Bob Iger On The Future Of ESPN
As Bob Iger looks at the future of The Walt Disney Company, one of the most pressing challenges on his desk is the future of ESPN.
With more and more consumers cutting their cable cords, both Iger and ESPN Charmain Jimmy Pitaro have told anyone that would listen that the future of the network will be on streaming.
How to transition ESPN to streaming, however, remains the million-dollar question.
Looking For Partners
The path that Iger and Disney seemed to be most heavily pursuing, was finding a strategic partner to help take the worldwide leader in sports to streaming. The network has repeatedly had discussions with major sports leagues, including the NFL, NBA, and MLB, although no deal has been forthcoming.
Yesterday’s announcement that a new sportsbook, ESPN BET, is coming this fall, would seem to preclude a partnership with a sports league. Major league sports have traditionally been weary about being overly involved in sports betting.
Could Disney Spin-Off ESPN?
Outside of a strategic partnership, there is some speculation on Wall Street that Disney could spin ESPN off into its own company.
Iger has previously rejected the notion that Disney would want to divest itself from the sports business, although the bottom-line benefits could outweigh his preferences.
Photo: Yahoo Sports
While former Disney executives Kevin Mayer and Tom Staggs have returned to help advisor Iger on ESPN, internal reports say that they are looking at options that keep ESPN within The Walt Disney Company.
Photo: Variety
With that being said, when working at Disney, Mayer was more open to the possibility of spinning-off ESPN.
Prior to 2015, ESPN had been immune from Disney’s company-wide cuts. Things have changed drastically since that time, with the network hit by six different waves of layoffs in the last eight years. Clearly, something needs to change.
Iger’s Latest Comments
During Disney’s third-quarter earnings call today, Iger addressed the future of ESPN. While the company is still weighing its options, it will not be spinning off the network.
Photo Credit: ABCNews.go.com
After restating that Disney wanted to keep ESPN in the Disney fold, Iger talked about the value the network has.
“Linear and addressable is up 10% versus the prior year…which speaks to the fact sports business stands tall and remains a good value proposition. We believe in the power of sports and the unique ability to convene and engage audiences,” he said.
Credit: Disney
The future of The Walt Disney Company will rely heavily on Iger’s ability to manage ESPN’s future.
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