• Loading stock data...
Saturday, January 11, 2025

ESPN DTC Set for Fall 2025, but Streaming Alliance Accelerates Entry

  • Date set for stand-alone version of network, but new joint venture will beat that by a year.
  • ESPN posts strong domestic results for its fiscal first quarter of 2024.
Gary A. Vasquez-USA TODAY Sports

There is now a set target date for the Walt Disney Co. to offer a full, direct-to-consumer version of ESPN, with the company now planning on a fall 2025 rollout. But ESPN will essentially preempt itself by a year by offering the network in a new sports-centric streaming service. 

Disney revealed the largely expected target date—likely coinciding with the start of college and pro football next year—for the stand-alone version of ESPN late Wednesday as it reported quarterly earnings for its fiscal first quarter of 2024. But years of anticipation of fully decoupling the network from the traditional cable bundle has now materially changed with Tuesday’s news of ESPN’s involvement in a landmark streaming joint venture with Warner Bros. Discovery and Fox Corp., bundling the three networks’ sports content in a new, as-yet-unnamed offering. 

Like his Fox counterpart Lachlan Murdoch, Disney CEO Bob Iger said “cord-nevers” and other price-conscious consumers are a key target for the new service.

“We know a lot of people have signed up for multichannel TV,” Iger said, adding that the service will be offered at a price “more attractive than the big fat bundle.”

The service developed with Fox and WBD, however, will not have additional features Disney plans for the separate version of ESPN, including integration with the ESPN Bet sportsbook, interactive statistics, and a potential merchandising component. Iger touted the forthcoming product as “unlike anything available in the market today.”

Iger, meanwhile, also confirmed the long-anticipated news that former Alabama head coach Nick Saban is joining ESPN as an on-air commentator. 

Sports Results

Core financial results at Disney’s sports operations were mixed, retreating somewhat from prior escalation reported in November, with the latest quarter coinciding with the heart of pro and college football season. 

Overall sports revenue for Disney rose 4% to $4.84 billion, while the operating loss for the quarter narrowed 37% from $164 million to $103 million. The entirety of the sports operating loss, however, can be attributed to the company’s Star holding in India, of which Disney is now selling a controlling interest. Domestically, ESPN posted operating income of $255 million for the quarter, more than six times the $41 million figure for the fiscal 2023 first quarter, representing a marked upswing in profitability given revenue rose just 1% to $4.08 billion. 

ESPN+ subscriptions, however, retreated for the second time in three quarters, falling 3% to 25.2 million. Average revenue per user for the streaming service rose 14% to $6.09.

The figures highlighted another solid quarter for Disney in which overall revenue was flat at $23.5 billion but operating income rose 27% to $3.9 billion, and total direct-to-consumer losses reduced by 86% from $984 million in the comparable period a year ago to $138 million. Disney is now projecting profitability across its entire DTC business by the end of its fiscal 2024. 

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Ohio State Buckeyes defensive end Jack Sawyer (33) knocks the ball out of the hands of Texas Longhorns quarterback Quinn Ewers (3) and returns the fumble for a touchdown in the fourth quarter of the Cotton Bowl Classic during the College Football Playoff semifinal game at AT&T Stadium in Arlington, Texas on January, 10, 2025.

College Football Is Closer Than Ever to Perfecting the Championship Process

Despite valid criticisms, the first expanded Playoff is working.

With National Title in Sight, Ohio State’s Ryan Day Closes In on..

“It’s what life’s all about,” Day said of the doubters he faced.

NBA’s Game of the Year Draws 1.87 Million, Up 8% on Season..

The NBA is averaging 1.72 million viewers per game this year.

Australian Open Begins With Record Prize Money—and Doping Drama

Another record purse, doping fears loom large over 2025’s first tennis major.

Featured Today

Jan 2, 2025; New Orleans, LA, USA; Notre Dame Fighting Irish head coach Marcus Freeman (R) reacts on the sidelines in the final minute against the Georgia Bulldogs during the fourth quarter at Caesars Superdome.

Amid Realignment Mania, Notre Dame Stayed Independent. It Paid Off

How the CFP semifinal-bound Fighting Irish made their business model work.
Ohio State wide receiver Jeremiah Smith (4) celebrates a first-down catch against Oregon during the 2025 Rose Bowl in Pasadena, Calif.
January 3, 2025

The Biggest Changes to College Sports Are Coming in 2025

Sweeping developments could affect the college sports foundation this year.
Dec 31, 2024; Chicago, Illinois, USA; Chicago Blackhawks center Connor Bedard (98) walks out to the rink before the Winter Classic against the St. Louis Blues at Wrigley Field
January 1, 2025

Glitzy NHL New Year’s Eve Winter Classic Showcased Connor Bedard’s Star Power

The business of Bedard—on full display—is crucial for the NHL.
Pop-Tarts bowl tropfy
December 27, 2024

‘I Want to Play in That Game’: How the Pop-Tarts Bowl Went..

The bowl has players saying, “I want to play in that game.”
October 1, 2024

Nike CFO Says ‘Adversity Creates Sharper Focus’

Amid a downbeat but expected set of earnings, Nike says it sees signs of optimism.
October 24, 2024

Endeavor, TKO Consolidate Sports Assets, Hoping They’re Better Together

The move brings On Location, Professional Bull Riders, and IMG under TKO.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
Sep 11, 2024; Los Angeles, California, USA; The Nike shoes worn by Seattle Storm center Mercedes Russell in the first half against the LA Sparks at Crypto.com Arena.
opinion
September 28, 2024

New Nike CEO Must Do It

The biggest task the new CEO faces is intangible: Refresh the brand.
A Nike swoosh on a building in Eugene, Oregon.
September 23, 2024

Wall Street: Things Will Get Worse for Nike Before They Get Better

Some analysts are skeptical of how much the new CEO will change.
Crypto.com soccer advertising
September 15, 2024

The Champions League Is Back. So Is Crypto Sponsorship

Crypto investment is making its debut in the biggest European soccer competition.
Sep 9, 2024; Santa Clara, California, USA; San Francisco 49ers wide receiver Deebo Samuel (1) warms up before a game against the New York Jets at Levi's Stadium.
September 12, 2024

The NFL’s Private Equity Era Won’t Be the Bloodbath You Think—for Now

“It’s a different kind of investment thesis entirely.”