Disney Talking with Amazon to Partner in ESPN Streaming Service? Really?

 by Ray Keating

Analysis/Commentary

DisneyBizJournal.com

August 25, 2023

 

Remember Borders? I loved that bookstore. But alas, Borders shut its doors in 2011.

 

Why am I bringing up a long-closed bookstore? Well, Borders was in trouble a decade before it shut down. In 2001, Borders struck a deal with Amazon.com for Amazon to run its website. That’s right, Borders handed over its online operations to its top rival, who also happened to be the company leading the charge in transforming how books were bought and read.

Borders’ ill-fated decision in 2001 – which was reversed in 2007 but by then it was too late – popped into my head when I read reports (with The Information having the original report) that Disney was in preliminary negotiations with Amazon as a potential streaming partner for ESPN.

 

Wait… Didn’t Disney launch the Disney+ streaming service to great praise in November 2019? And earlier in 2019, Disney gained operational control of Hulu. And didn’t Disney launch ESPN+ in 2018? 

 

Given all of this, isn’t Disney supposed to be a streaming powerhouse? And how many times has CEO Bob Iger said that Disney loves live sports? 

 

Yes, there’s been talk about Disney seeking a strategic partner for a full streaming version of ESPN, that is, offering full ESPN content. Iger confirmed that in a CNBC interview, without offering specifics. MLB, the NBA, and the NFL have been mentioned, with rumors including a partner taking a minority stake in the ESPN full streaming venture. There’s a logic when talking about partnering with those leagues.

 

But Amazon runs the Prime Video streaming service. And isn’t that a major competitor with Disney’s streaming services? One report said, “Amazon Prime Video has 117 million subscribers worldwide in 2023 and is expected to surpass 250 million in 2027.” The most recent tally of Disney+ subscribers stood at 146 million.

 

Hmmm.

 

A SeekingAlpha.com story put forth the following regarding Amazon possibly taking a share of ESPN, and being involved with setting up and running the new ESPN streaming service: “That’s a move that would not only clear up ESPN's future path somewhat but also signal a change in sports’ competitive dynamics, with Amazon making increasing moves into sports streaming itself.”

 

Um. I’m not sure this would clear up anything regarding ESPN streaming. And am I the only one getting a little Borders-Amazon vibe here regarding Disney getting in bed with Amazon for its ESPN streaming?

 

Clearing things up? Hardly. Raising more questions? Definitely.

 

__________

 

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.

 

The views expressed here are his own – after all, no one else should be held responsible for this stuff, right? 

 

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Also, check out Ray’s podcasts – the Daily Dose of Disney, Free Enterprise in Three Minutes, and the PRESS CLUB C Podcast.