ESPN Multi-Sport Video Streaming Service to
Debut in Early 2018New Disney-Branded Direct-to-Consumer
Streaming Service to Launch in 2019
The Walt Disney Company (NYSE: DIS) today announced that it has
agreed to acquire majority ownership of BAMTech, LLC and will
launch its ESPN-branded multi-sport video streaming service in
early 2018, followed by a new Disney-branded direct-to-consumer
streaming service in 2019.
Under terms of the transaction, Disney will pay $1.58 billion to
acquire an additional 42% stake in BAMTech—a global leader in
direct-to-consumer streaming technology and marketing services,
data analytics, and commerce management—from MLBAM, the interactive
media and Internet company of Major League Baseball. Disney
previously acquired a 33% stake in BAMTech under an agreement that
included an option to acquire a majority stake over several years,
and today’s announcement marks an acceleration of that timetable
for controlling ownership.
“The media landscape is increasingly defined by direct
relationships between content creators and consumers, and our
control of BAMTech’s full array of innovative technology will give
us the power to forge those connections, along with the flexibility
to quickly adapt to shifts in the market,” said Robert A. Iger,
Chairman and Chief Executive Officer, The Walt Disney
Company. “This acquisition and the launch of our
direct-to-consumer services mark an entirely new growth strategy
for the Company, one that takes advantage of the incredible
opportunity that changing technology provides us to leverage the
strength of our great brands.”
The ESPN-branded multi-sport service will offer a robust array
of sports programming, featuring approximately 10,000 live
regional, national, and international games and events a year,
including Major League Baseball, National Hockey League, Major
League Soccer, Grand Slam tennis, and college sports. Individual
sport packages will also be available for purchase, including
MLB.TV, NHL.TV and MLS Live.
The new service will be accessed through an enhanced version of
the current ESPN app. In addition to the multi-sport service, the
ESPN app will include the news, highlights, and scores that fans
enjoy today. Consumers who are pay TV subscribers will also be able
to access the ESPN television networks in the same app on an
authenticated basis. For many sports fans, this app will become the
premier digital destination for all their sports content.
The new Disney-branded service will become the exclusive home in
the U.S. for subscription-video-on-demand viewing of the newest
live action and animated movies from Disney and Pixar, beginning
with the 2019 theatrical slate, which includes Toy Story 4, the
sequel to Frozen, and The Lion King from Disney live-action, along
with other highly anticipated movies. Disney will also make a
significant investment in an annual slate of original movies, TV
shows, short-form content and other Disney-branded exclusives for
the service. Additionally, the service will feature a vast
collection of library content, including Disney and Pixar movies
and Disney Channel, Disney Junior and Disney XD television
programming.
With this strategic shift, Disney will end its distribution
agreement with Netflix for subscription streaming of new releases,
beginning with the 2019 calendar year theatrical slate.
Plans are for the Disney and ESPN streaming services to be
available for purchase directly from Disney and ESPN, in app
stores, and from authorized MVPDs.
“We’re very proud of the content distribution innovations driven
by MLBAM and BAMTech over the past 15 years,” said Commissioner of
Baseball Robert D. Manfred, Jr. “Major League Baseball will
continue to work with Disney and ESPN to further grow BAMTech as it
breaks new ground in technologies for consumers to access
entertainment and sports programming.”
“This is an exciting validation of our team, its achievements
and the customer-centric platform it’s built,” said Michael Paull,
Chief Executive Officer of BAMTech. “Yet, we’ve merely scratched
the surface of what can be accomplished in a future where we
combine Disney and ESPN’s world-class IP and our proprietary
direct-to-consumer ecosystem.”
The BAMTech transaction is subject to regulatory approval, and
upon closing, Mr. Iger will serve as Chairman of the BAMTech Board.
MLBAM and NHL will continue as minority stakeholders in BAMTech,
with seats on the Board. Mr. Paull will report to Kevin A. Mayer,
Senior Executive Vice President and Chief Strategy Officer, The
Walt Disney Company. John Skipper, ESPN President and Co-Chairman,
Disney Media Networks, will manage the new ESPN-branded
service.
The BAMTech transaction is expected to be modestly dilutive to
Disney’s earnings per share for two years. Additional dilution as
the Company implements its direct-to-consumer strategy will be
dependent on the Company’s licensing approach and the level of
investment in original programming.
About BAMTech:
BAMTech’s technology services give consumers the freedom to
access content on their terms across any connected device, time, or
location. By driving technological innovations, BAMTech aspires to
become the leading distributor of direct-to-consumer live
entertainment and the premier provider of video streaming solutions
globally. It successfully designs, develops, and delivers
direct-to-consumer streaming services for a growing roster of
sports, news, and entertainment partners including the NHL, MLB,
PGA TOUR, WWE Network, and Riot Games/League of Legends. Through a
partnership with Discovery Networks, BAMTech Europe, headquartered
in Amsterdam, will provide technology services to a broad set of
clients across the continent, including Eurosport's digital
products.
About The Walt Disney
Company:
The Walt Disney Company, together with its subsidiaries and
affiliates, is a leading diversified international entertainment
and media enterprise with the following business segments: media
networks, parks and resorts, studio entertainment, and consumer
products and interactive media. Disney is a Dow 30 company and had
annual revenue of $55.6 billion in its Fiscal Year 2016.
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version on businesswire.com: http://www.businesswire.com/news/home/20170808006428/en/
The Walt Disney CompanyZenia Muchazenia.mucha@disney.com(818)
560-5300orDavid Jeffersondavid.j.jefferson@disney.com(818)
560-4832
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