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Disney Keeps ESPN In-House in Early Call by New CEO Josh D’Amaro

Disney frames ESPN’s live sports as the engine for a faster shift to streaming.

Overview

  • Disney’s move, reported Tuesday by Business Insider, keeps ESPN inside the company for now in one of D’Amaro’s first big decisions.
  • The company will keep offering ESPN three ways, through cable TV, a bundle with Disney+ and Hulu, and a standalone streaming service, giving sports fans more choice in how they watch.
  • Disney may add minority partners to ESPN, and the network’s current owners are Disney’s ABC Inc. at about 72%, Hearst at 18%, and the NFL at 10%.
  • This stance is not locked in, with Sports Business Journal reporting Disney could revisit an ESPN spinoff within six to nine months.
  • The call lands during a tougher stretch for Disney, with ESPN operating income down about 6% last year and the FCC opening a review of ABC’s broadcast licenses this month.