During its quarterly earnings call with analysts, Disney CEO Bob Iger announced that the company’s streaming service Disney+ would add ESPN content to its offerings starting on Dec. 4.
The upgraded offering is a notable step forward in the company’s plan to bring a full sports offering to Disney+ and to launch ESPN’s direct-to-consumer offering in fall of 2025.
During the call, Iger also said that he expected betting to be “fully integrated” into ESPN's DTC service and that 60% of new streaming subs in the U.S. are selecting ad-supported tiers.
“We have invested to make our already profitable streaming business a significant growth driver for the company, and we're strengthening that streaming offering even more on Dec. 4, with the introduction of an ESPN tile on Disney+,” Iger said. “This is the beginning of an exciting new era for ESPN. We have secured rights to many of the most popular sports for years to come at a time when the value of live sports is undeniable, contributing to an industry-leading portfolio of sports programming for Disney. And this integrated streaming experience moves us one step closer to bringing a full sports offering to Disney+ in the U.S. as we prepare for the launch of ESPN's flagship DTC offering in early fall of 2025.”
During the call, Iger stressed the ongoing financial improvements in its streaming businesses that were apparent in its Q4 results for fiscal-year 2024, which ended on Sept. 28.
“Meanwhile, we ended the quarter with 174 million Disney+ core and Hulu subscriptions,” Iger said. “And in five short years, we've built Disney+ into a streaming destination unlike any other with more than 120 million core subscribers. And with the addition of Hulu on Disney+, it is the ultimate collection of high-quality content for every member of the household from our extensive library of branded and general entertainment titles to news and live events.”
Iger also provided a few details about what consumers can expect from the launch of the ESPN DTC product, which he said would include fully integrated betting.
“I think as you look at flagship, you have to consider that it [the DTC service] is ESPN like it has never appeared before for the consumer, meaning it will have not only particularly the basic ESPN services, which is coverage of live sports and studio shows and commentary, but it'll have many, many other features like betting fully integrated,” he said.
Iger also noted that in the U.S. about 60% of all new subs are selecting ad-supported or AVOD tiers. In addition, “I think right now … 37% of total subs in the U.S. are AVOD subs—37% in the U.S. and 30% globally,” he said.
