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Disney's (DIS) Streaming Future Looks Strong as ESPN+ Hits 1 Million
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Disney (DIS - Free Report) shares popped 1.7% following news that its ESPN+ streaming service reached over one million paying subscribers. This announcement from the struggling sports media giant led to a boost in DIS stock, but the new stand-alone ESPN streaming service's growth since its April launch is also a sign that Disney’s streaming future looks secure.
ESPN+
ESPN announced Thursday that its streaming service, which isn’t tied to any cable packages, surpassed one million paying subscribers. Disney launched ESPN+ in April at a $4.99 per month price point ($49.99 per year) to some skepticism. The streaming service doesn’t feature ESPN’s premier content, such as Monday Night Football, NBA basketball, or big-time college football and basketball. These high-profile offerings will likely be available down the road when ESPN and its various partners work out what to do as linear TV continues to suffer.
Instead, ESPN+ has succeeded through a slew of secondary sports geared toward consumers that are more familiar and accustomed to streaming. The service features a ton of live MLB and NHL games, boxing, college sports events, and UFC coverage. Maybe more importantly, ESPN+ has embraced youth-focused esports and soccer, offering a ton of live Major League Soccer games—it is even the lone broadcast partner of MLS’ Chicago Fire.
Plus, ESPN just recently landed the rights to Italy's Serie A soccer league that will see it stream 340 matches per season on ESPN+ starting this year. “The future is bright and we believe growth will continue as we add features, distribution partners and more exclusive content in the coming months,” Disney’s Chairman of Direct-to-Consumer and International unit Kevin Mayer said in a statement.
Another positive sign for investors is that for all the casual talk about the NFL’s declining ratings and ESPN’s subscriber woes, sports are still one of the only things that people must watch live. This means that advertisers will follow wherever the live sports live.
Disney’s Cable Networks division, which includes ESPN, saw its revenues pop 2% last quarter to reach $4.25 billion. The sports media powerhouse has lost subscribers, but the network charges cable providers more than ever, helping prove its importance to those that haven’t cut the cord.
Looking Ahead
ESPN’s streaming service faces a ton of competition from other media companies, including CBS and AT&T’s (T - Free Report) Turner, which have both launched their own sports-focused streaming platforms. Meanwhile, Twitter and Facebook have added more live sports offerings, while Amazon (AMZN - Free Report) continues to dive deeper into live sports across Prime and Twitch.
Disney is also prepared to launch its own stand-alone streaming service that will feature its vast array of blockbuster-brands in late 2019 to compete long-term against Netflix (NFLX - Free Report) , Amazon, and Apple (AAPL - Free Report) . Down the road, it seems hard to bet that ESPN and its infrastructure of talent and production won’t be able to adapt and succeed in a streaming future since sports aren’t likely to fade away any time soon.
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Disney's (DIS) Streaming Future Looks Strong as ESPN+ Hits 1 Million
Disney (DIS - Free Report) shares popped 1.7% following news that its ESPN+ streaming service reached over one million paying subscribers. This announcement from the struggling sports media giant led to a boost in DIS stock, but the new stand-alone ESPN streaming service's growth since its April launch is also a sign that Disney’s streaming future looks secure.
ESPN+
ESPN announced Thursday that its streaming service, which isn’t tied to any cable packages, surpassed one million paying subscribers. Disney launched ESPN+ in April at a $4.99 per month price point ($49.99 per year) to some skepticism. The streaming service doesn’t feature ESPN’s premier content, such as Monday Night Football, NBA basketball, or big-time college football and basketball. These high-profile offerings will likely be available down the road when ESPN and its various partners work out what to do as linear TV continues to suffer.
Instead, ESPN+ has succeeded through a slew of secondary sports geared toward consumers that are more familiar and accustomed to streaming. The service features a ton of live MLB and NHL games, boxing, college sports events, and UFC coverage. Maybe more importantly, ESPN+ has embraced youth-focused esports and soccer, offering a ton of live Major League Soccer games—it is even the lone broadcast partner of MLS’ Chicago Fire.
Plus, ESPN just recently landed the rights to Italy's Serie A soccer league that will see it stream 340 matches per season on ESPN+ starting this year. “The future is bright and we believe growth will continue as we add features, distribution partners and more exclusive content in the coming months,” Disney’s Chairman of Direct-to-Consumer and International unit Kevin Mayer said in a statement.
Another positive sign for investors is that for all the casual talk about the NFL’s declining ratings and ESPN’s subscriber woes, sports are still one of the only things that people must watch live. This means that advertisers will follow wherever the live sports live.
Disney’s Cable Networks division, which includes ESPN, saw its revenues pop 2% last quarter to reach $4.25 billion. The sports media powerhouse has lost subscribers, but the network charges cable providers more than ever, helping prove its importance to those that haven’t cut the cord.
Looking Ahead
ESPN’s streaming service faces a ton of competition from other media companies, including CBS and AT&T’s (T - Free Report) Turner, which have both launched their own sports-focused streaming platforms. Meanwhile, Twitter and Facebook have added more live sports offerings, while Amazon (AMZN - Free Report) continues to dive deeper into live sports across Prime and Twitch.
Disney is also prepared to launch its own stand-alone streaming service that will feature its vast array of blockbuster-brands in late 2019 to compete long-term against Netflix (NFLX - Free Report) , Amazon, and Apple (AAPL - Free Report) . Down the road, it seems hard to bet that ESPN and its infrastructure of talent and production won’t be able to adapt and succeed in a streaming future since sports aren’t likely to fade away any time soon.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>