When Disney finally switches to its ESPN live TV channel in the consumer version, the resulting product will be a “different offering” from ESPN+, Disney CFO Christine McCarthy said at an investor conference on Wednesday.
“ESPN+ is a linear fill for ESPN today, not a replacement, so it makes no sense to simply transfer all of those linear rights, including the cost of the rights, to ESPN+ at the current price level,” McCarthy told MoffettNathanson. At the Media and Communication Summit.
Disney has been talking about the shift from direct-to-consumer linear programming for years, and sports will likely be the first industry to make the transition. When soliciting the company’s last quarter results, Disney CEO Bob Chapek also praised the future of ESPN DTC, but noted that the earlier shift in hesitation is due to TV channels remaining “cash generators”.
ESPN+ currently costs $6.99 a month and is available with Hulu and Disney+, with subscriptions starting at $13.99 a month. McCarthy said Disney could continue to offer ESPN+ as a “niche” but as an additional service to DTC’s esports offering, though the company’s plans are still unclear.
McCarthy also cleared up confusion over a possible slowdown in customer growth in the second half of the year. Fiscal 2022 was always intended to be delayed, McCarthy said, but first and second quarter subscriber growth was stronger than expected. This means that the difference between subscribers in the first and second half of the year will not be that big now.
“We still expect a strong second half of customers,” McCarthy said.
When asked why Disney isn’t just focusing on its streaming franchises rather than spending on other content, McCarthy said the company is investing in storytelling and sees growth potential there. Still, he noted that general entertainment is a “bonus” for big brands.
“We have the potential to grow across all of these brands, but we have the most potential for general entertainment,” McCarthy said.
As for plans to go to Disney theaters, McCarthy said the company believes moviegoers will continue to see superhero movies and, to a lesser extent, adult dramas. However, the company saw that it was possible to develop a franchise through broadcasting, which proved successful. Mandalorian.
“This is not just a one size fits all,” McCarthy said.
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
