Amazon, the streaming giant, is reportedly in discussions with Walt Disney Co. about acquiring a minority stake in the ESPN streaming service being created by Disney+.
As per a tech news website, The Information, Disney and ESPN are still engaged in deciding an ideal price for the new service.
Disney possesses 80% of ESPN, while the remaining 20% is with the Rasmussen family, via Hearst Communication. Launched in the 1970s, ESPN has served as a cable network for the majority of its life, venturing into a web service just five years ago with ESPN+.
The report said that the new ESPN service is set to cost in the range of $20 to $35 a month, which is likely the most expensive streaming service in the US.
With sports streaming being a big market, Amazon’s proposed deal might give Disney a massive advantage. The Jeff Bezos-owned business is already present in the market, streaming cricket and other sports.
Disney attracted Prime Video’s interest at an important time, when it has been losing its streaming members for the past three quarters. The loss of 12.5 million paid members was the major factor behind the fall of Disney+ Hotstar during the third quarter, which finished on July 1, 2023. This fall in subscribers is the biggest ever recorded since the firm started revealing its paid subscriber numbers in April 2020.
The dip is because the network lost the right to stream the Indian Premier League, which is a huge draw in the Indian market for many subscribers. Reliance, owned by Mukesh Ambani, bought the streaming rights and streamed the tournament free of charge, further denting Disney+’s prospects.
Disney CEO Robert Iger said to CNBC that his company wants to hold on to ESPN and seek strategic partners to create a joint venture or purchase a stock in the sports network to assist in taking it directly to customers.