Disney, ESPN+, and The Sports Bundle

 In recent weeks, the media world has been buzzing a bit about Bob Iger’s proposed plans for ESPN+. Additionally, Nelson Peltz of Trian is again making a run at Disney shareholders with an attempt to win a few seats on the Disney board of directors.

Over a month ago, Disney chief Bob Iger announced several changes. They include:

1) Disney is finally going to get a stronger position in gaming. This has been widely applauded as Disney does reach a lot of kids. Also, in sports, gambling is widespread so ESPN could benefit there and has credibility.

2) Disney will be a player in a new “skinny bundle” that will allow subscribers to catch major league sports across Disney channels, Fox, and Warner Bros. Discovery. It sounds great but does give me pause. How long will the alliance last; there are egos involved. Can they be Frenemies over the long pull? Will Amazon, Apple, and Alphabet decide to ramp up their sports presence and outbid these established media players for certain properties? 

3) Iger also discussed a limited streaming service for ESPN + that would debut in fall of 2025. It would be a souped -up version of ESPN+ with “much more personalization and customization.” They are projecting a cost of $30 per month. Admittedly, they are many sports fans in the U.S., but how many will be willing to pay $30 for this standalone service? Right now, you can get existing ESPN and other channels for $15/month is some cases.  The projected $30 price tag would be twice a Netflix subscription. If it clicks, it could be extremely lucrative for Disney but $30 appears to me to be over the breaking point for millions of consumers.

Tom Rogers was head of NBC Cable for a decade. He also founded CNBC for which I am very grateful. In a recent interview on CNBC, he weighed in on some possible Disney changes:

https://www.youtube.com/watch?v=px7nslNjdl4

Bob Iger was CEO of Disney from 2005-2020 and was widely respected in business circles. He retired and was succeeded by Bob Chapek who left Disney in Fall of 2022. Iger was called back as CEO in November 2022 and has a contract lasting in to 2026. 

He faces many challenges including the Trian initiative to get board representation and make strong changes. To me, the bigger if not biggest challenge will be to find a multi-faceted executive who can replace him in 2026.

If you would like to contact Don Cole directly, you may reach him at doncolemedia@gmail.com or leave a message on the blog.