• Loading stock data...
Friday, August 22, 2025
The biggest names in sports media. All in one room. Buy tickets now!

ESPN Income Down As Subscribers Fall, but Flagship Launch Looms

As expectations continue to climb for ESPN’s forthcoming direct-to-consumer streaming service, the network has some near-term financial hurdles to overcome. 

Troy Taormina-Imagn Images

ESPN parent company Disney has plenty of optimism for the next year, despite rising economic headwinds, but the near term is still somewhat choppy for the sports media giant.

Disney said Wednesday that it grew revenue 7% to $23.6 billion in its second fiscal quarter that ended March 29, and increased its operating income by 15% to $4.4 billion. Perhaps more importantly, the company also said it is raising its guidance for fiscal 2025, with adjusted earnings projected to rise 16%, and by 18% within its sports operations.

That stance notably differs from several other companies, including some with significant sports ties, that have paused or lowered their financial guidance in the wake of a tariff-fueled trade war initiated by U.S. President Donald Trump. 

“Following an excellent first half of the year, we have a lot more to look forward to,” said Disney CEO Bob Iger, referring in part to the forthcoming debut of ESPN’s direct-to-consumer streaming service.

ESPN, however, had a more mixed report for the latest quarter. Domestic revenue rose 7% to $4.2 billion, but operating income fell 17% to $648 million, with earnings particularly hit by increased rights and production costs for the newly expanded College Football Playoff, as well as the timing of the 2024 NFL regular-season schedule. The network additionally took a write-down in the quarter related to the shuttering of Venu Sports in January. Disney previously said those costs would be about $50 million

The ESPN+ streaming service, meanwhile, ended the quarter with 24.1 million paid subscribers, down 3% from the end of 2024 and equal to the level it reached in mid-2022. ESPN+ has been essentially flat in subscribers since then, suggesting it may have hit a ceiling as more sports content shows up in Disney+. The advertising market there, and on the other Disney streaming services, also faces greater competition, though ESPN overall saw a 29% bump in domestic ad sales during the quarter. 

“We continue, as we go into the upfront season, to see robust demand for advertising,” said Disney senior EVP and CFO Hugh Johnston. “One place that continues to be a bit more challenged is on the DTC side, not driven by demand, but driven by supply as we have new entrants into the marketplace.”

Flagship Talk

Disney also continues aggressive preparation for the ESPN DTC streaming service, currently carrying the working name of “Flagship.” The actual name of the service, as well as pricing, will be revealed next week—which is also a frenetic period in which each of the major U.S. media companies make upfront presentations to advertisers. 

“The plan would be to basically be somewhat agnostic from a subscriber perspective so that we can still do our best to preserve the [linear] multichannel ecosystem,” Iger said. “At the same time, obviously, we want to grow our DTC business. The difference is that the ESPN linear service, if that’s all the consumer chooses to watch, will not have the bells and whistles and those additional features that the DTC service will have.”

Disney shares surged by 11% in Wednesday trading amid the bullish outlook, closing at $102.09 per share and helping to recoup losses seen over the past two months amid the tariff disputes.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Nov 23, 2024; Minneapolis, Minnesota, USA; Penn State Nittany Lions head coach James Franklin looks at quarterback Drew Allar (15) during the first quarter against the Minnesota Golden Gophers at Huntington Bank Stadium.

Private Equity Enters College Sports—Without the Equity

As college football starts, lending agreements have become PE’s best way in.

SEC Adopts 9-Game Conference Schedule As CFP Changes Loom

The conference matches schedule formats used by the Big Ten and Big 12.
Mo Vaughn

How Michael Bloomberg Jump-Started Mo Vaughn’s Business Career

The Red Sox legend had a sprawling housing empire before starting a podcast.
Jul 13, 2025; Atlanta, GA, USA; MLB Commissioner Rob Manfred announces the pick for the Athletics pick during the MLB Draft at The Coca-Cola Roxy.

MLB Confident New Rights Will Exceed $550M ESPN Deal

MLB would redistribute rights forfeited by ESPN back in February.

Featured Today

Oct 2, 2024; Rosemont, IL, USA; Big Ten commissioner Tony Petitti speaks with the media during the 2024 Big Ten Women’s Basketball media day at Donald E. Stephens Convention Center.

‘Not Ready to Jump In’: Power 4 Commissioners Aren’t Sold on PE

Top leaders in college sports have yet to see a satisfactory proposal.
Sep 8, 2024; East Rutherford, New Jersey, USA; New York Giants running back Eric Gray (20) returns a kickoff against the Minnesota Vikings during the first half at MetLife Stadium.
August 18, 2025

‘Fauxbacks’ Throw Back to a Retro Uniform That Never Existed

Many throwback jerseys are brand-new designs or “Franken-Unis.”
August 17, 2025

‘Labubu Gang’: The Creepy-Cute Dolls Sweeping Pro Sports

The creepy-cute doll is the hottest collectible—and fashion statement.
Middle Tennessee wide receiver Cam'ron Lacy (86) catches a pass and carries the ball during the season final home football game against New Mexico State on Saturday, Nov. 23, 2024.
August 15, 2025

How Middle Tennessee State Added $668,000 to Its NIL Budget

The Blue Raiders are creating a new blueprint for cutting costs.

NBC’s MLB Chase Built on Vision for Yearlong Sunday Night Sports

NBC Sports is gunning for a Sunday night slate rivaling “The Sopranos.”
August 20, 2025

Rich Eisen Will Host More ‘SportsCenters’ After Standout Return

Eisen’s nostalgia-oriented Monday “SportsCenter” drew rave reviews.
August 21, 2025

Chris ‘The Bear’ Fallica on Fox Changes, New Studio, Working With Portnoy

Fallica is in his third year as Fox’s sports betting expert.
Sponsored

Building A Pro League From Scratch

Front Office Sports and Gainbridge® spotlight what it takes to build a professional women’s soccer league.
August 19, 2025

MLB Nears Media Shake-Up: ESPN, NBC, Netflix In, Apple Out?

Sources told FOS that local rights are of particular interest to ESPN.
exclusive
August 19, 2025

Chase Daniel Joins ESPN As College Football Analyst

Daniel had a 13-year NFL career and was most recently an FS1 host.
exclusive
August 19, 2025

Former ESPN NBA Reporter Nick Friedell to Join The Athletic Warriors Beat

The Athletic and ESPN essentially traded writers focused on the Warriors.
August 18, 2025

International Super Bowl Could Anchor Multibillion-Dollar NFL Rights Deal

Roger Goodell floated the idea of an international Super Bowl last fall.