On Wednesday, Walt Disney Co.’s DIS Disney+ announced its expansion in sports content via the integration of ESPN into its platform.
What Happened: Subscribers to the Disney+ bundle, which includes Hulu and ESPN+, will now be able to access all their content in one place.
Standalone Disney+ subscribers will also benefit by gaining access to ESPN+ content, primarily featuring college football and basketball, along with select premium live events.
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This integration is a step towards launching ESPN’s direct-to-consumer service Flagship, which is expected in Fall 2025, the company stated in a blog post.
Standalone Disney+ users will have access to live ESPN events, including five NBA games on Christmas Day and the opening day of the Australian Open.
Special broadcasts like the “Monday Night Football” alternate featuring The Simpsons and the “Dunk the Halls” NBA broadcast are already scheduled for Disney+.
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Why It Matters: In September, Macquarie analyst Tim Nollen said, the launch of ESPN’s direct-to-consumer platform could accelerate cord-cutting trends, which will impact traditional cable revenues.
Earlier this month, it was reported that PENN Entertainment has been closely monitoring ESPN’s integration. The company sees potential growth opportunities in 2025, partly due to ESPN’s expanded reach and product enhancements.
Disney’s fourth-quarter earnings report highlighted a 6% increase in revenue, reaching $22.57 billion, slightly surpassing the projected $22.35 billion from analysts.
Price Action: Disney’s stock edged up by 0.46% on Wednesday, closing at $116.99, with a further 0.060% increase in after-hours trading. So far this year, Disney shares have risen 28.97%, slightly trailing the Nasdaq 100 index, which has gained 29.91% during the same timeframe, as per Benzinga Pro data.
Disney has a consensus price target of $121.41 from 30 analysts, with the highest set at $140 by BofA Securities on Nov. 15. The latest ratings from Needham, Evercore ISI Group, and Needham average $131.33, indicating a potential 12.19% upside.
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