• Loading stock data...
Monday, November 4, 2024
The Best Employers in Sports survey is open through Nov. 6 Learn More

ESPN+ Loses Subscribers After Steady Growth, But Disney Still Optimistic

  • Streaming service shows first retreat in more than five years
  • Iger reiterates that full DTC version of ESPN is “not a matter of if, but when”
ESPN-Disney
Christopher Hanewinckel-USA TODAY Sports

Disney took its first step backward in terms of ESPN+ subscribers in its most recent quarter — a concerning sign as the sports media giant deals with an accelerating decline in linear subscribers. 

But the company remains optimistic, partly due to its direct-to-consumer operations narrowing its overall losses.

During Wednesday’s quarterly earnings call, Disney said that ESPN+ had 25.2 million subscribers, down slightly from 25.3 million in the prior quarter. Though statistically negligible, the decline represents the first retreat from a steady growth pattern for ESPN+ since its debut more than five years ago. Average monthly revenue per user from ESPN+ also fell from $5.64 in the prior quarter to $5.45.

It’s more sobering news for the sports media giant, which grapples with the impact of recent layoffs. ESPN’s linear reach is down to 72.5 million homes according to Nielsen, down 28% from a peak of 100.1 million in 2011.

But Disney remains bullish on its direct-to-consumer business, in part due to a reduction of more than half of losses sustained year-over-year for a current total of $512 million. Disney is also implementing price increases across most of its streaming services to drive additional revenue.

Overall, revenue for the quarter grew 4% to $22.3 billion, while operating income remained flat at about $3.6 billion. Disney, however, did record a $2.65 billion impairment charge, heavily related to “content impairments” on its streaming services.

“While there is still more to do, I’m incredibly confident in Disney’s long-term trajectory,” said CEO Bob Iger.

‘Not If, But When’

Iger reiterated that the company remains firmly intent on offering a full, direct-to-consumer version of ESPN.

“Taking our flagship ESPN channels direct-to-consumer is not a matter of if, but when,” Iger said. “The team is hard at work looking at all components of this decision, including pricing and timing.”

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Embiid’s Clash With Reporter Sparks NBA Probe, Concerns for Sixers

The former NBA Most Valuable Player angrily confronts and shoves a local columnist.

Juan Soto Sweepstakes Underway: Superstar’s Deal Could Reshape MLB

The MLB superstar is set to gain the second-largest contract in U.S. pro sports history.
Fubo-TV

Fubo Reports 9% Subscriber Growth As Venu Sports Trial Looms

The sports-focused streamer grew revenue by 21%.
Adam Schefter

Adam Schefter Uses Same Pirated NFL Clips As Everyone Else

ESPN’s NFL insider posted a video from an illegal stream Thursday night.
podcast thumbnail mobile
Front Office Sports Today

Surprising Start to MLB’s Offseason

0:00

Featured Today

Vanderbilt Commodores fans head to the south end zone as the goal post is taken down by exuberant fans after beating No. 1 Alabama 40-35 at Vanderbilt Stadium in Nashville, Tenn., Saturday, Oct. 5, 2024.
opinion

Something New in College Football This Year: Parity

Upsets, surprises. CFB is more fun on the field than the NFL.
Sep 28, 2024; Tuscaloosa, Alabama, USA; GOP Presidential candidate Donald Trump waves flanked by former Georgia Bulldogs player Herschel Walker, recording art Kid Rock, professional golfer John Daily, Alabama senators Tommy Tuberville (R) and Katie Britt (R) during the second half of the game between the Alabama Crimson Tide and the Georgia Bulldogs at Bryant-Denny Stadium.
November 1, 2024

Mission Swing State: College Football’s Political Advertising Battle

Trump, Harris, and the PACs that support them are utilizing the sport.
October 31, 2024

The Untapped Revenue ‘Powder Keg’ of Women’s NFL Fandom

There’s a “boatload” of money at stake for brands and the league.
Oct 19, 2024; Gainesville, Florida, USA; Florida Gators quarterback DJ Lagway (2) shakes hands while entering the locker room after a game against the Kentucky Wildcats at Ben Hill Griffin Stadium.
October 28, 2024

NIL Director Is the Trendy New Job in College Sports. But the Role Is Chaos

Athletic departments nationwide are hiring for what’s become their most important position.
Tom Brady

Tom Brady Won’t Be Punished for Criticizing Packers-Lions Ejection

The “Brady Rules” faced their biggest test so far after Sunday’s broadcast.
October 31, 2024

Comcast’s Olympic Gold: Paris Games Spark Surge in Peacock Subscribers

Company revenue and Peacock subscriptions rise thanks to a big Olympics boost.
October 31, 2024

World Series Delivers 7-Year Ratings Record, Marking MLB’s Big Comeback

Viewership of the five-game win by the Dodgers soared by 74% over last year.
Sponsored

World Series Delivers High-Demand Marquee Matchup

The hype around the World Series matchup drove ticket prices to record levels—but the Dodgers’ dominance quickly quieted the fervor.
October 30, 2024

World Series Game 4 Draws 16.7M Viewers, Up 92% From 2023

The average audience of 16.7 million nearly doubles the comparable figure from last year.
October 30, 2024

Controversy, Championship Battles Keep F1 Viewers Tuned In

Lando Norris and Max Verstappen had a controversial encounter again Sunday.
October 30, 2024

NFL TV Ratings Up and Down in October As Election Draws Near

The NFL took an 8% ratings hit around the 2016 presidential cycle.
October 29, 2024

Baseball Wins the Night: World Series Outdraws ‘Monday Night Football’

MLB gains a rare head-to-head viewership win over the NFL.