Disney Chair & CEO Bob Iger said the company plans for the ESPN+ app to eventually "be the app that people experience ESPN on," but Disney will "manage the migration of that very carefully" due to the existing cable bundle business, according to Dade Hayes of DEADLINE.com. Iger, speaking yesterday at the Morgan Stanley Technology, Media & Telecom Conference, said, "Right now we have a business -- the multi-channel business -- that is serving our company quite well." He noted the launch of ESPN+ this spring "will signify the beginning of a key cycle for the company." Iger said that disruptions to the TV ecosystem have had a "faster and a more profound impact than we ever expected.” He then said that the rollout of Disney's two OTT apps will enable the company to "participate in the very business that is doing the disrupting." The launch of ESPN+, "expected in late March or early April, offers a version of the sports network for $4.99 a month." Iger said the price was “reasonable” given the less-than-platinum offerings at launch. He added that plans "call for tiered pricing as OTT rights to top-tier sports are solidified." Iger: "You’ll see that price rise for the augmented service. We have the opportunity to enable customers to buy seasons, teams, weekends.” Iger added that ESPN+ will also "enable sales" of MLB and NHL out-of-market packages (DEADLINE.com, 2/26).
