Disney will add select live games and studio shows from ESPN to its flagship streaming service Disney+ by the end of 2024, CEO Bob Iger announced this morning.
Speaking to Wall Street analysts on the company’s second-quarter earnings call, Iger said the company was “encouraged” by the early results of adding Hulu programming to Disney+. The idea is to similarly make Disney+ a destination for much of the company’s premium content, including live sports.
“We view this as a first step in bringing ESPN Disney+ to viewers as we prepare for the expanded standalone ESPN streaming service in fall 2025,” Iger said. The company is also working with Fox Sports and Warner Bros. Discovery on another sports streaming offering that will launch later this year. This as-yet-unnamed joint venture differs from the standalone ESPN or the extensive Disney+ service in that it is a collection of 14 linear feeds of sports channels. The offering, nicknamed “Spulu,” does not include programming from major sports rights holders NBCUniversal or Paramount Global.
ESPN has strengthened many of its key properties, including NCAA sports, the expanded College Football Playoff and, according to recent reports, the NBA. Iger did not provide any information about which games would be available on Disney+. Already, a selection of ESPN programming is simulcast on free over-the-air television via ABC, a concession to the dwindling pay-TV bundle. The company cited declining subscribers as a headwind for ESPN in the quarter.
During a conference call with analysts, Iger said a “modest” amount of programming from ESPN would be sprinkled into Disney+. He added that he was “optimistic” about the prospect of this content increasing engagement. “It’s a start in terms of conditioning viewers that sports will be there,” he said. He clarified that ESPN is “making a pivot toward digital without sacrificing linearity.”
Streaming (along with experiences) drove a solid quarterly report for Disney. The company reached a milestone in its entertainment streaming business (Disney+ and Hulu), posting a profit for the first time. Including ESPN+, which posted an operating loss of $18 million in the quarter, the company still expects its entire streaming portfolio to be in the black by the end of fiscal 2024. The company first set this goal in 2019.