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.

 

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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? 

 

Consider books by Ray Keating…

 

• The Pastor Stephen Grant thrillers and mysteries. Here are 18 books in the series now with the latest being Under the Golden Dome: A Pastor Stephen Grant Novel and For Better, For Worse: A Pastor Stephen Grant Short Story.

 

• Order The Weekly Economist II: 52 More Quick Reads to Help You Think Like an Economist. Kindle editions and paperbacks via Amazon here and signed books here. And don’t forget the first book in this growing series, i.e., The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist. Signed paperbacks at RayKeatingOnline.com or paperbacks, hardcovers and Kindle editions at Amazon.com.

 

• Cathedral: An Alliance of Saint Michael Novel. Signed paperbacks and/or paperbacks, hardcovers and the Kindle edition at Amazon. 

 

• The Lutheran Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement, inspiration and consolation from the Christian faith.

 

• Behind Enemy Lines: Conservative Communiques from Left-Wing New York  –  signed books  or at  Amazon.

 

•  Free Trade Rocks! 10 Points on International Trade Everyone Should Know is available at  Amazon  in paperback or for the Kindle edition, and signed books at  www.raykeatingonline.com. 

 

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

ESPN+ Price Hike Coming and What About NFL Sunday Ticket?

 by Ray Keating

News/Analysis

DisneyBizJournal.com

July 17, 2022

 

A price hike is coming for ESPN+ subscribers, according to a CNBC report, but not for those who subscribe via the Disney bundle, that is, Disney+, ESPN+ and Hulu packaged together.

CNBC noted that the monthly subscription price for ESPN+ will be going from $6.99 per month to $9.99 as of August 23. The annual cost for ESPN+ would go from $69.99 to $99.99. The monthly bundle price will remain at $13.99.

 

ESPN+ has an impressive line-up for sports fans, including NHL hockey games and and PGA Tour Live. 

 

For good measure, Disney remains in the running for NFL Sunday Ticket, which allows viewers to have access to all out-of-market Sunday afternoon games. Sunday Ticket always has been on DirecTV, but that deal is due to expire at the end of the 2022 NFL season. The NFL has made clear that it wants a streaming partner, and Disney/ESPN, Apple and Amazon reportedly are in the mix. Also, NFL Commissioner Roger Goodell has said that a decision on NFL Ticket will come before the fall. Rumors swirl that Apple is in front to win, at least for now, as speculation has been quite fluid around this topic for some time now.

 

In addition, the NFL will soon be launching its own NFL+ streaming service.

 

The latest numbers show that ESPN+ has 22.3 million subscribers.

 

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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, and 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?

 

Two great ways to order Cathedral: An Alliance of Saint Michael Novel, which is Ray’s sixteenth work of fiction, and the first in the Alliance of Saint Michael series. Signed paperbacks here and the Kindle edition here. 

 

Two great ways to order Ray Keating’s new nonfiction book – The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist. Signed paperbacks here, and paperbacks, hardcovers and Kindle editions here.  

 

Get all of Ray Keating Pastor Stephen Grant thrillers and mysteries in paperback and for the Kindle at Amazon.com and signed books at www.RayKeatingOnline.com. 

 

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

Disney Expands Its Relationship with the NFL

by Ray Keating

News

DisneyBizJournal.com

March 18, 2021 (Updated at 5:58 PM ET)

 

In a new deal, Disney has expanded its relationship with the NFL.

 

The NFL, as announced on March 18, has signed agreements with Disney (including ESPN, ABC and ESPN+), Fox, CBS, NBC, Amazon and NFL Network that cover national television coverage through the 2033 season. According to The New York Times, the complete package is worth about $110 billion.

 

ABC will pick up two Super Bowls. The NFL reported the Super Bowl breakdowns as follows: “From 2023 through 2033, three Super Bowls each will be hosted by CBS (2023, 2027, 2031), FOX (2024, 2028, 2032) and NBC (2025, 2029, 2033), while ABC (2026, 2030) will carry two.”

 

According to an ESPN report, ESPN keeps Monday Night Football, while adding six games each season, featuring three Monday night doubleheaders (with a game on ESPN followed by a game on ABC), a late-season Saturday doubleheader, and a Sunday morning game on ESPN+. Also, Monday Night Football will gain a “flex” option starting in week 12 of the season to ensure better games. And ESPN will continue to air the NFL draft.

 

Amazon pulled off a major gain by getting exclusive coverage of Thursday Night Football (with local broadcast coverage of teams playing) on Amazon Prime Video.

 

The NFL noted that the deals allow for the league to add a 17th game to its season, and a decision on that will be likely be made at the NFL owners’ meeting on March 30-31.

 

CBS and FOX keep Sunday afternoon coverage, and NBC Sunday Night Football.

 

Each network is able to simulcast games on their respective streaming services.

 

Disney CEO Bob Chapek was quoted: “This landmark agreement guarantees that ESPN's passionate fan base will continue to have access to the best the NFL has to offer. Bringing all the considerable and unique capabilities of The Walt Disney Company and ESPN to the table opens up so many opportunities across our industry-leading direct-to-consumer, broadcast, cable, linear, social and digital outlets. Special thanks to Roger Goodell and the NFL owners for continuing to embrace new ways to appeal to their fans, especially through increasingly important platforms like ESPN+.”

 

The current NFL television deals expire after the 2021 season for ESPN, and after the 2022 season for CBS, NBC and FOX. 

 

The NFL’s deal with DirecTV for the Sunday Ticket package also ends after 2022, but nothing new has been announced on that front. On the heels of today’s announcement, there are conflicting reports or rumors flying about Sunday Ticket, with some saying it will stay at DirecTV and others pointing to it going to ESPN+. Again, nothing has been announced on that as yet.

 

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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of the  Pastor Stephen Grant 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?

 

Keating has two new books out. Vatican Shadows: A Pastor Stephen Grant Novel is the 13ththriller/mystery in the Pastor Stephen Grant series. Get the paperback or Kindle edition at Amazon, or signed books at www.raykeatingonline.com. Past Lives: A Pastor Stephen Grant Short Story is the 14th book in the series. Get the paperback or Kindle edition at Amazon, or signed book at www.raykeatingonline.com. 

 

You also can order his book Behind Enemy Lines: Conservative Communiques from Left-Wing New York  from Amazon or signed books  at RayKeatingOnline.com. His other recent nonfiction book is Free Trade Rocks! 10 Points on International Trade Everyone Should Know. 

 

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Disney Streaming Marketing Powerful, But Why Wait on Disney+, ESPN+, Hulu Package?

by Ray Keating

Analysis

DisneyBizJournal.com

October 29, 2019

It’s hard to doubt the ability of The Walt Disney Company to market its products. And they’re certainly not shy about getting the word out in appealing ways about its Disney Plus streaming service that goes live on November 12. But an odd question or missing piece stands out during this Disney Plus rollout.

The New York Times published an article on October 27^th titled “Disney Is New to Streaming, but Its Marketing Is Unmatched.” The piece goes on to examine Disney’s ability to use various arms of its entertainment empire to cross-promote Disney Plus. And when you read the article reporting on the wide array of means Disney is and will be using to promote Disney Plus, one must be impressed. And if you’re a Disney Plus competitor – like Amazon, Netflix and Apple – you’re probably a bit nervous. Disney knows marketing in a way that the tech guys, at least at this point, don’t fully grasp.

But here’s the weird thing. Disney CEO Bob Iger, and the company has confirmed, that consumers will be able to purchase Disney Plus, ESPN Plus and Hulu as a monthly package for $12.99. That’s the same price as the standard Netflix package. Very cool, right? But this package is not available, even for pre-purchase, yet. Why make the customers who want to go all in on Disney-owned streaming – including me – wait to get this combo until November 12 when Disney Plus goes live? It’s a bit bewildering. Why not offer this combo while building up excitement during this marketing blitz?

Of course, no one outside Disney has full knowledge, and the Disney Plus, ESPN Plus, and Hulu package could go live for purchase at any moment (although on the Disney Plus sign up page, it is noted that the combo will not be available until November 12). Indeed, a surprise launch of this Disney combo could still be part of the marketing plan – making a big splash if an early sign-up were announced. Let’s hope so, as I’d like to have my Disney streaming services ready to go when November 12^th rolls around.

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of the Pastor Stephen Grant novels. He can be contacted at  raykeating@keatingreports.com.

CNBC Interview with Jon Favreau on Storytelling, “The Mandalorian” and Much More

by Ray Keating

News/Analysis

DisneyBizJournal.com

October 22, 2019

Jon Favreau is a talented director, actor, writer and entrepreneur. He did a fascinating interview with CNBC earlier today. He talks about technology and storytelling, filmmaking, entrepreneurship, his new Disney+ show “The Mandalorian,” and more. If you’re a consumer or creator, this is a fascinating interview. Check it out.

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of the Pastor Stephen Grant novels. He can be contacted at  raykeating@keatingreports.com.

Streaming Wars Going Hot – No Netflix Ads on Disney Networks

by Ray Keating

News

DisneyBizJournal.com

October 4, 2019

Ever since Disney announced that it would be launching its own streaming service, the company, unsurprisingly, become engaged in a kind of Cold War with the largest competitor, Netflix. So, we saw Marvel shows on Netflix, like “Daredevil,” become casualties, unfortunately. But now, based on a report from The Wall Street Journal, it’s safe to say that the war is going hot as the November 12 launch date for Disney+ fast approaches.

Today, the Journal reported that The Walt Disney Company was banning advertising from Netflix, Inc. across Disney-owned television networks. According to the report, Disney had decided to ban ads from competing streaming services earlier this year, but then reversed course and came to agreements with everyone – except Netflix.

The Journal noted: “Netflix spent $99.2 million on U.S. TV ads during 2018, with some 13% going to Disney-owned entertainment networks, according to estimates from ad-measurement firm iSpot.TV.”

Toss Amazon, Apple, Comcast, AT&T and others into the streaming providers mix, and let the war rage – all to the eventual benefit of consumers who will decide who succeeds and who fails.

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of the Pastor Stephen Grant novels. He can be contacted at  raykeating@keatingreports.com.

The Disney Streaming Losses Non-Story

by Ray Keating

News/Analysis

DisneyBizJournal.com

January 23, 2019

I swing back and forth between fascination and frustration when it comes to the number of non-story news stories that spew forth on the Internet. But it’s particularly frustrating when non-story stories are presented in serious ways, or by supposedly serious sources.

The latest non-story stories to capture my attention were a string of articles focused on losses suffered by The Walt Disney Company tied to its streaming services. For example, a CNBC article carried the titled “Disney is already losing over $1 billion in streaming, and its Netflix competitor has yet to launch.” Similarly, a piece at The Motley Fool proclaimed “Disney's Streaming Losses Are Piling Up Already.” The stories are based on an SEC filing.

Now, considering that Disney has been making investments to start up the forthcoming Disney+ service – the company’s big streaming effort to challenge Netflix and Amazon – and therefore, with no revenues obviously coming in the door yet, losses at this point are inevitable. Factor in the investments made in BAMtech, which is and will be powering ESPN+ and Disney+, losses again amount to a firm-grasp-of-the-obvious situation. For good measure, Hulu is playing catch up in the U.S. and being positioned for expansion in Europe.

So, the real story here is simply getting a better handle on the numbers – roughly $1 billion, according to the filing – at this point in time and development. It’s not a story warranting over-the-top headlines about losses, or hyperbolic content about trouble and challenges in streaming. 

Once all of Disney’s streaming services – Disney+, ESPN+ and Hulu – are fully operating in the Disney universe, then we can talk seriously about growth, revenue and profitability. For now, the Disney streaming story is still about investments in content and technology, pricing, and strategy for launching and bringing about profitability. 

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of the Pastor Stephen Grant novels, with the three latest books being Reagan Country: A Pastor Stephen Grant Novel, Heroes and Villains: A Pastor Stephen Grant Short Storyand Shifting Sands: A Pastor Stephen Grant Short Story. He can be contacted at raykeating@keatingreports.com.