of a precursor to the availability of a full DTC version of ESPN that will debut in the fall of 2025. “It’s a start of essentially conditioning the audience on Disney+ and Hulu that sports are going to be there,” Iger said. Once that full DTC version of ESPN arrives, ESPN+ will be embedded within the flagship product for those subscribers but also will still be offered separately. 

Password Crackdown

Disney plans a crackdown on streaming subscription password sharing, not unlike the similar process recently pursued by chief rival Netflix. Iger praised Netflix’s efforts in this area and called that company a “gold standard” in streaming. 

“We feel quite bullish about [the password effort],” Iger said. “Obviously, we’re heartened by the results that Netflix has delivered in their password sharing initiative, and believe that it will be one of the contributors to [financial] growth.”

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

NFL and College Football TV Ratings Continue to Surge, Especially for CBS

The network’s singleheader coverage Sunday drew huge viewership.
Mar 19, 2023; Miami, Florida, USA; USA shortstop Trea Turner (8) throws to first base for an out during the first inning at LoanDepot Park.

Fox Picks Up Media Rights to 2026 World Baseball Classic

The network will repeat its role in the international baseball tournament.

ESPN Ends Its Wild-Card Coverage With Historic TV Ratings

Wild-card viewership surges 64% to a record in the current format.

Featured Today

Paul Cartier

Sports Organists Are Still Thriving in the Era of Raucous Arena Music

“When they walk out and they see a real organ guy, it’s like, ‘Wow.’”
Sep 27, 2025; Milwaukee, Wisconsin, USA; Milwaukee Brewers center fielder Jackson Chourio (11) rounds the bases after hitting a home run during the sixth inning against the Cincinnati Reds at American Family Field.
October 4, 2025

Milwaukee Moneyball: Brewers Are Beating MLB’s Deeper Pockets

Milwaukee is holding its own against big-budget competitors.
Kōloa Rum Company Rum Rusher
September 27, 2025

Panthers Bubbly, Jets Wine, Manning Whiskey: The Sports Booze Boom

A sommelier dives into the sports booze trend—and tries Jets wine.
Nov 17, 2024; Pittsburgh, Pennsylvania, USA; Pittsburgh Steelers fans wave Terrible Towels against the Baltimore Ravens during the fourth quarter at Acrisure Stadium
September 26, 2025

Steelers’ Irish Roots Are Deeper Than NFL Dublin Game

The Steelers have history and the foundation for a future in Ireland.
Sep 27, 2025; Athens, Georgia, USA; Georgia Bulldogs running back Josh McCray (2) runs against Alabama Crimson Tide linebacker Nikhai Hill-Green (41) and defensive back Keon Sabb (3) in the second half at Sanford Stadium.
exclusive
October 2, 2025

College Football Viewership Is Up Double Digits. Here’s Why

Average game viewership is up by more than 10% so far.
October 6, 2025

Mark Sanchez Charged With New Felony in Indianapolis Case

The broadcaster and ex-NFL quarterback faces up to six years in prison.
Sponsored

How Jenny Just Is Shaping the Future of Sports Ownership

Jenny Just on bringing her investment experience to sports ownership.
The NBC Sports broadcast team works Michigan State's football game against Boston College on Saturday, Sept. 6, 2025, at Spartan Stadium in East Lansing.
October 2, 2025

NBC Sports, Peacock Stay on YouTube TV With Long-Term Deal

The broad-based agreement keeps NBC channels with the key distributor.
Georgia Bulldogs quarterback Gunner Stockton (14) throws the ball during the first half of a NCAA college football game against Alabama in Athens, Ga., on Saturday, September 27, 2025.
October 1, 2025

Alabama-Georgia Draws 10.4M Viewers, Drives Record CFB Season Pace

ABC drew 10.4 million viewers for Alabama-Georgia.
Green Bay Packers wide receiver Christian Watson (9) pulls down a touchdown reception against Dallas Cowboys cornerback DaRon Bland (26) in the fourth quarter during their football game Sunday, November 13, at Lambeau Field in Green Bay, Wis.
September 24, 2025

Packers-Cowboys Game Is Getting Super Bowl–Like NBC Treatment

The network will bring its pregame show to Dallas.
Sep 18, 2025; College Park, Georgia, USA; Indiana Fever forward Aliyah Boston (7) reacts as the Fever defeat the Atlanta Dream during game three of round one for the 2025 WNBA Playoffs at Gateway Center Arena at College Park.
September 19, 2025

Fever Upset of Dream Brings Ratings Boost to WNBA Semis

The Indiana Fever will face the Las Vegas Aces in the semifinals.