Disney CEO Sees ESPN-Branded OTT Service Start in 2017
Disney CEO Bob Iger won’t commit to a specific date or pricing model for the launch of the ESPN-branded, direct-to-consumer subscription streaming service that it plans with partner BAMTech for live sports (see 1608100024), he said on an earnings call.…
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"The goal is to launch the platform sometime in 2017.” Disney is “very excited about what the potential of this is long term, both for the company and for third parties who can use the product, because the technological side of it is so strong in ways that are value-enhancing for them as well,” Iger said Tuesday. After a visit with BAMTech, he saw "the potential is for them to use data to increase or to generate great revenue from advertising,” Iger said. That’s “something that we don't have today, in part because a lot of our distribution comes through third parties, so we don't get access to that information,” he said. As for the content that will be available on the ESPN-branded service when it launches, BAMTech already licenses “a number of digital rights to sporting events, and we have licensed at ESPN a number of them” as well, Iger said. “We bring to the table a fair amount of rights that can be added to the rights that they have.” Disney spent $1 billion last summer to buy 33 percent of BAMTech, Iger noted: “Our strong sense as partners and as part owners is that we're going to continue to go out on behalf of the entity and license more content to that entity.” The inaugural content slate of the ESPN-branded service will “start off with, I think, a wide array of pretty attractive sports that come from both what they've licensed and what we've licensed,” Iger said.