As ESPN prepares to launch its own direct-to-consumer streaming service, The Walt Disney Company chief executive officer Bob Iger revealed that the platform will be available through Disney+ for subscribers who bundle the two services. The ESPN platform, which is currently being referred to as “Project Flagship,” will be released in 2025 and include the full breadth of its media rights packages in addition to ESPN+, its current subscription-based streaming service.
Additionally, the ESPN direct-to-consumer option will have several integrations within the application, including those that enable sports betting, fantasy sports and commerce functionalities. Even though ESPN is launching its own streaming service, it will still be part of the joint streaming venture between The Walt Disney Company, FOX Corporation and Warner Bros. Discovery being led by Pete Distad.
In a recent interview with CNBC, Iger was asked why sports consumers would consider purchasing an ESPN direct-to-consumer service if they are subscribing to the joint streaming venture. Iger replied by stating that he believes you have to assume if someone is purchasing the joint venture product that it would be taken into account if they want to purchase Flagship. Additionally, he added that Disney is trying to ensure that the new service is convenient for consumers once it launches and will differ from ESPN+.
“What we’re trying to do is basically serve sports fans in multiple ways,” Iger said. “Sports fans want, who are not part of current multi-channel bundles already, or were and basically canceled their subscriptions, that’s certainly one way to serve them. If they’re not interested in that and they just want ESPN – and by the way, what ESPN’s so-called Flagship service will have will be significantly more than what the ESPN component of the joint venture will be – if they’d like that, they’ll be able to get that too.”
Disney+ recently integrated Hulu into its service after fully acquiring the streaming service from Comcast in November for $8.6 billion. Consumers are currently able to bundle Disney+ with Hulu for $9.99 per month with advertisements. Furthermore, they can bundle Disney+, Hulu and ESPN+ with advertisements for $14.99 per month. Omitting advertisements from the plan adds $10 per month to both subscription options, the latter of which includes no advertisements only for Disney+ and Hulu. Pricing for the joint streaming venture and ESPN’s Flagship offering have not yet been revealed.
Disney’s slate of board nominees recently won re-election, thus rejecting investor Nelson Peltz and his quest to gain board seats at the company. The Walt Disney Company held its annual shareholder meeting on Wednesday and revealed that the existing board had won the vote “by a substantial margin.” Iger is responsible for appointing all but one of the directors who currently comprise the company’s board.
