Key points:
- ESPN was once a powerful cash cow for Disney, can it be revitalized?
- The decision comes shortly after the company announced a paid Disney+ subscription
- Disney is positioned well to maximize the potential of an untouched betting industry
- What is Disney’s CSR Policy?
Some would argue that Disney’s (NYSE: DIS) bold positioning might be growing thinner amongst a range of rising competition. To maximize focused film revenue and keep the spirit of Disney alive, Disney+ was born. The platform has had mixed success in terms of consistent quarterly growth, with evident competition from Netflix and other services creating a heated, tight market.
Just last week, Disney announced an ad-based subscriber service in order to branch out and reach a whole new base of subscribers. Up until streaming services dominated viewing options, Disney’s ESPN was also a prominent cash cow for the company; but again, shifts in viewing trends have seen a gradual move towards online streaming.
Also Read: How To Buy Disney (NYSE:DIS) Shares
In an interesting bid to win back ESPN subscribers, Disney has outlined plans for a move into the sports betting world. The move also works in tandem with a legislative shift towards sports betting in the US. Legalization across the US has opened doors for companies like DraftKings to swoop in on an untouched market; now Disney wants to have a spin.
As well as owning a 6% state in the hugely popular Draftkings, Disney also has an exclusive partnership with Caesers Entertainment providing exclusive rights to provide sports betting odds to ESPN. Disney is yet to finalize any specifics of the betting endeavor, but investors can be sure that they will want to have a firm stake in the industry set to skyrocket – expected to rise to $39B by 2033. DIS stock is trading down by 1.8% this morning, down 16% YTD.
