Author Topic: DIS - Disney  (Read 34621 times)


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Re: DIS - Disney
« Reply #110 on: March 22, 2019, 07:58:46 AM »
I don't see the business model for ESPN+

Because sports rights are regional, they only really have a US business with their IP. ESPN peaked around 100 MM subs. Even if you assume (generously, imo) that a quarter of those people are very interested in sports and will buy espn plus, I get the following math.

25 MM 12 months $5/month = $1.5 billion in revenue per year.

They're paying $300MM/year for rights just to UFC. That doesn't include producing and distributing UFC, or any of their other costs (other sports, credit card fees, running the app, etc).

Disney+ is different, because the market is worldwide and they (eventually) own those rights for all their content.

I actually think they'd be better off bundling all their other content together. Include abc/fox together with disney/star wars/marvel/discovery and you have something for everyone.

The target market for streaming 15 seasons of greys anatomy is different than that for disney junior, but together with their tent pole ip that's a Netflix killer.


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Re: DIS - Disney
« Reply #111 on: March 22, 2019, 09:54:31 AM »
I agree that it's hard to see how ESPN+ works.  But ESPN has to have an OTT in the event that they lose too many cable subs and to compete for OTT sports subs against Dazn, Fubo, B/R Live etc.

There are a few sports rights that are global in nature. NBA and football (soccer) specifically Premier League, La Liga, and Champions League.  UFC and MMA are somewhat global as well like boxing.  Maybe cricket?