Disney has confirmed an ESPN tile will be added on its streaming service Disney+ on 4th December, giving all subscribers access to select programming and live games.
The move, which was first touted in May, will also provide full access to ESPN+ content within the Disney+ app to customers subscribed to Disney+, Hulu and ESPN+ as part of its bundle offering.
The addition of the ESPN tile comes ahead of the launch of ESPN’s ‘flagship’ streaming service in the autumn of 2025, which will include the entirety of the network’s live programming.
Disney’s fiscal fourth quarter results showed that Disney+ added 4.4 million subscribers over the previous quarter, to a total of 122.7 million. The company’s entertainment direct-to-consumer (DTC) division, which consists of Disney+ and Hulu, reported a US$253 million profit from the previous year. Combined with ESPN+, total DTC revenue increased by 13 per cent year-on-year (YoY), with the business making an operating profit of US$321 million.
The company’s sports unit, which includes ESPN and Star India, recorded revenues of US$3.91 billion for the quarter, which was flat compared to last year. Its operating income fell five per cent YoY to US$929 million, which was partially attributed to higher programming and production costs caused by an increase in college football rights. In positive news, the company did see a seven per cent YoY rise in domestic ESPN advertising revenue.
As part of its outlook for the next fiscal financial year, Disney said it expected operating income for its sports division to decrease about ten per cent, when adjusted for the impact of merging its Star India business with Reliance Industries.
The projection was made shortly after the companies jointly announced the completion of the merger, which values the joint venture (JV) at US$8.5 billion. The transaction was approved by India’s antitrust regulator in August, following reported concerns about the company’s potential hold over broadcast cricket rights.
Disney is set to retain a 37 per cent stake in the JV, with Reliance to own 16 per cent of shares and Viacom18, which is majority owned by Reliance, to own the remaining 47 per cent. Reliance will control the JV, with Nita Ambani confirmed as its chairperson. It will consist of over 100 TV channels, while Viacom18’s streaming platform JioCinema and Disney+ Hotstar will hold a combined subscription base of over 50 million.
The new company will consist of three divisions focused on entertainment, digital, and sports respectively. Sanjog Gupta, who currently heads Disney Star’s sports operations, will lead the merged company’s sports unit.
The announcement was made after Star India reported a net loss of I₹ 12,548 crore (US$1.49 billion) for the 2024 financial year. The company blamed its weak financial performance to a provision of I₹ 12,319 crore (US$1.46 billion) for an “onerous contract” related to its media rights with the International Cricket Council (ICC).
The company’s deal with the ICC is reportedly worth as much as US$3 billion for all ICC tournaments between 2024 and 2027. However, a US$1.4 billion deal to sub-license the rights to Zee Entertainment eventually collapsed, with Disney Star now seeking US$940 million in damages. Reports in August subsequently emerged that Disney Star has requested to renegotiate its deal with the ICC.
By SportsProMedia
