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Home Market Research Market Analysis

Disney Plays More Sports

by TheAdviserMagazine
3 months ago
in Market Analysis
Reading Time: 2 mins read
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Disney Plays More Sports
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Indeed, sports is the big headline coming out of Disney’s latest earnings report, and for good reason: Live sports programming (such as WWE Premium Live Events) amasses captive audiences that advertisers crave. Disney is prioritizing programming with the highest ad revenue potential.

ESPN (Stand-Alone App) To Launch Early

Expect the earlier-than-planned launch of Disney’s ESPN streaming service to give Disney’s direct-to-consumer business a notable lift in revenue. Disney is racing full force to sign sports rights with the company’s NFL and WWE announcements. This is yet another signal that the latest battle in the streaming war is all about live sports programming. But as streaming companies jockey for sports rights, it’s further fragmenting where to watch what — exacerbating user confusion. The NFL now has streaming deals that include Netflix, Prime Video, Disney, and YouTube.

Farewell, Subscriber Trends

Unsurprisingly, Disney is once again following Netflix’s lead by no longer reporting streaming subscriber numbers, starting in 2026. While the company will continue to report financial numbers, subscriber growth is a key comparative indicator on user behavior to which the markets will no longer have access. While a total revenue metric is the ultimate indicator of company growth, without visibility into subscriber trends, it’s difficult to determine churn rates.

The Demise Of Legacy TV Is Imminent

Disney’s profitable growth in its streaming business starts to cement this segment as a core business driver for Disney. What’s not growing is Disney’s linear business, showing year-over-year revenue losses. This trend will only continue as more and more people cut or shave their linear subscriptions in favor of streaming. As more exclusive streaming sports deals get announced (and they will), this accelerates the shift in the balance of power away from linear TV networks.

Goodbye, Hulu App?

While Disney CEO Bob Iger touted the company’s plan to completely unify Disney+ and Hulu in 2026 as one that’s consumer-led, make no mistake, a “one-app experience” is first and foremost a cost-savings measure — reducing a number of operational redundancies and helping to make Disney’s streaming business more profitable. This is just the beginning of what will be more consolidation in the streaming market as scale becomes the number one driver to lure big-brand advertisers. Whether less choice in streaming platforms ends up a good or bad thing for consumers is yet to be determined. It will all come down to the quality of content and the degree of price savings.



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