Disney CEO Bob Iger revealed during an investors call on Wednesday morning that the new ESPN direct-to-consumer product, referred to as “Flagship,” will officially be unveiled next week, with a planned launch in the fall. ESPN has been discussing the Flagship DTC product for nearly a year as it looks to grow added revenue streams, utilizing partnerships with Accenture, Microsoft, and Meta in developing the innovations on the new platform.
Although Iger did not officially announce the official name of the new DTC product, he expressed the company’s approach for what will be revealed in the coming week.
“The plan would be to basically be somewhat agnostic from a subscriber perspective, so that we can still do our best to preserve the multi-channel ecosystem,” said Iger. “At the same time, we obviously want to grow our DTC business.”
Nevertheless, one of the biggest questions many have is whether a customer who already has a subscription to consume ESPN on a linear platform would need to purchase the additional DTC product from the company. In response, Iger noted that if a consumer has a subscription to the linear ESPN brand, they will automatically get access to the new DTC product.
Furthermore, the official name for the DTC product that has been referenced as “Flagship” will be released next week by the company, along with pricing details.
Regarding content, Iger noted that there will be a different experience for the DTC customer compared to what is currently available on linear. According to him, the traditional linear product “will not have the bells and whistles and those additional features that the DTC service will have.”
In addition, the goal for the company is to capture the on-demand video experience with personalization technology that can surface on an interactive streaming platform, with a lean into wagering and fantasy sports as well.
“That service will have many more features than the linear service will have,” Iger said.
Moreover, ESPN Chairman Jimmy Pitaro has discussed how the company is taking “parallel paths” with the new functionality and how ESPN networks are going to continue remaining available on cable television.
Finally, the most recent earnings report from The Walt Disney Company projected a 13% rise in operating income within the sports division amid the ongoing fiscal year. ESPN as a whole generated revenue of $4.8 billion and operating income of $228 million for the quarter, the latter of which is indicative of a 15% rise from the previous year.
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