Report: Disney Wants Both Digital and Mobile Distribution Partners for ESPN Streaming Service
Report: Disney Wants Both Digital and Mobile Distribution Partners for ESPN Streaming Service
A new report suggests that Disney is looking for more than one partner for its ESPN streaming platform, and that the service will likely launch sooner rather than later.
The more news that trickles out regarding Disney’s plans to create a direct-to-consumer (DTC) version of ESPN that doesn’t require a cable subscription, the more it appears the company thinks of that service as an essential part of its operations going forward.
- Disney is hoping to team up with two partners to launch a DTC version of ESPN but doesn’t want to sell more than 10% of the channel.
- Disney wants to launch its ESPN streaming platform by 2026 at the latest, but Marchand says 2025 is most likely.
- Conversations between Disney and firms like Google, Apple, and Verizon have already occurred.
Andrew Marchand of the New York Post reports that Disney is looking for not one, but two potential partners for a streaming ESPN; ideally, one would be a digital company like Apple or Amazon, while the other would be a mobile provider such as Verizon.
It Won’t Pay for Itself
Disney has already had discussions with several potential allies regarding investing in the DTC ESPN offering. But Marchand’s report is the first indication that the House of Mouse is looking for multiple investors, though the report specifies that it’s believed Disney does not want to sell more than 10% of ESPN altogether.
Teaming with companies like Apple would allow the new ESPN streaming service to be pre-installed on original equipment, instantly widening its distribution on a global scale that would otherwise be hard to replicate. Similarly, a partnership with a mobile provider would put the new app on every phone, and allow it to be bundled with phone contracts. In short, Disney wants its ESPN streamer to be everywhere.
Apple is one of the most logical candidates because of how much interest it has shown in other sports rights in the past year. The company would have to compromise on its desire to be the exclusive, international home of the sports it offers, but it would likely see the trade-off as worth it if it got access to all the sports rights ESPN currently boasts.
Why Wait?
Disney has been exploring the possibility of selling a minority stake in ESPN in order to more quickly launch a DTC product for several months. One report indicated the company was eyeing 2025 or 2026 as the rollout date for the service, but Marchand says the smart money among industry circles is 2025.
That would make sense, considering how much pressure Disney is feeling to let its streaming platforms lead its entertainment efforts. CEO Bob Iger knows that streaming, not linear TV is Disney’s future, and he’s taken big steps to try and help Disney+ stem its huge quarterly losses and get on the path to profitability, including content cuts and price increases.
Iger and his fellow Disney executives clearly see the future ESPN streamer as a big part of its plans. If that’s the case, there’s no reason to wait to bring it to market, especially if the company can secure the financial and distribution partnerships it is seeking through companies like Verizon and Apple.
ESPN Select
ESPN Select is a streaming service that replaced ESPN+ and provides access to live NHL, MLB, and MLS games, PGA Tour Golf, international sports events, ESPN original programming, and a complete archive of “30 for 30.” Find out our review of the service and how to start streaming ESPN Select.