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Disney's Iger Reveals ESPN+ Details, Including Its $4.99 Monthly Cost

Cricket is one of the sports Iger mentioned will be available to watch on ESPN+GETTY IMAGES

Disney Chair & CEO Bob Iger yesterday revealed some details of the upcoming ESPN+ streaming service, noting it will cost $4.99/month and "will include an array of live programming that is not available -- live sports events -- on the current channels and that's by the thousands." Iger, appearing on CNBC after the markets closed yesterday to discuss the company's latest earnings, also noted "sometime in the spring we're going to launch a completely revised and basically redesigned ESPN app" with scores and highlights featuring "better audio, better video quality, better user interface as well as more customization and personalization." Iger: "In addition to that you'll be able to watch on the same app streamed live ESPN networks, provided you are a subscriber to one of the services, traditional or nontraditional" ("Closing Bell," CNBC, 2/6). In N.Y., Brooks Barnes noted when the conversation turned to ESPN+, Iger "emphasized that users would be able to personalize their experience." ESPN+ will "exist inside the ESPN app, which is being rebuilt" (N.Y. TIMES, 2/7). CNN MONEY's Jill Disis noted Iger "mentioned baseball, soccer, hockey, boxing, golf, rugby and cricket as examples" of what will be available on ESPN+. Iger also said that the app will "carry ESPN's popular '30 for 30' series." He "declined to provide a specific date for the launch." Investors are "surely hoping" that ESPN+ will "inject some much-needed life into a network that has struggled" (MONEY.CNN.com, 2/6). Gerber Kawasaki Wealth & Investment Management President & CEO Ross Gerber tweeted, "Love this price point. Moving in the right direction." World Soccer Talk: "According to our source, it's very unlikely that ESPN Plus will launch in time for the MLS season. It's more likely to be available in late April or early May."

IS THIS WHAT THE PEOPLE WANT? RECODE's Peter Kafka wrote ESPN+ will be a "tough sell." The service will have "none of the stuff you can see on any of ESPN’s cable channels." That stuff still "requires a subscription to ESPN." Instead, ESPN+ will have content that ESPN "doesn’t think is valuable enough to put on regular TV -- or even on ESPN Watch." Things like "small college sports" and "tennis tournaments" (RECODE.net, 2/6). But Edward Jones Senior Analyst Robin Diedrich said the cost for ESPN+ is a "price point that is very appealing." Diedrich: "A fan, I think, would be willing to make an incremental purchase for that type of product" (L.A. TIMES, 2/7). BTIG media analyst Rich Greenfield said that ESPN+ "seems more like a niche offering because it won't have any content from the ESPN channel." Greenfield: "Our fear is that they're just not all in on streaming. If they want to be successful, they have to bring all their content to streaming." RBC Capital Markets analyst Steven Cahall is "more positive about the prospects." He said, "Disney is likely to be a global player in streaming in the coming years given the breadth and depth of its content" (AP, 2/6). 

DOWN, BUT NOT OUT: The N.Y. TIMES' Barnes notes Disney yesterday "reported mixed quarterly earnings" as losses associated with the "development of the planned streaming services ... hurt Disney’s cable television division," where operating income fell 1% to $858M. Disney’s movie studio also "reported weaker results." Analysts, however, were "focused on Disney’s various growth plans during a post-earnings conference call." Iger also made "no mention about the future management of ESPN, which has been operating under temporary leadership after the surprise resignation of John Skipper, who stepped down as president last month, citing substance addiction" (N.Y. TIMES, 2/7). In L.A., Daniel Miller notes Disney's closely watched media networks unit saw its "operating income decline year-over-year for the seventh consecutive quarter." The unit -- whose crown jewel is ESPN -- reported operating income of $1.2B, a "drop of 12% from a year earlier." Disney attributed the 1% drop in its cable TV division, in part, to "declines at ESPN, which experienced a loss in subscribers" (L.A. TIMES, 2/7). The AP's Mae Anderson noted the ESPN decline "resulted from lower ad revenue, though that was partly offset by growth in fees from cable distributors and lower programming costs" (AP, 2/6). AD AGE's Anthony Crupi noted Disney's results "beat Wall Street's expectations, although revenue came up short" (ADAGE.com, 2/6).

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