Walt Disney Co. DIS CEO Bob Iger believes that ESPN gives the company a significant edge over streaming rivals like Netflix Inc. NFLX and Amazon.com, Inc.'s AMZN Prime Video.
What Happened: During Disney's first-quarter earnings call, Iger highlighted ESPN's year-round, 24/7 sports coverage as a key differentiator.
Other streamers are getting into the sports game Disney has the advantage of a menu of sports programming that no one else has, Iger said. "We're on 365 days a year, 24 hours a day. So, if you're a sports fan, it's not about one day of boxing or one day of football, it's about sports every single day of the year."
He also addressed Disney's broader strategy of making ESPN available across multiple platforms, including skinny bundles and a dedicated flagship streaming service set to launch later this year.
Some will want to consume ESPN as part of a linear channel, others will migrate in the direction of skinnier bundles or sports bundles, he said, adding, "We plan to take advantage" of all of these opportunities.
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Why It Matters: Disney’s first-quarter earnings report revealed a 5% year-on-year revenue growth to $24.70 billion, surpassing analyst expectations.
However, Disney experienced a decline of 0.7 million in Disney+ Core paid subscribers, ending the quarter with 125 million subscribers. Sports revenue, primarily driven by ESPN, stayed the same compared to last year, totaling $4.85 billion.
Last month, Netflix posted fourth-quarter revenue of $10.25 billion, a 16% increase from the previous year.
At the time, Gary Black highlighted the Mike Tyson–Jake Paul fight and Beyoncé’s Christmas show as key drivers for Netflix's 18.9 million net subscriber gains, exceeding the expected 9.2 million.
Amazon is also reportedly shifting its Prime Video focus toward live sports, investing heavily in sports content to achieve profitability by the end of 2025. The company is scheduled to report its earnings on Feb. 6.
Price Action: Disney’s stock fell by 0.22% in after-hours trading, ending at $110.30. Earlier on Wednesday, it closed at $110.54, reflecting a 2.44% drop, according to Benzinga Pro data.
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