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Disney's (DIS) ESPN to Air Tiger Woods & Rory McIlroy's TGL

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Disney’s (DIS - Free Report) ESPN has secured the exclusive broadcasting rights in the United States for TGL, a fresh primetime golf league co-founded by Tiger Woods and Rory McIlroy.

TGL combines technology and live sports action within a two-hour match format, featuring 18 PGA Tour players organized into six teams. Notably, one of these teams is owned by Reddit’s co-founder Alexis Ohanian and his spouse, Serena Williams.

On Dec 30, ABC will air a preview show and on Jan 9, the first match will be broadcasted on the ESPN network and ESPN+ streaming service during prime time, coinciding with the night following the College Football Playoff National Championship. This is expected to aid ESPN+ paid subscribers’ growth as well as the company’s top-line growth in the upcoming quarters.

The Zacks Consensus Estimate for DIS’ 2023 ESPN+ paid subscribers is pegged at 25.71 million, indicating year-over-year growth of 4.35%. The Zacks Consensus Estimate for revenues is pegged at $88.98 billion, indicating year-over-year growth of 7.57%.

ESPN Faces Tough Competition From Live Sports Streaming Platforms

According to a GMR report, the worldwide market for live sports streaming over the Internet reached a value of $27 billion, in 2022. It is projected to reach $101.2 billion by 2031 at a compound annual growth rate of 24.8%. This growth is primarily driven by the increasing popularity of sports streaming on smartphones and the widespread availability of affordable high-speed Internet connections.

ESPN, a dominant force in sports broadcasting, encounters strong rivalry from other significant contenders like FOX (FOXA - Free Report) , Paramount Global’s (PARA - Free Report) CBS and Comcast’s (CMCSA - Free Report) NBC.

FOX primarily concentrates on broadcasting live sporting events and has acquired rights to air prominent leagues, such as the NFL, MLB and NASCAR. FOXA’s coverage also extends to popular sports like soccer, golf and college football. Moreover, FOX's investment in top-notch production and innovative technologies has enhanced the viewer experience during live game broadcasts.

ESPN’s another competitor, Paramount Global’s CBS Sports Network (“CBSSN”), was established in 2002 as part of CBS Corporation's foray into cable television programming. It is renowned for its coverage of NCAA basketball tournaments, particularly March Madness. CBSSN also broadcasts college football games and a variety of other sports events.

In recent times, Comcast’s NBC Sports Network (“NBCSN”) has emerged as a prominent rival to ESPN. NBCSN has secured the broadcasting rights for significant sporting events, including the Olympics, NHL games and English Premier League matches, establishing itself as a premier platform for live sports coverage. Furthermore, NBCSN provides a wide array of programming that encompasses various sports beyond live game broadcasts.

Despite encountering strong competition from other sports networks and digital platforms, ESPN has successfully retained its status as the primary choice for sports enthusiasts globally. In recent times, ESPN has capitalized on the potential of digital advertising by extending its reach across various platforms, including social media and streaming services.

Shares of this Zacks Rank #3 (Hold) company have lost 7% year to date against the Zacks Consumer Discretionary sector’s rise of 3.2% due to consumers moving from traditional TV to streaming video platforms. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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