ESPN, facing headwinds, might still reverse its slide

FILE - This Sept. 16, 2013, file photo shows the ESPN logo prior to an NFL football game between the Cincinnati Bengals and the Pittsburgh Steelers, in Cincinnati. ESPN has been a major profit center for Disney, but it's shedding cable subscribers in droves. (AP Photo/David Kohl, File)

ESPN faces some major headwinds - but Disney still has a chance to reverse its slide

NEW YORK — Two years ago, Disney CEO Bob Iger acknowledged that ESPN, long a major profit center for Disney, was shedding subscribers. On Tuesday, Disney announced a plan intended to start bolstering ESPN's fortunes.

For starters, the sports service will now launch a streaming sports service in early 2018, Disney said. The service, to be delivered through the ESPN app, will offer baseball, hockey, soccer and tennis matches, as well as college sports.

Notably, ESPN will not be streaming pro football or basketball, at least initially.

Disney is also buying a majority stake in streaming service BAMTech for $1.6 billion. That ups Disney's ownership to 75 percent, from 33 percent. The service was started by Major League Baseball, which remains a minority owner along with the National Hockey League.

Disney had always described its BAMTech investment as key to developing new streaming services for ESPN and other parts of Disney.

Investors have been concerned about ESPN's prospects for a while. Their big fear: ESPN might be facing long-term decline as more people quit cable or choose cheaper bundles without sports.

Over time, that could kick off a death spiral in which fewer subscribers mean less money for ESPN to use in bidding for sports rights; fewer games to air would then give more subscribers reason to quit.

But optimists believe ESPN has the clout to strike better deals with cable and satellite-TV companies that would ensure the channel reached more households and raise the price Disney gets from cable distributors. That could mean a pricier cable bundle for consumers, too.

Related News

The Latest: Head of world track attends Manchester event

May 26, 2017

Police lined the street as an athletic event went ahead in Manchester four days after a suicide bomber targeted the city's arena

Coutinho stars as Liverpool beats Everton 3-1 in EPL derby

Apr 1, 2017

Philippe Coutinho illuminated a feisty Merseyside derby with a stunning individual goal to inspire Liverpool to a 3-1 win over Everton in the Premier League

Major League Baseball Capsules

May 9, 2017

Baseball Capsules

You may also like these

The Latest: Head of world track attends Manchester event

May 26, 2017

Police lined the street as an athletic event went ahead in Manchester four days after a suicide bomber targeted the city's arena

Coutinho stars as Liverpool beats Everton 3-1 in EPL derby

Apr 1, 2017

Philippe Coutinho illuminated a feisty Merseyside derby with a stunning individual goal to inspire Liverpool to a 3-1 win over Everton in the Premier League

Major League Baseball Capsules

May 9, 2017

Baseball Capsules

We’re all about evolving the love of sports. With The Sport Ship, you can up your game and receive all the latest news about the sports world before anyone else.

Contact us: sales@thesportship.com

Automobile RacingBaseballBaseballBasketballBullfightingEquestrianFootballHockeyHorse RacingMartial ArtsMotorboat RacingWrestlingMen's SportsWomen's Sports Press