Disney Considering Adding Sports Leagues As Partners On ESPN
One of the big bombshells to come out of Bob Iger’s July 13th interview with CNBC, was that Disney could look for strategic partners to purchase equity in ESPN.
While maintaining that ESPN was core to the Disney brand, Iger hinted that in the future, the way that the network is run could be radically different.
While exactly who these strategic partners could be remains unclear, one possible avenue for Disney to take would be to partner with sports leagues such as the NBA or NFL.
A league having an equity stake in ESPN would change the face of sports media. While it would potentially raise concerns about the objectivity of coverage, it could also give ESPN additional rights to live events and more content.
Photo: NFL.com
Jimmy Pitaro Gives Update
At a seminar sponsored by CNBC and Kevin Durant’s Boardroom, ESPN chairman Jimmy Pitaro confirmed Iger’s initial statements, commenting that a partnership could help Disney transition ESPN into a digital company.
“I will emphasize that we believe there are parties out there that can help us on the content side. So you can draw whatever conclusions you want from that,” Pitaro said.
Photo: Disney
While declining to specify which leagues Disney has been in talks with, he did reveal that there has “been a healthy level of interest” from leagues, as well as technology, marketing, and distribution companies.
ESPN’S Move To Digital
No matter what company Disney decides to partner with, one thing is clear the future of ESPN will be in the direct-to-consumer business. Both Pitaro and Iger have made this clear to anyone who would listen.
According to LionTree Chairman and CEO Aryeh Bourkoff, it will be tough for ESPN to go it alone as it transitions from linear to digital. Bourkoff compared the move to Netflix’s move from DVD-by-mail to streaming or Amazon’s shift from online book sales to Prime Video.
Image Credit: ESPN
“You are shifting from a linear model that has existed for a long time to a model where digital and technology companies are all competing against each other,” Bourkoff said. “You have to be properly aligned. I think there’s a way to bring all that together that preserves the upside but also cash flow. I think people have to come together to make this happen.”
Photo Credit: Android Authority
As always, be sure to check back in with MickeyBlog. We will continue to update you on all of the news surrounding ESPN.
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