Amazon in talks with Disney about ESPN streaming partnership, The Information reports
Amazon is reportedly in talks with Disney to work on the streaming version of ESPN and potentially acquire a minority stake in the sports network.
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Posted 8/25/2023, 3:18:30 PM
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Disney Launches ESPN Bet, Embracing the Gambling Industry
Disney, known for its family-friendly values, has surprised many by venturing into the gambling industry. With the launch of ESPN Bet in partnership with PENN Entertainment, Disney aims to tap into the lucrative world of online sports betting. This move comes as no surprise, considering the company's growing involvement in the gambling industry since the legalization of sports betting in the US in 2018. Despite previous concerns about associating with gambling, Disney's CEO Bob Iger believes that public acceptance and the potential for profit outweigh any reservations.
This partnership represents Disney's strategic move to expand its sports business into the streaming era. ESPN Bet will be integrated into Disney's long-term plan to transition its sports content from cable TV to online streaming platforms. ESPN has already embraced sports betting by launching a popular sports betting show and closely aligning itself with major players in the gambling industry. The new deal with PENN Entertainment deepens this association and offers a direct platform for ESPN to engage with sports bettors.
While Disney is not directly involved in bookmaking, the launch of ESPN Bet signifies a significant shift in the entertainment giant's stance on gambling. Previously, Disney had banned casinos on its cruise ships and fought against the expansion of gambling establishments in Florida. However, the success of ESPN's existing sports betting show and the potential for growth in the industry have compelled Disney to capitalize on this opportunity.
Overall, Disney's entry into the gambling industry through ESPN Bet showcases its willingness to adapt to changing market trends and tap into new revenue streams. The move aligns with Disney's strategy of transitioning its sports content to streaming platforms and leveraging the popularity of sports betting to engage audiences.
Disney CEO Bob Iger's search for equity partners for ESPN could result in Amazon acquiring a minority stake in the network to aid in the development of a direct-to-consumer version, joining other potential partners such as the NFL, NBA, MLB, and Verizon.
Disney's ESPN is in talks with Amazon about a potential partnership for a new streaming service, with ESPN considering charging between $20 and $35 per month for the service.
Walt Disney has pulled its channels, including ABC stations and ESPN, from Charter Spectrum due to a distribution fee dispute, leaving nearly 15 million subscribers without access to popular programming such as "Jeopardy!" and "Wheel of Fortune."
Disney-owned channels, including ABC and ESPN, went dark for Charter Spectrum subscribers due to a failure to reach an agreement on terms, impacting the broadcasting of the U.S. Open tennis tournament and a college football game between the University of Utah and the University of Florida.
ESPN is facing challenges as consumers shift to streaming and turn to other platforms for sports highlights, leading to a decline in pay-TV households and increasing costs for live sports programming, prompting speculation about the future of the network, including the possibility of a strategic partnership and the eventual availability of the flagship ESPN channel as a direct-to-consumer streaming service.
Disney's ongoing fight with Charter Communications over the placement of ESPN and other channels on Spectrum cable has escalated, with Stephen A. Smith publicly supporting Disney's position on social media.
Walt Disney Co is reportedly in talks with Nexstar Media Group Inc to sell its U.S. TV network ABC, as Disney looks to sell some of its traditional TV assets due to the rise of streaming services.
Disney's potential sale of ABC and its affiliated networks is not primarily motivated by financial gains, but rather serves as a signal to investors that Disney is ready to move away from traditional television and focus on its streaming businesses.