Disney (DIS) is set to launch the long-awaited direct-to-consumer (DTC) service for ESPN on Thursday, Aug. 21. Sports are a key pillar of Disney’s growth strategy, and the launch will be a key event that investors should watch closely. In this article, we’ll look at Disney’s outlook as it takes yet another step in its pivot toward streaming.
ESPN has priced its DTC service, which CEO Bob Iger termed a “sports fan’s dream,” at $29.99 per month. The company is also offering ESPN as a bundle with Disney+ and Hulu at a promotional price of $29.99 per month for the first 12 months – a price Iger said is an “incredible, incredible bargain for the consumer.”
The company has touted features such as increased personalization, integration of statistics, and a personalized sports center for the app. It will also include access to betting, fantasy sports, and commerce solutions, which will help the company add to its revenues.
Disney is a media and entertainment conglomerate with a diverse portfolio. It has the legacy linear TV business, which is in a structural, if not terminal, decline. Disney also has a movie production business, which holds some of the most popular intellectual property. The company has a streaming business, which has turned profitable. Then we have the Experiences segment that houses the theme parks and cruises, and is the proverbial cash cow for the company.
Sports have been a key growth area for Disney, and the company has taken several steps to make its offering even more attractive for users. These include:
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Partnering with Penn Entertainment (PENN) to launch the sports-gambling platform ESPN Bet. Sports betting is gaining traction and could be a key growth driver for ESPN in the coming years.
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Signing a deal with WWE for exclusive domestic rights to major WWE events starting in 2026. As part of the $1.6 billion agreement, Disney will stream all Premium Live Events (PLEs), including WrestleMania.
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Partnering with the NFL, giving the football league a 10% stake in ESPN. In return, ESPN will own and operate the NFL Network. It will also acquire some other media assets owned by the NFL, including the NFL’s linear RedZone Channel and NFL Fantasy.
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ESPN has also launched a streaming bundle with FOX One priced at $39.99 per month.
