Main topic: Disney announces price hike for Disney+ and Hulu, introduces bundle option and plans to address account sharing.
Key points:
1. Disney+ premium tier and Hulu ad-free plan will be raised by $3, with Disney+ costing $13.99 and Hulu costing $17.99 per month.
2. A new Duo Premium subscription will be available for $19.99, bundling both ad-free tiers of Disney+ and Hulu.
3. Disney plans to launch the $8 ad-supported tier in Europe and Canada in November and will address account sharing by implementing new policies in 2024.
Amazon Music Unlimited has increased its pricing for Prime members by $1 per month, with annual plans also seeing a $10 to $16.99 increase. Other music streaming services like Spotify, Apple Music, and YouTube Music have also recently raised their prices. The price increase is said to be for bringing more content and features to the platform, but it remains to be seen if this will differentiate Amazon Music Unlimited from its competitors.
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.
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.
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.
Amazon is considering partnering with ESPN as it moves towards becoming a streaming service, a move likely influenced by increasing cord-cutting and decreasing profitability for ESPN.
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."
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 has urged Charter Communications customers to consider switching pay-TV services if they want access to ESPN and other networks, as the carriage dispute between the two companies continues. Disney also highlighted that customers have numerous options, including competing pay-TV providers and TV streaming services.
Disney's Linear Networks division, which includes ESPN and other channels, has been struggling with declining viewership and revenue, prompting management to explore strategic alternatives and potential partnerships to transition into a more streaming-oriented business.
Media mogul Byron Allen has offered $10 billion to purchase ABC television network, FX, and National Geographic from the Walt Disney Co., as Disney faces financial pressures from its struggling streaming business.
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.
