Disneys shift to streaming puts ESPN in awkward position of clinging to the past
Summary
At last months Communacopia conference held by Goldman Sachs, Disney CEO Bob Chapek was asked about the importance of ESPN and sports broadcasting to his companys streaming strategy. ESPN has to figure out how to make up $3 billion in annual lost pay-TV subscription revenue thats coming in the next few years as cord-cutting continues, a decline that Disney executives are anticipating, according to people familiar with the matter. Should the number of pay-TV bundle subscribers drop to a level well under 50 million U.S. households, Disney would likely take ESPN to consumers in a more complete streaming package, said two people with knowledge of the companys plans. ESPN executives are hesitant about moving their prized programming to directly to consumers because of rampant password sharing among young users, according to people familiar with the matter. Kosner added that augmented reality devices that create new viewing experiences and innovative products like non-fungible tokens (NFTs), which are digital collectibles, also have the potential to lure younger fans to watch games.